Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Jan. 09, 2014 | Jun. 28, 2013 |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Trading Symbol | 'cms | ' | ' |
Entity Registrant Name | 'CMS Energy Corporation | ' | ' |
Entity Central Index Key | '0000811156 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $7,253 |
Entity Common Stock, Shares Outstanding | ' | 267,207,862 | ' |
Consumers Energy Company [Member] | ' | ' | ' |
Entity Registrant Name | 'Consumers Energy Company | ' | ' |
Entity Central Index Key | '0000201533 | ' | ' |
Entity Filer Category | 'Non-accelerated Filer | ' | ' |
Consolidated_Statements_Of_Inc
Consolidated Statements Of Income (USD $) | 12 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Operating Revenue | $6,566 | $6,253 | $6,503 | |||
Operating Expenses | ' | ' | ' | |||
Fuel for electric generation | 621 | 598 | 636 | |||
Purchased and interchange power | 1,387 | 1,364 | 1,282 | |||
Purchased power - related parties | 90 | 87 | 82 | |||
Cost of gas sold | 1,228 | 1,150 | 1,512 | |||
Maintenance and other operating expenses | 1,236 | 1,224 | 1,237 | |||
Depreciation and amortization | 628 | 598 | 546 | |||
General taxes | 234 | 229 | 205 | |||
Total operating expenses | 5,424 | 5,250 | 5,500 | |||
Operating Income | 1,142 | 1,003 | 1,003 | |||
Other Income (Expense) | ' | ' | ' | |||
Interest income | 3 | 5 | 9 | |||
Allowance for equity funds used during construction | 6 | 8 | 6 | |||
Income from equity method investees | 13 | [1] | 17 | [1] | 9 | [1] |
Other income | 10 | 11 | 16 | |||
Other expense | -20 | -33 | -22 | |||
Total other income (expense) | 12 | 8 | 18 | |||
Interest Charges | ' | ' | ' | |||
Interest on long-term debt | 385 | 372 | 396 | |||
Other interest expense | 16 | 21 | 23 | |||
Allowance for borrowed funds used during construction | -3 | -4 | -4 | |||
Total interest charges | 398 | 389 | 415 | |||
Income Before Income Taxes | 756 | 622 | 606 | |||
Income Tax Expense | 302 | 245 | 191 | |||
Income From Continuing Operations | 454 | 377 | 415 | |||
Income From Discontinued Operations, Net | ' | 7 | [2] | 2 | [3] | |
Net Income | 454 | 384 | 417 | |||
Income Attributable to Noncontrolling Interests | 2 | 2 | 2 | |||
Net Income Attributable to Common Stockholders | ' | ' | ' | |||
Amounts attributable to continuing operations | 452 | 375 | 413 | |||
Amounts attributable to discontinued operations | ' | 7 | 2 | |||
Net Income Available to Common Stockholders | 452 | 382 | 415 | |||
Income Attributable to Noncontrolling Interests | ' | ' | ' | |||
Amounts attributable to continuing operations | 2 | 2 | 2 | |||
Amounts attributable to discontinued operations | ' | ' | ' | |||
Income attributable to noncontrolling interests | 2 | 2 | 2 | |||
Basic Earnings Per Average Common Share | ' | ' | ' | |||
Basic earnings from continuing operations | $1.71 | $1.43 | $1.65 | |||
Basic earnings from discontinued operations | ' | $0.03 | $0.01 | |||
Basic earnings attributable to common stock | $1.71 | $1.46 | $1.66 | |||
Diluted Earnings Per Average Common Share | ' | ' | ' | |||
Diluted earnings from continuing operations | $1.66 | $1.39 | $1.57 | |||
Diluted earnings from discontinued operations | ' | $0.03 | $0.01 | |||
Diluted earnings attributable to common stock | $1.66 | $1.42 | $1.58 | |||
Dividends Declared Per Common Share | $1.02 | $0.96 | $0.84 | |||
Consumers Energy Company [Member] | ' | ' | ' | |||
Operating Revenue | 6,321 | 6,013 | 6,253 | |||
Operating Expenses | ' | ' | ' | |||
Fuel for electric generation | 541 | 517 | 559 | |||
Purchased and interchange power | 1,361 | 1,339 | 1,267 | |||
Purchased power - related parties | 89 | 86 | 81 | |||
Cost of gas sold | 1,187 | 1,110 | 1,438 | |||
Maintenance and other operating expenses | 1,174 | 1,162 | 1,175 | |||
Depreciation and amortization | 622 | 592 | 542 | |||
General taxes | 229 | 223 | 206 | |||
Total operating expenses | 5,203 | 5,029 | 5,268 | |||
Operating Income | 1,118 | 984 | 985 | |||
Other Income (Expense) | ' | ' | ' | |||
Interest income | 2 | 4 | 7 | |||
Interest and dividend income - related parties | 1 | 1 | 2 | |||
Allowance for equity funds used during construction | 6 | 8 | 6 | |||
Other income | 14 | 16 | 19 | |||
Other expense | -16 | -33 | -20 | |||
Total other income (expense) | 7 | -4 | 14 | |||
Interest Charges | ' | ' | ' | |||
Interest on long-term debt | 237 | 232 | 251 | |||
Other interest expense | 11 | 16 | 18 | |||
Allowance for borrowed funds used during construction | -3 | -4 | -4 | |||
Total interest charges | 245 | 244 | 265 | |||
Income Before Income Taxes | 880 | 736 | 734 | |||
Income Tax Expense | 346 | 297 | 267 | |||
Net Income | 534 | 439 | 467 | |||
Preferred Stock Dividends and Distribution | 2 | 2 | 2 | |||
Net Income Attributable to Common Stockholders | ' | ' | ' | |||
Net Income Available to Common Stockholders | $532 | $437 | $465 | |||
[1] | Consumers had no significant equity method investments. | |||||
[2] | Includes an $11Â million ($7Â million net of tax) reversal of a loss on disposal due to the elimination of a liability associated with the 2003 sale of Panhandle. | |||||
[3] | Includes an operating gain of $3Â million related to a litigation settlement at CMSÂ Viron. |
Consolidated_Statements_Of_Inc1
Consolidated Statements Of Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statements Of Income | ' | ' | ' |
Tax expense included in income from discontinued operations | ' | $4 | ' |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net Income | $454 | $384 | $417 |
Retirement Benefits Liability | ' | ' | ' |
Net gain (loss) arising during the period, net of tax | 26 | -10 | -11 |
Prior service credit adjustment, net of tax | 5 | ' | ' |
Amortization of net actuarial loss, net of tax | 4 | 2 | 2 |
Investments | ' | ' | ' |
Unrealized gain (loss) on investments, net of tax | -2 | 2 | ' |
Other Comprehensive Income (Loss) | 33 | -6 | -9 |
Comprehensive Income | 487 | 378 | 408 |
Comprehensive Income Attributable to Noncontrolling Interest | 2 | 2 | 2 |
Comprehensive Income Attributable to CMS Energy | 485 | 376 | 406 |
Consumers Energy Company [Member] | ' | ' | ' |
Net Income | 534 | 439 | 467 |
Retirement Benefits Liability | ' | ' | ' |
Net gain (loss) arising during the period, net of tax | 5 | -8 | -4 |
Amortization of net actuarial loss, net of tax | 3 | 2 | 1 |
Investments | ' | ' | ' |
Unrealized gain (loss) on investments, net of tax | 1 | 3 | 1 |
Reclassification adjustments included in net income, net of tax | -3 | -3 | ' |
Other Comprehensive Income (Loss) | 6 | -6 | -2 |
Comprehensive Income | $540 | $433 | $465 |
Consolidated_Statements_Of_Com1
Consolidated Statements Of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net gain (loss) arising during the period, tax | $16 | ($7) | ($7) |
Tax on prior service credit adjustment | 3 | ' | ' |
Amortization of net actuarial loss, tax | 3 | 1 | 1 |
Unrealized gain (loss) on investments, tax expense (tax benefit) | -1 | 1 | ' |
Consumers Energy Company [Member] | ' | ' | ' |
Net gain (loss) arising during the period, tax | 4 | -5 | -3 |
Amortization of net actuarial loss, tax | 2 | 1 | 1 |
Unrealized gain (loss) on investments, tax expense (tax benefit) | ' | 2 | ' |
Reclassification adjustments included in net income, tax | ($1) | ($2) | ' |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash Flows from Operating Activities | ' | ' | ' |
Net income | $454 | $384 | $417 |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' | ' |
Depreciation and amortization | 628 | 598 | 546 |
Deferred income taxes and investment tax credit | 268 | 227 | 167 |
Postretirement benefits expense | 144 | 187 | 161 |
Bad debt expense | 67 | 57 | 74 |
Other non-cash operating activities | 22 | 16 | 33 |
Postretirement benefits contributions | -229 | -72 | -323 |
Proceeds from government grant | 69 | ' | ' |
Cash provided by (used in) changes in assets and liabilities | ' | ' | ' |
Decrease (increase) in accounts receivable, notes receivable, and accrued revenue | -120 | -147 | 119 |
Decrease (increase) in inventories | 202 | 104 | -14 |
Increase (decrease) in accounts payable | 6 | -5 | 30 |
Increase (decrease) in accrued expenses | 16 | -38 | -34 |
Other current and non-current assets and liabilities | -106 | -70 | -7 |
Net cash provided by operating activities | 1,421 | 1,241 | 1,169 |
Cash Flows from Investing Activities | ' | ' | ' |
Capital expenditures (excludes assets placed under capital lease) | -1,325 | -1,227 | -882 |
Cost to retire property | -56 | -49 | -54 |
Increase in EnerBank loans receivable | -139 | -63 | -100 |
Other investing activities | -12 | -11 | -22 |
Net cash used in investing activities | -1,532 | -1,350 | -1,058 |
Cash Flows from Financing Activities | ' | ' | ' |
Proceeds from issuance of long-term debt | 1,025 | 1,650 | 375 |
Proceeds from (retirements of) EnerBank notes, net | 125 | 65 | 98 |
Issuance of common stock | 36 | 30 | 29 |
Retirement of long-term debt | -741 | -1,527 | -413 |
Payment of DOE liability | ' | ' | -43 |
Payment of common and preferred stock dividends | 273 | 252 | 211 |
Redemption of preferred stock | -7 | ' | ' |
Payment of capital lease obligations and other financing costs | -35 | -35 | -34 |
Increase (decrease) in notes payable | 60 | 110 | ' |
Net cash provided by (used in) financing activities | 190 | 41 | -199 |
Net Increase (Decrease) in Cash and Cash Equivalents, Including Assets Held for Sale | 79 | -68 | -88 |
Decrease (Increase) in Cash and Cash Equivalents Included in Assets Held for Sale | ' | ' | 2 |
Net Increase (Decrease) in Cash and Cash Equivalents | 79 | -68 | -86 |
Cash and Cash Equivalents, Beginning of Period | 93 | 161 | 247 |
Cash and Cash Equivalents, End of Period | 172 | 93 | 161 |
Cash transactions | ' | ' | ' |
Interest paid (net of amounts capitalized) | 382 | 377 | 397 |
Income taxes paid | 34 | 19 | 27 |
Non-Cash Transactions | ' | ' | ' |
Capital expenditures not paid | 176 | 110 | 92 |
Other assets placed under capital lease | 6 | 9 | 4 |
Consumers Energy Company [Member] | ' | ' | ' |
Cash Flows from Operating Activities | ' | ' | ' |
Net income | 534 | 439 | 467 |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' | ' |
Depreciation and amortization | 622 | 592 | 542 |
Deferred income taxes and investment tax credit | 164 | 150 | 161 |
Postretirement benefits expense | 142 | 184 | 158 |
Bad debt expense | 63 | 53 | 70 |
Other non-cash operating activities | 12 | 14 | 16 |
Postretirement benefits contributions | -222 | -68 | -315 |
Proceeds from government grant | 69 | ' | ' |
Cash provided by (used in) changes in assets and liabilities | ' | ' | ' |
Decrease (increase) in accounts receivable, notes receivable, and accrued revenue | -116 | -145 | 112 |
Decrease (increase) in inventories | 205 | 107 | -17 |
Increase (decrease) in accounts payable | 14 | 7 | 43 |
Increase (decrease) in accrued expenses | -27 | 51 | 74 |
Other current and non-current assets and liabilities | -109 | -31 | 12 |
Net cash provided by operating activities | 1,351 | 1,353 | 1,323 |
Cash Flows from Investing Activities | ' | ' | ' |
Capital expenditures (excludes assets placed under capital lease) | -1,320 | -1,222 | -876 |
Cost to retire property | -56 | -49 | -56 |
Other investing activities | -11 | -8 | -19 |
Net cash used in investing activities | -1,387 | -1,279 | -951 |
Cash Flows from Financing Activities | ' | ' | ' |
Proceeds from issuance of long-term debt | 750 | 1,075 | ' |
Retirement of long-term debt | -466 | -1,064 | -37 |
Payment of DOE liability | ' | ' | -43 |
Payment of common and preferred stock dividends | 408 | 395 | 376 |
Redemption of preferred stock | -7 | ' | ' |
Stockholder contribution | 150 | 150 | 125 |
Payment of capital lease obligations and other financing costs | -30 | -30 | -27 |
Increase (decrease) in notes payable | 60 | 110 | ' |
Net cash provided by (used in) financing activities | 49 | -154 | -358 |
Net Increase (Decrease) in Cash and Cash Equivalents | 13 | -80 | 14 |
Cash and Cash Equivalents, Beginning of Period | 5 | 85 | 71 |
Cash and Cash Equivalents, End of Period | 18 | 5 | 85 |
Cash transactions | ' | ' | ' |
Interest paid (net of amounts capitalized) | 236 | 224 | 253 |
Income taxes paid | 225 | 63 | 8 |
Non-Cash Transactions | ' | ' | ' |
Capital expenditures not paid | 176 | 110 | 92 |
Other assets placed under capital lease | $6 | $9 | $4 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Current Assets | ' | ' | ||
Cash and cash equivalents | $172 | $93 | ||
Restricted cash and cash equivalents | 32 | 29 | ||
Accounts receivable and accrued revenue, less allowances | 914 | 855 | ||
Notes receivable | 63 | 41 | ||
Accounts receivable - related parties | 10 | 10 | ||
Accrued power supply revenue | ' | 32 | ||
Inventories at average cost | ' | ' | ||
Gas in underground storage | 660 | 820 | ||
Materials and supplies | 107 | 96 | ||
Generating plant fuel stock | 114 | 168 | ||
Deferred income taxes | 126 | ' | ||
Deferred property taxes | 202 | 190 | ||
Regulatory assets | 40 | 35 | ||
Prepayments and other current assets | 86 | 53 | ||
Total current assets | 2,526 | 2,422 | ||
Plant, Property, and Equipment | ' | ' | ||
Plant, property, and equipment, gross | 16,184 | 15,592 | ||
Less accumulated depreciation and amortization | 5,087 | 5,121 | ||
Plant, property, and equipment, net | 11,097 | 10,471 | ||
Construction work in progress | 1,149 | 1,080 | ||
Total plant, property, and equipment | 12,246 | [1] | 11,551 | [1] |
Other Non-current Assets | ' | ' | ||
Regulatory assets, noncurrent | 1,530 | 2,287 | ||
Accounts and notes receivable, less allowances | 646 | 521 | ||
Investments | 59 | [2] | 57 | [2] |
Other | 409 | 293 | ||
Total other non-current assets | 2,644 | 3,158 | ||
Total Assets | 17,416 | 17,131 | ||
Current Liabilities | ' | ' | ||
Current portion of long-term debt, capital and financing obligations | 562 | 541 | ||
Notes payable | 170 | 110 | ||
Accounts payable | 585 | 512 | ||
Accounts payable - related parties | 10 | 9 | ||
Accrued rate refunds | 12 | 6 | ||
Accrued interest | 96 | 95 | ||
Accrued taxes | 297 | 279 | ||
Deferred income taxes | ' | 68 | ||
Regulatory liabilities, current | 67 | 25 | ||
Other current liabilities | 146 | 152 | ||
Total current liabilities | 1,945 | 1,797 | ||
Non-current Liabilities | ' | ' | ||
Long-term debt | 7,101 | 6,710 | ||
Non-current portion of capital and financing obligations | 138 | 153 | ||
Regulatory liabilities | 2,215 | 2,101 | ||
Postretirement benefits | 239 | 1,451 | ||
Asset retirement obligations | 325 | 312 | ||
Deferred investment tax credit | 40 | 43 | ||
Deferred income taxes | 1,616 | 1,015 | ||
Other non-current liabilities | 306 | 311 | ||
Total non-current liabilities | 11,980 | 12,096 | ||
Commitments and Contingencies (Notes 2, 3, 4, and 6) | ' | ' | ||
Equity | ' | ' | ||
Common stock | 3 | 3 | ||
Other paid-in capital | 4,715 | 4,669 | ||
Accumulated other comprehensive loss | -22 | -55 | ||
Retained earnings (Accumulated deficit) | -1,242 | -1,423 | ||
Total common stockholders equity | 3,454 | 3,194 | ||
Noncontrolling interests | 37 | 44 | ||
Total equity | 3,491 | 3,238 | ||
Total Liabilities and Equity | 17,416 | 17,131 | ||
Consumers Energy Company [Member] | ' | ' | ||
Current Assets | ' | ' | ||
Cash and cash equivalents | 18 | 5 | ||
Restricted cash and cash equivalents | 31 | 28 | ||
Accounts receivable and accrued revenue, less allowances | 902 | 844 | ||
Notes receivable | 14 | ' | ||
Accounts receivable - related parties | 4 | 1 | ||
Accrued power supply revenue | ' | 32 | ||
Inventories at average cost | ' | ' | ||
Gas in underground storage | 653 | 816 | ||
Materials and supplies | 103 | 92 | ||
Generating plant fuel stock | 113 | 167 | ||
Deferred property taxes | 202 | 190 | ||
Regulatory assets | 40 | 35 | ||
Prepayments and other current assets | 77 | 45 | ||
Total current assets | 2,157 | 2,255 | ||
Plant, Property, and Equipment | ' | ' | ||
Plant, property, and equipment, gross | 16,044 | 15,456 | ||
Less accumulated depreciation and amortization | 5,022 | 5,061 | ||
Plant, property, and equipment, net | 11,022 | 10,395 | ||
Construction work in progress | 1,147 | 1,080 | ||
Total plant, property, and equipment | 12,169 | [1] | 11,475 | [1] |
Other Non-current Assets | ' | ' | ||
Regulatory assets, noncurrent | 1,530 | 2,287 | ||
Accounts and notes receivable, less allowances | 11 | 17 | ||
Investments | 29 | 32 | ||
Other | 283 | 209 | ||
Total other non-current assets | 1,853 | 2,545 | ||
Total Assets | 16,179 | 16,275 | ||
Current Liabilities | ' | ' | ||
Current portion of long-term debt, capital and financing obligations | 64 | 63 | ||
Notes payable | 170 | 110 | ||
Accounts payable | 571 | 501 | ||
Accounts payable - related parties | 13 | 11 | ||
Accrued rate refunds | 12 | 6 | ||
Accrued interest | 63 | 65 | ||
Accrued taxes | 353 | 376 | ||
Deferred income taxes | 55 | 144 | ||
Regulatory liabilities, current | 67 | 25 | ||
Other current liabilities | 112 | 109 | ||
Total current liabilities | 1,480 | 1,410 | ||
Non-current Liabilities | ' | ' | ||
Long-term debt | 4,579 | 4,297 | ||
Non-current portion of capital and financing obligations | 138 | 153 | ||
Regulatory liabilities | 2,215 | 2,101 | ||
Postretirement benefits | 179 | 1,385 | ||
Asset retirement obligations | 324 | 311 | ||
Deferred investment tax credit | 40 | 43 | ||
Deferred income taxes | 2,115 | 1,741 | ||
Other non-current liabilities | 252 | 252 | ||
Total non-current liabilities | 9,842 | 10,283 | ||
Commitments and Contingencies (Notes 2, 3, 4, and 6) | ' | ' | ||
Equity | ' | ' | ||
Common stock | 841 | 841 | ||
Other paid-in capital | 3,257 | 3,107 | ||
Accumulated other comprehensive loss | -2 | -8 | ||
Retained earnings (Accumulated deficit) | 724 | 598 | ||
Total common stockholders equity | 4,820 | 4,538 | ||
Preferred stock | 37 | 44 | ||
Total equity | 4,857 | 4,582 | ||
Total Liabilities and Equity | $16,179 | $16,275 | ||
[1] | For the year ended December 31, 2013, utility plant additions were $1.3 billion and utility plant retirements were $156 million. Subject to a successful Securitization transaction, Consumers plans to retire seven smaller coal-fueled electric generating units and three smaller gas-fueled electric generating units by April 2016. Accordingly, Consumers removed the net book value of the ten units from plant, property, and equipment and recorded this amount as a regulatory asset at December 31, 2013. As a result, net plant, property, and equipment decreased by $362 million. For additional details, see Note 2, Regulatory Matters.For the year ended December 31, 2012, utility plant additions were $999 million and utility plant retirements were $168 million. | |||
[2] | Consumers had no significant equity method investments. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Allowances for doubtful accounts receivable | $33 | $32 |
Allowances for doubtful notes receivable | 5 | 5 |
Common stock, shares authorized | 350,000,000 | 350,000,000 |
Common stock, shares outstanding | 266,100,000 | 264,100,000 |
Consumers Energy Company [Member] | ' | ' |
Allowances for doubtful accounts receivable | $31 | $30 |
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares outstanding | 84,100,000 | 84,100,000 |
Consolidated_Statements_Of_Cha
Consolidated Statements Of Changes In Equity (USD $) | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | CMS Energy Common Stock [Member] | Other Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retirement Benefits Liability [Member] | Investments [Member] | Derivative Instruments [Member] | Retained Earnings (Accumulated Deficit) [Member] | Noncontrolling Interest [Member] | Total |
In Millions, except Share data | CMS Energy Common Stock [Member] | Other Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retirement Benefits Liability [Member] | Investments [Member] | Retained Earnings (Accumulated Deficit) [Member] | Preferred Stock [Member] | ||||||||||
Total Equity, beginning at Dec. 31, 2010 | $841 | $2,832 | ' | ($16) | $16 | $463 | $44 | $4,180 | $2 | $4,588 | ($40) | ($39) | ' | ($1) | ($1,757) | $44 | $2,837 |
Beginning of period, shares at Dec. 31, 2010 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 249,628,000 | ' | ' | ' | ' | ' | ' | ' |
Common stock issued | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 40 | ' | ' | ' | ' | ' | ' | ' |
Number of Shares Issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,541,000 | ' | ' | ' | ' | ' | ' | ' |
Common stock reissued | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' |
Common stock reissued, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 269,000 | ' | ' | ' | ' | ' | ' | ' |
Common stock repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | -6 | ' | ' | ' | ' | ' | ' | ' |
Common stock repurchased, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | -323,000 | ' | ' | ' | ' | ' | ' | ' |
Common stock reacquired, value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock reacquired, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | -15,000 | ' | ' | ' | ' | ' | ' | ' |
Stockholder contribution | ' | 125 | ' | ' | ' | ' | ' | 125 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net gain (loss) arising during the period | ' | ' | ' | -4 | ' | ' | ' | -4 | ' | ' | ' | -11 | ' | ' | ' | ' | -11 |
Prior service credit adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of net actuarial loss | ' | ' | ' | 1 | ' | ' | ' | 1 | ' | ' | ' | 2 | ' | ' | ' | ' | 2 |
Unrealized gain (loss) on investments, net of tax | ' | ' | ' | ' | 1 | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification adjustments included in net income, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to CMS Energy | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 415 | ' | ' |
Net income | ' | ' | ' | ' | ' | 467 | ' | 467 | ' | ' | ' | ' | ' | ' | ' | ' | 417 |
Common stock dividends declared | ' | ' | ' | ' | ' | -374 | ' | ' | ' | ' | ' | ' | ' | ' | -211 | ' | ' |
Preferred stock dividends and distributions declared | ' | ' | ' | ' | ' | -2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 2 |
Distributions, redemptions, and other changes in noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2 | ' |
Preferred stock redeemed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Equity, end at Dec. 31, 2011 | 841 | 2,957 | -2 | -19 | 17 | 554 | 44 | 4,394 | 3 | 4,627 | -49 | -48 | ' | -1 | -1,553 | 44 | 3,072 |
End of period, shares at Dec. 31, 2011 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 254,100,000 | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | 76 | ' | ' | ' | ' | ' | ' | ' | ' | 67 |
Total Equity, end at Mar. 31, 2012 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Equity, beginning at Dec. 31, 2011 | 841 | 2,957 | -2 | -19 | 17 | 554 | 44 | 4,394 | 3 | 4,627 | -49 | -48 | ' | -1 | -1,553 | 44 | 3,072 |
Beginning of period, shares at Dec. 31, 2011 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 254,100,000 | ' | ' | ' | ' | ' | ' | ' |
Common stock issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45 | ' | ' | ' | ' | ' | ' | ' |
Number of Shares Issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,107,000 | ' | ' | ' | ' | ' | ' | ' |
Common stock reissued | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' |
Common stock reissued, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 272,000 | ' | ' | ' | ' | ' | ' | ' |
Common stock repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | -9 | ' | ' | ' | ' | ' | ' | ' |
Common stock repurchased, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | -389,000 | ' | ' | ' | ' | ' | ' | ' |
Common stock reacquired, value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock reacquired, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | -18,000 | ' | ' | ' | ' | ' | ' | ' |
Stockholder contribution | ' | 150 | ' | ' | ' | ' | ' | 150 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net gain (loss) arising during the period | ' | ' | ' | -8 | ' | ' | ' | -8 | ' | ' | ' | -10 | ' | ' | ' | ' | -10 |
Prior service credit adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of net actuarial loss | ' | ' | ' | 2 | ' | ' | ' | 2 | ' | ' | ' | 2 | ' | ' | ' | ' | 2 |
Unrealized gain (loss) on investments, net of tax | ' | ' | ' | ' | 3 | ' | ' | 3 | ' | ' | ' | ' | 2 | ' | ' | ' | 2 |
Reclassification adjustments included in net income, net of tax | ' | ' | ' | ' | -3 | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to CMS Energy | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 382 | ' | ' |
Net income | ' | ' | ' | ' | ' | 439 | ' | 439 | ' | ' | ' | ' | ' | ' | ' | ' | 384 |
Common stock dividends declared | ' | ' | ' | ' | ' | -393 | ' | ' | ' | ' | ' | ' | ' | ' | -252 | ' | ' |
Preferred stock dividends and distributions declared | ' | ' | ' | ' | ' | -2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 2 |
Distributions, redemptions, and other changes in noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2 | ' |
Preferred stock redeemed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Equity, end at Dec. 31, 2012 | 841 | 3,107 | -8 | -25 | 17 | 598 | 44 | 4,582 | 3 | 4,669 | -55 | -56 | 2 | -1 | -1,423 | 44 | 3,238 |
End of period, shares at Dec. 31, 2012 | ' | ' | ' | ' | ' | ' | ' | 84,100,000 | ' | 264,072,000 | ' | ' | ' | ' | ' | ' | 264,100,000 |
Total Equity, beginning at Sep. 30, 2012 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | 78 | ' | ' | ' | ' | ' | ' | ' | ' | 67 |
Total Equity, end at Dec. 31, 2012 | 841 | ' | -8 | ' | ' | ' | ' | 4,582 | ' | ' | -55 | ' | ' | -1 | ' | ' | 3,238 |
End of period, shares at Dec. 31, 2012 | ' | ' | ' | ' | ' | ' | ' | 84,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | 264,100,000 |
Common stock issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 |
Number of Shares Issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 735,873 |
Net income | ' | ' | ' | ' | ' | ' | ' | 162 | ' | ' | ' | ' | ' | ' | ' | ' | 144 |
Total Equity, end at Mar. 31, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Equity, beginning at Dec. 31, 2012 | 841 | 3,107 | -8 | -25 | 17 | 598 | 44 | 4,582 | 3 | 4,669 | -55 | -56 | 2 | -1 | -1,423 | 44 | 3,238 |
Beginning of period, shares at Dec. 31, 2012 | ' | ' | ' | ' | ' | ' | ' | 84,100,000 | ' | 264,072,000 | ' | ' | ' | ' | ' | ' | 264,100,000 |
Common stock issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51 | ' | ' | ' | ' | ' | ' | ' |
Number of Shares Issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,238,000 | ' | ' | ' | ' | ' | ' | ' |
Common stock reissued | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' |
Common stock reissued, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 205,000 | ' | ' | ' | ' | ' | ' | ' |
Common stock repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | -10 | ' | ' | ' | ' | ' | ' | ' |
Common stock repurchased, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | -356,000 | ' | ' | ' | ' | ' | ' | ' |
Common stock reacquired, value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock reacquired, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | -22,000 | ' | ' | ' | ' | ' | ' | ' |
Stockholder contribution | ' | 150 | ' | ' | ' | ' | ' | 150 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net gain (loss) arising during the period | ' | ' | ' | 5 | ' | ' | ' | 5 | ' | ' | ' | 26 | ' | ' | ' | ' | 26 |
Prior service credit adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | -5 |
Amortization of net actuarial loss | ' | ' | ' | 3 | ' | ' | ' | 3 | ' | ' | ' | 4 | ' | ' | ' | ' | 4 |
Unrealized gain (loss) on investments, net of tax | ' | ' | ' | ' | 1 | ' | ' | 1 | ' | ' | ' | ' | -2 | ' | ' | ' | -2 |
Reclassification adjustments included in net income, net of tax | ' | ' | ' | ' | -3 | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to CMS Energy | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 452 | ' | ' |
Net income | ' | ' | ' | ' | ' | 534 | ' | 534 | ' | ' | ' | ' | ' | ' | ' | ' | 454 |
Common stock dividends declared | ' | ' | ' | ' | ' | -406 | ' | ' | ' | ' | ' | ' | ' | ' | -271 | ' | ' |
Preferred stock dividends and distributions declared | ' | ' | ' | ' | ' | -2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 2 |
Distributions, redemptions, and other changes in noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -9 | ' |
Preferred stock redeemed | ' | ' | ' | ' | ' | ' | -7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Equity, end at Dec. 31, 2013 | 841 | 3,257 | -2 | -17 | 15 | 724 | 37 | 4,857 | 3 | 4,715 | -22 | -21 | ' | -1 | -1,242 | 37 | 3,491 |
End of period, shares at Dec. 31, 2013 | ' | ' | ' | ' | ' | ' | ' | 84,100,000 | ' | 266,137,000 | ' | ' | ' | ' | ' | ' | 266,100,000 |
Total Equity, beginning at Sep. 30, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | 119 | ' | ' | ' | ' | ' | ' | ' | ' | 102 |
Total Equity, end at Dec. 31, 2013 | $841 | ' | ($2) | ' | ' | ' | ' | $4,857 | ' | ' | ($22) | ' | ' | ($1) | ' | ' | $3,491 |
End of period, shares at Dec. 31, 2013 | ' | ' | ' | ' | ' | ' | ' | 84,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | 266,100,000 |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Significant Accounting Policies | ' | |||
1:SIGNIFICANT ACCOUNTING POLICIES | ||||
Principles of Consolidation: CMS Energy and Consumers prepare their consolidated financial statements in conformity with GAAP. CMS Energy’s consolidated financial statements comprise CMS Energy, Consumers, CMS Enterprises, and all other entities in which CMS Energy has a controlling financial interest or is the primary beneficiary. Consumers’ consolidated financial statements comprise Consumers and all other entities in which it has a controlling financial interest or is the primary beneficiary. CMS Energy uses the equity method of accounting for investments in companies and partnerships that are not consolidated, where they have significant influence over operations and financial policies but are not the primary beneficiary. CMS Energy and Consumers eliminate intercompany transactions and balances. | ||||
Use of Estimates: CMS Energy and Consumers are required to make estimates using assumptions that may affect reported amounts and disclosures. Actual results could differ from those estimates. | ||||
Revenue Recognition Policy: CMS Energy and Consumers recognize revenue from deliveries of electricity and natural gas, and from the transportation, processing, and storage of natural gas, when services are provided. CMS Energy and Consumers record unbilled revenue for the estimated amount of energy delivered to customers but not yet billed. CMS Energy and Consumers record sales tax net and exclude it from revenue. CMS Energy recognizes revenue on sales of marketed electricity, natural gas, and other energy products at delivery. | ||||
Alternative-Revenue Programs: The MPSC’s 2009 order in Consumers’ gas rate case authorized Consumers to implement a gas revenue decoupling mechanism. This mechanism, which the MPSC extended through April 2012 in its 2010 order in Consumers’ gas rate case, allowed Consumers to adjust future gas rates to the degree that actual average weather-adjusted sales per customer differed from the rate order. Consumers accounted for this program as an alternative-revenue program that met the criteria for recognizing the effects of decoupling adjustments on revenue as gas was delivered. | ||||
In 2009, the MPSC approved an energy optimization incentive mechanism that provides a financial incentive if the energy savings of Consumers’ customers exceed annual targets established by the MPSC. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing revenue related to the incentive as soon as energy savings exceed the annual targets established by the MPSC. | ||||
Self-Implemented Rates: Unless prohibited by the MPSC upon a showing of good cause, Consumers is allowed to self-implement new energy rates six months after a new rate case filing if the MPSC has not issued an order in the case. The MPSC then has another six months to issue a final order. If the MPSC does not issue a final order within that period, the filed rates are considered approved. If the MPSC issues a final order within that period, the rates that Consumers self-implemented may be subject to refund, with interest. Consumers recognizes revenue associated with self-implemented rates. If Consumers considers it probable that it will be required to refund a portion of its self-implemented rates, then Consumers records a provision for revenue subject to refund. | ||||
Accounts Receivable: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost, which approximates fair value. CMS Energy and Consumers establish an allowance for uncollectible accounts based on historical losses, management’s assessment of existing economic conditions, customer trends, and other factors. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. CMS Energy and Consumers charge off accounts deemed uncollectible to operating expense. | ||||
Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less. | ||||
Contingencies: CMS Energy and Consumers record estimated liabilities for contingencies on their consolidated financial statements when it is probable that a liability has been incurred and when the amount of loss can be reasonably estimated. CMS Energy and Consumers expense legal fees as incurred; fees incurred but not yet billed are accrued based on estimates of work performed. This policy also applies to any fees incurred on behalf of employees and officers under indemnification agreements; such fees are billed directly to CMS Energy or Consumers. | ||||
Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs: CMS Energy and Consumers defer issuance costs, discounts, and premiums associated with long-term debt and amortize those amounts over the terms of the debt issues. For the non‑regulated portions of CMS Energy’s and Consumers’ businesses, refinancing costs are expensed as incurred. For the regulated portions of CMS Energy’s and Consumers’ businesses, any remaining unamortized issuance costs, discounts, and premiums associated with refinanced debt are amortized over the term of the newly issued debt. | ||||
Derivative Instruments: In order to support ongoing operations, CMS Energy and Consumers enter into contracts for the future purchase and sale of various commodities, such as electricity, natural gas, and coal. These forward contracts are generally long-term in nature and result in physical delivery of the commodity at a contracted price. Most of these contracts are not subject to derivative accounting because: | ||||
· | they do not have a notional amount (that is, a number of units specified in a derivative instrument, such as MWh of electricity or bcf of natural gas); | |||
· | they qualify for the normal purchases and sales exception; or | |||
· | there is not an active market for the commodity. | |||
Consumers’ coal purchase contracts are not derivatives because there is not an active market for the coal it purchases. If an active market for coal develops in the future, some of these contracts may qualify as derivatives. Since Consumers is subject to regulatory accounting, the resulting fair value gains and losses would be deferred as regulatory assets or liabilities and would not affect net income. | ||||
Consumers also uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion-related transmission charges. Consumers accounts for FTRs as derivatives. All changes in fair value associated with FTRs are deferred as regulatory assets and liabilities until the instruments are settled. | ||||
CMS Energy and Consumers record derivative contracts that do not qualify for the normal purchases and sales exception at fair value on their consolidated balance sheets. Each reporting period, the resulting asset or liability is adjusted to reflect any change in the fair value of the contract. Since none of CMS Energy’s or Consumers’ derivatives has been designated as an accounting hedge, all changes in fair value are either reported in earnings or deferred as regulatory assets or liabilities. CMS Energy and Consumers did not have significant amounts recorded as derivative assets or liabilities at December 31, 2013 or 2012. Additionally, the gains and losses recognized in earnings were not significant for the years ended December 31, 2013, 2012, or 2011. | ||||
Determination of Pension and OPEB MRV of Plan Assets: CMS Energy and Consumers determine the MRV for Pension Plan assets as the fair value of plan assets on the measurement date, adjusted by the gains or losses that will not be admitted into the MRV until future years. CMS Energy and Consumers reflect each year’s gain or loss in the MRV in equal amounts over a five-year period beginning on the date the original amount was determined. CMS Energy and Consumers determine the MRV for OPEB Plan assets as the fair value of assets on the measurement date. CMS Energy and Consumers use the MRV in the calculation of net pension and OPEB costs. For further details, see Note 11, Retirement Benefits. | ||||
Earnings Per Share: CMS Energy calculates basic and diluted EPS using the weighted-average number of shares of common stock and dilutive potential common stock outstanding during the period. Potential common stock, for purposes of determining diluted EPS, includes the effects of dilutive stock options, non-vested stock awards, and convertible securities. CMS Energy computes the effect on potential common stock using the treasury stock method or the if‑converted method, as applicable. Diluted EPS excludes the impact of antidilutive securities, which are those securities resulting in an increase in EPS or a decrease in loss per share. For EPS computations, see Note 14, Earnings Per Share – CMS Energy. | ||||
Financial Instruments: CMS Energy and Consumers record debt and equity securities classified as available for sale at fair value as determined from quoted market prices or other observable, market-based inputs. Unrealized gains and losses resulting from changes in fair value of these securities are determined on a specific-identification basis. CMS Energy and Consumers report unrealized gains and losses on these securities, net of tax, in equity as part of AOCI, except that unrealized losses determined to be other than temporary are reported in earnings. For additional details regarding financial instruments, see Note 6, Financial Instruments. | ||||
Impairment of Long-Lived Assets and Equity Method Investments: CMS Energy and Consumers perform tests of impairment if certain triggering events occur or if there has been a decline in value that may be other than temporary. | ||||
CMS Energy and Consumers evaluate long-lived assets held in use for impairment by calculating the undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. If the undiscounted future cash flows are less than the carrying amount, CMS Energy and Consumers recognize an impairment loss equal to the amount by which the carrying amount exceeds the fair value. CMS Energy and Consumers estimate the fair value of the asset using quoted market prices, market prices of similar assets, or discounted future cash flow analyses. | ||||
CMS Energy also assesses equity method investments for impairment whenever there has been a decline in value that is other than temporary. This assessment requires CMS Energy to determine the fair value of the equity method investment. CMS Energy determines fair value using valuation methodologies, including discounted cash flows, and assesses the ability of the investee to sustain an earnings capacity that justifies the carrying amount of the investment. CMS Energy records an impairment if the fair value is less than the carrying amount and the decline in value is considered to be other than temporary. | ||||
Inventory: CMS Energy and Consumers use the weighted-average cost method for valuing working gas, recoverable base gas in underground storage facilities, and materials and supplies inventory. CMS Energy and Consumers also use this method for valuing coal inventory, and they classify these amounts as generating plant fuel stock on their consolidated balance sheets. | ||||
CMS Energy and Consumers account for RECs and emission allowances as inventory and use the weighted-average cost method to remove amounts from inventory. RECs and emission allowances are used to satisfy compliance obligations related to the generation of power. | ||||
CMS Energy and Consumers use the lower-of-cost-or-market method to evaluate inventory for impairment. | ||||
MISO Transactions: MISO requires the submission of hourly day-ahead and real-time bids and offers for energy at locations across the MISO region. CMS Energy and Consumers account for MISO transactions on a net hourly basis in each of the real-time and day-ahead markets, netted across all MISO energy market locations. CMS Energy and Consumers record net hourly purchases in purchased and interchange power and net hourly sales in operating revenue on their consolidated statements of income. They record net billing adjustments upon receipt of settlement statements, record accruals for future net purchases and sales adjustments based on historical experience, and reconcile accruals to actual expenses and sales upon receipt of settlement statements. | ||||
Property Taxes: Property taxes are based on the taxable value of Consumers’ real and personal property assessed by local taxing authorities. Consumers records property tax expense over the fiscal year of the taxing authority for which the taxes are levied based on Consumers’ budgeted customer sales. The deferred property tax balance represents the amount of Consumers’ accrued property tax that will be recognized over future governmental fiscal periods. | ||||
Reclassifications: CMS Energy and Consumers have reclassified certain prior-period amounts on their consolidated financial statements to conform to the presentation for the current period. These reclassifications did not affect consolidated net income or cash flows for the periods presented. | ||||
Renewable Energy Grant: In January 2013, Consumers received a $69 million renewable energy cash grant for Lake Winds® Energy Park under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009. Upon receipt of the grant, Consumers recorded a regulatory liability for $69 million, which Consumers is amortizing over the life of Lake Winds® Energy Park. Consumers presents the amortization as a reduction to maintenance and other operating expense. Consumers recorded the deferred income taxes related to the grant as a reduction of the book basis of Lake Winds® Energy Park. | ||||
Restricted Cash and Cash Equivalents: CMS Energy and Consumers have restricted cash and cash equivalents dedicated for repayment of Securitization bonds and for payment under performance guarantees. CMS Energy and Consumers classify these amounts as a current asset if they relate to payments that could or will occur within one year. | ||||
Consumers Energy Company [Member] | ' | |||
Significant Accounting Policies | ' | |||
1:SIGNIFICANT ACCOUNTING POLICIES | ||||
Principles of Consolidation: CMS Energy and Consumers prepare their consolidated financial statements in conformity with GAAP. CMS Energy’s consolidated financial statements comprise CMS Energy, Consumers, CMS Enterprises, and all other entities in which CMS Energy has a controlling financial interest or is the primary beneficiary. Consumers’ consolidated financial statements comprise Consumers and all other entities in which it has a controlling financial interest or is the primary beneficiary. CMS Energy uses the equity method of accounting for investments in companies and partnerships that are not consolidated, where they have significant influence over operations and financial policies but are not the primary beneficiary. CMS Energy and Consumers eliminate intercompany transactions and balances. | ||||
Use of Estimates: CMS Energy and Consumers are required to make estimates using assumptions that may affect reported amounts and disclosures. Actual results could differ from those estimates. | ||||
Revenue Recognition Policy: CMS Energy and Consumers recognize revenue from deliveries of electricity and natural gas, and from the transportation, processing, and storage of natural gas, when services are provided. CMS Energy and Consumers record unbilled revenue for the estimated amount of energy delivered to customers but not yet billed. CMS Energy and Consumers record sales tax net and exclude it from revenue. CMS Energy recognizes revenue on sales of marketed electricity, natural gas, and other energy products at delivery. | ||||
Alternative-Revenue Programs: The MPSC’s 2009 order in Consumers’ gas rate case authorized Consumers to implement a gas revenue decoupling mechanism. This mechanism, which the MPSC extended through April 2012 in its 2010 order in Consumers’ gas rate case, allowed Consumers to adjust future gas rates to the degree that actual average weather-adjusted sales per customer differed from the rate order. Consumers accounted for this program as an alternative-revenue program that met the criteria for recognizing the effects of decoupling adjustments on revenue as gas was delivered. | ||||
In 2009, the MPSC approved an energy optimization incentive mechanism that provides a financial incentive if the energy savings of Consumers’ customers exceed annual targets established by the MPSC. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing revenue related to the incentive as soon as energy savings exceed the annual targets established by the MPSC. | ||||
Self-Implemented Rates: Unless prohibited by the MPSC upon a showing of good cause, Consumers is allowed to self-implement new energy rates six months after a new rate case filing if the MPSC has not issued an order in the case. The MPSC then has another six months to issue a final order. If the MPSC does not issue a final order within that period, the filed rates are considered approved. If the MPSC issues a final order within that period, the rates that Consumers self-implemented may be subject to refund, with interest. Consumers recognizes revenue associated with self-implemented rates. If Consumers considers it probable that it will be required to refund a portion of its self-implemented rates, then Consumers records a provision for revenue subject to refund. | ||||
Accounts Receivable: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost, which approximates fair value. CMS Energy and Consumers establish an allowance for uncollectible accounts based on historical losses, management’s assessment of existing economic conditions, customer trends, and other factors. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. CMS Energy and Consumers charge off accounts deemed uncollectible to operating expense. | ||||
Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less. | ||||
Contingencies: CMS Energy and Consumers record estimated liabilities for contingencies on their consolidated financial statements when it is probable that a liability has been incurred and when the amount of loss can be reasonably estimated. CMS Energy and Consumers expense legal fees as incurred; fees incurred but not yet billed are accrued based on estimates of work performed. This policy also applies to any fees incurred on behalf of employees and officers under indemnification agreements; such fees are billed directly to CMS Energy or Consumers. | ||||
Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs: CMS Energy and Consumers defer issuance costs, discounts, and premiums associated with long-term debt and amortize those amounts over the terms of the debt issues. For the non‑regulated portions of CMS Energy’s and Consumers’ businesses, refinancing costs are expensed as incurred. For the regulated portions of CMS Energy’s and Consumers’ businesses, any remaining unamortized issuance costs, discounts, and premiums associated with refinanced debt are amortized over the term of the newly issued debt. | ||||
Derivative Instruments: In order to support ongoing operations, CMS Energy and Consumers enter into contracts for the future purchase and sale of various commodities, such as electricity, natural gas, and coal. These forward contracts are generally long-term in nature and result in physical delivery of the commodity at a contracted price. Most of these contracts are not subject to derivative accounting because: | ||||
· | they do not have a notional amount (that is, a number of units specified in a derivative instrument, such as MWh of electricity or bcf of natural gas); | |||
· | they qualify for the normal purchases and sales exception; or | |||
· | there is not an active market for the commodity. | |||
Consumers’ coal purchase contracts are not derivatives because there is not an active market for the coal it purchases. If an active market for coal develops in the future, some of these contracts may qualify as derivatives. Since Consumers is subject to regulatory accounting, the resulting fair value gains and losses would be deferred as regulatory assets or liabilities and would not affect net income. | ||||
Consumers also uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion-related transmission charges. Consumers accounts for FTRs as derivatives. All changes in fair value associated with FTRs are deferred as regulatory assets and liabilities until the instruments are settled. | ||||
CMS Energy and Consumers record derivative contracts that do not qualify for the normal purchases and sales exception at fair value on their consolidated balance sheets. Each reporting period, the resulting asset or liability is adjusted to reflect any change in the fair value of the contract. Since none of CMS Energy’s or Consumers’ derivatives has been designated as an accounting hedge, all changes in fair value are either reported in earnings or deferred as regulatory assets or liabilities. CMS Energy and Consumers did not have significant amounts recorded as derivative assets or liabilities at December 31, 2013 or 2012. Additionally, the gains and losses recognized in earnings were not significant for the years ended December 31, 2013, 2012, or 2011. | ||||
Determination of Pension and OPEB MRV of Plan Assets: CMS Energy and Consumers determine the MRV for Pension Plan assets as the fair value of plan assets on the measurement date, adjusted by the gains or losses that will not be admitted into the MRV until future years. CMS Energy and Consumers reflect each year’s gain or loss in the MRV in equal amounts over a five-year period beginning on the date the original amount was determined. CMS Energy and Consumers determine the MRV for OPEB Plan assets as the fair value of assets on the measurement date. CMS Energy and Consumers use the MRV in the calculation of net pension and OPEB costs. For further details, see Note 11, Retirement Benefits. | ||||
Earnings Per Share: CMS Energy calculates basic and diluted EPS using the weighted-average number of shares of common stock and dilutive potential common stock outstanding during the period. Potential common stock, for purposes of determining diluted EPS, includes the effects of dilutive stock options, non-vested stock awards, and convertible securities. CMS Energy computes the effect on potential common stock using the treasury stock method or the if‑converted method, as applicable. Diluted EPS excludes the impact of antidilutive securities, which are those securities resulting in an increase in EPS or a decrease in loss per share. For EPS computations, see Note 14, Earnings Per Share – CMS Energy. | ||||
Financial Instruments: CMS Energy and Consumers record debt and equity securities classified as available for sale at fair value as determined from quoted market prices or other observable, market-based inputs. Unrealized gains and losses resulting from changes in fair value of these securities are determined on a specific-identification basis. CMS Energy and Consumers report unrealized gains and losses on these securities, net of tax, in equity as part of AOCI, except that unrealized losses determined to be other than temporary are reported in earnings. For additional details regarding financial instruments, see Note 6, Financial Instruments. | ||||
Impairment of Long-Lived Assets and Equity Method Investments: CMS Energy and Consumers perform tests of impairment if certain triggering events occur or if there has been a decline in value that may be other than temporary. | ||||
CMS Energy and Consumers evaluate long-lived assets held in use for impairment by calculating the undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. If the undiscounted future cash flows are less than the carrying amount, CMS Energy and Consumers recognize an impairment loss equal to the amount by which the carrying amount exceeds the fair value. CMS Energy and Consumers estimate the fair value of the asset using quoted market prices, market prices of similar assets, or discounted future cash flow analyses. | ||||
CMS Energy also assesses equity method investments for impairment whenever there has been a decline in value that is other than temporary. This assessment requires CMS Energy to determine the fair value of the equity method investment. CMS Energy determines fair value using valuation methodologies, including discounted cash flows, and assesses the ability of the investee to sustain an earnings capacity that justifies the carrying amount of the investment. CMS Energy records an impairment if the fair value is less than the carrying amount and the decline in value is considered to be other than temporary. | ||||
Inventory: CMS Energy and Consumers use the weighted-average cost method for valuing working gas, recoverable base gas in underground storage facilities, and materials and supplies inventory. CMS Energy and Consumers also use this method for valuing coal inventory, and they classify these amounts as generating plant fuel stock on their consolidated balance sheets. | ||||
CMS Energy and Consumers account for RECs and emission allowances as inventory and use the weighted-average cost method to remove amounts from inventory. RECs and emission allowances are used to satisfy compliance obligations related to the generation of power. | ||||
CMS Energy and Consumers use the lower-of-cost-or-market method to evaluate inventory for impairment. | ||||
MISO Transactions: MISO requires the submission of hourly day-ahead and real-time bids and offers for energy at locations across the MISO region. CMS Energy and Consumers account for MISO transactions on a net hourly basis in each of the real-time and day-ahead markets, netted across all MISO energy market locations. CMS Energy and Consumers record net hourly purchases in purchased and interchange power and net hourly sales in operating revenue on their consolidated statements of income. They record net billing adjustments upon receipt of settlement statements, record accruals for future net purchases and sales adjustments based on historical experience, and reconcile accruals to actual expenses and sales upon receipt of settlement statements. | ||||
Property Taxes: Property taxes are based on the taxable value of Consumers’ real and personal property assessed by local taxing authorities. Consumers records property tax expense over the fiscal year of the taxing authority for which the taxes are levied based on Consumers’ budgeted customer sales. The deferred property tax balance represents the amount of Consumers’ accrued property tax that will be recognized over future governmental fiscal periods. | ||||
Reclassifications: CMS Energy and Consumers have reclassified certain prior-period amounts on their consolidated financial statements to conform to the presentation for the current period. These reclassifications did not affect consolidated net income or cash flows for the periods presented. | ||||
Renewable Energy Grant: In January 2013, Consumers received a $69 million renewable energy cash grant for Lake Winds® Energy Park under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009. Upon receipt of the grant, Consumers recorded a regulatory liability for $69 million, which Consumers is amortizing over the life of Lake Winds® Energy Park. Consumers presents the amortization as a reduction to maintenance and other operating expense. Consumers recorded the deferred income taxes related to the grant as a reduction of the book basis of Lake Winds® Energy Park. | ||||
Restricted Cash and Cash Equivalents: CMS Energy and Consumers have restricted cash and cash equivalents dedicated for repayment of Securitization bonds and for payment under performance guarantees. CMS Energy and Consumers classify these amounts as a current asset if they relate to payments that could or will occur within one year. | ||||
Regulatory_Matters
Regulatory Matters | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Regulatory Matters | ' | ||||||||
2:REGULATORY MATTERS | |||||||||
Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC orders or other actions, could have a material adverse effect on CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings. | |||||||||
There are multiple appeals pending that involve various issues concerning cost allocation among customers, the allocation of refunds among customer groups, the adequacy of the record evidence supporting the recovery of Smart Energy investments, and other matters. Consumers is unable to predict the outcome of these appeals. | |||||||||
Regulatory Assets and Liabilities | |||||||||
Because Consumers is subject to the actions of the MPSC and FERC, Consumers prepares its consolidated financial statements in accordance with the provisions of regulatory accounting. A utility must apply regulatory accounting when its rates are designed to recover specific costs of providing regulated services. Under regulatory accounting, Consumers records regulatory assets or liabilities for certain transactions that would have been treated as expense or revenue by non‑regulated businesses. | |||||||||
Presented in the following table are the regulatory assets and liabilities on Consumers’ consolidated balance sheets: | |||||||||
In Millions | |||||||||
December 31 | End of Recovery | 2013 | 2012 | ||||||
or Refund Period | |||||||||
Regulatory assets | |||||||||
Current | |||||||||
Energy optimization plan incentive1 | 2014 | $ | 17 | $ | 15 | ||||
Gas revenue decoupling mechanism1 | 2014 | 17 | 16 | ||||||
Cancelled coal-fueled plant costs2 | 2014 | 5 | 4 | ||||||
Other2 | 2014 | 1 | - | ||||||
Total current regulatory assets | $ | 40 | $ | 35 | |||||
Non-current | |||||||||
Postretirement benefits3 | various | $ | 634 | $ | 1,700 | ||||
Costs of electric generating units to be retired and securitized2 | 2029 | 362 | - | ||||||
MGP sites4 | various | 148 | 152 | ||||||
Other securitized costs2 | 2016 | 129 | 192 | ||||||
ARO4 | various | 129 | 123 | ||||||
Unamortized debt costs4 | various | 74 | 55 | ||||||
Gas storage inventory adjustments4 | various | 23 | 15 | ||||||
Energy optimization plan incentive1 | 2015 | 18 | 17 | ||||||
Major maintenance2 | various | 10 | 5 | ||||||
Cancelled coal-fueled plant costs2 | 2015 | 2 | 7 | ||||||
Gas revenue decoupling mechanism1 | 2014 | - | 17 | ||||||
Other2 | various | 1 | 4 | ||||||
Total non-current regulatory assets | $ | 1,530 | $ | 2,287 | |||||
Total regulatory assets | $ | 1,570 | $ | 2,322 | |||||
Regulatory liabilities | |||||||||
Current | |||||||||
Income taxes, net | 2014 | $ | 64 | $ | - | ||||
Renewable energy grant | 2014 | 2 | - | ||||||
DOE settlement | 2013 | - | 23 | ||||||
Other | 2014 | 1 | 2 | ||||||
Total current regulatory liabilities | $ | 67 | $ | 25 | |||||
Non-current | |||||||||
Cost of removal | various | $ | 1,599 | $ | 1,441 | ||||
Renewable energy plan | 2028 | 159 | 175 | ||||||
Income taxes, net | various | 157 | 336 | ||||||
Postretirement benefits | various | 98 | - | ||||||
ARO | various | 93 | 103 | ||||||
Renewable energy grant | 2043 | 65 | - | ||||||
Energy optimization plan | 2015 | 31 | 34 | ||||||
Other | various | 13 | 12 | ||||||
Total non-current regulatory liabilities | $ | 2,215 | $ | 2,101 | |||||
Total regulatory liabilities | $ | 2,282 | $ | 2,126 | |||||
1These regulatory assets have arisen from alternative revenue programs and are not associated with incurred costs or capital investments. Therefore, the MPSC has provided for recovery without a return. | |||||||||
2These regulatory assets either are included in rate base (or are expected to be included, for costs incurred subsequent to the most recently approved rate case), thereby providing a return on expenditures, or provide a specific return on investment authorized by the MPSC. | |||||||||
3This regulatory asset is offset partially by liabilities. The net amount is included in rate base, thereby providing a return. | |||||||||
4These regulatory assets represent incurred costs for which the MPSC has provided, or Consumers expects, recovery without a return on investment. | |||||||||
Regulatory Assets | |||||||||
Energy Optimization Plan Incentive: In May 2013, Consumers filed its fourth annual report and reconciliation for its energy optimization plan, requesting approval of its energy optimization plan costs for 2012. In November 2013, the MPSC approved a settlement agreement authorizing Consumers to collect $17 million from customers during 2014 as an incentive payment for exceeding statutory targets under both its gas and electric energy optimization plans during 2012. | |||||||||
During 2013, Consumers achieved 140 percent of its electric savings target and 122 percent of its gas savings target. For achieving these savings levels, Consumers will request the MPSC’s approval to collect $18 million, the maximum incentive, in the energy optimization reconciliation to be filed in 2014. | |||||||||
Gas Revenue Decoupling Mechanism: The MPSC’s 2009 order in Consumers’ gas rate case authorized Consumers to implement a gas revenue decoupling mechanism. This mechanism, which the MPSC extended through April 2012 in its 2010 order in Consumers’ gas rate case, allowed Consumers to adjust future gas rates to the degree that actual average weather-adjusted sales per customer differed from the rate order. This mechanism was not affected by a separate Michigan Court of Appeals decision on electric revenue decoupling. | |||||||||
In August 2012, Consumers filed its final reconciliation of the gas revenue decoupling mechanism, requesting recovery of $17 million from customers for the period June 2011 through April 2012. In December 2013, the MPSC approved Consumers’ reconciliation for the full amount of its request and authorized recovery over four months beginning in January 2014. | |||||||||
Cancelled Coal-Fueled Plant Costs: In its June 2012 order in Consumers’ electric rate case, the MPSC authorized recovery over a three-year period of $14 million of development costs associated with Consumers’ cancelled 830‑MW coal-fueled plant. In September 2012, a party in Consumers’ electric rate case filed an appeal with the Michigan Court of Appeals to dispute the MPSC’s conclusion that authorized Consumers to recover these costs. | |||||||||
Postretirement Benefits: As part of the ratemaking process, the MPSC allows Consumers to defer the impact of actuarial losses and prior service costs associated with postretirement benefits as a regulatory asset and to recover these costs from customers. Conversely, Consumers defers the impact of actuarial gains as a regulatory liability and refunds these amounts to customers. The asset and liability will decrease as the deferred items are amortized and recognized as components of net periodic benefit cost. | |||||||||
Costs of Electric Generating Units to be Retired and Securitized: In December 2013, the MPSC issued a Securitization financing order that authorizes Consumers to proceed, at its sole discretion, with the sale of up to $389 million in Securitization bonds through a newly formed subsidiary. Under Michigan law, electric utilities are permitted to use highly rated, low-cost Securitization bonds to finance the recovery of qualified costs. The qualified costs that Consumers intends to securitize are principally the remaining book value of seven smaller coal-fueled electric generating units and three smaller gas-fueled electric generating units that Consumers plans to retire in 2016 if the Securitization transaction is successful. | |||||||||
Upon receipt of the Securitization financing order from the MPSC, Consumers removed the book value of the ten units from plant, property, and equipment and recorded this amount as a regulatory asset. Consumers will amortize the regulatory asset in accordance with current depreciation rates while the assets remain in rate base. Upon issuance of the Securitization bonds, Consumers will remove the book value of the units from rate base and amortize the regulatory asset over the life of the related Securitization bonds. | |||||||||
MGP Sites: Consumers expects to incur environmental remediation and other response activity costs at 23 former MGP facilities. The MPSC allows Consumers to recover from its natural gas customers over a ten-year period the costs incurred to remediate the MGP sites. | |||||||||
Other Securitized Costs: In 2000, the MPSC authorized Consumers to securitize certain qualified costs incurred as a result of electric utility restructuring legislation. This regulatory asset is amortized over the life of the related Securitization bonds. | |||||||||
ARO: The recovery of the underlying asset investments and related removal costs of recorded AROs are approved by the MPSC in depreciation rate cases. Consumers records a regulatory asset and a regulatory liability for timing differences between the recognition of AROs for financial reporting purposes and the recovery of these costs from customers. | |||||||||
Unamortized Debt Costs: Under regulatory accounting, any unamortized debt costs related to debt redeemed with the proceeds of new debt are capitalized and amortized over the life of the new debt. | |||||||||
Gas Storage Inventory Adjustments: Consumers incurs inventory expenses related to the loss of gas from its natural gas storage fields. The MPSC allows Consumers to recover these costs from its natural gas customers over a five-year period. | |||||||||
Major Maintenance: In its June 2012 order in Consumers’ electric rate case, the MPSC allowed Consumers to defer major maintenance costs associated with certain plants in excess of the costs approved in the rate order and recover these excess costs from customers, subject to MPSC approval. | |||||||||
Regulatory Liabilities | |||||||||
Income Taxes, Net: These costs represent the difference between deferred income taxes recognized for financial reporting purposes and amounts previously reflected in Consumers’ rates. This net balance will decrease over the remaining life of the related temporary differences and flow through current income tax benefit. | |||||||||
Renewable Energy Grant: In January 2013, Consumers received a $69 million renewable energy grant for Lake Winds® Energy Park, which began operations in November 2012. The grant was received from the U.S. Department of Treasury under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009. | |||||||||
As reflected in Consumers’ 2011 biennial renewable energy plan, which the MPSC approved in 2012, this grant reduces Consumers’ cost of complying with the renewable portfolio standards prescribed by the 2008 Energy Law and, accordingly, reduces the overall renewable energy surcharge to be collected from customers. The regulatory liability recorded for the grant will be amortized over the life of Lake Winds® Energy Park. | |||||||||
DOE Settlement: In 2011, Consumers entered into an agreement with the DOE to settle, for $120 million, a complaint filed by Consumers against the DOE in 2002 for nuclear storage costs incurred as a result of the DOE’s failure to accept spent nuclear fuel. In December 2012, the MPSC approved Consumers’ proposed treatment of this settlement amount, including a refund to customers of $23 million for spent nuclear fuel costs previously collected through rates. Consumers refunded this amount to customers during 2013. In March 2013, a party filed an appeal with the Michigan Court of Appeals to dispute the MPSC’s December 2012 order. | |||||||||
Cost of Removal: These amounts have been collected from customers to fund future asset removal activities. This regulatory liability is reduced as costs of removal are incurred. | |||||||||
Renewable Energy Plan: At December 31, 2013 and 2012, surcharges collected from customers to fund Consumers’ renewable energy plan exceeded Consumers’ spending. This regulatory liability is amortized as incremental costs are incurred to operate and depreciate Consumers’ wind parks and to purchase RECs under renewable energy purchase agreements. Incremental costs represent costs incurred in excess of amounts recovered through the PSCR process. | |||||||||
Energy Optimization Plan: At December 31, 2013 and 2012, surcharges collected from customers to fund Consumers’ energy optimization plan exceeded Consumers’ spending. The associated regulatory liability is amortized as costs are incurred under Consumers’ energy optimization plan. | |||||||||
Consumers’ Electric Utility | |||||||||
Electric Rate Case: In September 2012, Consumers filed an application with the MPSC seeking an annual rate increase of $148 million, based on a 10.5 percent authorized return on equity. In January 2013, Consumers supplemented its electric rate case application to reflect certain changes, which reduced its requested annual rate increase to $145 million. In March 2013, Consumers self-implemented an annual rate increase of $110 million out of its requested $145 million, subject to refund with interest. The MPSC approved a partial settlement agreement in May 2013, authorizing an annual rate increase of $89 million, based on a 10.3 percent authorized rate of return on equity. In June 2013, in connection with this electric rate case, the MPSC approved Consumers’ application for authority to continue the advanced metering infrastructure program and implement a non‑transmitting meter provision. | |||||||||
Consumers filed an application in July 2013 requesting that the MPSC find that the total revenues collected during self-implementation did not exceed those that would have been collected under final rates. In February 2014, the MPSC approved Consumers’ application, finding that no refund was required. | |||||||||
Electric Revenue Decoupling Mechanism: The MPSC’s 2009 order in Consumers’ electric rate case authorized Consumers to implement an electric revenue decoupling mechanism. This decoupling mechanism allowed Consumers to adjust future electric rates to the degree that actual average sales per customer differed from the rate order. The MPSC extended the electric revenue decoupling mechanism for a second year in its 2010 order in Consumers’ electric rate case. | |||||||||
In April 2012, the Michigan Court of Appeals ruled that the MPSC lacks statutory authority to approve or direct the use of a revenue decoupling mechanism for electric providers. Subsequently, in November 2012, the Michigan Court of Appeals ruled in an appeal of the MPSC’s 2010 order in Consumers’ electric rate case. The Court reversed the portion of the 2010 order related to Consumers’ electric revenue decoupling mechanism and remanded the case to the MPSC for further proceedings related to the revenue decoupling mechanism. In 2013, the MPSC issued an order reversing its prior approval of Consumers’ authority to implement a revenue decoupling mechanism. | |||||||||
Power Supply Cost Recovery and Gas Cost Recovery | |||||||||
The PSCR and GCR processes are designed to allow Consumers to recover all of its power supply and purchased natural gas costs if incurred under reasonable and prudent policies and practices. The MPSC reviews these costs, policies, and practices in annual plan and reconciliation proceedings. Consumers adjusts its PSCR and GCR billing factors monthly in order to minimize the overrecovery or underrecovery amount in the annual reconciliations. | |||||||||
PSCR Plans: In January 2014, the MPSC approved Consumers’ 2012 PSCR plan, authorizing the 2012 PSCR charge that Consumers self-implemented beginning in January 2012. | |||||||||
Consumers submitted its 2013 PSCR plan to the MPSC in September 2012, and in accordance with its proposed plan, self-implemented the 2013 PSCR charge beginning in January 2013. | |||||||||
PSCR Reconciliations: Presented in the following table are details about the PSCR reconciliation filing pending with the MPSC: | |||||||||
PSCR Year | Date Filed | Net | PSCR Cost of | ||||||
Underrecovery | Power Sold | ||||||||
(In Millions) | (In Billions) | ||||||||
2012 | Mar-13 | $ | 18 | $ | 1.9 | ||||
In May 2013, the MPSC issued an order in Consumers’ 2011 PSCR reconciliation, approving full recovery of $1.8 billion of power costs and authorizing Consumers to roll into its 2012 PSCR plan the overrecovery of $8 million. | |||||||||
GCR Plans: In February 2013, the MPSC approved Consumers’ 2012-2013 GCR plan, authorizing the 2012-2013 GCR charge that Consumers self-implemented beginning in April 2012. | |||||||||
Consumers submitted its 2013-2014 GCR plan to the MPSC in December 2012, and in accordance with its proposed plan, self-implemented the 2013-2014 GCR charge beginning in April 2013. | |||||||||
GCR Reconciliations: Presented in the following table are details about the GCR reconciliation filing pending with the MPSC: | |||||||||
GCR Year | Date Filed | Net | GCR Cost of | ||||||
Underrecovery | Gas Sold | ||||||||
(In Millions) | (In Billions) | ||||||||
2012-2013 | Jun-13 | $ | 22 | $ | 0.9 | ||||
In May 2013, the MPSC issued an order in Consumers’ 2011-2012 GCR reconciliation, approving full recovery of $0.9 billion in gas costs and authorizing Consumers to roll into its 2012-2013 GCR plan the overrecovery of $2 million. | |||||||||
Consumers’ PSCR and GCR mechanisms also represent probable future revenues that will be recovered from customers or previously collected revenues that will be refunded to customers through the ratemaking process. Underrecoveries are included in accrued power supply and overrecoveries are included in accrued rate refunds on Consumers’ consolidated balance sheets. | |||||||||
Consumers reflected the following assets and liabilities for PSCR and GCR underrecoveries and overrecoveries on its consolidated balance sheets: | |||||||||
In Millions | |||||||||
31-Dec | 2013 | 2012 | |||||||
Accrued power supply revenue | $ | - | $ | 32 | |||||
Accrued rate refunds | 12 | 6 | |||||||
Consumers Energy Company [Member] | ' | ||||||||
Regulatory Matters | ' | ||||||||
2:REGULATORY MATTERS | |||||||||
Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC orders or other actions, could have a material adverse effect on CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings. | |||||||||
There are multiple appeals pending that involve various issues concerning cost allocation among customers, the allocation of refunds among customer groups, the adequacy of the record evidence supporting the recovery of Smart Energy investments, and other matters. Consumers is unable to predict the outcome of these appeals. | |||||||||
Regulatory Assets and Liabilities | |||||||||
Because Consumers is subject to the actions of the MPSC and FERC, Consumers prepares its consolidated financial statements in accordance with the provisions of regulatory accounting. A utility must apply regulatory accounting when its rates are designed to recover specific costs of providing regulated services. Under regulatory accounting, Consumers records regulatory assets or liabilities for certain transactions that would have been treated as expense or revenue by non‑regulated businesses. | |||||||||
Presented in the following table are the regulatory assets and liabilities on Consumers’ consolidated balance sheets: | |||||||||
In Millions | |||||||||
December 31 | End of Recovery | 2013 | 2012 | ||||||
or Refund Period | |||||||||
Regulatory assets | |||||||||
Current | |||||||||
Energy optimization plan incentive1 | 2014 | $ | 17 | $ | 15 | ||||
Gas revenue decoupling mechanism1 | 2014 | 17 | 16 | ||||||
Cancelled coal-fueled plant costs2 | 2014 | 5 | 4 | ||||||
Other2 | 2014 | 1 | - | ||||||
Total current regulatory assets | $ | 40 | $ | 35 | |||||
Non-current | |||||||||
Postretirement benefits3 | various | $ | 634 | $ | 1,700 | ||||
Costs of electric generating units to be retired and securitized2 | 2029 | 362 | - | ||||||
MGP sites4 | various | 148 | 152 | ||||||
Other securitized costs2 | 2016 | 129 | 192 | ||||||
ARO4 | various | 129 | 123 | ||||||
Unamortized debt costs4 | various | 74 | 55 | ||||||
Gas storage inventory adjustments4 | various | 23 | 15 | ||||||
Energy optimization plan incentive1 | 2015 | 18 | 17 | ||||||
Major maintenance2 | various | 10 | 5 | ||||||
Cancelled coal-fueled plant costs2 | 2015 | 2 | 7 | ||||||
Gas revenue decoupling mechanism1 | 2014 | - | 17 | ||||||
Other2 | various | 1 | 4 | ||||||
Total non-current regulatory assets | $ | 1,530 | $ | 2,287 | |||||
Total regulatory assets | $ | 1,570 | $ | 2,322 | |||||
Regulatory liabilities | |||||||||
Current | |||||||||
Income taxes, net | 2014 | $ | 64 | $ | - | ||||
Renewable energy grant | 2014 | 2 | - | ||||||
DOE settlement | 2013 | - | 23 | ||||||
Other | 2014 | 1 | 2 | ||||||
Total current regulatory liabilities | $ | 67 | $ | 25 | |||||
Non-current | |||||||||
Cost of removal | various | $ | 1,599 | $ | 1,441 | ||||
Renewable energy plan | 2028 | 159 | 175 | ||||||
Income taxes, net | various | 157 | 336 | ||||||
Postretirement benefits | various | 98 | - | ||||||
ARO | various | 93 | 103 | ||||||
Renewable energy grant | 2043 | 65 | - | ||||||
Energy optimization plan | 2015 | 31 | 34 | ||||||
Other | various | 13 | 12 | ||||||
Total non-current regulatory liabilities | $ | 2,215 | $ | 2,101 | |||||
Total regulatory liabilities | $ | 2,282 | $ | 2,126 | |||||
1These regulatory assets have arisen from alternative revenue programs and are not associated with incurred costs or capital investments. Therefore, the MPSC has provided for recovery without a return. | |||||||||
2These regulatory assets either are included in rate base (or are expected to be included, for costs incurred subsequent to the most recently approved rate case), thereby providing a return on expenditures, or provide a specific return on investment authorized by the MPSC. | |||||||||
3This regulatory asset is offset partially by liabilities. The net amount is included in rate base, thereby providing a return. | |||||||||
4These regulatory assets represent incurred costs for which the MPSC has provided, or Consumers expects, recovery without a return on investment. | |||||||||
Regulatory Assets | |||||||||
Energy Optimization Plan Incentive: In May 2013, Consumers filed its fourth annual report and reconciliation for its energy optimization plan, requesting approval of its energy optimization plan costs for 2012. In November 2013, the MPSC approved a settlement agreement authorizing Consumers to collect $17 million from customers during 2014 as an incentive payment for exceeding statutory targets under both its gas and electric energy optimization plans during 2012. | |||||||||
During 2013, Consumers achieved 140 percent of its electric savings target and 122 percent of its gas savings target. For achieving these savings levels, Consumers will request the MPSC’s approval to collect $18 million, the maximum incentive, in the energy optimization reconciliation to be filed in 2014. | |||||||||
Gas Revenue Decoupling Mechanism: The MPSC’s 2009 order in Consumers’ gas rate case authorized Consumers to implement a gas revenue decoupling mechanism. This mechanism, which the MPSC extended through April 2012 in its 2010 order in Consumers’ gas rate case, allowed Consumers to adjust future gas rates to the degree that actual average weather-adjusted sales per customer differed from the rate order. This mechanism was not affected by a separate Michigan Court of Appeals decision on electric revenue decoupling. | |||||||||
In August 2012, Consumers filed its final reconciliation of the gas revenue decoupling mechanism, requesting recovery of $17 million from customers for the period June 2011 through April 2012. In December 2013, the MPSC approved Consumers’ reconciliation for the full amount of its request and authorized recovery over four months beginning in January 2014. | |||||||||
Cancelled Coal-Fueled Plant Costs: In its June 2012 order in Consumers’ electric rate case, the MPSC authorized recovery over a three-year period of $14 million of development costs associated with Consumers’ cancelled 830‑MW coal-fueled plant. In September 2012, a party in Consumers’ electric rate case filed an appeal with the Michigan Court of Appeals to dispute the MPSC’s conclusion that authorized Consumers to recover these costs. | |||||||||
Postretirement Benefits: As part of the ratemaking process, the MPSC allows Consumers to defer the impact of actuarial losses and prior service costs associated with postretirement benefits as a regulatory asset and to recover these costs from customers. Conversely, Consumers defers the impact of actuarial gains as a regulatory liability and refunds these amounts to customers. The asset and liability will decrease as the deferred items are amortized and recognized as components of net periodic benefit cost. | |||||||||
Costs of Electric Generating Units to be Retired and Securitized: In December 2013, the MPSC issued a Securitization financing order that authorizes Consumers to proceed, at its sole discretion, with the sale of up to $389 million in Securitization bonds through a newly formed subsidiary. Under Michigan law, electric utilities are permitted to use highly rated, low-cost Securitization bonds to finance the recovery of qualified costs. The qualified costs that Consumers intends to securitize are principally the remaining book value of seven smaller coal-fueled electric generating units and three smaller gas-fueled electric generating units that Consumers plans to retire in 2016 if the Securitization transaction is successful. | |||||||||
Upon receipt of the Securitization financing order from the MPSC, Consumers removed the book value of the ten units from plant, property, and equipment and recorded this amount as a regulatory asset. Consumers will amortize the regulatory asset in accordance with current depreciation rates while the assets remain in rate base. Upon issuance of the Securitization bonds, Consumers will remove the book value of the units from rate base and amortize the regulatory asset over the life of the related Securitization bonds. | |||||||||
MGP Sites: Consumers expects to incur environmental remediation and other response activity costs at 23 former MGP facilities. The MPSC allows Consumers to recover from its natural gas customers over a ten-year period the costs incurred to remediate the MGP sites. | |||||||||
Other Securitized Costs: In 2000, the MPSC authorized Consumers to securitize certain qualified costs incurred as a result of electric utility restructuring legislation. This regulatory asset is amortized over the life of the related Securitization bonds. | |||||||||
ARO: The recovery of the underlying asset investments and related removal costs of recorded AROs are approved by the MPSC in depreciation rate cases. Consumers records a regulatory asset and a regulatory liability for timing differences between the recognition of AROs for financial reporting purposes and the recovery of these costs from customers. | |||||||||
Unamortized Debt Costs: Under regulatory accounting, any unamortized debt costs related to debt redeemed with the proceeds of new debt are capitalized and amortized over the life of the new debt. | |||||||||
Gas Storage Inventory Adjustments: Consumers incurs inventory expenses related to the loss of gas from its natural gas storage fields. The MPSC allows Consumers to recover these costs from its natural gas customers over a five-year period. | |||||||||
Major Maintenance: In its June 2012 order in Consumers’ electric rate case, the MPSC allowed Consumers to defer major maintenance costs associated with certain plants in excess of the costs approved in the rate order and recover these excess costs from customers, subject to MPSC approval. | |||||||||
Regulatory Liabilities | |||||||||
Income Taxes, Net: These costs represent the difference between deferred income taxes recognized for financial reporting purposes and amounts previously reflected in Consumers’ rates. This net balance will decrease over the remaining life of the related temporary differences and flow through current income tax benefit. | |||||||||
Renewable Energy Grant: In January 2013, Consumers received a $69 million renewable energy grant for Lake Winds® Energy Park, which began operations in November 2012. The grant was received from the U.S. Department of Treasury under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009. | |||||||||
As reflected in Consumers’ 2011 biennial renewable energy plan, which the MPSC approved in 2012, this grant reduces Consumers’ cost of complying with the renewable portfolio standards prescribed by the 2008 Energy Law and, accordingly, reduces the overall renewable energy surcharge to be collected from customers. The regulatory liability recorded for the grant will be amortized over the life of Lake Winds® Energy Park. | |||||||||
DOE Settlement: In 2011, Consumers entered into an agreement with the DOE to settle, for $120 million, a complaint filed by Consumers against the DOE in 2002 for nuclear storage costs incurred as a result of the DOE’s failure to accept spent nuclear fuel. In December 2012, the MPSC approved Consumers’ proposed treatment of this settlement amount, including a refund to customers of $23 million for spent nuclear fuel costs previously collected through rates. Consumers refunded this amount to customers during 2013. In March 2013, a party filed an appeal with the Michigan Court of Appeals to dispute the MPSC’s December 2012 order. | |||||||||
Cost of Removal: These amounts have been collected from customers to fund future asset removal activities. This regulatory liability is reduced as costs of removal are incurred. | |||||||||
Renewable Energy Plan: At December 31, 2013 and 2012, surcharges collected from customers to fund Consumers’ renewable energy plan exceeded Consumers’ spending. This regulatory liability is amortized as incremental costs are incurred to operate and depreciate Consumers’ wind parks and to purchase RECs under renewable energy purchase agreements. Incremental costs represent costs incurred in excess of amounts recovered through the PSCR process. | |||||||||
Energy Optimization Plan: At December 31, 2013 and 2012, surcharges collected from customers to fund Consumers’ energy optimization plan exceeded Consumers’ spending. The associated regulatory liability is amortized as costs are incurred under Consumers’ energy optimization plan. | |||||||||
Consumers’ Electric Utility | |||||||||
Electric Rate Case: In September 2012, Consumers filed an application with the MPSC seeking an annual rate increase of $148 million, based on a 10.5 percent authorized return on equity. In January 2013, Consumers supplemented its electric rate case application to reflect certain changes, which reduced its requested annual rate increase to $145 million. In March 2013, Consumers self-implemented an annual rate increase of $110 million out of its requested $145 million, subject to refund with interest. The MPSC approved a partial settlement agreement in May 2013, authorizing an annual rate increase of $89 million, based on a 10.3 percent authorized rate of return on equity. In June 2013, in connection with this electric rate case, the MPSC approved Consumers’ application for authority to continue the advanced metering infrastructure program and implement a non‑transmitting meter provision. | |||||||||
Consumers filed an application in July 2013 requesting that the MPSC find that the total revenues collected during self-implementation did not exceed those that would have been collected under final rates. In February 2014, the MPSC approved Consumers’ application, finding that no refund was required. | |||||||||
Electric Revenue Decoupling Mechanism: The MPSC’s 2009 order in Consumers’ electric rate case authorized Consumers to implement an electric revenue decoupling mechanism. This decoupling mechanism allowed Consumers to adjust future electric rates to the degree that actual average sales per customer differed from the rate order. The MPSC extended the electric revenue decoupling mechanism for a second year in its 2010 order in Consumers’ electric rate case. | |||||||||
In April 2012, the Michigan Court of Appeals ruled that the MPSC lacks statutory authority to approve or direct the use of a revenue decoupling mechanism for electric providers. Subsequently, in November 2012, the Michigan Court of Appeals ruled in an appeal of the MPSC’s 2010 order in Consumers’ electric rate case. The Court reversed the portion of the 2010 order related to Consumers’ electric revenue decoupling mechanism and remanded the case to the MPSC for further proceedings related to the revenue decoupling mechanism. In 2013, the MPSC issued an order reversing its prior approval of Consumers’ authority to implement a revenue decoupling mechanism. | |||||||||
Power Supply Cost Recovery and Gas Cost Recovery | |||||||||
The PSCR and GCR processes are designed to allow Consumers to recover all of its power supply and purchased natural gas costs if incurred under reasonable and prudent policies and practices. The MPSC reviews these costs, policies, and practices in annual plan and reconciliation proceedings. Consumers adjusts its PSCR and GCR billing factors monthly in order to minimize the overrecovery or underrecovery amount in the annual reconciliations. | |||||||||
PSCR Plans: In January 2014, the MPSC approved Consumers’ 2012 PSCR plan, authorizing the 2012 PSCR charge that Consumers self-implemented beginning in January 2012. | |||||||||
Consumers submitted its 2013 PSCR plan to the MPSC in September 2012, and in accordance with its proposed plan, self-implemented the 2013 PSCR charge beginning in January 2013. | |||||||||
PSCR Reconciliations: Presented in the following table are details about the PSCR reconciliation filing pending with the MPSC: | |||||||||
PSCR Year | Date Filed | Net | PSCR Cost of | ||||||
Underrecovery | Power Sold | ||||||||
(In Millions) | (In Billions) | ||||||||
2012 | Mar-13 | $ | 18 | $ | 1.9 | ||||
In May 2013, the MPSC issued an order in Consumers’ 2011 PSCR reconciliation, approving full recovery of $1.8 billion of power costs and authorizing Consumers to roll into its 2012 PSCR plan the overrecovery of $8 million. | |||||||||
GCR Plans: In February 2013, the MPSC approved Consumers’ 2012-2013 GCR plan, authorizing the 2012-2013 GCR charge that Consumers self-implemented beginning in April 2012. | |||||||||
Consumers submitted its 2013-2014 GCR plan to the MPSC in December 2012, and in accordance with its proposed plan, self-implemented the 2013-2014 GCR charge beginning in April 2013. | |||||||||
GCR Reconciliations: Presented in the following table are details about the GCR reconciliation filing pending with the MPSC: | |||||||||
GCR Year | Date Filed | Net | GCR Cost of | ||||||
Underrecovery | Gas Sold | ||||||||
(In Millions) | (In Billions) | ||||||||
2012-2013 | Jun-13 | $ | 22 | $ | 0.9 | ||||
In May 2013, the MPSC issued an order in Consumers’ 2011-2012 GCR reconciliation, approving full recovery of $0.9 billion in gas costs and authorizing Consumers to roll into its 2012-2013 GCR plan the overrecovery of $2 million. | |||||||||
Consumers’ PSCR and GCR mechanisms also represent probable future revenues that will be recovered from customers or previously collected revenues that will be refunded to customers through the ratemaking process. Underrecoveries are included in accrued power supply and overrecoveries are included in accrued rate refunds on Consumers’ consolidated balance sheets. | |||||||||
Consumers reflected the following assets and liabilities for PSCR and GCR underrecoveries and overrecoveries on its consolidated balance sheets: | |||||||||
In Millions | |||||||||
31-Dec | 2013 | 2012 | |||||||
Accrued power supply revenue | $ | - | $ | 32 | |||||
Accrued rate refunds | 12 | 6 | |||||||
Contingencies_And_Commitments
Contingencies And Commitments | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Contingencies And Commitments | ' | ||||||||||||||||||||||
3:CONTINGENCIES AND COMMITMENTS | |||||||||||||||||||||||
CMS Energy and Consumers are involved in various matters that give rise to contingent liabilities. Depending on the specific issues, the resolution of these contingencies could have a material effect on CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made. Disclosures that state that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter. | |||||||||||||||||||||||
CMS Energy Contingencies | |||||||||||||||||||||||
Gas Index Price Reporting Investigation: In 2002, CMS Energy notified appropriate regulatory and governmental agencies that some employees at CMS MST and CMS Field Services appeared to have provided inaccurate information regarding natural gas trades to various energy industry publications which compile and report index prices. Although CMS Energy has not received any formal notification that the DOJ has completed its investigation, the DOJ’s last request for information occurred in 2003, and CMS Energy completed its response to this request in 2004. CMS Energy is unable to predict the outcome of the DOJ investigation and what effect, if any, the investigation will have on CMS Energy. | |||||||||||||||||||||||
Gas Index Price Reporting Litigation: CMS Energy, along with CMS MST, CMS Field Services, Cantera Natural Gas, Inc., and Cantera Gas Company, have been named as defendants in various lawsuits arising as a result of alleged inaccurate natural gas price reporting to publications that report trade information. Allegations include manipulation of NYMEX natural gas futures and options prices, price-fixing conspiracies, restraint of trade, and artificial inflation of natural gas retail prices in Kansas, Missouri, and Wisconsin. The following provides more detail on the cases in which CMS Energy or its affiliates remain as parties: | |||||||||||||||||||||||
· | In 2005, CMS Energy, CMS MST, and CMS Field Services were named as defendants in a putative class action filed in Kansas state court, Learjet, Inc., et al. v. Oneok, Inc., et al. The complaint alleges that during the putative class period, January 1, 2000 through October 31, 2002, the defendants engaged in a scheme to violate the Kansas Restraint of Trade Act. The plaintiffs are seeking statutory full consideration damages consisting of the full consideration paid by the plaintiffs for natural gas allegedly purchased from the defendants. | ||||||||||||||||||||||
· | In 2007, a class action complaint, Heartland Regional Medical Center, et al. v. Oneok, Inc. et al., was filed as a putative class action in Missouri state court alleging violations of Missouri antitrust laws. The defendants, including CMS Energy, CMS Field Services, and CMS MST, are alleged to have violated the Missouri antitrust law in connection with their natural gas reporting activities. The plaintiffs are seeking full consideration damages and treble damages. | ||||||||||||||||||||||
· | In 2006, a class action complaint, Arandell Corp., et al. v. XCEL Energy Inc., et al., was filed in Wisconsin state court on behalf of Wisconsin commercial entities that purchased natural gas between January 1, 2000 and October 31, 2002. The defendants, including CMS Energy, CMS ERM, and Cantera Gas Company, are alleged to have violated Wisconsin’s antitrust statute. The plaintiffs are seeking full consideration damages, plus exemplary damages and attorneys’ fees. | ||||||||||||||||||||||
· | In 2009, a class action complaint, Newpage Wisconsin System v. CMS ERM, et al., was filed in circuit court in Wood County, Wisconsin, against CMS Energy, CMS ERM, Cantera Gas Company, and others. The plaintiff is seeking full consideration damages, treble damages, costs, interest, and attorneys’ fees. | ||||||||||||||||||||||
· | In 2005, J.P. Morgan Trust Company, N.A., in its capacity as Trustee of the FLI Liquidating Trust, filed an action in Kansas state court against CMS Energy, CMS MST, CMS Field Services, and others. The complaint alleges various claims under the Kansas Restraint of Trade Act. The plaintiff is seeking statutory full consideration damages for its purchases of natural gas in 2000 and 2001. | ||||||||||||||||||||||
After removal to federal court, all of the cases described above were transferred to the MDL. In 2010, CMS Energy and Cantera Gas Company were dismissed from the Newpage case. In 2011, all claims against remaining CMS Energy defendants in the MDL cases were dismissed based on FERC preemption. Plaintiffs filed appeals in all of the cases. The issues on appeal were whether the district court erred in dismissing the cases based on FERC preemption and denying the plaintiffs’ motions for leave to amend their complaints to add a federal Sherman Act antitrust claim. The plaintiffs did not appeal the dismissal of CMS Energy as a defendant in these cases, but other CMS Energy entities remain as defendants. | |||||||||||||||||||||||
In April 2013, the U.S. Court of Appeals for the Ninth Circuit reversed the MDL decision and remanded the case to the MDL judge for further proceedings. The appellate court found that FERC preemption does not apply under the facts of these cases. The Court affirmed the MDL court’s denial of leave to amend to add federal antitrust claims. | |||||||||||||||||||||||
In August 2013, the joint defense group in these cases, of which CMS Energy defendants are members, filed a petition with the U.S. Supreme Court in an attempt to overturn the decision of the U.S. Court of Appeals for the Ninth Circuit. The petition is pending action by the U.S. Supreme Court. The Supreme Court has asked the Solicitor General for an opinion regarding this matter and may follow his guidance on whether to grant the petition. | |||||||||||||||||||||||
These cases involve complex facts, a large number of similarly situated defendants with different factual positions, and multiple jurisdictions. Presently, any estimate of liability would be highly speculative; the amount of CMS Energy’s possible loss would be based on widely varying models previously untested in this context. If the outcome after appeals is unfavorable, these cases could have a material adverse impact on CMS Energy’s liquidity, financial condition, and results of operations. | |||||||||||||||||||||||
Bay Harbor: CMS Energy retained environmental remediation obligations for the collection and treatment of leachate, a liquid consisting of water and other substances, at Bay Harbor after selling its interests in the development in 2002. Leachate is produced when water enters into cement kiln dust piles left over from former cement plant operations at the site. In 2012, CMS Energy and the MDEQ finalized an agreement that established the final remedies and the future release criteria at the site. CMS Energy has completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit issued in 2010. This permit requires renewal every five years. | |||||||||||||||||||||||
Various claims have been brought against CMS Land or its affiliates, including CMS Energy, alleging environmental damage to property, loss of property value, insufficient disclosure of environmental matters, breach of agreement relating to access, or other matters. In 2010, CMS Land and other parties received a demand for payment from the EPA in the amount of $7 million, plus interest, whereby the EPA is seeking recovery under CERCLA of the EPA’s response costs incurred at the Bay Harbor site. CMS Land has communicated to the EPA that it does not believe that this is a valid claim. | |||||||||||||||||||||||
CMS Energy has recorded a cumulative charge related to Bay Harbor of $229 million, which includes accretion expense. At December 31, 2013, CMS Energy had a recorded liability of $52 million for its remaining obligations. CMS Energy calculated this liability based on discounted projected costs, using a discount rate of 4.34 percent and an inflation rate of one percent on annual operating and maintenance costs. The undiscounted amount of the remaining obligation is $71 million. CMS Energy expects to pay $6 million in 2014, $5 million in 2015, $5 million in 2016, $4 million in 2017, and $4 million in 2018, and the remaining amount thereafter on long-term liquid disposal and operating and maintenance costs. | |||||||||||||||||||||||
CMS Energy’s estimate of response activity costs and the timing of expenditures could change if there are additional major changes in circumstances or assumptions, including but not limited to: | |||||||||||||||||||||||
· | a significant increase in the cost of the present long-term water disposal strategy; | ||||||||||||||||||||||
· | requirements to alter the present long-term water disposal strategy upon expiration of the NPDES permit if the MDEQ or EPA identify a more suitable alternative; | ||||||||||||||||||||||
· | an increase in the number of contamination areas; | ||||||||||||||||||||||
· | the nature and extent of contamination; | ||||||||||||||||||||||
· | delays in the receipt of requested permits; | ||||||||||||||||||||||
· | delays following the receipt of any requested permits due to legal appeals of third parties; | ||||||||||||||||||||||
· | unanticipated difficulties in meeting the technical commitments in the agreement with the MDEQ; | ||||||||||||||||||||||
· | additional or new legal or regulatory requirements; or | ||||||||||||||||||||||
· | new or different landowner claims. | ||||||||||||||||||||||
Depending on the size of any indemnity obligation or liability under environmental laws, an adverse outcome of this matter could have a material adverse effect on CMS Energy’s liquidity and financial condition and could negatively affect CMS Energy’s financial results. Although a liability for its present estimate of remaining response activity costs has been recorded, CMS Energy cannot predict the ultimate financial impact or outcome of this matter. | |||||||||||||||||||||||
Equatorial Guinea Tax Claim: In January 2002, CMS Energy sold its oil, gas, and methanol investments in Equatorial Guinea. The government of Equatorial Guinea claims that CMS Energy owes $142 million in taxes, plus significant penalties and interest, in connection with the sale and has requested arbitration. CMS Energy has concluded that the government’s tax claim is without merit. CMS Energy is vigorously contesting the claim, and cannot predict the financial impact or outcome of this matter. | |||||||||||||||||||||||
Consumers Electric Utility Contingencies | |||||||||||||||||||||||
Electric Environmental Matters: Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations. | |||||||||||||||||||||||
Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. Consumers believes that these costs should be recoverable in rates, but cannot guarantee that outcome. Consumers estimates that its liability for NREPA sites will be between $4 million and $6 million. At December 31, 2013, Consumers had a recorded liability of $4 million, the minimum amount in the range of its estimated probable NREPA liability. | |||||||||||||||||||||||
Consumers is a potentially responsible party at a number of contaminated sites administered under CERCLA. CERCLA liability is joint and several. In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site. The notification claimed that the EPA has reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB-containing materials at portions of the site. In April 2011, Consumers received a follow‑up letter from the EPA requesting that Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River. All parties, including Consumers, that were asked to participate in the removal action plan declined to accept liability. Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river. | |||||||||||||||||||||||
Based on its experience, Consumers estimates that its share of the total liability for other known CERCLA sites will be between $3 million and $9 million. Various factors, including the number of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At December 31, 2013, Consumers had a recorded liability of $3 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable CERCLA liability. | |||||||||||||||||||||||
The timing of payments related to Consumers’ remediation and other response activities at its CERCLA and NREPA sites is uncertain. Consumers periodically reviews these cost estimates. Any significant change in the underlying assumptions, such as an increase in the number of sites, different remediation techniques, the nature and extent of contamination, and legal and regulatory requirements, could affect its estimates of NREPA and CERCLA liability. | |||||||||||||||||||||||
Ludington PCB: In 1998, during routine maintenance activities, Consumers identified PCB as a component in certain paint, grout, and sealant materials at Ludington. Consumers removed and replaced part of the PCB material with non‑PCB material. Consumers has had several communications with the EPA regarding this matter. Although Consumers is not able to predict when the EPA will issue a final ruling and cannot predict the financial impact or outcome of this matter, it does not expect future remediation costs to be material. | |||||||||||||||||||||||
Electric Utility Plant Air Permit Issues and Notices of Violation: In 2007, Consumers received an NOV/FOV from the EPA alleging that fourteen utility boilers exceeded the visible emission limits in their associated air permits. Consumers has responded formally to the NOV/FOV denying the allegations. In addition, in 2008, Consumers received an NOV for three of its coal-fueled facilities alleging, among other things, violations of NSR PSD regulations relating to ten projects from 1986 to 1998 allegedly subject to review under the NSR. The EPA has alleged that some utilities have classified incorrectly major plant modifications as RMRR rather than seeking permits from the EPA or state regulatory agencies to modify their plants. Consumers responded to the information requests from the EPA on this subject in the past. Consumers believes that it has properly interpreted the requirements of RMRR. | |||||||||||||||||||||||
Consumers is engaged in discussions with the EPA on all of these matters. Depending upon the outcome of these discussions, the EPA could bring legal action against Consumers and/or Consumers could be required to install additional pollution control equipment at some or all of its coal-fueled electric generating plants, surrender emission allowances, engage in Environmental Mitigation Projects, and/or pay fines. Additionally, Consumers would need to assess the viability of continuing operations at certain plants. The potential costs relating to these matters could be material. Consumers expects that it would be able to recover some or all of the costs in rates, consistent with the recovery of other reasonable costs of complying with environmental laws and regulations, but cannot reasonably estimate the extent of cost recovery. Although Consumers cannot predict the financial impact or outcome of the entirety of these discussions, it does not expect any future loss from civil penalties and/or Environmental Mitigation Projects to be material. | |||||||||||||||||||||||
Nuclear Matters: The matters discussed in this section relate to Consumers’ previously owned nuclear generating plants. Consumers no longer owns or operates any nuclear generating facilities. | |||||||||||||||||||||||
Consumers filed a complaint in 2002 for damages resulting from the DOE’s failure to accept spent nuclear fuel from Palisades and Big Rock. In 2011, Consumers entered into an agreement with the DOE to settle its claims for $120 million. As part of this agreement, Consumers also settled its liability to the DOE to fund the disposal of spent nuclear fuel used at Palisades and Big Rock before 1983. In December 2012, the MPSC issued an order establishing the regulatory treatment of the settlement amount. In this order, the MPSC also relieved Consumers of its obligation to establish an independent trust fund for the amount that was payable to the DOE prior to the settlement. In March 2013, a party in this case filed an appeal with the Michigan Court of Appeals to dispute the December 2012 MPSC order. For further information, see Note 2, Regulatory Matters. | |||||||||||||||||||||||
Renewable Energy Matters: In April 2013, a group of landowners filed a lawsuit in Mason County (Michigan) Circuit Court alleging, among other things, personal injury, loss of property value, and impacts to use and enjoyment of their land as a result of the operations of Lake Winds® Energy Park. Consumers cannot predict the ultimate financial impact or outcome of this matter. | |||||||||||||||||||||||
Consumers Gas Utility Contingencies | |||||||||||||||||||||||
Gas Environmental Matters: Consumers expects to incur remediation and other response activity costs at a number of sites under the NREPA. These sites include 23 former MGP facilities. Consumers operated the facilities on these sites for some part of their operating lives. For some of these sites, Consumers has no present ownership interest or may own only a portion of the original site. | |||||||||||||||||||||||
At December 31, 2013, Consumers had a recorded liability of $117 million for its remaining obligations for these sites. This amount represents the present value of long-term projected costs, using a discount rate of 2.57 percent and an inflation rate of 2.5 percent. The undiscounted amount of the remaining obligation is $127 million. Consumers expects to incur remediation and other response activity costs in each of the next five years as follows: | |||||||||||||||||||||||
In Millions | |||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||||
Consumers | |||||||||||||||||||||||
Remediation and other response activity costs | $ | 8 | $ | 12 | $ | 12 | $ | 9 | $ | 19 | |||||||||||||
Consumers periodically reviews these cost estimates. Any significant change in the underlying assumptions, such as an increase in the number of sites, changes in remediation techniques, or legal and regulatory requirements, could affect Consumers’ estimates of annual response activity costs and the MGP liability. | |||||||||||||||||||||||
Pursuant to orders issued by the MPSC, Consumers defers its MGP-related remediation costs and recovers them from its customers over a ten-year period. At December 31, 2013, Consumers had a regulatory asset of $148 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 will be up to $3 million. At December 31, 2013, Consumers had a recorded liability of less than $1 million, the minimum amount in the range of its estimated probable liability. | |||||||||||||||||||||||
Consumers Other Contingencies | |||||||||||||||||||||||
Other Environmental Matters: Consumers initiated preliminary investigations during 2012 at a number of potentially contaminated sites it owns with the intention of determining whether any contamination existed and the extent of any identified contamination. The sites investigated included combustion turbine sites, generating sites, compressor stations, and above-ground fuel storage tank locations. Consumers completed the investigations in 2013 and found no additional risk associated with contamination that would warrant further investigation. | |||||||||||||||||||||||
Guarantees | |||||||||||||||||||||||
Presented in the following table are CMS Energy’s and Consumers’ guarantees at December 31, 2013: | |||||||||||||||||||||||
In Millions | |||||||||||||||||||||||
Maximum | Carrying | ||||||||||||||||||||||
Guarantee Description | Issue Date | Expiration Date | Obligation | Amount | |||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||
Indemnity obligations from asset sales | Various | Various through September 2029 | $ | 471 | 1 | $ | 16 | ||||||||||||||||
and other agreements | |||||||||||||||||||||||
Guarantees | Various | Various through March 2021 | 57 | - | |||||||||||||||||||
Consumers | |||||||||||||||||||||||
Indemnity obligations and other guarantees | Various | Various through September 2029 | $ | 30 | $ | 1 | |||||||||||||||||
1 | The majority of this amount arises from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy, other than Consumers, indemnified the purchaser for losses resulting from various matters, including claims related to tax disputes, claims related to power purchase agreements, and defects in title to the assets or stock sold to the purchaser by CMS Energy subsidiaries. Except for items described elsewhere in this Note, CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities. | ||||||||||||||||||||||
Presented in the following table is additional information regarding CMS Energy’s and Consumers’ guarantees: | |||||||||||||||||||||||
Guarantee Description | How Guarantee Arose | Events That Would Require Performance | |||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||
Indemnity obligations from asset | Stock and asset sale | Findings of misrepresentation, | |||||||||||||||||||||
sales and other agreements | agreements | breach of warranties, tax claims, and | |||||||||||||||||||||
other specific events or | |||||||||||||||||||||||
circumstances | |||||||||||||||||||||||
Guarantees | Normal operating | Nonperformance or non-payment by a | |||||||||||||||||||||
activity | subsidiary under a related contract | ||||||||||||||||||||||
Consumers | |||||||||||||||||||||||
Indemnity obligations and | Normal operating | Nonperformance or claims made by a third | |||||||||||||||||||||
other guarantees | activity | party under a related contract | |||||||||||||||||||||
CMS Energy, Consumers, and certain other subsidiaries of CMS Energy also enter into various agreements containing tax and other indemnity provisions for which they are unable to estimate the maximum potential obligation. These factors include unspecified exposure under certain agreements. CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities to be remote. | |||||||||||||||||||||||
Other Contingencies | |||||||||||||||||||||||
Other: In addition to the matters disclosed in this Note and Note 2, Regulatory Matters, there are certain other lawsuits and administrative proceedings before various courts and governmental agencies arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties. These other lawsuits and proceedings may involve personal injury, property damage, contracts, environmental matters, federal and state taxes, rates, licensing, employment, and other matters. Further, CMS Energy and Consumers occasionally self-report certain regulatory non‑compliance matters that may or may not eventually result in administrative proceedings. CMS Energy and Consumers believe that the outcome of any one of these proceedings will not have a material adverse effect on their consolidated results of operations, financial condition, or liquidity. | |||||||||||||||||||||||
Contractual Commitments | |||||||||||||||||||||||
Purchase Obligations: Presented in the following table are CMS Energy’s and Consumers’ contractual purchase obligations at December 31, 2013 for each of the periods shown. Purchase obligations arise from long-term contracts for the purchase of commodities and related services, and construction and service agreements. The commodities and related services include natural gas and associated transportation, electricity, and coal and associated transportation. Purchase obligations – related parties arise from long-term power purchase agreements from certain affiliates of CMS Enterprises. | |||||||||||||||||||||||
In Millions | |||||||||||||||||||||||
Payments Due | |||||||||||||||||||||||
Total | 2014 | 2015 | 2016 | 2017 | 2018 | Beyond | |||||||||||||||||
2018 | |||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||
Purchase obligations | $ | 12,068 | $ | 1,879 | $ | 983 | $ | 1,032 | $ | 1,001 | $ | 1,006 | $ | 6,167 | |||||||||
Purchase obligations – | 1,244 | 89 | 84 | 86 | 88 | 87 | 810 | ||||||||||||||||
related parties | |||||||||||||||||||||||
Consumers | |||||||||||||||||||||||
Purchase obligations | $ | 11,838 | $ | 1,803 | $ | 955 | $ | 1,005 | $ | 974 | $ | 979 | $ | 6,122 | |||||||||
Purchase obligations – | 1,244 | 89 | 84 | 86 | 88 | 87 | 810 | ||||||||||||||||
related parties | |||||||||||||||||||||||
The MCV PPA: Consumers has a 35‑year PPA that began in 1990 with the MCV Partnership to purchase 1,240 MW of electricity. The MCV PPA, as amended and restated, provides for: | |||||||||||||||||||||||
· | a capacity charge of $10.14 per MWh of available capacity; | ||||||||||||||||||||||
· | a fixed energy charge based on Consumers’ annual average baseload coal generating plant operating and maintenance cost, fuel inventory, and average administrative and general expenses; | ||||||||||||||||||||||
· | a variable energy charge for all delivered energy that reflects the MCV Partnership’s cost of production; | ||||||||||||||||||||||
· | a $5 million annual contribution by the MCV Partnership to a renewable resources program; and | ||||||||||||||||||||||
· | an option for Consumers to extend the MCV PPA for five years or purchase the MCV Facility at the conclusion of the MCV PPA’s term in March 2025. | ||||||||||||||||||||||
Capacity and energy charges under the MCV PPA were $278 million in 2013, $319 million in 2012, and $292 million in 2011. Consumers estimates that capacity and energy charges under the MCV PPA will average $320 million annually. These amounts are included in the table above. | |||||||||||||||||||||||
The Palisades PPA: Consumers has a PPA expiring in 2022 with Entergy to purchase all of the capacity and energy produced by Palisades, up to the annual average capacity of 798 MW. Consumers estimates that capacity and energy payments under the Palisades PPA will average $370 million annually. A portion of these amounts is included in the table above. Consumers’ total purchases of capacity and energy under the PPA were $338 million in 2013, $331 million in 2012, and $311 million in 2011. For further details about Palisades, see Note 9, Leases. | |||||||||||||||||||||||
Consumers Energy Company [Member] | ' | ||||||||||||||||||||||
Contingencies And Commitments | ' | ||||||||||||||||||||||
3:CONTINGENCIES AND COMMITMENTS | |||||||||||||||||||||||
CMS Energy and Consumers are involved in various matters that give rise to contingent liabilities. Depending on the specific issues, the resolution of these contingencies could have a material effect on CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made. Disclosures that state that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter. | |||||||||||||||||||||||
CMS Energy Contingencies | |||||||||||||||||||||||
Gas Index Price Reporting Investigation: In 2002, CMS Energy notified appropriate regulatory and governmental agencies that some employees at CMS MST and CMS Field Services appeared to have provided inaccurate information regarding natural gas trades to various energy industry publications which compile and report index prices. Although CMS Energy has not received any formal notification that the DOJ has completed its investigation, the DOJ’s last request for information occurred in 2003, and CMS Energy completed its response to this request in 2004. CMS Energy is unable to predict the outcome of the DOJ investigation and what effect, if any, the investigation will have on CMS Energy. | |||||||||||||||||||||||
Gas Index Price Reporting Litigation: CMS Energy, along with CMS MST, CMS Field Services, Cantera Natural Gas, Inc., and Cantera Gas Company, have been named as defendants in various lawsuits arising as a result of alleged inaccurate natural gas price reporting to publications that report trade information. Allegations include manipulation of NYMEX natural gas futures and options prices, price-fixing conspiracies, restraint of trade, and artificial inflation of natural gas retail prices in Kansas, Missouri, and Wisconsin. The following provides more detail on the cases in which CMS Energy or its affiliates remain as parties: | |||||||||||||||||||||||
· | In 2005, CMS Energy, CMS MST, and CMS Field Services were named as defendants in a putative class action filed in Kansas state court, Learjet, Inc., et al. v. Oneok, Inc., et al. The complaint alleges that during the putative class period, January 1, 2000 through October 31, 2002, the defendants engaged in a scheme to violate the Kansas Restraint of Trade Act. The plaintiffs are seeking statutory full consideration damages consisting of the full consideration paid by the plaintiffs for natural gas allegedly purchased from the defendants. | ||||||||||||||||||||||
· | In 2007, a class action complaint, Heartland Regional Medical Center, et al. v. Oneok, Inc. et al., was filed as a putative class action in Missouri state court alleging violations of Missouri antitrust laws. The defendants, including CMS Energy, CMS Field Services, and CMS MST, are alleged to have violated the Missouri antitrust law in connection with their natural gas reporting activities. The plaintiffs are seeking full consideration damages and treble damages. | ||||||||||||||||||||||
· | In 2006, a class action complaint, Arandell Corp., et al. v. XCEL Energy Inc., et al., was filed in Wisconsin state court on behalf of Wisconsin commercial entities that purchased natural gas between January 1, 2000 and October 31, 2002. The defendants, including CMS Energy, CMS ERM, and Cantera Gas Company, are alleged to have violated Wisconsin’s antitrust statute. The plaintiffs are seeking full consideration damages, plus exemplary damages and attorneys’ fees. | ||||||||||||||||||||||
· | In 2009, a class action complaint, Newpage Wisconsin System v. CMS ERM, et al., was filed in circuit court in Wood County, Wisconsin, against CMS Energy, CMS ERM, Cantera Gas Company, and others. The plaintiff is seeking full consideration damages, treble damages, costs, interest, and attorneys’ fees. | ||||||||||||||||||||||
· | In 2005, J.P. Morgan Trust Company, N.A., in its capacity as Trustee of the FLI Liquidating Trust, filed an action in Kansas state court against CMS Energy, CMS MST, CMS Field Services, and others. The complaint alleges various claims under the Kansas Restraint of Trade Act. The plaintiff is seeking statutory full consideration damages for its purchases of natural gas in 2000 and 2001. | ||||||||||||||||||||||
After removal to federal court, all of the cases described above were transferred to the MDL. In 2010, CMS Energy and Cantera Gas Company were dismissed from the Newpage case. In 2011, all claims against remaining CMS Energy defendants in the MDL cases were dismissed based on FERC preemption. Plaintiffs filed appeals in all of the cases. The issues on appeal were whether the district court erred in dismissing the cases based on FERC preemption and denying the plaintiffs’ motions for leave to amend their complaints to add a federal Sherman Act antitrust claim. The plaintiffs did not appeal the dismissal of CMS Energy as a defendant in these cases, but other CMS Energy entities remain as defendants. | |||||||||||||||||||||||
In April 2013, the U.S. Court of Appeals for the Ninth Circuit reversed the MDL decision and remanded the case to the MDL judge for further proceedings. The appellate court found that FERC preemption does not apply under the facts of these cases. The Court affirmed the MDL court’s denial of leave to amend to add federal antitrust claims. | |||||||||||||||||||||||
In August 2013, the joint defense group in these cases, of which CMS Energy defendants are members, filed a petition with the U.S. Supreme Court in an attempt to overturn the decision of the U.S. Court of Appeals for the Ninth Circuit. The petition is pending action by the U.S. Supreme Court. The Supreme Court has asked the Solicitor General for an opinion regarding this matter and may follow his guidance on whether to grant the petition. | |||||||||||||||||||||||
These cases involve complex facts, a large number of similarly situated defendants with different factual positions, and multiple jurisdictions. Presently, any estimate of liability would be highly speculative; the amount of CMS Energy’s possible loss would be based on widely varying models previously untested in this context. If the outcome after appeals is unfavorable, these cases could have a material adverse impact on CMS Energy’s liquidity, financial condition, and results of operations. | |||||||||||||||||||||||
Bay Harbor: CMS Energy retained environmental remediation obligations for the collection and treatment of leachate, a liquid consisting of water and other substances, at Bay Harbor after selling its interests in the development in 2002. Leachate is produced when water enters into cement kiln dust piles left over from former cement plant operations at the site. In 2012, CMS Energy and the MDEQ finalized an agreement that established the final remedies and the future release criteria at the site. CMS Energy has completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit issued in 2010. This permit requires renewal every five years. | |||||||||||||||||||||||
Various claims have been brought against CMS Land or its affiliates, including CMS Energy, alleging environmental damage to property, loss of property value, insufficient disclosure of environmental matters, breach of agreement relating to access, or other matters. In 2010, CMS Land and other parties received a demand for payment from the EPA in the amount of $7 million, plus interest, whereby the EPA is seeking recovery under CERCLA of the EPA’s response costs incurred at the Bay Harbor site. CMS Land has communicated to the EPA that it does not believe that this is a valid claim. | |||||||||||||||||||||||
CMS Energy has recorded a cumulative charge related to Bay Harbor of $229 million, which includes accretion expense. At December 31, 2013, CMS Energy had a recorded liability of $52 million for its remaining obligations. CMS Energy calculated this liability based on discounted projected costs, using a discount rate of 4.34 percent and an inflation rate of one percent on annual operating and maintenance costs. The undiscounted amount of the remaining obligation is $71 million. CMS Energy expects to pay $6 million in 2014, $5 million in 2015, $5 million in 2016, $4 million in 2017, and $4 million in 2018, and the remaining amount thereafter on long-term liquid disposal and operating and maintenance costs. | |||||||||||||||||||||||
CMS Energy’s estimate of response activity costs and the timing of expenditures could change if there are additional major changes in circumstances or assumptions, including but not limited to: | |||||||||||||||||||||||
· | a significant increase in the cost of the present long-term water disposal strategy; | ||||||||||||||||||||||
· | requirements to alter the present long-term water disposal strategy upon expiration of the NPDES permit if the MDEQ or EPA identify a more suitable alternative; | ||||||||||||||||||||||
· | an increase in the number of contamination areas; | ||||||||||||||||||||||
· | the nature and extent of contamination; | ||||||||||||||||||||||
· | delays in the receipt of requested permits; | ||||||||||||||||||||||
· | delays following the receipt of any requested permits due to legal appeals of third parties; | ||||||||||||||||||||||
· | unanticipated difficulties in meeting the technical commitments in the agreement with the MDEQ; | ||||||||||||||||||||||
· | additional or new legal or regulatory requirements; or | ||||||||||||||||||||||
· | new or different landowner claims. | ||||||||||||||||||||||
Depending on the size of any indemnity obligation or liability under environmental laws, an adverse outcome of this matter could have a material adverse effect on CMS Energy’s liquidity and financial condition and could negatively affect CMS Energy’s financial results. Although a liability for its present estimate of remaining response activity costs has been recorded, CMS Energy cannot predict the ultimate financial impact or outcome of this matter. | |||||||||||||||||||||||
Equatorial Guinea Tax Claim: In January 2002, CMS Energy sold its oil, gas, and methanol investments in Equatorial Guinea. The government of Equatorial Guinea claims that CMS Energy owes $142 million in taxes, plus significant penalties and interest, in connection with the sale and has requested arbitration. CMS Energy has concluded that the government’s tax claim is without merit. CMS Energy is vigorously contesting the claim, and cannot predict the financial impact or outcome of this matter. | |||||||||||||||||||||||
Consumers Electric Utility Contingencies | |||||||||||||||||||||||
Electric Environmental Matters: Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations. | |||||||||||||||||||||||
Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. Consumers believes that these costs should be recoverable in rates, but cannot guarantee that outcome. Consumers estimates that its liability for NREPA sites will be between $4 million and $6 million. At December 31, 2013, Consumers had a recorded liability of $4 million, the minimum amount in the range of its estimated probable NREPA liability. | |||||||||||||||||||||||
Consumers is a potentially responsible party at a number of contaminated sites administered under CERCLA. CERCLA liability is joint and several. In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site. The notification claimed that the EPA has reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB-containing materials at portions of the site. In April 2011, Consumers received a follow‑up letter from the EPA requesting that Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River. All parties, including Consumers, that were asked to participate in the removal action plan declined to accept liability. Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river. | |||||||||||||||||||||||
Based on its experience, Consumers estimates that its share of the total liability for other known CERCLA sites will be between $3 million and $9 million. Various factors, including the number of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At December 31, 2013, Consumers had a recorded liability of $3 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable CERCLA liability. | |||||||||||||||||||||||
The timing of payments related to Consumers’ remediation and other response activities at its CERCLA and NREPA sites is uncertain. Consumers periodically reviews these cost estimates. Any significant change in the underlying assumptions, such as an increase in the number of sites, different remediation techniques, the nature and extent of contamination, and legal and regulatory requirements, could affect its estimates of NREPA and CERCLA liability. | |||||||||||||||||||||||
Ludington PCB: In 1998, during routine maintenance activities, Consumers identified PCB as a component in certain paint, grout, and sealant materials at Ludington. Consumers removed and replaced part of the PCB material with non‑PCB material. Consumers has had several communications with the EPA regarding this matter. Although Consumers is not able to predict when the EPA will issue a final ruling and cannot predict the financial impact or outcome of this matter, it does not expect future remediation costs to be material. | |||||||||||||||||||||||
Electric Utility Plant Air Permit Issues and Notices of Violation: In 2007, Consumers received an NOV/FOV from the EPA alleging that fourteen utility boilers exceeded the visible emission limits in their associated air permits. Consumers has responded formally to the NOV/FOV denying the allegations. In addition, in 2008, Consumers received an NOV for three of its coal-fueled facilities alleging, among other things, violations of NSR PSD regulations relating to ten projects from 1986 to 1998 allegedly subject to review under the NSR. The EPA has alleged that some utilities have classified incorrectly major plant modifications as RMRR rather than seeking permits from the EPA or state regulatory agencies to modify their plants. Consumers responded to the information requests from the EPA on this subject in the past. Consumers believes that it has properly interpreted the requirements of RMRR. | |||||||||||||||||||||||
Consumers is engaged in discussions with the EPA on all of these matters. Depending upon the outcome of these discussions, the EPA could bring legal action against Consumers and/or Consumers could be required to install additional pollution control equipment at some or all of its coal-fueled electric generating plants, surrender emission allowances, engage in Environmental Mitigation Projects, and/or pay fines. Additionally, Consumers would need to assess the viability of continuing operations at certain plants. The potential costs relating to these matters could be material. Consumers expects that it would be able to recover some or all of the costs in rates, consistent with the recovery of other reasonable costs of complying with environmental laws and regulations, but cannot reasonably estimate the extent of cost recovery. Although Consumers cannot predict the financial impact or outcome of the entirety of these discussions, it does not expect any future loss from civil penalties and/or Environmental Mitigation Projects to be material. | |||||||||||||||||||||||
Nuclear Matters: The matters discussed in this section relate to Consumers’ previously owned nuclear generating plants. Consumers no longer owns or operates any nuclear generating facilities. | |||||||||||||||||||||||
Consumers filed a complaint in 2002 for damages resulting from the DOE’s failure to accept spent nuclear fuel from Palisades and Big Rock. In 2011, Consumers entered into an agreement with the DOE to settle its claims for $120 million. As part of this agreement, Consumers also settled its liability to the DOE to fund the disposal of spent nuclear fuel used at Palisades and Big Rock before 1983. In December 2012, the MPSC issued an order establishing the regulatory treatment of the settlement amount. In this order, the MPSC also relieved Consumers of its obligation to establish an independent trust fund for the amount that was payable to the DOE prior to the settlement. In March 2013, a party in this case filed an appeal with the Michigan Court of Appeals to dispute the December 2012 MPSC order. For further information, see Note 2, Regulatory Matters. | |||||||||||||||||||||||
Renewable Energy Matters: In April 2013, a group of landowners filed a lawsuit in Mason County (Michigan) Circuit Court alleging, among other things, personal injury, loss of property value, and impacts to use and enjoyment of their land as a result of the operations of Lake Winds® Energy Park. Consumers cannot predict the ultimate financial impact or outcome of this matter. | |||||||||||||||||||||||
Consumers Gas Utility Contingencies | |||||||||||||||||||||||
Gas Environmental Matters: Consumers expects to incur remediation and other response activity costs at a number of sites under the NREPA. These sites include 23 former MGP facilities. Consumers operated the facilities on these sites for some part of their operating lives. For some of these sites, Consumers has no present ownership interest or may own only a portion of the original site. | |||||||||||||||||||||||
At December 31, 2013, Consumers had a recorded liability of $117 million for its remaining obligations for these sites. This amount represents the present value of long-term projected costs, using a discount rate of 2.57 percent and an inflation rate of 2.5 percent. The undiscounted amount of the remaining obligation is $127 million. Consumers expects to incur remediation and other response activity costs in each of the next five years as follows: | |||||||||||||||||||||||
In Millions | |||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||||
Consumers | |||||||||||||||||||||||
Remediation and other response activity costs | $ | 8 | $ | 12 | $ | 12 | $ | 9 | $ | 19 | |||||||||||||
Consumers periodically reviews these cost estimates. Any significant change in the underlying assumptions, such as an increase in the number of sites, changes in remediation techniques, or legal and regulatory requirements, could affect Consumers’ estimates of annual response activity costs and the MGP liability. | |||||||||||||||||||||||
Pursuant to orders issued by the MPSC, Consumers defers its MGP-related remediation costs and recovers them from its customers over a ten-year period. At December 31, 2013, Consumers had a regulatory asset of $148 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 will be up to $3 million. At December 31, 2013, Consumers had a recorded liability of less than $1 million, the minimum amount in the range of its estimated probable liability. | |||||||||||||||||||||||
Consumers Other Contingencies | |||||||||||||||||||||||
Other Environmental Matters: Consumers initiated preliminary investigations during 2012 at a number of potentially contaminated sites it owns with the intention of determining whether any contamination existed and the extent of any identified contamination. The sites investigated included combustion turbine sites, generating sites, compressor stations, and above-ground fuel storage tank locations. Consumers completed the investigations in 2013 and found no additional risk associated with contamination that would warrant further investigation. | |||||||||||||||||||||||
Guarantees | |||||||||||||||||||||||
Presented in the following table are CMS Energy’s and Consumers’ guarantees at December 31, 2013: | |||||||||||||||||||||||
In Millions | |||||||||||||||||||||||
Maximum | Carrying | ||||||||||||||||||||||
Guarantee Description | Issue Date | Expiration Date | Obligation | Amount | |||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||
Indemnity obligations from asset sales | Various | Various through September 2029 | $ | 471 | 1 | $ | 16 | ||||||||||||||||
and other agreements | |||||||||||||||||||||||
Guarantees | Various | Various through March 2021 | 57 | - | |||||||||||||||||||
Consumers | |||||||||||||||||||||||
Indemnity obligations and other guarantees | Various | Various through September 2029 | $ | 30 | $ | 1 | |||||||||||||||||
1 | The majority of this amount arises from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy, other than Consumers, indemnified the purchaser for losses resulting from various matters, including claims related to tax disputes, claims related to power purchase agreements, and defects in title to the assets or stock sold to the purchaser by CMS Energy subsidiaries. Except for items described elsewhere in this Note, CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities. | ||||||||||||||||||||||
Presented in the following table is additional information regarding CMS Energy’s and Consumers’ guarantees: | |||||||||||||||||||||||
Guarantee Description | How Guarantee Arose | Events That Would Require Performance | |||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||
Indemnity obligations from asset | Stock and asset sale | Findings of misrepresentation, | |||||||||||||||||||||
sales and other agreements | agreements | breach of warranties, tax claims, and | |||||||||||||||||||||
other specific events or | |||||||||||||||||||||||
circumstances | |||||||||||||||||||||||
Guarantees | Normal operating | Nonperformance or non-payment by a | |||||||||||||||||||||
activity | subsidiary under a related contract | ||||||||||||||||||||||
Consumers | |||||||||||||||||||||||
Indemnity obligations and | Normal operating | Nonperformance or claims made by a third | |||||||||||||||||||||
other guarantees | activity | party under a related contract | |||||||||||||||||||||
CMS Energy, Consumers, and certain other subsidiaries of CMS Energy also enter into various agreements containing tax and other indemnity provisions for which they are unable to estimate the maximum potential obligation. These factors include unspecified exposure under certain agreements. CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities to be remote. | |||||||||||||||||||||||
Other Contingencies | |||||||||||||||||||||||
Other: In addition to the matters disclosed in this Note and Note 2, Regulatory Matters, there are certain other lawsuits and administrative proceedings before various courts and governmental agencies arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties. These other lawsuits and proceedings may involve personal injury, property damage, contracts, environmental matters, federal and state taxes, rates, licensing, employment, and other matters. Further, CMS Energy and Consumers occasionally self-report certain regulatory non‑compliance matters that may or may not eventually result in administrative proceedings. CMS Energy and Consumers believe that the outcome of any one of these proceedings will not have a material adverse effect on their consolidated results of operations, financial condition, or liquidity. | |||||||||||||||||||||||
Contractual Commitments | |||||||||||||||||||||||
Purchase Obligations: Presented in the following table are CMS Energy’s and Consumers’ contractual purchase obligations at December 31, 2013 for each of the periods shown. Purchase obligations arise from long-term contracts for the purchase of commodities and related services, and construction and service agreements. The commodities and related services include natural gas and associated transportation, electricity, and coal and associated transportation. Purchase obligations – related parties arise from long-term power purchase agreements from certain affiliates of CMS Enterprises. | |||||||||||||||||||||||
In Millions | |||||||||||||||||||||||
Payments Due | |||||||||||||||||||||||
Total | 2014 | 2015 | 2016 | 2017 | 2018 | Beyond | |||||||||||||||||
2018 | |||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||
Purchase obligations | $ | 12,068 | $ | 1,879 | $ | 983 | $ | 1,032 | $ | 1,001 | $ | 1,006 | $ | 6,167 | |||||||||
Purchase obligations – | 1,244 | 89 | 84 | 86 | 88 | 87 | 810 | ||||||||||||||||
related parties | |||||||||||||||||||||||
Consumers | |||||||||||||||||||||||
Purchase obligations | $ | 11,838 | $ | 1,803 | $ | 955 | $ | 1,005 | $ | 974 | $ | 979 | $ | 6,122 | |||||||||
Purchase obligations – | 1,244 | 89 | 84 | 86 | 88 | 87 | 810 | ||||||||||||||||
related parties | |||||||||||||||||||||||
The MCV PPA: Consumers has a 35‑year PPA that began in 1990 with the MCV Partnership to purchase 1,240 MW of electricity. The MCV PPA, as amended and restated, provides for: | |||||||||||||||||||||||
· | a capacity charge of $10.14 per MWh of available capacity; | ||||||||||||||||||||||
· | a fixed energy charge based on Consumers’ annual average baseload coal generating plant operating and maintenance cost, fuel inventory, and average administrative and general expenses; | ||||||||||||||||||||||
· | a variable energy charge for all delivered energy that reflects the MCV Partnership’s cost of production; | ||||||||||||||||||||||
· | a $5 million annual contribution by the MCV Partnership to a renewable resources program; and | ||||||||||||||||||||||
· | an option for Consumers to extend the MCV PPA for five years or purchase the MCV Facility at the conclusion of the MCV PPA’s term in March 2025. | ||||||||||||||||||||||
Capacity and energy charges under the MCV PPA were $278 million in 2013, $319 million in 2012, and $292 million in 2011. Consumers estimates that capacity and energy charges under the MCV PPA will average $320 million annually. These amounts are included in the table above. | |||||||||||||||||||||||
The Palisades PPA: Consumers has a PPA expiring in 2022 with Entergy to purchase all of the capacity and energy produced by Palisades, up to the annual average capacity of 798 MW. Consumers estimates that capacity and energy payments under the Palisades PPA will average $370 million annually. A portion of these amounts is included in the table above. Consumers’ total purchases of capacity and energy under the PPA were $338 million in 2013, $331 million in 2012, and $311 million in 2011. For further details about Palisades, see Note 9, Leases. | |||||||||||||||||||||||
Financings_And_Capitalization
Financings And Capitalization | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Financings And Capitalization | ' | ||||||||||||||||
4:FINANCINGS AND CAPITALIZATION | |||||||||||||||||
Presented in the following table is CMS Energy’s long-term debt at December 31: | |||||||||||||||||
In Millions | |||||||||||||||||
Interest Rate | Maturity | 2013 | 2012 | ||||||||||||||
(%) | |||||||||||||||||
CMS Energy | |||||||||||||||||
Senior notes | 2.750 | 1 | 2014 | $ | - | $ | 250 | ||||||||||
6.875 | 2015 | 125 | 125 | ||||||||||||||
4.250 | 2015 | 250 | 250 | ||||||||||||||
6.550 | 2017 | 250 | 250 | ||||||||||||||
5.050 | 2018 | 250 | 250 | ||||||||||||||
8.750 | 2019 | 300 | 300 | ||||||||||||||
6.250 | 2020 | 300 | 300 | ||||||||||||||
5.050 | 2022 | 300 | 300 | ||||||||||||||
5.500 | 2 | 2029 | 172 | 172 | |||||||||||||
4.700 | 2043 | 250 | - | ||||||||||||||
Total CMS Energy senior notes | $ | 2,197 | $ | 2,197 | |||||||||||||
Term loan facility | variable | 3 | 2016 | 180 | 180 | ||||||||||||
Total CMS Energy parent | $ | 2,377 | $ | 2,377 | |||||||||||||
Consumers | $ | 4,625 | $ | 4,341 | |||||||||||||
Other CMS Energy subsidiaries | |||||||||||||||||
EnerBank certificates of deposits | 1.095 | 4 | 2014-2021 | $ | 652 | $ | 527 | ||||||||||
Total other CMS Energy subsidiaries | $ | 652 | $ | 527 | |||||||||||||
Total CMS Energy principal amount outstanding | $ | 7,654 | $ | 7,245 | |||||||||||||
Current amounts | -541 | -519 | |||||||||||||||
Net unamortized discounts | -12 | -16 | |||||||||||||||
Total CMS Energy long-term debt | $ | 7,101 | $ | 6,710 | |||||||||||||
1 | In September 2013, CMS Energy retired its 2.75 percent senior notes. | ||||||||||||||||
2 | CMS Energy’s contingently convertible notes. See the “Contingently Convertible Securities” section in this Note for further discussion of the conversion features. | ||||||||||||||||
3 | Outstanding borrowings bear interest at an annual interest rate of LIBOR plus 1.75 percent (1.92 percent at December 31, 2013). | ||||||||||||||||
4 | The weighted-average interest rate for EnerBank’s certificates of deposit was 1.09 percent at December 31, 2013 and 1.16 percent at December 31, 2012. EnerBank’s primary deposit product consists of brokered certificates of deposit with varying maturities and having a face value of $1,000. | ||||||||||||||||
Presented in the following table is Consumers’ long-term debt at December 31: | |||||||||||||||||
In Millions | |||||||||||||||||
Interest Rate | Maturity | 2013 | 2012 | ||||||||||||||
(%) | |||||||||||||||||
Consumers | |||||||||||||||||
FMBs1 | 6.000 | 2 | 2014 | $ | - | $ | 200 | ||||||||||
5.000 | 2 | 2015 | - | 225 | |||||||||||||
2.600 | 2015 | 50 | 50 | ||||||||||||||
5.500 | 2016 | 350 | 350 | ||||||||||||||
5.150 | 2017 | 250 | 250 | ||||||||||||||
3.210 | 2017 | 100 | 100 | ||||||||||||||
5.650 | 2018 | 250 | 250 | ||||||||||||||
6.125 | 2019 | 350 | 350 | ||||||||||||||
6.700 | 2019 | 500 | 500 | ||||||||||||||
5.650 | 2020 | 300 | 300 | ||||||||||||||
3.770 | 2020 | 100 | 100 | ||||||||||||||
5.300 | 2022 | 250 | 250 | ||||||||||||||
2.850 | 2022 | 375 | 375 | ||||||||||||||
3.375 | 2023 | 325 | - | ||||||||||||||
3.190 | 2024 | 52 | 52 | ||||||||||||||
3.390 | 2027 | 35 | 35 | ||||||||||||||
5.800 | 2035 | 175 | 175 | ||||||||||||||
6.170 | 2040 | 50 | 50 | ||||||||||||||
4.970 | 2040 | 50 | 50 | ||||||||||||||
4.310 | 2042 | 263 | 263 | ||||||||||||||
3.950 | 2043 | 425 | - | ||||||||||||||
$ | 4,250 | $ | 3,925 | ||||||||||||||
Senior notes | 6.875 | 2018 | 180 | 180 | |||||||||||||
Securitization bonds | 5.760 | 3 | 2015 | 92 | 133 | ||||||||||||
Tax-exempt pollution control revenue bonds | various | 2018-2035 | 103 | 103 | |||||||||||||
Total Consumers principal amount outstanding | $ | 4,625 | $ | 4,341 | |||||||||||||
Current amounts | -43 | -41 | |||||||||||||||
Net unamortized discounts | -3 | -3 | |||||||||||||||
Total Consumers long-term debt | $ | 4,579 | $ | 4,297 | |||||||||||||
1 | The weighted-average interest rate for Consumers’ FMBs was 4.90 percent at December 31, 2013 and 5.19 percent at December 31, 2012. | ||||||||||||||||
2 | In June 2013, Consumers retired its 6.00 percent and 5.00 percent FMBs. | ||||||||||||||||
3 | The weighted-average interest rate for Consumers’ Securitization bonds was 5.76 percent at December 31, 2013 and 5.72 percent at December 31, 2012. | ||||||||||||||||
Financings: Presented in the following table is a summary of major long-term debt transactions during the year ended December 31, 2013: | |||||||||||||||||
Principal | Issue/Retirement | ||||||||||||||||
(In Millions) | Interest Rate | Date | Maturity Date | ||||||||||||||
Debt issuances | |||||||||||||||||
CMS Energy | |||||||||||||||||
Senior notes | $ | 250 | 4.700 | % | March 2013 | March 2043 | |||||||||||
Total CMS Energy parent | $ | 250 | |||||||||||||||
Consumers | |||||||||||||||||
FMBs | $ | 425 | 3.950 | % | May 2013 | May 2043 | |||||||||||
FMBs | 325 | 3.375 | % | Aug-13 | Aug-23 | ||||||||||||
Total Consumers | $ | 750 | |||||||||||||||
Total debt issuances | $ | 1,000 | |||||||||||||||
Debt retirements | |||||||||||||||||
CMS Energy | |||||||||||||||||
Senior notes | $ | 250 | 2.750 | % | Sep-13 | May-14 | |||||||||||
Total CMS Energy parent | $ | 250 | |||||||||||||||
Consumers | |||||||||||||||||
FMBs | $ | 200 | 6.000 | % | Jun-13 | February 2014 | |||||||||||
FMBs | 225 | 5.000 | % | Jun-13 | Mar-15 | ||||||||||||
Total Consumers | $ | 425 | |||||||||||||||
Total debt retirements | $ | 675 | |||||||||||||||
FMBs: Consumers secures its FMBs by a mortgage and lien on substantially all of its property. Consumers’ ability to issue FMBs is restricted by certain provisions in the First Mortgage Bond Indenture and the need for regulatory approvals under federal law. Restrictive issuance provisions in the First Mortgage Bond Indenture include achieving a two-times interest coverage ratio and having sufficient unfunded net property additions. | |||||||||||||||||
Regulatory Authorization for Financings: FERC has authorized Consumers to have outstanding at any one time, up to $500 million of secured and unsecured short-term securities for general corporate purposes. The remaining availability was $200 million at December 31, 2013. FERC has also authorized Consumers to issue and sell up to $1.9 billion of secured and unsecured long-term securities for general corporate purposes. The remaining availability was $800 million at December 31, 2013. The authorizations are for the period ending June 30, 2014. Any long-term issuances during the authorization period are exempt from FERC’s competitive bidding and negotiated placement requirements. | |||||||||||||||||
Securitization Bonds: Certain regulatory assets owned by Consumers’ subsidiary Consumers Funding collateralize Consumers’ Securitization bonds. The bondholders have no recourse to Consumers’ other assets. Through its rate structure, Consumers bills customers for Securitization surcharges to fund the payment of principal, interest, and other related expenses. The surcharges collected are remitted to a trustee and are not available to creditors of Consumers or creditors of Consumers’ affiliates other than Consumers Funding. | |||||||||||||||||
Debt Maturities: At December 31, 2013, the aggregate annual contractual maturities for long-term debt for the next five years were: | |||||||||||||||||
In Millions | |||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||
CMS Energy, including Consumers | |||||||||||||||||
Long-term debt | $ | 368 | $ | 599 | $ | 608 | $ | 657 | $ | 786 | |||||||
Consumers | |||||||||||||||||
Long-term debt | $ | 43 | $ | 99 | $ | 350 | $ | 350 | $ | 498 | |||||||
Revolving Credit Facilities: The following secured revolving credit facilities with banks were available at December 31, 2013: | |||||||||||||||||
In Millions | |||||||||||||||||
Letters of Credit | |||||||||||||||||
Expiration Date | Amount of Facility | Amount Borrowed | Outstanding | Amount Available | |||||||||||||
CMS Energy | |||||||||||||||||
December 20, 20181 | $ | 550 | $ | - | $ | 2 | $ | 548 | |||||||||
Consumers | |||||||||||||||||
December 20, 20182 | $ | 650 | $ | - | $ | - | $ | 650 | |||||||||
September 9, 20142 | 30 | - | 30 | - | |||||||||||||
1 | Obligations under this facility are secured by Consumers common stock. CMS Energy’s average borrowings during the year ended December 31, 2013 were $4 million, with a weighted-average annual interest rate of 1.67 percent, representing LIBOR plus 1.50 percent. | ||||||||||||||||
2 | Obligations under this facility are secured by FMBs of Consumers. | ||||||||||||||||
Short-term Borrowings: Under Consumers’ revolving accounts receivable sales program, Consumers may transfer up to $250 million of accounts receivable, subject to certain eligibility requirements. These transactions are accounted for as short-term secured borrowings. At December 31, 2013, $170 million had been transferred under the program. During the year ended December 31, 2013, Consumers’ average short-term borrowings totaled $10 million, with a weighted-average annual interest rate of 0.9 percent. | |||||||||||||||||
Contingently Convertible Securities: Presented in the following table are the significant terms of CMS Energy’s contingently convertible securities at December 31, 2013: | |||||||||||||||||
Outstanding | Adjusted | Adjusted | |||||||||||||||
Security | Maturity | (In Millions) | Conversion Price | Trigger Price | |||||||||||||
5.50% senior notes | 2029 | $ | 172 | $ | 13.55 | $ | 17.61 | ||||||||||
The securities become convertible for a calendar quarter if the price of CMS Energy’s common stock remains at or above the trigger price for 20 of 30 consecutive trading days ending on the last trading day of the previous quarter. The trigger price at which these securities become convertible is 130 percent of the conversion price. The conversion and trigger prices are subject to adjustments in certain circumstances, including payments or distributions to CMS Energy’s common stockholders. The conversion and trigger price adjustment is made when the cumulative change in conversion and trigger prices is one percent or more. During 20 of the last 30 trading days ended December 31, 2013, the adjusted trigger-price contingencies were met for the contingently convertible senior notes, and as a result, the senior notes are convertible at the option of the note holders for the three months ending March 31, 2014. | |||||||||||||||||
CMS Energy’s contingently convertible securities, if converted, require CMS Energy to pay cash up to the principal amount of the securities. Any conversion value in excess of the principal amount can be paid in cash or in shares of CMS Energy’s common stock, at the election of CMS Energy. | |||||||||||||||||
In December 2013, a holder tendered for conversion $17 million principal amount of the 5.50 percent contingently convertible senior notes. The conversion value per $1,000 principal amount of the convertible note was $1,968. CMS Energy issued 605,531 shares of its common stock and paid $17 million cash on settlement of conversion in February 2014. | |||||||||||||||||
Dividend Restrictions: Under provisions of the Michigan Business Corporation Act of 1972, as amended, at December 31, 2013, payment of common stock dividends by CMS Energy was limited to $3.5 billion. | |||||||||||||||||
Under the provisions of its articles of incorporation, at December 31, 2013, Consumers had $662 million of unrestricted retained earnings available to pay common stock dividends to CMS Energy. Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings. Several decisions from FERC suggest that under a variety of circumstances common stock dividends from Consumers would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay common stock dividends in excess of retained earnings would be based on specific facts and circumstances and would result only after a formal regulatory filing process. | |||||||||||||||||
For the year ended December 31, 2013, CMS Energy received $406 million of common stock dividends from Consumers. | |||||||||||||||||
Capitalization: The authorized capital stock of CMS Energy consists of: | |||||||||||||||||
· | 350 million shares of CMS Energy Common Stock, par value $0.01 per share, and | ||||||||||||||||
· | 10 million shares of CMS Energy Preferred Stock, par value $0.01 per share. | ||||||||||||||||
Issuance of Common Stock: CMS Energy has entered into two continuous equity offering programs permitting it to sell, from time to time in “at the market” offerings, common stock having an aggregate sales price of up to $50 million per program. | |||||||||||||||||
Presented in the following table are the transactions that CMS Energy entered into under the first program: | |||||||||||||||||
Number of | Average | Proceeds | |||||||||||||||
Shares Issued | Price per Share | (In Millions) | |||||||||||||||
Jun-11 | 762,925 | $ | 19.66 | $ | 15 | ||||||||||||
Jun-12 | 650,235 | 23.07 | 15 | ||||||||||||||
Mar-13 | 735,873 | 27.18 | 20 | ||||||||||||||
Total | 2,149,033 | $ | 23.27 | $ | 50 | ||||||||||||
In April 2013, CMS Energy entered into the second continuous equity offering program, but has not yet issued any equity under this program. | |||||||||||||||||
Preferred Stock of Subsidiary: In July 2013, Consumers redeemed all of its $4.16 preferred stock at a redemption price of $103.25 per share, which represented an aggregate redemption price of $7 million paid to redeem 68,451 outstanding shares. | |||||||||||||||||
Presented in the following table are details about Consumers’ preferred stock outstanding: | |||||||||||||||||
Optional | Number of | Balance | |||||||||||||||
Redemption | Shares | Outstanding | |||||||||||||||
Series | Price | Outstanding | (In Millions) | ||||||||||||||
31-Dec | 2013 | 2012 | |||||||||||||||
Cumulative, $100 par value, authorized | $ | 4.50 | $ | 110.00 | 373,148 | $ | 37 | $ | 37 | ||||||||
7,500,000 shares, with no mandatory | |||||||||||||||||
redemption | |||||||||||||||||
4.16 | 103.25 | 68,451 | - | 7 | |||||||||||||
Total preferred stock of Consumers | $ | 37 | $ | 44 | |||||||||||||
Consumers Energy Company [Member] | ' | ||||||||||||||||
Financings And Capitalization | ' | ||||||||||||||||
4:FINANCINGS AND CAPITALIZATION | |||||||||||||||||
Presented in the following table is CMS Energy’s long-term debt at December 31: | |||||||||||||||||
In Millions | |||||||||||||||||
Interest Rate | Maturity | 2013 | 2012 | ||||||||||||||
(%) | |||||||||||||||||
CMS Energy | |||||||||||||||||
Senior notes | 2.750 | 1 | 2014 | $ | - | $ | 250 | ||||||||||
6.875 | 2015 | 125 | 125 | ||||||||||||||
4.250 | 2015 | 250 | 250 | ||||||||||||||
6.550 | 2017 | 250 | 250 | ||||||||||||||
5.050 | 2018 | 250 | 250 | ||||||||||||||
8.750 | 2019 | 300 | 300 | ||||||||||||||
6.250 | 2020 | 300 | 300 | ||||||||||||||
5.050 | 2022 | 300 | 300 | ||||||||||||||
5.500 | 2 | 2029 | 172 | 172 | |||||||||||||
4.700 | 2043 | 250 | - | ||||||||||||||
Total CMS Energy senior notes | $ | 2,197 | $ | 2,197 | |||||||||||||
Term loan facility | variable | 3 | 2016 | 180 | 180 | ||||||||||||
Total CMS Energy parent | $ | 2,377 | $ | 2,377 | |||||||||||||
Consumers | $ | 4,625 | $ | 4,341 | |||||||||||||
Other CMS Energy subsidiaries | |||||||||||||||||
EnerBank certificates of deposits | 1.095 | 4 | 2014-2021 | $ | 652 | $ | 527 | ||||||||||
Total other CMS Energy subsidiaries | $ | 652 | $ | 527 | |||||||||||||
Total CMS Energy principal amount outstanding | $ | 7,654 | $ | 7,245 | |||||||||||||
Current amounts | -541 | -519 | |||||||||||||||
Net unamortized discounts | -12 | -16 | |||||||||||||||
Total CMS Energy long-term debt | $ | 7,101 | $ | 6,710 | |||||||||||||
1 | In September 2013, CMS Energy retired its 2.75 percent senior notes. | ||||||||||||||||
2 | CMS Energy’s contingently convertible notes. See the “Contingently Convertible Securities” section in this Note for further discussion of the conversion features. | ||||||||||||||||
3 | Outstanding borrowings bear interest at an annual interest rate of LIBOR plus 1.75 percent (1.92 percent at December 31, 2013). | ||||||||||||||||
4 | The weighted-average interest rate for EnerBank’s certificates of deposit was 1.09 percent at December 31, 2013 and 1.16 percent at December 31, 2012. EnerBank’s primary deposit product consists of brokered certificates of deposit with varying maturities and having a face value of $1,000. | ||||||||||||||||
Presented in the following table is Consumers’ long-term debt at December 31: | |||||||||||||||||
In Millions | |||||||||||||||||
Interest Rate | Maturity | 2013 | 2012 | ||||||||||||||
(%) | |||||||||||||||||
Consumers | |||||||||||||||||
FMBs1 | 6.000 | 2 | 2014 | $ | - | $ | 200 | ||||||||||
5.000 | 2 | 2015 | - | 225 | |||||||||||||
2.600 | 2015 | 50 | 50 | ||||||||||||||
5.500 | 2016 | 350 | 350 | ||||||||||||||
5.150 | 2017 | 250 | 250 | ||||||||||||||
3.210 | 2017 | 100 | 100 | ||||||||||||||
5.650 | 2018 | 250 | 250 | ||||||||||||||
6.125 | 2019 | 350 | 350 | ||||||||||||||
6.700 | 2019 | 500 | 500 | ||||||||||||||
5.650 | 2020 | 300 | 300 | ||||||||||||||
3.770 | 2020 | 100 | 100 | ||||||||||||||
5.300 | 2022 | 250 | 250 | ||||||||||||||
2.850 | 2022 | 375 | 375 | ||||||||||||||
3.375 | 2023 | 325 | - | ||||||||||||||
3.190 | 2024 | 52 | 52 | ||||||||||||||
3.390 | 2027 | 35 | 35 | ||||||||||||||
5.800 | 2035 | 175 | 175 | ||||||||||||||
6.170 | 2040 | 50 | 50 | ||||||||||||||
4.970 | 2040 | 50 | 50 | ||||||||||||||
4.310 | 2042 | 263 | 263 | ||||||||||||||
3.950 | 2043 | 425 | - | ||||||||||||||
$ | 4,250 | $ | 3,925 | ||||||||||||||
Senior notes | 6.875 | 2018 | 180 | 180 | |||||||||||||
Securitization bonds | 5.760 | 3 | 2015 | 92 | 133 | ||||||||||||
Tax-exempt pollution control revenue bonds | various | 2018-2035 | 103 | 103 | |||||||||||||
Total Consumers principal amount outstanding | $ | 4,625 | $ | 4,341 | |||||||||||||
Current amounts | -43 | -41 | |||||||||||||||
Net unamortized discounts | -3 | -3 | |||||||||||||||
Total Consumers long-term debt | $ | 4,579 | $ | 4,297 | |||||||||||||
1 | The weighted-average interest rate for Consumers’ FMBs was 4.90 percent at December 31, 2013 and 5.19 percent at December 31, 2012. | ||||||||||||||||
2 | In June 2013, Consumers retired its 6.00 percent and 5.00 percent FMBs. | ||||||||||||||||
3 | The weighted-average interest rate for Consumers’ Securitization bonds was 5.76 percent at December 31, 2013 and 5.72 percent at December 31, 2012. | ||||||||||||||||
Financings: Presented in the following table is a summary of major long-term debt transactions during the year ended December 31, 2013: | |||||||||||||||||
Principal | Issue/Retirement | ||||||||||||||||
(In Millions) | Interest Rate | Date | Maturity Date | ||||||||||||||
Debt issuances | |||||||||||||||||
CMS Energy | |||||||||||||||||
Senior notes | $ | 250 | 4.700 | % | March 2013 | March 2043 | |||||||||||
Total CMS Energy parent | $ | 250 | |||||||||||||||
Consumers | |||||||||||||||||
FMBs | $ | 425 | 3.950 | % | May 2013 | May 2043 | |||||||||||
FMBs | 325 | 3.375 | % | Aug-13 | Aug-23 | ||||||||||||
Total Consumers | $ | 750 | |||||||||||||||
Total debt issuances | $ | 1,000 | |||||||||||||||
Debt retirements | |||||||||||||||||
CMS Energy | |||||||||||||||||
Senior notes | $ | 250 | 2.750 | % | Sep-13 | May-14 | |||||||||||
Total CMS Energy parent | $ | 250 | |||||||||||||||
Consumers | |||||||||||||||||
FMBs | $ | 200 | 6.000 | % | Jun-13 | February 2014 | |||||||||||
FMBs | 225 | 5.000 | % | Jun-13 | Mar-15 | ||||||||||||
Total Consumers | $ | 425 | |||||||||||||||
Total debt retirements | $ | 675 | |||||||||||||||
FMBs: Consumers secures its FMBs by a mortgage and lien on substantially all of its property. Consumers’ ability to issue FMBs is restricted by certain provisions in the First Mortgage Bond Indenture and the need for regulatory approvals under federal law. Restrictive issuance provisions in the First Mortgage Bond Indenture include achieving a two-times interest coverage ratio and having sufficient unfunded net property additions. | |||||||||||||||||
Regulatory Authorization for Financings: FERC has authorized Consumers to have outstanding at any one time, up to $500 million of secured and unsecured short-term securities for general corporate purposes. The remaining availability was $200 million at December 31, 2013. FERC has also authorized Consumers to issue and sell up to $1.9 billion of secured and unsecured long-term securities for general corporate purposes. The remaining availability was $800 million at December 31, 2013. The authorizations are for the period ending June 30, 2014. Any long-term issuances during the authorization period are exempt from FERC’s competitive bidding and negotiated placement requirements. | |||||||||||||||||
Securitization Bonds: Certain regulatory assets owned by Consumers’ subsidiary Consumers Funding collateralize Consumers’ Securitization bonds. The bondholders have no recourse to Consumers’ other assets. Through its rate structure, Consumers bills customers for Securitization surcharges to fund the payment of principal, interest, and other related expenses. The surcharges collected are remitted to a trustee and are not available to creditors of Consumers or creditors of Consumers’ affiliates other than Consumers Funding. | |||||||||||||||||
Debt Maturities: At December 31, 2013, the aggregate annual contractual maturities for long-term debt for the next five years were: | |||||||||||||||||
In Millions | |||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||
CMS Energy, including Consumers | |||||||||||||||||
Long-term debt | $ | 368 | $ | 599 | $ | 608 | $ | 657 | $ | 786 | |||||||
Consumers | |||||||||||||||||
Long-term debt | $ | 43 | $ | 99 | $ | 350 | $ | 350 | $ | 498 | |||||||
Revolving Credit Facilities: The following secured revolving credit facilities with banks were available at December 31, 2013: | |||||||||||||||||
In Millions | |||||||||||||||||
Letters of Credit | |||||||||||||||||
Expiration Date | Amount of Facility | Amount Borrowed | Outstanding | Amount Available | |||||||||||||
CMS Energy | |||||||||||||||||
December 20, 20181 | $ | 550 | $ | - | $ | 2 | $ | 548 | |||||||||
Consumers | |||||||||||||||||
December 20, 20182 | $ | 650 | $ | - | $ | - | $ | 650 | |||||||||
September 9, 20142 | 30 | - | 30 | - | |||||||||||||
1 | Obligations under this facility are secured by Consumers common stock. CMS Energy’s average borrowings during the year ended December 31, 2013 were $4 million, with a weighted-average annual interest rate of 1.67 percent, representing LIBOR plus 1.50 percent. | ||||||||||||||||
2 | Obligations under this facility are secured by FMBs of Consumers. | ||||||||||||||||
Short-term Borrowings: Under Consumers’ revolving accounts receivable sales program, Consumers may transfer up to $250 million of accounts receivable, subject to certain eligibility requirements. These transactions are accounted for as short-term secured borrowings. At December 31, 2013, $170 million had been transferred under the program. During the year ended December 31, 2013, Consumers’ average short-term borrowings totaled $10 million, with a weighted-average annual interest rate of 0.9 percent. | |||||||||||||||||
Contingently Convertible Securities: Presented in the following table are the significant terms of CMS Energy’s contingently convertible securities at December 31, 2013: | |||||||||||||||||
Outstanding | Adjusted | Adjusted | |||||||||||||||
Security | Maturity | (In Millions) | Conversion Price | Trigger Price | |||||||||||||
5.50% senior notes | 2029 | $ | 172 | $ | 13.55 | $ | 17.61 | ||||||||||
The securities become convertible for a calendar quarter if the price of CMS Energy’s common stock remains at or above the trigger price for 20 of 30 consecutive trading days ending on the last trading day of the previous quarter. The trigger price at which these securities become convertible is 130 percent of the conversion price. The conversion and trigger prices are subject to adjustments in certain circumstances, including payments or distributions to CMS Energy’s common stockholders. The conversion and trigger price adjustment is made when the cumulative change in conversion and trigger prices is one percent or more. During 20 of the last 30 trading days ended December 31, 2013, the adjusted trigger-price contingencies were met for the contingently convertible senior notes, and as a result, the senior notes are convertible at the option of the note holders for the three months ending March 31, 2014. | |||||||||||||||||
CMS Energy’s contingently convertible securities, if converted, require CMS Energy to pay cash up to the principal amount of the securities. Any conversion value in excess of the principal amount can be paid in cash or in shares of CMS Energy’s common stock, at the election of CMS Energy. | |||||||||||||||||
In December 2013, a holder tendered for conversion $17 million principal amount of the 5.50 percent contingently convertible senior notes. The conversion value per $1,000 principal amount of the convertible note was $1,968. CMS Energy issued 605,531 shares of its common stock and paid $17 million cash on settlement of conversion in February 2014. | |||||||||||||||||
Dividend Restrictions: Under provisions of the Michigan Business Corporation Act of 1972, as amended, at December 31, 2013, payment of common stock dividends by CMS Energy was limited to $3.5 billion. | |||||||||||||||||
Under the provisions of its articles of incorporation, at December 31, 2013, Consumers had $662 million of unrestricted retained earnings available to pay common stock dividends to CMS Energy. Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings. Several decisions from FERC suggest that under a variety of circumstances common stock dividends from Consumers would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay common stock dividends in excess of retained earnings would be based on specific facts and circumstances and would result only after a formal regulatory filing process. | |||||||||||||||||
For the year ended December 31, 2013, CMS Energy received $406 million of common stock dividends from Consumers. | |||||||||||||||||
Capitalization: The authorized capital stock of CMS Energy consists of: | |||||||||||||||||
· | 350 million shares of CMS Energy Common Stock, par value $0.01 per share, and | ||||||||||||||||
· | 10 million shares of CMS Energy Preferred Stock, par value $0.01 per share. | ||||||||||||||||
Issuance of Common Stock: CMS Energy has entered into two continuous equity offering programs permitting it to sell, from time to time in “at the market” offerings, common stock having an aggregate sales price of up to $50 million per program. | |||||||||||||||||
Presented in the following table are the transactions that CMS Energy entered into under the first program: | |||||||||||||||||
Number of | Average | Proceeds | |||||||||||||||
Shares Issued | Price per Share | (In Millions) | |||||||||||||||
Jun-11 | 762,925 | $ | 19.66 | $ | 15 | ||||||||||||
Jun-12 | 650,235 | 23.07 | 15 | ||||||||||||||
Mar-13 | 735,873 | 27.18 | 20 | ||||||||||||||
Total | 2,149,033 | $ | 23.27 | $ | 50 | ||||||||||||
In April 2013, CMS Energy entered into the second continuous equity offering program, but has not yet issued any equity under this program. | |||||||||||||||||
Preferred Stock of Subsidiary: In July 2013, Consumers redeemed all of its $4.16 preferred stock at a redemption price of $103.25 per share, which represented an aggregate redemption price of $7 million paid to redeem 68,451 outstanding shares. | |||||||||||||||||
Presented in the following table are details about Consumers’ preferred stock outstanding: | |||||||||||||||||
Optional | Number of | Balance | |||||||||||||||
Redemption | Shares | Outstanding | |||||||||||||||
Series | Price | Outstanding | (In Millions) | ||||||||||||||
31-Dec | 2013 | 2012 | |||||||||||||||
Cumulative, $100 par value, authorized | $ | 4.50 | $ | 110.00 | 373,148 | $ | 37 | $ | 37 | ||||||||
7,500,000 shares, with no mandatory | |||||||||||||||||
redemption | |||||||||||||||||
4.16 | 103.25 | 68,451 | - | 7 | |||||||||||||
Total preferred stock of Consumers | $ | 37 | $ | 44 | |||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||||||||
5:FAIR VALUE MEASUREMENTS | |||||||||||||||||||||||||||
Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. When measuring fair value, CMS Energy and Consumers are required to incorporate all assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. A fair value hierarchy prioritizes inputs used to measure fair value according to their observability in the market. The three levels of the fair value hierarchy are as follows: | |||||||||||||||||||||||||||
· | Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||||||||||||
· | Level 2 inputs are observable, market-based inputs, other than Level 1 prices. Level 2 inputs may include quoted prices for similar assets or liabilities in active markets, quoted prices in inactive markets, and inputs derived from or corroborated by observable market data. | ||||||||||||||||||||||||||
· | Level 3 inputs are unobservable inputs that reflect CMS Energy’s or Consumers’ own assumptions about how market participants would value their assets and liabilities. | ||||||||||||||||||||||||||
To the extent possible, CMS Energy and Consumers use quoted market prices or other observable market pricing data in valuing assets and liabilities measured at fair value. If this information is unavailable, they use market-corroborated data or reasonable estimates about market participant assumptions. CMS Energy and Consumers classify fair value measurements within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement in its entirety. | |||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||||||||
Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities, by level within the fair value hierarchy, recorded at fair value on a recurring basis: | |||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||
Level | Level | ||||||||||||||||||||||||||
Total | 1 | 2 | 3 | Total | 1 | 2 | 3 | ||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Cash equivalents | $ | 87 | $ | 87 | $ | - | $ | - | $ | 53 | $ | 53 | $ | - | $ | - | |||||||||||
Restricted cash equivalents | 16 | 16 | - | - | 14 | 14 | - | - | |||||||||||||||||||
Nonqualified deferred | 6 | 6 | - | - | 5 | 5 | - | - | |||||||||||||||||||
compensation plan assets | |||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||
Cash equivalents | - | - | - | - | 2 | 2 | - | - | |||||||||||||||||||
Mutual funds | 136 | 136 | - | - | 126 | 126 | - | - | |||||||||||||||||||
Derivative instruments | |||||||||||||||||||||||||||
Commodity contracts | 5 | - | 1 | 4 | 3 | - | - | 3 | |||||||||||||||||||
Total | $ | 250 | $ | 245 | $ | 1 | $ | 4 | $ | 203 | $ | 200 | $ | - | $ | 3 | |||||||||||
Liabilities | |||||||||||||||||||||||||||
Nonqualified deferred | $ | 6 | $ | 6 | $ | - | $ | - | $ | 5 | $ | 5 | $ | - | $ | - | |||||||||||
compensation plan liabilities | |||||||||||||||||||||||||||
Derivative instruments | |||||||||||||||||||||||||||
Commodity contracts | 1 | - | 1 | - | 4 | - | 3 | 1 | |||||||||||||||||||
Total | $ | 7 | $ | 6 | $ | 1 | $ | - | $ | 9 | $ | 5 | $ | 3 | $ | 1 | |||||||||||
Consumers | |||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Restricted cash equivalents | $ | 15 | $ | 15 | $ | - | $ | - | $ | 13 | $ | 13 | $ | - | $ | - | |||||||||||
CMS Energy common stock | 29 | 29 | - | - | 32 | 32 | - | - | |||||||||||||||||||
Nonqualified deferred | 4 | 4 | - | - | 4 | 4 | - | - | |||||||||||||||||||
compensation plan assets | |||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||
Cash equivalents | - | - | - | - | 1 | 1 | - | - | |||||||||||||||||||
Mutual funds | 95 | 95 | - | - | 85 | 85 | - | - | |||||||||||||||||||
Derivative instruments | |||||||||||||||||||||||||||
Commodity contracts | 4 | - | - | 4 | 2 | - | - | 2 | |||||||||||||||||||
Total | $ | 147 | $ | 143 | $ | - | $ | 4 | $ | 137 | $ | 135 | $ | - | $ | 2 | |||||||||||
Liabilities | |||||||||||||||||||||||||||
Nonqualified deferred | $ | 4 | $ | 4 | $ | - | $ | - | $ | 4 | $ | 4 | $ | - | $ | - | |||||||||||
compensation plan liabilities | |||||||||||||||||||||||||||
Total | $ | 4 | $ | 4 | $ | - | $ | - | $ | 4 | $ | 4 | $ | - | $ | - | |||||||||||
Cash Equivalents: Cash equivalents and restricted cash equivalents consist of money market funds with daily liquidity. Short-term debt instruments classified as restricted cash equivalents on the consolidated balance sheets are not included since they are recorded at amortized cost. | |||||||||||||||||||||||||||
Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are valued using the daily quoted NAVs that are publicly available and are the basis for transactions to buy or sell shares in each fund. CMS Energy and Consumers value their nonqualified deferred compensation plan liabilities based on the fair values of the plan assets, as they reflect what is owed to the plan participants in accordance with their investment elections. CMS Energy and Consumers report the assets in other non‑current assets and the liabilities in other non‑current liabilities on their consolidated balance sheets. | |||||||||||||||||||||||||||
DB SERP Assets: CMS Energy and Consumers value their DB SERP assets using a market approach that incorporates quoted market prices. The DB SERP cash equivalents consist of a money market fund with daily liquidity. The DB SERP invests in mutual funds that hold primarily fixed-income instruments of varying maturities. In order to meet their investment objectives, the funds hold investment-grade debt securities, and may invest a portion of their assets in high-yield securities, foreign debt, and derivative instruments. CMS Energy and Consumers value these funds using the daily quoted NAVs that are publicly available and are the basis for transactions to buy or sell shares in each fund. CMS Energy and Consumers report their DB SERP assets in other non‑current assets on their consolidated balance sheets. For additional details about DB SERP securities, see Note 6, Financial Instruments. | |||||||||||||||||||||||||||
Derivative Instruments: CMS Energy and Consumers value their derivative instruments using either a market approach that incorporates information from market transactions, or an income approach that discounts future expected cash flows to a present value amount. CMS Energy values its exchange-traded derivative contracts based on Level 1 quoted prices and values other derivatives using Level 2 inputs, including commodity forward prices and credit risk factors. CMS Energy and Consumers have classified certain derivatives as Level 3 since the fair value measurements incorporate assumptions that cannot be observed or confirmed through market transactions. | |||||||||||||||||||||||||||
The most significant 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. | |||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis using Significant Level 3 Inputs | |||||||||||||||||||||||||||
Presented in the following table are reconciliations of changes in the fair values of Level 3 assets and liabilities at CMS Energy and Consumers: | |||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||
Balance at beginning of period | $ | 2 | $ | -2 | $ | -3 | |||||||||||||||||||||
Total gains included in earnings1 | - | 3 | 2 | ||||||||||||||||||||||||
Total gains offset through regulatory accounting | 3 | 6 | 2 | ||||||||||||||||||||||||
Purchases | - | 1 | 1 | ||||||||||||||||||||||||
Sales | - | - | -4 | ||||||||||||||||||||||||
Settlements | -1 | -6 | - | ||||||||||||||||||||||||
Balance at end of period | $ | 4 | $ | 2 | $ | -2 | |||||||||||||||||||||
Unrealized gains (losses) included in earnings relating to assets and liabilities | |||||||||||||||||||||||||||
still held at end of period1 | $ | -1 | $ | 2 | $ | 2 | |||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||
Balance at beginning of period | $ | 2 | $ | 2 | $ | 1 | |||||||||||||||||||||
Total gains offset through regulatory accounting | 3 | 6 | 2 | ||||||||||||||||||||||||
Purchases | - | 1 | 1 | ||||||||||||||||||||||||
Settlements | -1 | -7 | -2 | ||||||||||||||||||||||||
Balance at end of period | $ | 4 | $ | 2 | $ | 2 | |||||||||||||||||||||
1CMS Energy records realized and unrealized gains and losses for Level 3 recurring fair value measurements in earnings as a component of operating revenue or maintenance and other operating expenses on its consolidated statements of income. | |||||||||||||||||||||||||||
Consumers Energy Company [Member] | ' | ||||||||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||||||||
5:FAIR VALUE MEASUREMENTS | |||||||||||||||||||||||||||
Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. When measuring fair value, CMS Energy and Consumers are required to incorporate all assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. A fair value hierarchy prioritizes inputs used to measure fair value according to their observability in the market. The three levels of the fair value hierarchy are as follows: | |||||||||||||||||||||||||||
· | Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||||||||||||
· | Level 2 inputs are observable, market-based inputs, other than Level 1 prices. Level 2 inputs may include quoted prices for similar assets or liabilities in active markets, quoted prices in inactive markets, and inputs derived from or corroborated by observable market data. | ||||||||||||||||||||||||||
· | Level 3 inputs are unobservable inputs that reflect CMS Energy’s or Consumers’ own assumptions about how market participants would value their assets and liabilities. | ||||||||||||||||||||||||||
To the extent possible, CMS Energy and Consumers use quoted market prices or other observable market pricing data in valuing assets and liabilities measured at fair value. If this information is unavailable, they use market-corroborated data or reasonable estimates about market participant assumptions. CMS Energy and Consumers classify fair value measurements within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement in its entirety. | |||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||||||||
Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities, by level within the fair value hierarchy, recorded at fair value on a recurring basis: | |||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||
Level | Level | ||||||||||||||||||||||||||
Total | 1 | 2 | 3 | Total | 1 | 2 | 3 | ||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Cash equivalents | $ | 87 | $ | 87 | $ | - | $ | - | $ | 53 | $ | 53 | $ | - | $ | - | |||||||||||
Restricted cash equivalents | 16 | 16 | - | - | 14 | 14 | - | - | |||||||||||||||||||
Nonqualified deferred | 6 | 6 | - | - | 5 | 5 | - | - | |||||||||||||||||||
compensation plan assets | |||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||
Cash equivalents | - | - | - | - | 2 | 2 | - | - | |||||||||||||||||||
Mutual funds | 136 | 136 | - | - | 126 | 126 | - | - | |||||||||||||||||||
Derivative instruments | |||||||||||||||||||||||||||
Commodity contracts | 5 | - | 1 | 4 | 3 | - | - | 3 | |||||||||||||||||||
Total | $ | 250 | $ | 245 | $ | 1 | $ | 4 | $ | 203 | $ | 200 | $ | - | $ | 3 | |||||||||||
Liabilities | |||||||||||||||||||||||||||
Nonqualified deferred | $ | 6 | $ | 6 | $ | - | $ | - | $ | 5 | $ | 5 | $ | - | $ | - | |||||||||||
compensation plan liabilities | |||||||||||||||||||||||||||
Derivative instruments | |||||||||||||||||||||||||||
Commodity contracts | 1 | - | 1 | - | 4 | - | 3 | 1 | |||||||||||||||||||
Total | $ | 7 | $ | 6 | $ | 1 | $ | - | $ | 9 | $ | 5 | $ | 3 | $ | 1 | |||||||||||
Consumers | |||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Restricted cash equivalents | $ | 15 | $ | 15 | $ | - | $ | - | $ | 13 | $ | 13 | $ | - | $ | - | |||||||||||
CMS Energy common stock | 29 | 29 | - | - | 32 | 32 | - | - | |||||||||||||||||||
Nonqualified deferred | 4 | 4 | - | - | 4 | 4 | - | - | |||||||||||||||||||
compensation plan assets | |||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||
Cash equivalents | - | - | - | - | 1 | 1 | - | - | |||||||||||||||||||
Mutual funds | 95 | 95 | - | - | 85 | 85 | - | - | |||||||||||||||||||
Derivative instruments | |||||||||||||||||||||||||||
Commodity contracts | 4 | - | - | 4 | 2 | - | - | 2 | |||||||||||||||||||
Total | $ | 147 | $ | 143 | $ | - | $ | 4 | $ | 137 | $ | 135 | $ | - | $ | 2 | |||||||||||
Liabilities | |||||||||||||||||||||||||||
Nonqualified deferred | $ | 4 | $ | 4 | $ | - | $ | - | $ | 4 | $ | 4 | $ | - | $ | - | |||||||||||
compensation plan liabilities | |||||||||||||||||||||||||||
Total | $ | 4 | $ | 4 | $ | - | $ | - | $ | 4 | $ | 4 | $ | - | $ | - | |||||||||||
Cash Equivalents: Cash equivalents and restricted cash equivalents consist of money market funds with daily liquidity. Short-term debt instruments classified as restricted cash equivalents on the consolidated balance sheets are not included since they are recorded at amortized cost. | |||||||||||||||||||||||||||
Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are valued using the daily quoted NAVs that are publicly available and are the basis for transactions to buy or sell shares in each fund. CMS Energy and Consumers value their nonqualified deferred compensation plan liabilities based on the fair values of the plan assets, as they reflect what is owed to the plan participants in accordance with their investment elections. CMS Energy and Consumers report the assets in other non‑current assets and the liabilities in other non‑current liabilities on their consolidated balance sheets. | |||||||||||||||||||||||||||
DB SERP Assets: CMS Energy and Consumers value their DB SERP assets using a market approach that incorporates quoted market prices. The DB SERP cash equivalents consist of a money market fund with daily liquidity. The DB SERP invests in mutual funds that hold primarily fixed-income instruments of varying maturities. In order to meet their investment objectives, the funds hold investment-grade debt securities, and may invest a portion of their assets in high-yield securities, foreign debt, and derivative instruments. CMS Energy and Consumers value these funds using the daily quoted NAVs that are publicly available and are the basis for transactions to buy or sell shares in each fund. CMS Energy and Consumers report their DB SERP assets in other non‑current assets on their consolidated balance sheets. For additional details about DB SERP securities, see Note 6, Financial Instruments. | |||||||||||||||||||||||||||
Derivative Instruments: CMS Energy and Consumers value their derivative instruments using either a market approach that incorporates information from market transactions, or an income approach that discounts future expected cash flows to a present value amount. CMS Energy values its exchange-traded derivative contracts based on Level 1 quoted prices and values other derivatives using Level 2 inputs, including commodity forward prices and credit risk factors. CMS Energy and Consumers have classified certain derivatives as Level 3 since the fair value measurements incorporate assumptions that cannot be observed or confirmed through market transactions. | |||||||||||||||||||||||||||
The most significant 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. | |||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis using Significant Level 3 Inputs | |||||||||||||||||||||||||||
Presented in the following table are reconciliations of changes in the fair values of Level 3 assets and liabilities at CMS Energy and Consumers: | |||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||
Balance at beginning of period | $ | 2 | $ | -2 | $ | -3 | |||||||||||||||||||||
Total gains included in earnings1 | - | 3 | 2 | ||||||||||||||||||||||||
Total gains offset through regulatory accounting | 3 | 6 | 2 | ||||||||||||||||||||||||
Purchases | - | 1 | 1 | ||||||||||||||||||||||||
Sales | - | - | -4 | ||||||||||||||||||||||||
Settlements | -1 | -6 | - | ||||||||||||||||||||||||
Balance at end of period | $ | 4 | $ | 2 | $ | -2 | |||||||||||||||||||||
Unrealized gains (losses) included in earnings relating to assets and liabilities | |||||||||||||||||||||||||||
still held at end of period1 | $ | -1 | $ | 2 | $ | 2 | |||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||
Balance at beginning of period | $ | 2 | $ | 2 | $ | 1 | |||||||||||||||||||||
Total gains offset through regulatory accounting | 3 | 6 | 2 | ||||||||||||||||||||||||
Purchases | - | 1 | 1 | ||||||||||||||||||||||||
Settlements | -1 | -7 | -2 | ||||||||||||||||||||||||
Balance at end of period | $ | 4 | $ | 2 | $ | 2 | |||||||||||||||||||||
1CMS Energy records realized and unrealized gains and losses for Level 3 recurring fair value measurements in earnings as a component of operating revenue or maintenance and other operating expenses on its consolidated statements of income. | |||||||||||||||||||||||||||
Financial_Instruments
Financial Instruments | 12 Months Ended | ||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||
Financial Instruments | ' | ||||||||||||||||||||||||||||||||||
6:FINANCIAL INSTRUMENTS | |||||||||||||||||||||||||||||||||||
Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table does not include information on cash, cash equivalents, short-term accounts and notes receivable, short-term investments, and current liabilities since the carrying amounts of these items approximate their fair values because of their short-term nature. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements. | |||||||||||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||||||||||||
Carrying | Level | Carrying | Level | ||||||||||||||||||||||||||||||||
Amount | Total | 1 | 2 | 3 | Amount | Total | 1 | 2 | 3 | ||||||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||||||||||
Securities held | $ | 10 | $ | 10 | $ | - | $ | 10 | $ | - | $ | 9 | $ | 10 | $ | - | $ | 10 | $ | - | |||||||||||||||
to maturity | |||||||||||||||||||||||||||||||||||
Notes | 683 | 724 | - | - | 724 | 544 | 581 | - | - | 581 | |||||||||||||||||||||||||
receivable1 | |||||||||||||||||||||||||||||||||||
Long-term | 7,642 | 8,368 | - | 7,406 | 962 | 7,229 | 8,347 | - | 7,321 | 1,026 | |||||||||||||||||||||||||
debt2 | |||||||||||||||||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||||||||||
Long-term | $ | 4,622 | $ | 4,940 | $ | - | $ | 3,978 | $ | 962 | $ | 4,338 | $ | 5,015 | $ | - | $ | 3,989 | $ | 1,026 | |||||||||||||||
debt3 | |||||||||||||||||||||||||||||||||||
1 | Includes current portion of notes receivable of $48 million at December 31, 2013 and $40 million at December 31, 2012. | ||||||||||||||||||||||||||||||||||
2 | Includes current portion of long-term debt of $541 million at December 31, 2013 and $519 million at December 31, 2012. | ||||||||||||||||||||||||||||||||||
3 | Includes current portion of long-term debt of $43 million at December 31, 2013 and $41 million at December 31, 2012. | ||||||||||||||||||||||||||||||||||
Notes receivable consist of EnerBank’s fixed-rate installment loans. EnerBank estimates the fair value of these loans using a discounted cash flows technique that incorporates market interest rates as well as assumptions about the remaining life of the loans and credit risk. | |||||||||||||||||||||||||||||||||||
CMS Energy and Consumers estimate the fair value of their long-term debt using quoted prices from market trades of the debt, if available. In the absence of quoted prices, CMS Energy and Consumers calculate market yields and prices for the debt using a matrix method that incorporates market data for similarly rated debt. Depending on the information available, other valuation techniques and models may be used that rely on assumptions that cannot be observed or confirmed through market transactions. CMS Energy includes the value of the conversion features in estimating the fair value of its convertible debt, and incorporates, as appropriate, information on the market prices of CMS Energy common stock. | |||||||||||||||||||||||||||||||||||
The effects of third-party credit enhancements are excluded from the fair value measurements of long-term debt. At December 31, 2013 and December 31, 2012, CMS Energy’s long-term debt included $103 million principal amount that was supported by third-party credit enhancements. This entire principal amount was at Consumers. | |||||||||||||||||||||||||||||||||||
Presented in the following table are CMS Energy’s and Consumers’ investment securities classified as available for sale or held to maturity: | |||||||||||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||
Unrealized | Unrealized | Fair | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||
Cost | Gains | Losses | Value | Cost | Gains | Losses | Value | ||||||||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||||||||||
Mutual funds | $ | 136 | $ | - | $ | - | $ | 136 | $ | 123 | $ | 3 | $ | - | $ | 126 | |||||||||||||||||||
Held to maturity | |||||||||||||||||||||||||||||||||||
Debt securities | 10 | - | - | 10 | 9 | 1 | - | 10 | |||||||||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||||||||||
Mutual funds | $ | 95 | $ | - | $ | - | $ | 95 | $ | 83 | $ | 2 | $ | - | $ | 85 | |||||||||||||||||||
CMS Energy | |||||||||||||||||||||||||||||||||||
common stock | 5 | 24 | - | 29 | 6 | 26 | - | 32 | |||||||||||||||||||||||||||
The mutual funds classified as available for sale hold primarily fixed-income instruments of varying maturities. During the year ended December 31, 2013, CMS Energy contributed $16 million to the DB SERP, which included a contribution of $13 million by Consumers. The contributions were used to acquire additional shares in the mutual funds. Debt securities classified as held to maturity consist primarily of mortgage-backed securities and Utah Housing Corporation bonds held by EnerBank. | |||||||||||||||||||||||||||||||||||
Presented in the following table is a summary of the sales activity for CMS Energy’s and Consumers’ investment securities: | |||||||||||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||||||||||
Proceeds from sales of investment securities | $ | 3 | $ | 3 | $ | 29 | |||||||||||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||||||||||
Proceeds from sales of investment securities | $ | 2 | $ | 2 | $ | 19 | |||||||||||||||||||||||||||||
The sales proceeds for all periods represent sales of investments that were held within the DB SERP and classified as available for sale. Realized gains and losses on the sales were not significant for either CMS Energy or Consumers during each period. In 2011, CMS Energy and Consumers sold their DB SERP investments in state and municipal bonds, and reinvested the proceeds in mutual funds that hold fixed-income instruments of varying maturities. | |||||||||||||||||||||||||||||||||||
Consumers recognized gains of $4 million in 2013, $5 million in 2012, and $4 million in 2011 from transferring shares of CMS Energy common stock to a related charitable foundation. The gains reflected the excess of fair value over cost of the stock donated and were included in income. | |||||||||||||||||||||||||||||||||||
Consumers Energy Company [Member] | ' | ||||||||||||||||||||||||||||||||||
Financial Instruments | ' | ||||||||||||||||||||||||||||||||||
6:FINANCIAL INSTRUMENTS | |||||||||||||||||||||||||||||||||||
Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table does not include information on cash, cash equivalents, short-term accounts and notes receivable, short-term investments, and current liabilities since the carrying amounts of these items approximate their fair values because of their short-term nature. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements. | |||||||||||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||||||||||||
Carrying | Level | Carrying | Level | ||||||||||||||||||||||||||||||||
Amount | Total | 1 | 2 | 3 | Amount | Total | 1 | 2 | 3 | ||||||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||||||||||
Securities held | $ | 10 | $ | 10 | $ | - | $ | 10 | $ | - | $ | 9 | $ | 10 | $ | - | $ | 10 | $ | - | |||||||||||||||
to maturity | |||||||||||||||||||||||||||||||||||
Notes | 683 | 724 | - | - | 724 | 544 | 581 | - | - | 581 | |||||||||||||||||||||||||
receivable1 | |||||||||||||||||||||||||||||||||||
Long-term | 7,642 | 8,368 | - | 7,406 | 962 | 7,229 | 8,347 | - | 7,321 | 1,026 | |||||||||||||||||||||||||
debt2 | |||||||||||||||||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||||||||||
Long-term | $ | 4,622 | $ | 4,940 | $ | - | $ | 3,978 | $ | 962 | $ | 4,338 | $ | 5,015 | $ | - | $ | 3,989 | $ | 1,026 | |||||||||||||||
debt3 | |||||||||||||||||||||||||||||||||||
1 | Includes current portion of notes receivable of $48 million at December 31, 2013 and $40 million at December 31, 2012. | ||||||||||||||||||||||||||||||||||
2 | Includes current portion of long-term debt of $541 million at December 31, 2013 and $519 million at December 31, 2012. | ||||||||||||||||||||||||||||||||||
3 | Includes current portion of long-term debt of $43 million at December 31, 2013 and $41 million at December 31, 2012. | ||||||||||||||||||||||||||||||||||
Notes receivable consist of EnerBank’s fixed-rate installment loans. EnerBank estimates the fair value of these loans using a discounted cash flows technique that incorporates market interest rates as well as assumptions about the remaining life of the loans and credit risk. | |||||||||||||||||||||||||||||||||||
CMS Energy and Consumers estimate the fair value of their long-term debt using quoted prices from market trades of the debt, if available. In the absence of quoted prices, CMS Energy and Consumers calculate market yields and prices for the debt using a matrix method that incorporates market data for similarly rated debt. Depending on the information available, other valuation techniques and models may be used that rely on assumptions that cannot be observed or confirmed through market transactions. CMS Energy includes the value of the conversion features in estimating the fair value of its convertible debt, and incorporates, as appropriate, information on the market prices of CMS Energy common stock. | |||||||||||||||||||||||||||||||||||
The effects of third-party credit enhancements are excluded from the fair value measurements of long-term debt. At December 31, 2013 and December 31, 2012, CMS Energy’s long-term debt included $103 million principal amount that was supported by third-party credit enhancements. This entire principal amount was at Consumers. | |||||||||||||||||||||||||||||||||||
Presented in the following table are CMS Energy’s and Consumers’ investment securities classified as available for sale or held to maturity: | |||||||||||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||
Unrealized | Unrealized | Fair | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||
Cost | Gains | Losses | Value | Cost | Gains | Losses | Value | ||||||||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||||||||||
Mutual funds | $ | 136 | $ | - | $ | - | $ | 136 | $ | 123 | $ | 3 | $ | - | $ | 126 | |||||||||||||||||||
Held to maturity | |||||||||||||||||||||||||||||||||||
Debt securities | 10 | - | - | 10 | 9 | 1 | - | 10 | |||||||||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||||||||||
Mutual funds | $ | 95 | $ | - | $ | - | $ | 95 | $ | 83 | $ | 2 | $ | - | $ | 85 | |||||||||||||||||||
CMS Energy | |||||||||||||||||||||||||||||||||||
common stock | 5 | 24 | - | 29 | 6 | 26 | - | 32 | |||||||||||||||||||||||||||
The mutual funds classified as available for sale hold primarily fixed-income instruments of varying maturities. During the year ended December 31, 2013, CMS Energy contributed $16 million to the DB SERP, which included a contribution of $13 million by Consumers. The contributions were used to acquire additional shares in the mutual funds. Debt securities classified as held to maturity consist primarily of mortgage-backed securities and Utah Housing Corporation bonds held by EnerBank. | |||||||||||||||||||||||||||||||||||
Presented in the following table is a summary of the sales activity for CMS Energy’s and Consumers’ investment securities: | |||||||||||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||||||||||
Proceeds from sales of investment securities | $ | 3 | $ | 3 | $ | 29 | |||||||||||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||||||||||
Proceeds from sales of investment securities | $ | 2 | $ | 2 | $ | 19 | |||||||||||||||||||||||||||||
The sales proceeds for all periods represent sales of investments that were held within the DB SERP and classified as available for sale. Realized gains and losses on the sales were not significant for either CMS Energy or Consumers during each period. In 2011, CMS Energy and Consumers sold their DB SERP investments in state and municipal bonds, and reinvested the proceeds in mutual funds that hold fixed-income instruments of varying maturities. | |||||||||||||||||||||||||||||||||||
Consumers recognized gains of $4 million in 2013, $5 million in 2012, and $4 million in 2011 from transferring shares of CMS Energy common stock to a related charitable foundation. The gains reflected the excess of fair value over cost of the stock donated and were included in income. | |||||||||||||||||||||||||||||||||||
Notes_Receivable
Notes Receivable | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Notes Receivable | ' | |||||||
7:NOTES RECEIVABLE | ||||||||
Presented in the following table are details of CMS Energy’s and Consumers’ current and non‑current notes receivable: | ||||||||
In Millions | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
CMS Energy, including Consumers | ||||||||
Current | ||||||||
EnerBank notes receivable, net of allowance for loan losses | $ | 48 | $ | 40 | ||||
Other | 15 | 1 | ||||||
Non-current | ||||||||
EnerBank notes receivable, net of allowance for loan losses | 635 | 504 | ||||||
Other | - | 16 | ||||||
Total notes receivable | $ | 698 | $ | 561 | ||||
Consumers | ||||||||
Current | ||||||||
Other | $ | 14 | $ | - | ||||
Non-current | ||||||||
Other | - | 16 | ||||||
Total notes receivable | $ | 14 | $ | 16 | ||||
EnerBank notes receivable are unsecured consumer installment loans for financing home improvements. | ||||||||
The allowance for loan losses is a valuation allowance to reflect estimated credit losses. The allowance is increased by the provision for loan losses and decreased by loan charge-offs net of recoveries. Management estimates the allowance balance required by taking into consideration historical loan loss experience, the nature and volume of the portfolio, economic conditions, and other factors. Loan losses are charged against the allowance when the loss is confirmed, but no later than the point at which a loan becomes 120 days past due. | ||||||||
Presented in the following table are the changes in the allowance for loan losses: | ||||||||
In Millions | ||||||||
Years Ended December 31 | 2013 | 2012 | ||||||
Balance at beginning of period | $ | 5 | $ | 5 | ||||
Charge-offs | -5 | -5 | ||||||
Recoveries | 1 | 1 | ||||||
Provision for loan losses | 4 | 4 | ||||||
Balance at end of period | $ | 5 | $ | 5 | ||||
Loans that are 30 days or more past due are considered delinquent. The balance of EnerBank’s delinquent consumer loans was $4 million at December 31, 2013, and $3 million at December 31, 2012. | ||||||||
At December 31, 2013 and December 31, 2012, $1 million of EnerBank’s loans had been modified as troubled debt restructurings. | ||||||||
Consumers Energy Company [Member] | ' | |||||||
Notes Receivable | ' | |||||||
7:NOTES RECEIVABLE | ||||||||
Presented in the following table are details of CMS Energy’s and Consumers’ current and non‑current notes receivable: | ||||||||
In Millions | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
CMS Energy, including Consumers | ||||||||
Current | ||||||||
EnerBank notes receivable, net of allowance for loan losses | $ | 48 | $ | 40 | ||||
Other | 15 | 1 | ||||||
Non-current | ||||||||
EnerBank notes receivable, net of allowance for loan losses | 635 | 504 | ||||||
Other | - | 16 | ||||||
Total notes receivable | $ | 698 | $ | 561 | ||||
Consumers | ||||||||
Current | ||||||||
Other | $ | 14 | $ | - | ||||
Non-current | ||||||||
Other | - | 16 | ||||||
Total notes receivable | $ | 14 | $ | 16 | ||||
EnerBank notes receivable are unsecured consumer installment loans for financing home improvements. | ||||||||
The allowance for loan losses is a valuation allowance to reflect estimated credit losses. The allowance is increased by the provision for loan losses and decreased by loan charge-offs net of recoveries. Management estimates the allowance balance required by taking into consideration historical loan loss experience, the nature and volume of the portfolio, economic conditions, and other factors. Loan losses are charged against the allowance when the loss is confirmed, but no later than the point at which a loan becomes 120 days past due. | ||||||||
Presented in the following table are the changes in the allowance for loan losses: | ||||||||
In Millions | ||||||||
Years Ended December 31 | 2013 | 2012 | ||||||
Balance at beginning of period | $ | 5 | $ | 5 | ||||
Charge-offs | -5 | -5 | ||||||
Recoveries | 1 | 1 | ||||||
Provision for loan losses | 4 | 4 | ||||||
Balance at end of period | $ | 5 | $ | 5 | ||||
Loans that are 30 days or more past due are considered delinquent. The balance of EnerBank’s delinquent consumer loans was $4 million at December 31, 2013, and $3 million at December 31, 2012. | ||||||||
At December 31, 2013 and December 31, 2012, $1 million of EnerBank’s loans had been modified as troubled debt restructurings. | ||||||||
Plant_Property_and_Equipment
Plant, Property, and Equipment | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Plant, Property, and Equipment | ' | |||||||||||||||||||
8:PLANT, PROPERTY, AND EQUIPMENT | ||||||||||||||||||||
Presented in the following table are details of CMS Energy’s and Consumers’ plant, property, and equipment: | ||||||||||||||||||||
In Millions | ||||||||||||||||||||
Years Ended December 31 | Estimated | 2013 | 2012 | |||||||||||||||||
Depreciable | ||||||||||||||||||||
Life in Years | ||||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||
Electric | ||||||||||||||||||||
Generation | 22 | - | 125 | $ | 3,992 | $ | 4,254 | |||||||||||||
Distribution | 23 | - | 75 | 6,140 | 5,831 | |||||||||||||||
Other | 5 | - | 50 | 770 | 677 | |||||||||||||||
Assets under capital leases and other arrangements | 284 | 279 | ||||||||||||||||||
Gas | ||||||||||||||||||||
Distribution | 28 | - | 80 | 3,015 | 2,861 | |||||||||||||||
Transmission | 17 | - | 75 | 821 | 770 | |||||||||||||||
Underground storage facilities1 | 29 | - | 65 | 535 | 339 | |||||||||||||||
Other | 5 | - | 50 | 465 | 424 | |||||||||||||||
Capital leases | 7 | 6 | ||||||||||||||||||
Enterprises | ||||||||||||||||||||
Independent power production | 3 | - | 30 | 89 | 89 | |||||||||||||||
Other | 3 | - | 40 | 26 | 24 | |||||||||||||||
Other | 1 | - | 51 | 40 | 38 | |||||||||||||||
Construction work in progress | 1,149 | 1,080 | ||||||||||||||||||
Less accumulated depreciation and amortization | -5,087 | -5,121 | ||||||||||||||||||
Net plant, property, and equipment2 | $ | 12,246 | $ | 11,551 | ||||||||||||||||
Consumers | ||||||||||||||||||||
Electric | ||||||||||||||||||||
Generation | 22 | - | 125 | $ | 3,992 | $ | 4,254 | |||||||||||||
Distribution | 23 | - | 75 | 6,140 | 5,831 | |||||||||||||||
Other | 5 | - | 50 | 770 | 677 | |||||||||||||||
Assets under capital leases and other arrangements | 284 | 279 | ||||||||||||||||||
Gas | ||||||||||||||||||||
Distribution | 28 | - | 80 | 3,015 | 2,861 | |||||||||||||||
Transmission | 17 | - | 75 | 821 | 770 | |||||||||||||||
Underground storage facilities1 | 29 | - | 65 | 535 | 339 | |||||||||||||||
Other | 5 | - | 50 | 465 | 424 | |||||||||||||||
Capital leases | 7 | 6 | ||||||||||||||||||
Other non-utility property | 8 | - | 51 | 15 | 15 | |||||||||||||||
Construction work in progress | 1,147 | 1,080 | ||||||||||||||||||
Less accumulated depreciation and amortization | -5,022 | -5,061 | ||||||||||||||||||
Net plant, property, and equipment2 | $ | 12,169 | $ | 11,475 | ||||||||||||||||
1 | Underground storage includes base natural gas of $26 million at December 31, 2013 and 2012. Base natural gas is not subject to depreciation. | |||||||||||||||||||
2 | For the year ended December 31, 2013, utility plant additions were $1.3 billion and utility plant retirements were $156 million. Subject to a successful Securitization transaction, Consumers plans to retire seven smaller coal-fueled electric generating units and three smaller gas-fueled electric generating units by April 2016. Accordingly, Consumers removed the net book value of the ten units from plant, property, and equipment and recorded this amount as a regulatory asset at December 31, 2013. As a result, net plant, property, and equipment decreased by $362 million. For additional details, see Note 2, Regulatory Matters. | |||||||||||||||||||
For the year ended December 31, 2012, utility plant additions were $999 million and utility plant retirements were $168 million. | ||||||||||||||||||||
Presented in the following table is further detail on changes in Consumers’ assets under capital leases and other arrangements: | ||||||||||||||||||||
In Millions | ||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | ||||||||||||||||||
Consumers | ||||||||||||||||||||
Balance at beginning of period | $ | 285 | $ | 280 | ||||||||||||||||
Additions | 12 | 9 | ||||||||||||||||||
Net retirements and other adjustments | -6 | -4 | ||||||||||||||||||
Balance at end of period | $ | 291 | $ | 285 | ||||||||||||||||
Assets under capital leases and other arrangements are presented as gross amounts. Accumulated amortization of assets under capital leases and other arrangements was $124 million at December 31, 2013 and $108 million at December 31, 2012 for Consumers. | ||||||||||||||||||||
Presented in the following table is further detail on CMS Energy’s and Consumers’ accumulated depreciation and amortization: | ||||||||||||||||||||
In Millions | ||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | ||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||
Utility plant assets | $ | 5,021 | $ | 5,060 | ||||||||||||||||
Non-utility plant assets | 66 | 61 | ||||||||||||||||||
Consumers | ||||||||||||||||||||
Utility plant assets | $ | 5,021 | $ | 5,060 | ||||||||||||||||
Non-utility plant assets | 1 | 1 | ||||||||||||||||||
Maintenance and Depreciation: CMS Energy and Consumers record property repairs and minor property replacement as maintenance expense. CMS Energy and Consumers record planned major maintenance activities as operating expense unless the cost represents the acquisition of additional long-lived assets or the replacement of an existing long-lived asset. | ||||||||||||||||||||
Consumers depreciates utility property on an asset-group basis, in which it applies a single MPSC-approved depreciation rate to the gross investment in a particular class of property within the electric and gas segments. Consumers performs depreciation studies periodically to determine appropriate group lives. Presented in the following table are the composite depreciation rates for Consumers’ segment properties: | ||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||||||||||
Electric utility property | 3.5 | % | 3.2 | % | 3.0 | % | ||||||||||||||
Gas utility property | 2.8 | % | 2.9 | % | 2.9 | % | ||||||||||||||
Other property | 7.0 | % | 7.2 | % | 7.4 | % | ||||||||||||||
CMS Energy and Consumers record plant, property, and equipment at original cost when placed into service. The cost includes labor, material, applicable taxes, overhead such as pension and other benefits, and AFUDC, if applicable. Consumers’ plant, property, and equipment is generally recoverable through its general rate making process. For additional details, see Note 2, Regulatory Matters. | ||||||||||||||||||||
When utility property is mothballed, the property stays in rate base and continues to be depreciated at the same rate as before the mothball period. When utility property is retired or otherwise disposed of in the ordinary course of business, Consumers records the original cost to accumulated depreciation, along with associated cost of removal, net of salvage. CMS Energy and Consumers recognize gains or losses on the retirement or disposal of non‑regulated assets in income. Consumers records cost of removal collected from customers, but not spent, as a regulatory liability. | ||||||||||||||||||||
Consumers capitalizes AFUDC on regulated major construction projects, except pollution control facilities on its fossil-fuel-fired power plants. AFUDC represents the estimated cost of debt and authorized return-on-equity funds used to finance construction additions. Consumers records the offsetting credit as a reduction of interest for the amount representing the borrowed funds component and as other income for the equity funds component on the consolidated statements of income. When construction is completed and the property is placed in service, Consumers depreciates and recovers the capitalized AFUDC from customers over the life of the related asset. Presented in the following table are Consumers’ composite AFUDC capitalization rates: | ||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||||||||||
AFUDC capitalization rate | 7.3 | % | 7.3 | % | 7.6 | % | ||||||||||||||
CMS Energy and Consumers capitalize the purchase and development of internal-use computer software. These costs are expensed evenly over the estimated useful life of the internal-use computer software. If computer software is integral to computer hardware, then its cost is capitalized and depreciated with the hardware. The types of costs capitalized are consistent for all periods presented by the financial statements. | ||||||||||||||||||||
Intangible Assets: Included in net plant, property, and equipment are intangible assets. Presented in the following table are CMS Energy’s and Consumers’ intangible assets: | ||||||||||||||||||||
In Millions | ||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | ||||||||||||||||||
Description | Amortization | Gross Cost1 | Accumulated | Gross Cost1 | Accumulated | |||||||||||||||
Life in years | Amortization | Amortization | ||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||
Software development | 3 | - | 15 | $ | 508 | $ | 174 | $ | 466 | $ | 172 | |||||||||
Plant acquisition adjustments | 40 | - | 46 | 216 | 32 | 214 | 27 | |||||||||||||
Rights of way | 50 | - | 75 | 135 | 42 | 130 | 40 | |||||||||||||
Leasehold improvements | various2 | 14 | 11 | 13 | 10 | |||||||||||||||
Franchises and consents | 5 | - | 30 | 15 | 7 | 14 | 6 | |||||||||||||
Other intangibles | various | 21 | 14 | 18 | 14 | |||||||||||||||
Total | $ | 909 | $ | 280 | $ | 855 | $ | 269 | ||||||||||||
Consumers | ||||||||||||||||||||
Software development | 3 | - | 15 | $ | 506 | $ | 173 | $ | 464 | $ | 172 | |||||||||
Plant acquisition adjustments | 40 | - | 46 | 216 | 32 | 214 | 27 | |||||||||||||
Rights of way | 50 | - | 75 | 135 | 42 | 130 | 40 | |||||||||||||
Leasehold improvements | various2 | 14 | 11 | 13 | 10 | |||||||||||||||
Franchises and consents | 5 | - | 30 | 15 | 7 | 14 | 6 | |||||||||||||
Other intangibles | various | 20 | 14 | 18 | 14 | |||||||||||||||
Total | $ | 906 | $ | 279 | $ | 853 | $ | 269 | ||||||||||||
1 | Net intangible asset additions for Consumers’ utility plant were $53 million during 2013 and $108 million during 2012 and primarily represented software development costs. | |||||||||||||||||||
2 | Leasehold improvements are amortized over the life of the lease, which may change whenever the lease is renewed or extended. | |||||||||||||||||||
Presented in the following table is CMS Energy’s and Consumers’ amortization expense related to intangible assets: | ||||||||||||||||||||
In Millions | ||||||||||||||||||||
CMS Energy, including Consumers | Consumers | |||||||||||||||||||
Years Ended December 31 | Total | Software | Total | Software | ||||||||||||||||
Amortization | Amortization | Amortization | Amortization | |||||||||||||||||
Expense | Expense | Expense | Expense | |||||||||||||||||
2013 | $ | 48 | $ | 39 | $ | 47 | $ | 39 | ||||||||||||
2012 | 39 | 31 | 38 | 30 | ||||||||||||||||
2011 | 32 | 24 | 32 | 24 | ||||||||||||||||
Amortization of intangible assets is expected to range between $54 million and $73 million per year over the next five years. | ||||||||||||||||||||
Jointly Owned Regulated Utility Facilities | ||||||||||||||||||||
Presented in the following table are Consumers’ investments in jointly owned regulated utility facilities at December 31, 2013: | ||||||||||||||||||||
In Millions, Except Ownership Share | ||||||||||||||||||||
J.H. Campbell Unit 3 | Ludington | Distribution | ||||||||||||||||||
Ownership share | 93.3 | % | 51.0 | % | various | |||||||||||||||
Utility plant in service | $ | 1,073 | $ | 193 | $ | 190 | ||||||||||||||
Accumulated depreciation | -456 | -152 | -59 | |||||||||||||||||
Construction work-in-progress | 81 | 71 | 2 | |||||||||||||||||
Net investment | $ | 698 | $ | 112 | $ | 133 | ||||||||||||||
Consumers includes its share of the direct expenses of the jointly owned plants in operating expenses. Consumers shares operation, maintenance, and other expenses of these jointly owned utility facilities in proportion to each participant’s undivided ownership interest. Consumers is required to provide only its share of financing for the jointly owned utility facilities. | ||||||||||||||||||||
Consumers Energy Company [Member] | ' | |||||||||||||||||||
Plant, Property, and Equipment | ' | |||||||||||||||||||
8:PLANT, PROPERTY, AND EQUIPMENT | ||||||||||||||||||||
Presented in the following table are details of CMS Energy’s and Consumers’ plant, property, and equipment: | ||||||||||||||||||||
In Millions | ||||||||||||||||||||
Years Ended December 31 | Estimated | 2013 | 2012 | |||||||||||||||||
Depreciable | ||||||||||||||||||||
Life in Years | ||||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||
Electric | ||||||||||||||||||||
Generation | 22 | - | 125 | $ | 3,992 | $ | 4,254 | |||||||||||||
Distribution | 23 | - | 75 | 6,140 | 5,831 | |||||||||||||||
Other | 5 | - | 50 | 770 | 677 | |||||||||||||||
Assets under capital leases and other arrangements | 284 | 279 | ||||||||||||||||||
Gas | ||||||||||||||||||||
Distribution | 28 | - | 80 | 3,015 | 2,861 | |||||||||||||||
Transmission | 17 | - | 75 | 821 | 770 | |||||||||||||||
Underground storage facilities1 | 29 | - | 65 | 535 | 339 | |||||||||||||||
Other | 5 | - | 50 | 465 | 424 | |||||||||||||||
Capital leases | 7 | 6 | ||||||||||||||||||
Enterprises | ||||||||||||||||||||
Independent power production | 3 | - | 30 | 89 | 89 | |||||||||||||||
Other | 3 | - | 40 | 26 | 24 | |||||||||||||||
Other | 1 | - | 51 | 40 | 38 | |||||||||||||||
Construction work in progress | 1,149 | 1,080 | ||||||||||||||||||
Less accumulated depreciation and amortization | -5,087 | -5,121 | ||||||||||||||||||
Net plant, property, and equipment2 | $ | 12,246 | $ | 11,551 | ||||||||||||||||
Consumers | ||||||||||||||||||||
Electric | ||||||||||||||||||||
Generation | 22 | - | 125 | $ | 3,992 | $ | 4,254 | |||||||||||||
Distribution | 23 | - | 75 | 6,140 | 5,831 | |||||||||||||||
Other | 5 | - | 50 | 770 | 677 | |||||||||||||||
Assets under capital leases and other arrangements | 284 | 279 | ||||||||||||||||||
Gas | ||||||||||||||||||||
Distribution | 28 | - | 80 | 3,015 | 2,861 | |||||||||||||||
Transmission | 17 | - | 75 | 821 | 770 | |||||||||||||||
Underground storage facilities1 | 29 | - | 65 | 535 | 339 | |||||||||||||||
Other | 5 | - | 50 | 465 | 424 | |||||||||||||||
Capital leases | 7 | 6 | ||||||||||||||||||
Other non-utility property | 8 | - | 51 | 15 | 15 | |||||||||||||||
Construction work in progress | 1,147 | 1,080 | ||||||||||||||||||
Less accumulated depreciation and amortization | -5,022 | -5,061 | ||||||||||||||||||
Net plant, property, and equipment2 | $ | 12,169 | $ | 11,475 | ||||||||||||||||
1 | Underground storage includes base natural gas of $26 million at December 31, 2013 and 2012. Base natural gas is not subject to depreciation. | |||||||||||||||||||
2 | For the year ended December 31, 2013, utility plant additions were $1.3 billion and utility plant retirements were $156 million. Subject to a successful Securitization transaction, Consumers plans to retire seven smaller coal-fueled electric generating units and three smaller gas-fueled electric generating units by April 2016. Accordingly, Consumers removed the net book value of the ten units from plant, property, and equipment and recorded this amount as a regulatory asset at December 31, 2013. As a result, net plant, property, and equipment decreased by $362 million. For additional details, see Note 2, Regulatory Matters. | |||||||||||||||||||
For the year ended December 31, 2012, utility plant additions were $999 million and utility plant retirements were $168 million. | ||||||||||||||||||||
Presented in the following table is further detail on changes in Consumers’ assets under capital leases and other arrangements: | ||||||||||||||||||||
In Millions | ||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | ||||||||||||||||||
Consumers | ||||||||||||||||||||
Balance at beginning of period | $ | 285 | $ | 280 | ||||||||||||||||
Additions | 12 | 9 | ||||||||||||||||||
Net retirements and other adjustments | -6 | -4 | ||||||||||||||||||
Balance at end of period | $ | 291 | $ | 285 | ||||||||||||||||
Assets under capital leases and other arrangements are presented as gross amounts. Accumulated amortization of assets under capital leases and other arrangements was $124 million at December 31, 2013 and $108 million at December 31, 2012 for Consumers. | ||||||||||||||||||||
Presented in the following table is further detail on CMS Energy’s and Consumers’ accumulated depreciation and amortization: | ||||||||||||||||||||
In Millions | ||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | ||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||
Utility plant assets | $ | 5,021 | $ | 5,060 | ||||||||||||||||
Non-utility plant assets | 66 | 61 | ||||||||||||||||||
Consumers | ||||||||||||||||||||
Utility plant assets | $ | 5,021 | $ | 5,060 | ||||||||||||||||
Non-utility plant assets | 1 | 1 | ||||||||||||||||||
Maintenance and Depreciation: CMS Energy and Consumers record property repairs and minor property replacement as maintenance expense. CMS Energy and Consumers record planned major maintenance activities as operating expense unless the cost represents the acquisition of additional long-lived assets or the replacement of an existing long-lived asset. | ||||||||||||||||||||
Consumers depreciates utility property on an asset-group basis, in which it applies a single MPSC-approved depreciation rate to the gross investment in a particular class of property within the electric and gas segments. Consumers performs depreciation studies periodically to determine appropriate group lives. Presented in the following table are the composite depreciation rates for Consumers’ segment properties: | ||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||||||||||
Electric utility property | 3.5 | % | 3.2 | % | 3.0 | % | ||||||||||||||
Gas utility property | 2.8 | % | 2.9 | % | 2.9 | % | ||||||||||||||
Other property | 7.0 | % | 7.2 | % | 7.4 | % | ||||||||||||||
CMS Energy and Consumers record plant, property, and equipment at original cost when placed into service. The cost includes labor, material, applicable taxes, overhead such as pension and other benefits, and AFUDC, if applicable. Consumers’ plant, property, and equipment is generally recoverable through its general rate making process. For additional details, see Note 2, Regulatory Matters. | ||||||||||||||||||||
When utility property is mothballed, the property stays in rate base and continues to be depreciated at the same rate as before the mothball period. When utility property is retired or otherwise disposed of in the ordinary course of business, Consumers records the original cost to accumulated depreciation, along with associated cost of removal, net of salvage. CMS Energy and Consumers recognize gains or losses on the retirement or disposal of non‑regulated assets in income. Consumers records cost of removal collected from customers, but not spent, as a regulatory liability. | ||||||||||||||||||||
Consumers capitalizes AFUDC on regulated major construction projects, except pollution control facilities on its fossil-fuel-fired power plants. AFUDC represents the estimated cost of debt and authorized return-on-equity funds used to finance construction additions. Consumers records the offsetting credit as a reduction of interest for the amount representing the borrowed funds component and as other income for the equity funds component on the consolidated statements of income. When construction is completed and the property is placed in service, Consumers depreciates and recovers the capitalized AFUDC from customers over the life of the related asset. Presented in the following table are Consumers’ composite AFUDC capitalization rates: | ||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||||||||||
AFUDC capitalization rate | 7.3 | % | 7.3 | % | 7.6 | % | ||||||||||||||
CMS Energy and Consumers capitalize the purchase and development of internal-use computer software. These costs are expensed evenly over the estimated useful life of the internal-use computer software. If computer software is integral to computer hardware, then its cost is capitalized and depreciated with the hardware. The types of costs capitalized are consistent for all periods presented by the financial statements. | ||||||||||||||||||||
Intangible Assets: Included in net plant, property, and equipment are intangible assets. Presented in the following table are CMS Energy’s and Consumers’ intangible assets: | ||||||||||||||||||||
In Millions | ||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | ||||||||||||||||||
Description | Amortization | Gross Cost1 | Accumulated | Gross Cost1 | Accumulated | |||||||||||||||
Life in years | Amortization | Amortization | ||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||
Software development | 3 | - | 15 | $ | 508 | $ | 174 | $ | 466 | $ | 172 | |||||||||
Plant acquisition adjustments | 40 | - | 46 | 216 | 32 | 214 | 27 | |||||||||||||
Rights of way | 50 | - | 75 | 135 | 42 | 130 | 40 | |||||||||||||
Leasehold improvements | various2 | 14 | 11 | 13 | 10 | |||||||||||||||
Franchises and consents | 5 | - | 30 | 15 | 7 | 14 | 6 | |||||||||||||
Other intangibles | various | 21 | 14 | 18 | 14 | |||||||||||||||
Total | $ | 909 | $ | 280 | $ | 855 | $ | 269 | ||||||||||||
Consumers | ||||||||||||||||||||
Software development | 3 | - | 15 | $ | 506 | $ | 173 | $ | 464 | $ | 172 | |||||||||
Plant acquisition adjustments | 40 | - | 46 | 216 | 32 | 214 | 27 | |||||||||||||
Rights of way | 50 | - | 75 | 135 | 42 | 130 | 40 | |||||||||||||
Leasehold improvements | various2 | 14 | 11 | 13 | 10 | |||||||||||||||
Franchises and consents | 5 | - | 30 | 15 | 7 | 14 | 6 | |||||||||||||
Other intangibles | various | 20 | 14 | 18 | 14 | |||||||||||||||
Total | $ | 906 | $ | 279 | $ | 853 | $ | 269 | ||||||||||||
1 | Net intangible asset additions for Consumers’ utility plant were $53 million during 2013 and $108 million during 2012 and primarily represented software development costs. | |||||||||||||||||||
2 | Leasehold improvements are amortized over the life of the lease, which may change whenever the lease is renewed or extended. | |||||||||||||||||||
Presented in the following table is CMS Energy’s and Consumers’ amortization expense related to intangible assets: | ||||||||||||||||||||
In Millions | ||||||||||||||||||||
CMS Energy, including Consumers | Consumers | |||||||||||||||||||
Years Ended December 31 | Total | Software | Total | Software | ||||||||||||||||
Amortization | Amortization | Amortization | Amortization | |||||||||||||||||
Expense | Expense | Expense | Expense | |||||||||||||||||
2013 | $ | 48 | $ | 39 | $ | 47 | $ | 39 | ||||||||||||
2012 | 39 | 31 | 38 | 30 | ||||||||||||||||
2011 | 32 | 24 | 32 | 24 | ||||||||||||||||
Amortization of intangible assets is expected to range between $54 million and $73 million per year over the next five years. | ||||||||||||||||||||
Jointly Owned Regulated Utility Facilities | ||||||||||||||||||||
Presented in the following table are Consumers’ investments in jointly owned regulated utility facilities at December 31, 2013: | ||||||||||||||||||||
In Millions, Except Ownership Share | ||||||||||||||||||||
J.H. Campbell Unit 3 | Ludington | Distribution | ||||||||||||||||||
Ownership share | 93.3 | % | 51.0 | % | various | |||||||||||||||
Utility plant in service | $ | 1,073 | $ | 193 | $ | 190 | ||||||||||||||
Accumulated depreciation | -456 | -152 | -59 | |||||||||||||||||
Construction work-in-progress | 81 | 71 | 2 | |||||||||||||||||
Net investment | $ | 698 | $ | 112 | $ | 133 | ||||||||||||||
Consumers includes its share of the direct expenses of the jointly owned plants in operating expenses. Consumers shares operation, maintenance, and other expenses of these jointly owned utility facilities in proportion to each participant’s undivided ownership interest. Consumers is required to provide only its share of financing for the jointly owned utility facilities. | ||||||||||||||||||||
Leases
Leases | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Leases | ' | ||||||||||
9:LEASES | |||||||||||
CMS Energy and Consumers lease various assets, including railcars, service vehicles, gas pipeline capacity, and buildings. In addition, CMS Energy and Consumers account for a number of their PPAs as capital and operating leases. | |||||||||||
Operating leases for coal-carrying railcars have lease terms, which range from three to 15 years, expiring without extension provisions over the next ten years and with extension provisions over the next 13 years. These leases contain fair market value extension and buyout provisions, with some providing for predetermined extension period rentals. Capital leases for Consumers’ vehicle fleet operations have a maximum term of 120 months with some having end-of-lease rental adjustment clauses based on the proceeds received from the sale or disposition of the vehicles, and others having fixed percentage purchase options. | |||||||||||
Consumers has capital leases for gas transportation pipelines to the D.E. Karn generating complex and Zeeland. The capital lease for the gas transportation pipeline into the D.E. Karn generating complex has a term of 15 years with a provision to extend the contract from month to month. The remaining term of the contract was eight years at December 31, 2013. The capital lease for the gas transportation pipeline to Zeeland was extended in 2012 for five years pursuant to the renewal provision at the end of the contract. At December 31, 2013, the remaining term of the contract was four years with a renewal provision of an additional five years at the end of the contract. The remaining terms of Consumers’ long-term PPAs accounted for as leases range between two and 19 years. Most of these PPAs contain provisions at the end of the initial contract terms to renew the agreements annually. | |||||||||||
Presented in the following table are Consumers’ minimum lease expense and contingent rental expense. For each of the years ended December 31, 2013, 2012, and 2011, all of CMS Energy’s minimum lease expense and contingent rental expense were attributable to Consumers. | |||||||||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
Consumers | |||||||||||
Minimum operating lease expense | |||||||||||
PPAs | $ | 6 | $ | 6 | $ | 10 | |||||
Other agreements | 21 | 23 | 22 | ||||||||
Contingent rental expense1 | 77 | 33 | 11 | ||||||||
1Contingent rental expense is related to capital and operating lease PPAs and is based on delivery of energy and capacity in excess of minimum lease payments. | |||||||||||
Consumers is authorized by the MPSC to record operating lease payments as operating expense and recover the total cost from customers. | |||||||||||
Presented in the following table are the minimum annual rental commitments under Consumers’ non‑cancelable leases at December 31, 2013. All of CMS Energy’s non‑cancelable leases at December 31, 2013 were attributable to Consumers. | |||||||||||
In Millions | |||||||||||
Capital Leases | Financing1 | Operating Leases | |||||||||
Consumers | |||||||||||
2014 | $ | 14 | $ | 19 | $ | 26 | |||||
2015 | 14 | 18 | 25 | ||||||||
2016 | 11 | 17 | 20 | ||||||||
2017 | 10 | 17 | 20 | ||||||||
2018 | 10 | 16 | 17 | ||||||||
2019 and thereafter | 31 | 46 | 56 | ||||||||
Total minimum lease payments | $ | 90 | $ | 133 | $ | 164 | |||||
Less imputed interest | 39 | 25 | |||||||||
Present value of net minimum lease payments | $ | 51 | $ | 108 | |||||||
Less current portion | 8 | 13 | |||||||||
Non-current portion | $ | 43 | $ | 95 | |||||||
1 | In 2007, Consumers sold Palisades to Entergy and entered into a 15-year PPA to buy all of the capacity and energy then capable of being produced by Palisades. Consumers has continuing involvement with Palisades through security provided to Entergy for Consumers’ PPA obligation and other arrangements. Because of these ongoing arrangements, Consumers accounted for the transaction as a financing of Palisades and not a sale. Accordingly, no gain on the sale of Palisades was recognized on the consolidated statements of income. Consumers accounted for the remaining non-real-estate assets and liabilities associated with the transaction as a sale. | ||||||||||
Palisades remains on Consumers’ consolidated balance sheets and Consumers continues to depreciate it. Consumers recorded the related proceeds as a finance obligation with payments recorded to interest expense and the finance obligation based on the amortization of the obligation over the life of the Palisades PPA. The value of the finance obligation was determined based on an allocation of the transaction proceeds to the fair values of the net assets sold and fair value of the plant asset under the financing. Total amortization and interest charges under the financing were $20 million for each of the years ended December 31, 2013 and December 31, 2012 and $21 million for the year ended December 31, 2011. | |||||||||||
Consumers Energy Company [Member] | ' | ||||||||||
Leases | ' | ||||||||||
9:LEASES | |||||||||||
CMS Energy and Consumers lease various assets, including railcars, service vehicles, gas pipeline capacity, and buildings. In addition, CMS Energy and Consumers account for a number of their PPAs as capital and operating leases. | |||||||||||
Operating leases for coal-carrying railcars have lease terms, which range from three to 15 years, expiring without extension provisions over the next ten years and with extension provisions over the next 13 years. These leases contain fair market value extension and buyout provisions, with some providing for predetermined extension period rentals. Capital leases for Consumers’ vehicle fleet operations have a maximum term of 120 months with some having end-of-lease rental adjustment clauses based on the proceeds received from the sale or disposition of the vehicles, and others having fixed percentage purchase options. | |||||||||||
Consumers has capital leases for gas transportation pipelines to the D.E. Karn generating complex and Zeeland. The capital lease for the gas transportation pipeline into the D.E. Karn generating complex has a term of 15 years with a provision to extend the contract from month to month. The remaining term of the contract was eight years at December 31, 2013. The capital lease for the gas transportation pipeline to Zeeland was extended in 2012 for five years pursuant to the renewal provision at the end of the contract. At December 31, 2013, the remaining term of the contract was four years with a renewal provision of an additional five years at the end of the contract. The remaining terms of Consumers’ long-term PPAs accounted for as leases range between two and 19 years. Most of these PPAs contain provisions at the end of the initial contract terms to renew the agreements annually. | |||||||||||
Presented in the following table are Consumers’ minimum lease expense and contingent rental expense. For each of the years ended December 31, 2013, 2012, and 2011, all of CMS Energy’s minimum lease expense and contingent rental expense were attributable to Consumers. | |||||||||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
Consumers | |||||||||||
Minimum operating lease expense | |||||||||||
PPAs | $ | 6 | $ | 6 | $ | 10 | |||||
Other agreements | 21 | 23 | 22 | ||||||||
Contingent rental expense1 | 77 | 33 | 11 | ||||||||
1Contingent rental expense is related to capital and operating lease PPAs and is based on delivery of energy and capacity in excess of minimum lease payments. | |||||||||||
Consumers is authorized by the MPSC to record operating lease payments as operating expense and recover the total cost from customers. | |||||||||||
Presented in the following table are the minimum annual rental commitments under Consumers’ non‑cancelable leases at December 31, 2013. All of CMS Energy’s non‑cancelable leases at December 31, 2013 were attributable to Consumers. | |||||||||||
In Millions | |||||||||||
Capital Leases | Financing1 | Operating Leases | |||||||||
Consumers | |||||||||||
2014 | $ | 14 | $ | 19 | $ | 26 | |||||
2015 | 14 | 18 | 25 | ||||||||
2016 | 11 | 17 | 20 | ||||||||
2017 | 10 | 17 | 20 | ||||||||
2018 | 10 | 16 | 17 | ||||||||
2019 and thereafter | 31 | 46 | 56 | ||||||||
Total minimum lease payments | $ | 90 | $ | 133 | $ | 164 | |||||
Less imputed interest | 39 | 25 | |||||||||
Present value of net minimum lease payments | $ | 51 | $ | 108 | |||||||
Less current portion | 8 | 13 | |||||||||
Non-current portion | $ | 43 | $ | 95 | |||||||
1 | In 2007, Consumers sold Palisades to Entergy and entered into a 15-year PPA to buy all of the capacity and energy then capable of being produced by Palisades. Consumers has continuing involvement with Palisades through security provided to Entergy for Consumers’ PPA obligation and other arrangements. Because of these ongoing arrangements, Consumers accounted for the transaction as a financing of Palisades and not a sale. Accordingly, no gain on the sale of Palisades was recognized on the consolidated statements of income. Consumers accounted for the remaining non-real-estate assets and liabilities associated with the transaction as a sale. | ||||||||||
Palisades remains on Consumers’ consolidated balance sheets and Consumers continues to depreciate it. Consumers recorded the related proceeds as a finance obligation with payments recorded to interest expense and the finance obligation based on the amortization of the obligation over the life of the Palisades PPA. The value of the finance obligation was determined based on an allocation of the transaction proceeds to the fair values of the net assets sold and fair value of the plant asset under the financing. Total amortization and interest charges under the financing were $20 million for each of the years ended December 31, 2013 and December 31, 2012 and $21 million for the year ended December 31, 2011. | |||||||||||
Asset_Retirement_Obligations
Asset Retirement Obligations | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Asset Retirement Obligations | ' | |||||||||||||||||||
10:ASSET RETIREMENT OBLIGATIONS | ||||||||||||||||||||
CMS Energy and Consumers record the fair value of the cost to remove assets at the end of their useful lives, if there is a legal obligation to remove them. No market risk premiums were included in CMS Energy’s and Consumers’ ARO fair value estimates since reasonable estimates could not be made. If a five percent market risk premium were assumed, CMS Energy’s and Consumers’ ARO liabilities would be $16 million higher at December 31, 2013 and December 31, 2012. In 2012, Consumers updated the ARO for coal ash disposal areas to reflect a revised estimate of future obligations and recorded the initial estimate for the Lake Winds® Energy Park ARO. | ||||||||||||||||||||
If a reasonable estimate of fair value cannot be made in the period in which the ARO is incurred, such as for assets with indeterminate lives, the liability is recognized when a reasonable estimate of fair value can be made. CMS Energy and Consumers have not recorded liabilities for assets that have insignificant cumulative disposal costs, such as substation batteries. | ||||||||||||||||||||
Presented below are the categories of assets that CMS Energy and Consumers have legal obligations to remove at the end of their useful lives and for which they have an ARO liability recorded: | ||||||||||||||||||||
In-Service | ||||||||||||||||||||
Company and ARO Description | Date | Long-Lived Assets | ||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||
Closure of gas treating plant and gas wells | Various | Gas transmission and storage | ||||||||||||||||||
Closure of coal ash disposal areas | Various | Generating plants coal ash areas | ||||||||||||||||||
Closure of wells at gas storage fields | Various | Gas storage fields | ||||||||||||||||||
Asbestos abatement | 1973 | Electric and gas utility plant | ||||||||||||||||||
Gas distribution cut, purge, and cap | Various | Gas distribution mains and services | ||||||||||||||||||
Closure of wind park | 2012 | Wind generation facilities | ||||||||||||||||||
Consumers | ||||||||||||||||||||
Closure of coal ash disposal areas | Various | Generating plants coal ash areas | ||||||||||||||||||
Closure of wells at gas storage fields | Various | Gas storage fields | ||||||||||||||||||
Asbestos abatement | 1973 | Electric and gas utility plant | ||||||||||||||||||
Gas distribution cut, purge, and cap | Various | Gas distribution mains and services | ||||||||||||||||||
Closure of wind park | 2012 | Wind generation facilities | ||||||||||||||||||
No assets have been restricted for purposes of settling AROs. | ||||||||||||||||||||
Presented in the following tables are the changes in CMS Energy’s and Consumers’ ARO liabilities: | ||||||||||||||||||||
In Millions | ||||||||||||||||||||
ARO | ARO | |||||||||||||||||||
Liability | Cash flow | Liability | ||||||||||||||||||
Company and ARO Description | 12/31/2012 | Incurred | Settled1 | Accretion | Revisions | 12/31/2013 | ||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||
Gas treating plant and gas wells | $ | 1 | $ | - | $ | - | $ | - | $ | - | $ | 1 | ||||||||
Consumers | 311 | -3 | -6 | 18 | 4 | 324 | ||||||||||||||
Total CMS Energy | $ | 312 | $ | -3 | $ | -6 | $ | 18 | $ | 4 | $ | 325 | ||||||||
Consumers | ||||||||||||||||||||
Coal ash disposal areas | $ | 114 | $ | - | $ | -1 | $ | 5 | $ | - | $ | 118 | ||||||||
Asbestos abatement | 43 | - | -1 | 3 | 4 | 49 | ||||||||||||||
Gas distribution cut, purge, | 151 | -3 | -4 | 10 | - | 154 | ||||||||||||||
and cap | ||||||||||||||||||||
Wind park | 3 | - | - | - | - | 3 | ||||||||||||||
Total Consumers | $ | 311 | $ | -3 | $ | -6 | $ | 18 | $ | 4 | $ | 324 | ||||||||
In Millions | ||||||||||||||||||||
ARO | ARO | |||||||||||||||||||
Liability | Cash flow | Liability | ||||||||||||||||||
Company and ARO Description | 12/31/2011 | Incurred | Settled1 | Accretion | Revisions | 12/31/2012 | ||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||
Gas treating plant and gas wells | $ | 1 | $ | - | $ | - | $ | - | $ | - | $ | 1 | ||||||||
Consumers | 253 | 7 | -8 | 19 | 40 | 311 | ||||||||||||||
Total CMS Energy | $ | 254 | $ | 7 | $ | -8 | $ | 19 | $ | 40 | $ | 312 | ||||||||
Consumers | ||||||||||||||||||||
Coal ash disposal areas | $ | 70 | $ | - | $ | -3 | $ | 7 | $ | 40 | $ | 114 | ||||||||
Wells at gas storage fields | 1 | - | -1 | - | - | - | ||||||||||||||
Asbestos abatement | 42 | - | -1 | 2 | - | 43 | ||||||||||||||
Gas distribution cut, purge, | 140 | 4 | -3 | 10 | - | 151 | ||||||||||||||
and cap | ||||||||||||||||||||
Wind park | - | 3 | - | - | - | 3 | ||||||||||||||
Total Consumers | $ | 253 | $ | 7 | $ | -8 | $ | 19 | $ | 40 | $ | 311 | ||||||||
1Cash payments of $6 million in 2013 and $8 million in 2012 were included in other current and non-current assets and liabilities as a component of net cash provided by operating activities in CMS Energy’s and Consumers’ consolidated statements of cash flow. | ||||||||||||||||||||
Consumers Energy Company [Member] | ' | |||||||||||||||||||
Asset Retirement Obligations | ' | |||||||||||||||||||
10:ASSET RETIREMENT OBLIGATIONS | ||||||||||||||||||||
CMS Energy and Consumers record the fair value of the cost to remove assets at the end of their useful lives, if there is a legal obligation to remove them. No market risk premiums were included in CMS Energy’s and Consumers’ ARO fair value estimates since reasonable estimates could not be made. If a five percent market risk premium were assumed, CMS Energy’s and Consumers’ ARO liabilities would be $16 million higher at December 31, 2013 and December 31, 2012. In 2012, Consumers updated the ARO for coal ash disposal areas to reflect a revised estimate of future obligations and recorded the initial estimate for the Lake Winds® Energy Park ARO. | ||||||||||||||||||||
If a reasonable estimate of fair value cannot be made in the period in which the ARO is incurred, such as for assets with indeterminate lives, the liability is recognized when a reasonable estimate of fair value can be made. CMS Energy and Consumers have not recorded liabilities for assets that have insignificant cumulative disposal costs, such as substation batteries. | ||||||||||||||||||||
Presented below are the categories of assets that CMS Energy and Consumers have legal obligations to remove at the end of their useful lives and for which they have an ARO liability recorded: | ||||||||||||||||||||
In-Service | ||||||||||||||||||||
Company and ARO Description | Date | Long-Lived Assets | ||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||
Closure of gas treating plant and gas wells | Various | Gas transmission and storage | ||||||||||||||||||
Closure of coal ash disposal areas | Various | Generating plants coal ash areas | ||||||||||||||||||
Closure of wells at gas storage fields | Various | Gas storage fields | ||||||||||||||||||
Asbestos abatement | 1973 | Electric and gas utility plant | ||||||||||||||||||
Gas distribution cut, purge, and cap | Various | Gas distribution mains and services | ||||||||||||||||||
Closure of wind park | 2012 | Wind generation facilities | ||||||||||||||||||
Consumers | ||||||||||||||||||||
Closure of coal ash disposal areas | Various | Generating plants coal ash areas | ||||||||||||||||||
Closure of wells at gas storage fields | Various | Gas storage fields | ||||||||||||||||||
Asbestos abatement | 1973 | Electric and gas utility plant | ||||||||||||||||||
Gas distribution cut, purge, and cap | Various | Gas distribution mains and services | ||||||||||||||||||
Closure of wind park | 2012 | Wind generation facilities | ||||||||||||||||||
No assets have been restricted for purposes of settling AROs. | ||||||||||||||||||||
Presented in the following tables are the changes in CMS Energy’s and Consumers’ ARO liabilities: | ||||||||||||||||||||
In Millions | ||||||||||||||||||||
ARO | ARO | |||||||||||||||||||
Liability | Cash flow | Liability | ||||||||||||||||||
Company and ARO Description | 12/31/2012 | Incurred | Settled1 | Accretion | Revisions | 12/31/2013 | ||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||
Gas treating plant and gas wells | $ | 1 | $ | - | $ | - | $ | - | $ | - | $ | 1 | ||||||||
Consumers | 311 | -3 | -6 | 18 | 4 | 324 | ||||||||||||||
Total CMS Energy | $ | 312 | $ | -3 | $ | -6 | $ | 18 | $ | 4 | $ | 325 | ||||||||
Consumers | ||||||||||||||||||||
Coal ash disposal areas | $ | 114 | $ | - | $ | -1 | $ | 5 | $ | - | $ | 118 | ||||||||
Asbestos abatement | 43 | - | -1 | 3 | 4 | 49 | ||||||||||||||
Gas distribution cut, purge, | 151 | -3 | -4 | 10 | - | 154 | ||||||||||||||
and cap | ||||||||||||||||||||
Wind park | 3 | - | - | - | - | 3 | ||||||||||||||
Total Consumers | $ | 311 | $ | -3 | $ | -6 | $ | 18 | $ | 4 | $ | 324 | ||||||||
In Millions | ||||||||||||||||||||
ARO | ARO | |||||||||||||||||||
Liability | Cash flow | Liability | ||||||||||||||||||
Company and ARO Description | 12/31/2011 | Incurred | Settled1 | Accretion | Revisions | 12/31/2012 | ||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||
Gas treating plant and gas wells | $ | 1 | $ | - | $ | - | $ | - | $ | - | $ | 1 | ||||||||
Consumers | 253 | 7 | -8 | 19 | 40 | 311 | ||||||||||||||
Total CMS Energy | $ | 254 | $ | 7 | $ | -8 | $ | 19 | $ | 40 | $ | 312 | ||||||||
Consumers | ||||||||||||||||||||
Coal ash disposal areas | $ | 70 | $ | - | $ | -3 | $ | 7 | $ | 40 | $ | 114 | ||||||||
Wells at gas storage fields | 1 | - | -1 | - | - | - | ||||||||||||||
Asbestos abatement | 42 | - | -1 | 2 | - | 43 | ||||||||||||||
Gas distribution cut, purge, | 140 | 4 | -3 | 10 | - | 151 | ||||||||||||||
and cap | ||||||||||||||||||||
Wind park | - | 3 | - | - | - | 3 | ||||||||||||||
Total Consumers | $ | 253 | $ | 7 | $ | -8 | $ | 19 | $ | 40 | $ | 311 | ||||||||
1Cash payments of $6 million in 2013 and $8 million in 2012 were included in other current and non-current assets and liabilities as a component of net cash provided by operating activities in CMS Energy’s and Consumers’ consolidated statements of cash flow. | ||||||||||||||||||||
Retirement_Benefits
Retirement Benefits | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Retirement Benefits | ' | |||||||||||||||||||||
11:RETIREMENT BENEFITS | ||||||||||||||||||||||
CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans. These plans include: | ||||||||||||||||||||||
· | a non‑contributory, qualified defined benefit Pension Plan (closed to new non‑union participants as of July 1, 2003 and closed to new union participants as of September 1, 2005); | |||||||||||||||||||||
· | a qualified cash balance Pension Plan for certain employees hired between July 1, 2003 and August 31, 2005; | |||||||||||||||||||||
· | a non‑contributory, qualified DCCP for employees hired on or after September 1, 2005; | |||||||||||||||||||||
· | benefits to certain management employees under a non‑contributory, nonqualified DB SERP (closed to new participants as of March 31, 2006); | |||||||||||||||||||||
· | a non‑contributory, non‑qualified DC SERP for certain management employees hired or promoted on or after April 1, 2006; | |||||||||||||||||||||
· | health care and life insurance benefits under an OPEB Plan; and | |||||||||||||||||||||
· | a contributory, qualified defined contribution 401(k) plan. | |||||||||||||||||||||
Pension Plan: Participants in the Pension Plan include CMS Energy’s and Consumers’ present employees, employees of their subsidiaries, and employees of Panhandle. Pension Plan trust assets are not distinguishable by company. | ||||||||||||||||||||||
CMS Energy and Consumers provide an employer contribution of six percent of base pay to the DCCP 401(k) plan for employees hired on or after September 1, 2005. Employees are not required to contribute in order to receive the plan’s employer contribution. | ||||||||||||||||||||||
Participants in the cash balance Pension Plan, effective July 1, 2003 to August 31, 2005, also participate in the DCCP as of September 1, 2005. Additional pay credits under the cash balance Pension Plan were discontinued as of September 1, 2005. DCCP expense for CMS Energy and Consumers was $10 million for the year ended December 31, 2013, $8 million for the year ended December 31, 2012, and $7 million for the year ended December 31, 2011. | ||||||||||||||||||||||
DB SERP: The DB SERP is a non‑qualified plan as defined by the Internal Revenue Code. DB SERP benefits are paid from a rabbi trust established in 1988. DB SERP rabbi trust earnings are taxable. Presented in the following table are the fair value of trust assets, ABO, and contributions for CMS Energy’s and Consumers’ DB SERP: | ||||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | ||||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Trust assets | $ | 136 | $ | 128 | ||||||||||||||||||
ABO | 122 | 130 | ||||||||||||||||||||
Contributions | 16 | 13 | ||||||||||||||||||||
Consumers | ||||||||||||||||||||||
Trust assets | $ | 96 | $ | 87 | ||||||||||||||||||
ABO | 82 | 86 | ||||||||||||||||||||
Contributions | 13 | 9 | ||||||||||||||||||||
DC SERP: On April 1, 2006, CMS Energy and Consumers implemented a DC SERP and froze further new participation in the DB SERP. The DC SERP provides participants benefits ranging from 5 percent to 15 percent of total compensation. The DC SERP requires a minimum of five years of participation before vesting. CMS Energy’s and Consumers’ contributions to the plan, if any, are placed in a grantor trust. For CMS Energy and Consumers, trust assets were $1 million at December 31, 2013 and December 31, 2012. DC SERP assets are included in other non‑current assets on CMS Energy’s and Consumers’ consolidated balance sheets. CMS Energy’s and Consumers’ DC SERP expense was less than $1 million for each of the years ended December 31, 2013, 2012, and 2011. | ||||||||||||||||||||||
401(k): The 401(k) plan employer match equals 60 percent of eligible contributions up to the first six percent of an employee’s wages. The total 401(k) plan cost for CMS Energy, including Consumers, and for Consumers was $17 million for the year ended December 31, 2013 and $16 million for each of the years ended December 31, 2012 and 2011. | ||||||||||||||||||||||
OPEB: Participants in the OPEB Plan include all regular full-time employees covered by the employee health care plan on the day before retirement from either CMS Energy or Consumers at age 55 or older with at least ten full years of applicable continuous service. Regular full-time employees who qualify for Pension Plan disability retirement and have 15 years of applicable continuous service may also participate in the OPEB Plan. Retiree health care costs were based on the assumption that costs would increase 6.5 percent for those under 65 and 6.5 percent for those over 65 in 2014 and 8.0 percent for those under 65 and 7.5 percent for those over 65 in 2013. The rate of increase was assumed to decline to 4.75 percent for all retirees by 2024 and thereafter. | ||||||||||||||||||||||
In July 2013, CMS Energy and Consumers approved certain amendments to their OPEB Plan. Accordingly, CMS Energy and Consumers performed a remeasurement of the OPEB Plan as of July 1, 2013. As a result of these changes, CMS Energy’s (including Consumers’) OPEB liability decreased by $638 million, its OPEB regulatory asset of $580 million was eliminated, and an OPEB regulatory liability of $34 million was established as of July 1, 2013. CMS Energy’s accumulated other comprehensive loss decreased by $24 million. Consumers’ OPEB liability decreased by $614 million, its OPEB regulatory asset of $580 million was eliminated, and an OPEB regulatory liability of $34 million was established as of July 1, 2013. | ||||||||||||||||||||||
CMS Energy and Consumers also remeasured certain deferred tax assets as a result of the approved change to the Medicare drug program. Effective January 2015, CMS Energy and Consumers will no longer receive Medicare Part D drug subsidies. Accordingly, CMS Energy (including Consumers) decreased its deferred tax assets by $148 million, reduced its regulatory income tax liabilities by $144 million, and increased its income tax expense by $4 million. Consumers decreased its deferred tax assets by $144 million, and reduced its regulatory income tax liabilities by an equal amount. | ||||||||||||||||||||||
The assumptions used in the health care cost-trend rate affect service, interest, and PBO costs. Presented in the following table are the effects of a one-percentage-point change in the health care cost-trend assumption: | ||||||||||||||||||||||
In Millions | ||||||||||||||||||||||
One Percentage | One Percentage | |||||||||||||||||||||
Years Ended December 31 | Point Increase | Point Decrease | ||||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Effect on total service and interest cost component | $ | 16 | $ | -14 | ||||||||||||||||||
Effect on PBO | 151 | -133 | ||||||||||||||||||||
Consumers | ||||||||||||||||||||||
Effect on total service and interest cost component | $ | 16 | $ | -13 | ||||||||||||||||||
Effect on PBO | 147 | -130 | ||||||||||||||||||||
Assumptions: Presented in the following table are the weighted-average assumptions used in CMS Energy’s and Consumers’ retirement benefits plans to determine benefit obligations and net periodic benefit cost: | ||||||||||||||||||||||
Pension and DB SERP | OPEB | |||||||||||||||||||||
31-Dec | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Weighted average for benefit | ||||||||||||||||||||||
obligations | ||||||||||||||||||||||
Discount rate1 | 4.90 | % | 4.10 | % | 4.90 | % | 5.10 | % | 4.40 | % | 5.10 | % | ||||||||||
Mortality table2 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | ||||||||||||||||
Rate of compensation increase | ||||||||||||||||||||||
Pension | 3.00 | % | 3.00 | % | 3.50 | % | ||||||||||||||||
DB SERP | 5.50 | % | 5.50 | % | 5.50 | % | ||||||||||||||||
Weighted average for net periodic | ||||||||||||||||||||||
benefit cost obligations | ||||||||||||||||||||||
Discount rate1 | 4.10 | % | 4.90 | % | 5.40 | % | 4.40 | % | 5.10 | % | 5.60 | % | ||||||||||
Expected long-term rate of | 7.75 | % | 7.75 | % | 8.00 | % | 7.25 | % | 7.25 | % | 7.50 | % | ||||||||||
return on plan assets3 | ||||||||||||||||||||||
Mortality table2 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | ||||||||||||||||
Rate of compensation increase | ||||||||||||||||||||||
Pension | 3.00 | % | 3.50 | % | 4.00 | % | ||||||||||||||||
DB SERP | 5.50 | % | 5.50 | % | 5.50 | % | ||||||||||||||||
1The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ Pension Plan and OPEB Plan and the yields on high quality corporate bonds rated Aa or better. | ||||||||||||||||||||||
2The mortality assumption was based on the RP-2000 mortality tables with projection of future mortality improvements using Scale AA, which aligned with the IRS prescriptions for cash funding valuations under the Pension Protection Act of 2006. | ||||||||||||||||||||||
3CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on Pension Plan assets was 7.75 percent in 2013. The actual return on Pension Plan assets was 12.5 percent in 2013, 14.1 percent in 2012, and 4.0 percent in 2011. | ||||||||||||||||||||||
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 benefits plans: | ||||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Pension and DB SERP | OPEB | |||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Net periodic cost (credit) | ||||||||||||||||||||||
Service cost | $ | 54 | $ | 49 | $ | 49 | $ | 29 | $ | 32 | $ | 27 | ||||||||||
Interest expense | 100 | 105 | 106 | 65 | 82 | 77 | ||||||||||||||||
Expected return on plan assets | -127 | -125 | -112 | -77 | -66 | -66 | ||||||||||||||||
Amortization of: | ||||||||||||||||||||||
Net loss | 101 | 79 | 65 | 26 | 46 | 30 | ||||||||||||||||
Prior service cost (credit) | 3 | 5 | 5 | -31 | -20 | -20 | ||||||||||||||||
Net periodic cost (credit) | $ | 131 | $ | 113 | $ | 113 | $ | 12 | $ | 74 | $ | 48 | ||||||||||
Consumers | ||||||||||||||||||||||
Net periodic cost (credit) | ||||||||||||||||||||||
Service cost | $ | 52 | $ | 48 | $ | 48 | $ | 28 | $ | 31 | $ | 26 | ||||||||||
Interest expense | 96 | 100 | 101 | 63 | 79 | 74 | ||||||||||||||||
Expected return on plan assets | -124 | -122 | -109 | -72 | -61 | -61 | ||||||||||||||||
Amortization of: | ||||||||||||||||||||||
Net loss | 98 | 77 | 63 | 27 | 47 | 31 | ||||||||||||||||
Prior service cost (credit) | 3 | 5 | 5 | -30 | -20 | -20 | ||||||||||||||||
Net periodic cost (credit) | $ | 125 | $ | 108 | $ | 108 | $ | 16 | $ | 76 | $ | 50 | ||||||||||
For CMS Energy, the estimated net loss and prior service cost for the defined benefit Pension Plans that will be amortized into net periodic benefit cost in 2014 from the regulatory asset is $57 million and from AOCI is $2 million. For Consumers, the estimated net loss and prior service cost for the defined benefit Pension Plans that will be amortized into net periodic benefit cost in 2014 from the regulatory asset is $57 million. For CMS Energy, the estimated net loss and prior service credit for the OPEB Plan that will be amortized into net periodic benefit cost in 2014 from the regulatory liability is $37 million, with a decrease from AOCI of $1 million. For Consumers, the estimated net loss and prior service credit for the OPEB Plan that will be amortized into net periodic benefit cost in 2014 from the regulatory liability is $37 million. | ||||||||||||||||||||||
CMS Energy and Consumers amortize net gains and losses in excess of ten percent of the greater of the PBO or the MRV over the average remaining service period. The estimated period of amortization of gains and losses for CMS Energy and Consumers was ten years for pension for the year ended December 31, 2013 and 11 years for pension for the years ended December 31, 2012 and 2011 and 13 years for OPEB for the years ended December 31, 2013, 2012, and 2011. Prior service cost (credit) amortization is established in the year in which the prior service cost (credit) first occurred, and is based on the same amortization period for all future years until the prior service cost (credit) is fully amortized. CMS Energy and Consumers had a new prior service credit for OPEB in 2013. The estimated period of amortization of this new prior service credit for CMS Energy and Consumers is ten years for OPEB for the year ended December 31, 2013. | ||||||||||||||||||||||
Reconciliations: Presented in the following table are reconciliations of the funded status of CMS Energy’s and Consumers’ retirement benefits plans with their retirement benefits plans’ liabilities: | ||||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Pension | DB SERP | OPEB | ||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Benefit obligation at beginning of | $ | 2,354 | $ | 2,072 | $ | 144 | $ | 127 | $ | 1,729 | $ | 1,641 | ||||||||||
period | ||||||||||||||||||||||
Service cost | 53 | 48 | 1 | 1 | 29 | 32 | ||||||||||||||||
Interest cost | 94 | 99 | 6 | 6 | 65 | 82 | ||||||||||||||||
Plan amendments | - | - | - | - | -208 | 2 | - | |||||||||||||||
Actuarial (gain) loss | -308 | 249 | -12 | 16 | -440 | 25 | ||||||||||||||||
Benefits paid | -120 | -114 | -7 | -6 | -52 | 3 | -51 | 3 | ||||||||||||||
Benefit obligation at end of period | $ | 2,073 | $ | 2,354 | $ | 132 | $ | 144 | $ | 1,123 | $ | 1,729 | 4 | |||||||||
Plan assets at fair value at | $ | 1,727 | $ | 1,626 | $ | - | $ | - | $ | 1,047 | $ | 924 | ||||||||||
beginning of period | ||||||||||||||||||||||
Actual return on plan assets | 206 | 215 | - | - | 150 | 108 | ||||||||||||||||
Company contribution | 150 | - | 7 | 6 | 72 | 65 | ||||||||||||||||
Actual benefits paid | -119 | -114 | -7 | -6 | -51 | 3 | -50 | 3 | ||||||||||||||
Plan assets at fair value at end of | $ | 1,964 | $ | 1,727 | $ | - | $ | - | $ | 1,218 | $ | 1,047 | ||||||||||
period | ||||||||||||||||||||||
Funded status | $ | -109 | 1 | $ | -627 | 1 | $ | -132 | $ | -144 | $ | 95 | $ | -682 | ||||||||
Consumers | ||||||||||||||||||||||
Benefit obligation at beginning of | $ | 100 | $ | 85 | $ | 1,670 | $ | 1,585 | ||||||||||||||
period | ||||||||||||||||||||||
Service cost | 1 | 1 | 28 | 31 | ||||||||||||||||||
Interest cost | 4 | 4 | 63 | 79 | ||||||||||||||||||
Plan amendments | - | - | -200 | 2 | - | |||||||||||||||||
Actuarial (gain) loss | -8 | 13 | -424 | 24 | ||||||||||||||||||
Benefits paid | -4 | -3 | -49 | 3 | -49 | 3 | ||||||||||||||||
Benefit obligation at end of period | $ | 93 | $ | 100 | $ | 1,088 | $ | 1,670 | 4 | |||||||||||||
Plan assets at fair value at | $ | - | $ | - | $ | 978 | $ | 861 | ||||||||||||||
beginning of period | ||||||||||||||||||||||
Actual return on plan assets | - | - | 141 | 101 | ||||||||||||||||||
Company contribution | 4 | 3 | 71 | 64 | ||||||||||||||||||
Actual benefits paid | -4 | -3 | -49 | 3 | -48 | 3 | ||||||||||||||||
Plan assets at fair value at end of | $ | - | $ | - | $ | 1,141 | $ | 978 | ||||||||||||||
period | ||||||||||||||||||||||
Funded status | $ | -93 | $ | -100 | $ | 53 | $ | -692 | ||||||||||||||
1At December 31, 2013, $86 million of the total funded status of the Pension Plan was attributable to Consumers based on an allocation of expenses. At December 31, 2012, $590 million of the total funded status of the Pension Plan was attributable to Consumers based on an allocation of expenses. | ||||||||||||||||||||||
2 Plan amendments resulted from changing the Medicare drug program provided through the OPEB Plan from an employer-sponsored prescription drug plan with a retiree drug subsidy to an EGWP to begin on January 1, 2015, and from certain benefit changes to the OPEB Plan, to begin on January 1, 2016. | ||||||||||||||||||||||
3CMS Energy received payments of $5 million in each of 2013, 2012, and 2011 for the Medicare Part D subsidies. Consumers received payments of $4 million in 2013 and $5 million in each of 2012 and 2011 for the Medicare Part D subsidies. The Medicare Part D subsidy payments are used to pay OPEB Plan benefits. | ||||||||||||||||||||||
4The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 established a prescription drug benefit under Medicare (Medicare Part D) and a federal subsidy, which is tax-exempt, to sponsors of retiree health care benefit plans that provide a benefit that is actuarially equivalent to Medicare Part D. In 2010, the Health Care Acts repealed these tax-exempt deductions for years beginning after December 31, 2012. The Medicare Part D subsidy annualized reduction in net OPEB cost for CMS Energy was $20 million for 2012 and $26 million for 2011. Consumers’ Medicare Part D subsidy annualized reduction in net OPEB costs was $19 million for 2012 and $25 million for 2011. The reduction for CMS Energy and Consumers included $7 million for 2012 and $9 million for 2011 in capitalized OPEB costs. | ||||||||||||||||||||||
Presented in the following table is the classification of CMS Energy’s and Consumers’ retirement benefit plans’ assets (liabilities): | ||||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | ||||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Current assets (liabilities) | ||||||||||||||||||||||
DB SERP | $ | -8 | $ | -7 | ||||||||||||||||||
Non-current assets (liabilities) | ||||||||||||||||||||||
DB SERP | -124 | -137 | ||||||||||||||||||||
OPEB | 95 | -682 | ||||||||||||||||||||
Pension | -109 | -627 | ||||||||||||||||||||
Consumers | ||||||||||||||||||||||
Current assets (liabilities) | ||||||||||||||||||||||
DB SERP | $ | -5 | $ | -4 | ||||||||||||||||||
Non-current assets (liabilities) | ||||||||||||||||||||||
DB SERP | -88 | -96 | ||||||||||||||||||||
OPEB | 53 | -692 | ||||||||||||||||||||
Pension | -86 | -590 | ||||||||||||||||||||
Presented in the following table are the Pension Plan PBO, ABO, and fair value of plan assets: | ||||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | ||||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Pension PBO | $ | 2,073 | $ | 2,354 | ||||||||||||||||||
Pension ABO | 1,843 | 2,054 | ||||||||||||||||||||
Fair value of Pension Plan assets | 1,964 | 1,727 | ||||||||||||||||||||
Items Not Yet Recognized as a Component of Net Periodic Benefit Cost: Presented in the following table are the amounts recognized in regulatory assets, regulatory liabilities, and AOCI that have not been recognized as components of net periodic benefit cost. For additional details on regulatory assets and liabilities, see Note 2, Regulatory Matters. | ||||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Pension and DB SERP | OPEB | |||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Regulatory assets (liabilities) | ||||||||||||||||||||||
Net loss | $ | 625 | $ | 1,095 | $ | 184 | $ | 704 | ||||||||||||||
Prior service cost (credit) | 9 | 13 | -282 | -112 | ||||||||||||||||||
Regulatory assets (liabilities) | $ | 634 | $ | 1,108 | $ | -98 | $ | 592 | ||||||||||||||
AOCI | ||||||||||||||||||||||
Net loss (gain) | 69 | 98 | -26 | -7 | ||||||||||||||||||
Prior service cost (credit) | - | - | -10 | -3 | ||||||||||||||||||
Total amounts recognized in regulatory assets | $ | 703 | $ | 1,206 | $ | -134 | $ | 582 | ||||||||||||||
(liabilities) and AOCI | ||||||||||||||||||||||
Consumers | ||||||||||||||||||||||
Regulatory assets (liabilities) | ||||||||||||||||||||||
Net loss | $ | 625 | $ | 1,095 | $ | 184 | $ | 704 | ||||||||||||||
Prior service cost (credit) | 9 | 13 | -282 | -112 | ||||||||||||||||||
Regulatory assets (liabilities) | $ | 634 | $ | 1,108 | $ | -98 | $ | 592 | ||||||||||||||
AOCI | ||||||||||||||||||||||
Net loss | 25 | 38 | - | - | ||||||||||||||||||
Total amounts recognized in regulatory assets | $ | 659 | $ | 1,146 | $ | -98 | $ | 592 | ||||||||||||||
(liabilities) and AOCI | ||||||||||||||||||||||
Plan Assets: Presented in the following tables are the fair values of CMS Energy’s and Consumers’ Pension Plan and OPEB Plan assets, by asset category and by level within the fair value hierarchy. For additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements. | ||||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Pension Plan | ||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||
Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | |||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Asset category | ||||||||||||||||||||||
Cash and short-term | $ | 109 | $ | 109 | $ | - | $ | 33 | $ | 33 | $ | - | ||||||||||
investments | ||||||||||||||||||||||
U.S. government and | 25 | - | 25 | 26 | - | 26 | ||||||||||||||||
agencies securities | ||||||||||||||||||||||
Corporate debt | 188 | - | 188 | 277 | - | 277 | ||||||||||||||||
State and municipal bonds | 5 | - | 5 | 8 | - | 8 | ||||||||||||||||
Foreign corporate bonds | 20 | - | 20 | 27 | - | 27 | ||||||||||||||||
Mutual funds | 449 | 449 | - | 319 | 319 | - | ||||||||||||||||
Pooled funds | 1,168 | - | 1,168 | 1,037 | - | 1,037 | ||||||||||||||||
Total | $ | 1,964 | $ | 558 | $ | 1,406 | $ | 1,727 | $ | 352 | $ | 1,375 | ||||||||||
In Millions | ||||||||||||||||||||||
OPEB Plan | ||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||
Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | |||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Asset category | ||||||||||||||||||||||
Cash and short-term | $ | 44 | $ | 44 | $ | - | $ | 118 | $ | 118 | $ | - | ||||||||||
investments | ||||||||||||||||||||||
U.S. government and | 3 | - | 3 | 4 | - | 4 | ||||||||||||||||
agencies securities | ||||||||||||||||||||||
Corporate debt | 26 | - | 26 | 38 | - | 38 | ||||||||||||||||
State and municipal bonds | 1 | - | 1 | 1 | - | 1 | ||||||||||||||||
Foreign corporate bonds | 3 | - | 3 | 4 | - | 4 | ||||||||||||||||
Common stocks | 71 | 71 | - | 75 | 75 | - | ||||||||||||||||
Mutual funds | 343 | 343 | - | 300 | 300 | - | ||||||||||||||||
Pooled funds | 727 | - | 727 | 507 | - | 507 | ||||||||||||||||
Total | $ | 1,218 | $ | 458 | $ | 760 | $ | 1,047 | $ | 493 | $ | 554 | ||||||||||
Consumers | ||||||||||||||||||||||
Asset category | ||||||||||||||||||||||
Cash and short-term | $ | 41 | $ | 41 | $ | - | $ | 111 | $ | 111 | $ | - | ||||||||||
investments | ||||||||||||||||||||||
U.S. government and | 3 | - | 3 | 3 | - | 3 | ||||||||||||||||
agencies securities | ||||||||||||||||||||||
Corporate debt | 25 | - | 25 | 35 | - | 35 | ||||||||||||||||
State and municipal bonds | 1 | - | 1 | 1 | - | 1 | ||||||||||||||||
Foreign corporate bonds | 3 | - | 3 | 3 | - | 3 | ||||||||||||||||
Common stocks | 66 | 66 | - | 70 | 70 | - | ||||||||||||||||
Mutual funds | 321 | 321 | - | 281 | 281 | - | ||||||||||||||||
Pooled funds | 681 | - | 681 | 474 | - | 474 | ||||||||||||||||
Total | $ | 1,141 | $ | 428 | $ | 713 | $ | 978 | $ | 462 | $ | 516 | ||||||||||
Cash and Short-term Investments: Cash and short-term investments consist of money market funds with daily liquidity. | ||||||||||||||||||||||
U.S. Government and Agencies Securities: U.S. government and agencies securities consist of U.S. Treasury notes and other debt securities backed by the U.S. government and related agencies. These securities were valued based on quoted market prices. | ||||||||||||||||||||||
Corporate Debt: At December 31, 2013, corporate debt investments in the Pension Plan and OPEB Plan comprised investment grade bonds of U.S. issuers from diverse industries. At December 31, 2012, corporate debt investments in the Pension Plan and OPEB Plan comprised investment grade bonds (68 percent) and non‑investment grade, high-yield bonds (32 percent) of U.S. issuers from diverse industries. These securities are valued based on quoted market prices, when available, or yields presently available on comparable securities of issuers with similar credit ratings. | ||||||||||||||||||||||
State and Municipal Bonds: State and municipal bonds were valued using a matrix-pricing model that incorporates Level 2 market-based information. The fair value of the bonds was derived from various observable inputs, including benchmark yields, reported securities trades, broker/dealer quotes, bond ratings, and general information on market movements for investment grade state and municipal securities normally considered by market participants when pricing such debt securities. | ||||||||||||||||||||||
Foreign Corporate Bonds: Foreign corporate debt securities were valued based on quoted market prices, when available, or on yields available on comparable securities of issuers with similar credit ratings. | ||||||||||||||||||||||
Common Stocks: Common stocks in the OPEB Plan consist of equity securities with low transaction costs that were actively managed and tracked by the S&P 500 Index. These securities were valued at their quoted closing prices. | ||||||||||||||||||||||
Mutual Funds: Mutual funds represent shares in registered investment companies that are priced based on the daily quoted NAVs that are publicly available and are the basis for transactions to buy or sell shares in the funds. | ||||||||||||||||||||||
Pooled Funds: Pooled funds in the Pension Plan and OPEB Plan include both common and collective trust funds as well as special funds that contain only employee benefit plan assets from two or more unrelated benefit plans. At December 31, 2013, these funds comprised investments in U.S. equity securities (Pension: 61 percent; OPEB: 60 percent), foreign equity securities (Pension: 28 percent; OPEB: 20 percent), foreign fixed-income securities (Pension: three percent; OPEB: four percent), U.S. fixed-income securities (Pension: four percent; OPEB: 14 percent), and alternative investments (Pension: four percent; OPEB: two percent). | ||||||||||||||||||||||
At December 31, 2012, these funds comprised investments in U.S. equity securities (Pension: 51 percent; OPEB: 65 percent), foreign equity securities (Pension: 26 percent; OPEB: 21 percent), foreign fixed-income securities (Pension: 14 percent; OPEB: nine percent), U.S. fixed-income securities (Pension: four percent; OPEB: three percent), and alternative investments (Pension: five percent; OPEB: two percent). These investments were valued at the quoted NAV provided by the fund managers that is the basis for transactions to buy or sell shares in the funds. | ||||||||||||||||||||||
Presented in the following table are the contributions to CMS Energy’s and Consumers’ OPEB Plan and Pension Plan: | ||||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | ||||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
OPEB1 | ||||||||||||||||||||||
VEBA trust | $ | 55 | $ | 45 | ||||||||||||||||||
401(h) component | 17 | 20 | ||||||||||||||||||||
$ | 72 | $ | 65 | |||||||||||||||||||
Pension2 | $ | 150 | $ | - | ||||||||||||||||||
Consumers | ||||||||||||||||||||||
OPEB1 | ||||||||||||||||||||||
VEBA trust | $ | 55 | $ | 45 | ||||||||||||||||||
401(h) component | 16 | 19 | ||||||||||||||||||||
$ | 71 | $ | 64 | |||||||||||||||||||
Pension2 | $ | 147 | $ | - | ||||||||||||||||||
1 | CMS Energy, including Consumers, plans to contribute $75 million to the OPEB Plan in 2014, of which Consumers plans to contribute $74 million. | |||||||||||||||||||||
2 | CMS Energy, including Consumers, does not presently plan to contribute to the Pension Plan in 2014. | |||||||||||||||||||||
Contributions include required and discretionary amounts. Actual future contributions will depend on future investment performance, changes in discount rates, and various factors related to the populations participating in the plans. | ||||||||||||||||||||||
In 2011, CMS Energy reached its target asset allocation for Pension Plan assets of 50 percent equity, 30 percent fixed income, and 20 percent alternative-strategy investments. This target asset allocation is expected to continue to maximize the long-term return on plan assets, while maintaining a prudent level of risk. The level of acceptable risk is a function of the liabilities of the plan. Equity investments are diversified mostly across the S&P 500 Index, with lesser allocations to the S&P MidCap and SmallCap Indexes and Foreign Equity Funds. Fixed-income investments are diversified across investment grade instruments of government and corporate issuers as well as high-yield and global bond funds. Alternative strategies are diversified across absolute return investment approaches and global tactical asset allocation. CMS Energy and Consumers use annual liability measurements, quarterly portfolio reviews, and periodic asset/liability studies to evaluate the need for adjustments to the portfolio allocation. | ||||||||||||||||||||||
CMS Energy and Consumers established union and non‑union VEBA trusts to fund their future retiree health and life insurance benefits. These trusts are funded through the ratemaking process for Consumers and through direct contributions from the non‑utility subsidiaries. In 2012, CMS Energy and Consumers adjusted their target asset allocation to 50 percent equity, 20 percent fixed income, and 30 percent alternative-strategy investments. This target allocation is expected to continue to maximize the long-term return on plan assets, while maintaining a prudent level of risk. The level of acceptable risk is a function of the liabilities of the plan. Equity investments are diversified mostly across the S&P 500 Index, with lesser allocations to the S&P SmallCap Index and Foreign Equity Funds. Fixed-income investments are diversified across investment grade instruments of government and corporate issuers. Alternative strategies are diversified across absolute return investment approaches and global tactical asset allocation. CMS Energy and Consumers use annual liability measurements, quarterly portfolio reviews, and periodic asset/liability studies to evaluate the need for adjustments to the portfolio allocation. | ||||||||||||||||||||||
Benefit Payments: Presented in the following table are the expected benefit payments for each of the next five years and the five-year period thereafter: | ||||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Pension | DB SERP | OPEB1 | ||||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
2014 | $ | 119 | $ | 8 | $ | 58 | ||||||||||||||||
2015 | 127 | 8 | 59 | |||||||||||||||||||
2016 | 134 | 8 | 61 | |||||||||||||||||||
2017 | 139 | 8 | 64 | |||||||||||||||||||
2018 | 144 | 8 | 66 | |||||||||||||||||||
2019-2023 | 760 | 48 | 364 | |||||||||||||||||||
Consumers | ||||||||||||||||||||||
2014 | $ | 116 | $ | 4 | $ | 56 | ||||||||||||||||
2015 | 124 | 5 | 57 | |||||||||||||||||||
2016 | 131 | 5 | 59 | |||||||||||||||||||
2017 | 136 | 5 | 61 | |||||||||||||||||||
2018 | 140 | 5 | 64 | |||||||||||||||||||
2019-2023 | 740 | 27 | 349 | |||||||||||||||||||
1 | CMS Energy’s and Consumers’ OPEB benefit payments are net of employee contributions and expected Medicare Part D subsidy payments for 2014. CMS Energy and Consumers plan to change the Medicare drug program provided through the OPEB Plan from an employer-sponsored drug plan to an EGWP to begin on January 1, 2015; therefore, no Medicare Part D subsidy is expected after 2014. For CMS Energy, subsidies to be received are estimated to be $6 million for 2014. For Consumers, subsidies to be received are estimated to be $5 million for 2014. | |||||||||||||||||||||
Collective Bargaining Agreements: At December 31, 2013, unions represented 43 percent of CMS Energy’s employees and 45 percent of Consumers’ employees. The UWUA represents Consumers’ operating, maintenance, construction, and call center employees. The USW represents Zeeland employees. Union contracts expire in 2015. | ||||||||||||||||||||||
Consumers Energy Company [Member] | ' | |||||||||||||||||||||
Retirement Benefits | ' | |||||||||||||||||||||
11:RETIREMENT BENEFITS | ||||||||||||||||||||||
CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans. These plans include: | ||||||||||||||||||||||
· | a non‑contributory, qualified defined benefit Pension Plan (closed to new non‑union participants as of July 1, 2003 and closed to new union participants as of September 1, 2005); | |||||||||||||||||||||
· | a qualified cash balance Pension Plan for certain employees hired between July 1, 2003 and August 31, 2005; | |||||||||||||||||||||
· | a non‑contributory, qualified DCCP for employees hired on or after September 1, 2005; | |||||||||||||||||||||
· | benefits to certain management employees under a non‑contributory, nonqualified DB SERP (closed to new participants as of March 31, 2006); | |||||||||||||||||||||
· | a non‑contributory, non‑qualified DC SERP for certain management employees hired or promoted on or after April 1, 2006; | |||||||||||||||||||||
· | health care and life insurance benefits under an OPEB Plan; and | |||||||||||||||||||||
· | a contributory, qualified defined contribution 401(k) plan. | |||||||||||||||||||||
Pension Plan: Participants in the Pension Plan include CMS Energy’s and Consumers’ present employees, employees of their subsidiaries, and employees of Panhandle. Pension Plan trust assets are not distinguishable by company. | ||||||||||||||||||||||
CMS Energy and Consumers provide an employer contribution of six percent of base pay to the DCCP 401(k) plan for employees hired on or after September 1, 2005. Employees are not required to contribute in order to receive the plan’s employer contribution. | ||||||||||||||||||||||
Participants in the cash balance Pension Plan, effective July 1, 2003 to August 31, 2005, also participate in the DCCP as of September 1, 2005. Additional pay credits under the cash balance Pension Plan were discontinued as of September 1, 2005. DCCP expense for CMS Energy and Consumers was $10 million for the year ended December 31, 2013, $8 million for the year ended December 31, 2012, and $7 million for the year ended December 31, 2011. | ||||||||||||||||||||||
DB SERP: The DB SERP is a non‑qualified plan as defined by the Internal Revenue Code. DB SERP benefits are paid from a rabbi trust established in 1988. DB SERP rabbi trust earnings are taxable. Presented in the following table are the fair value of trust assets, ABO, and contributions for CMS Energy’s and Consumers’ DB SERP: | ||||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | ||||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Trust assets | $ | 136 | $ | 128 | ||||||||||||||||||
ABO | 122 | 130 | ||||||||||||||||||||
Contributions | 16 | 13 | ||||||||||||||||||||
Consumers | ||||||||||||||||||||||
Trust assets | $ | 96 | $ | 87 | ||||||||||||||||||
ABO | 82 | 86 | ||||||||||||||||||||
Contributions | 13 | 9 | ||||||||||||||||||||
DC SERP: On April 1, 2006, CMS Energy and Consumers implemented a DC SERP and froze further new participation in the DB SERP. The DC SERP provides participants benefits ranging from 5 percent to 15 percent of total compensation. The DC SERP requires a minimum of five years of participation before vesting. CMS Energy’s and Consumers’ contributions to the plan, if any, are placed in a grantor trust. For CMS Energy and Consumers, trust assets were $1 million at December 31, 2013 and December 31, 2012. DC SERP assets are included in other non‑current assets on CMS Energy’s and Consumers’ consolidated balance sheets. CMS Energy’s and Consumers’ DC SERP expense was less than $1 million for each of the years ended December 31, 2013, 2012, and 2011. | ||||||||||||||||||||||
401(k): The 401(k) plan employer match equals 60 percent of eligible contributions up to the first six percent of an employee’s wages. The total 401(k) plan cost for CMS Energy, including Consumers, and for Consumers was $17 million for the year ended December 31, 2013 and $16 million for each of the years ended December 31, 2012 and 2011. | ||||||||||||||||||||||
OPEB: Participants in the OPEB Plan include all regular full-time employees covered by the employee health care plan on the day before retirement from either CMS Energy or Consumers at age 55 or older with at least ten full years of applicable continuous service. Regular full-time employees who qualify for Pension Plan disability retirement and have 15 years of applicable continuous service may also participate in the OPEB Plan. Retiree health care costs were based on the assumption that costs would increase 6.5 percent for those under 65 and 6.5 percent for those over 65 in 2014 and 8.0 percent for those under 65 and 7.5 percent for those over 65 in 2013. The rate of increase was assumed to decline to 4.75 percent for all retirees by 2024 and thereafter. | ||||||||||||||||||||||
In July 2013, CMS Energy and Consumers approved certain amendments to their OPEB Plan. Accordingly, CMS Energy and Consumers performed a remeasurement of the OPEB Plan as of July 1, 2013. As a result of these changes, CMS Energy’s (including Consumers’) OPEB liability decreased by $638 million, its OPEB regulatory asset of $580 million was eliminated, and an OPEB regulatory liability of $34 million was established as of July 1, 2013. CMS Energy’s accumulated other comprehensive loss decreased by $24 million. Consumers’ OPEB liability decreased by $614 million, its OPEB regulatory asset of $580 million was eliminated, and an OPEB regulatory liability of $34 million was established as of July 1, 2013. | ||||||||||||||||||||||
CMS Energy and Consumers also remeasured certain deferred tax assets as a result of the approved change to the Medicare drug program. Effective January 2015, CMS Energy and Consumers will no longer receive Medicare Part D drug subsidies. Accordingly, CMS Energy (including Consumers) decreased its deferred tax assets by $148 million, reduced its regulatory income tax liabilities by $144 million, and increased its income tax expense by $4 million. Consumers decreased its deferred tax assets by $144 million, and reduced its regulatory income tax liabilities by an equal amount. | ||||||||||||||||||||||
The assumptions used in the health care cost-trend rate affect service, interest, and PBO costs. Presented in the following table are the effects of a one-percentage-point change in the health care cost-trend assumption: | ||||||||||||||||||||||
In Millions | ||||||||||||||||||||||
One Percentage | One Percentage | |||||||||||||||||||||
Years Ended December 31 | Point Increase | Point Decrease | ||||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Effect on total service and interest cost component | $ | 16 | $ | -14 | ||||||||||||||||||
Effect on PBO | 151 | -133 | ||||||||||||||||||||
Consumers | ||||||||||||||||||||||
Effect on total service and interest cost component | $ | 16 | $ | -13 | ||||||||||||||||||
Effect on PBO | 147 | -130 | ||||||||||||||||||||
Assumptions: Presented in the following table are the weighted-average assumptions used in CMS Energy’s and Consumers’ retirement benefits plans to determine benefit obligations and net periodic benefit cost: | ||||||||||||||||||||||
Pension and DB SERP | OPEB | |||||||||||||||||||||
31-Dec | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Weighted average for benefit | ||||||||||||||||||||||
obligations | ||||||||||||||||||||||
Discount rate1 | 4.90 | % | 4.10 | % | 4.90 | % | 5.10 | % | 4.40 | % | 5.10 | % | ||||||||||
Mortality table2 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | ||||||||||||||||
Rate of compensation increase | ||||||||||||||||||||||
Pension | 3.00 | % | 3.00 | % | 3.50 | % | ||||||||||||||||
DB SERP | 5.50 | % | 5.50 | % | 5.50 | % | ||||||||||||||||
Weighted average for net periodic | ||||||||||||||||||||||
benefit cost obligations | ||||||||||||||||||||||
Discount rate1 | 4.10 | % | 4.90 | % | 5.40 | % | 4.40 | % | 5.10 | % | 5.60 | % | ||||||||||
Expected long-term rate of | 7.75 | % | 7.75 | % | 8.00 | % | 7.25 | % | 7.25 | % | 7.50 | % | ||||||||||
return on plan assets3 | ||||||||||||||||||||||
Mortality table2 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | ||||||||||||||||
Rate of compensation increase | ||||||||||||||||||||||
Pension | 3.00 | % | 3.50 | % | 4.00 | % | ||||||||||||||||
DB SERP | 5.50 | % | 5.50 | % | 5.50 | % | ||||||||||||||||
1The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ Pension Plan and OPEB Plan and the yields on high quality corporate bonds rated Aa or better. | ||||||||||||||||||||||
2The mortality assumption was based on the RP-2000 mortality tables with projection of future mortality improvements using Scale AA, which aligned with the IRS prescriptions for cash funding valuations under the Pension Protection Act of 2006. | ||||||||||||||||||||||
3CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on Pension Plan assets was 7.75 percent in 2013. The actual return on Pension Plan assets was 12.5 percent in 2013, 14.1 percent in 2012, and 4.0 percent in 2011. | ||||||||||||||||||||||
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 benefits plans: | ||||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Pension and DB SERP | OPEB | |||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Net periodic cost (credit) | ||||||||||||||||||||||
Service cost | $ | 54 | $ | 49 | $ | 49 | $ | 29 | $ | 32 | $ | 27 | ||||||||||
Interest expense | 100 | 105 | 106 | 65 | 82 | 77 | ||||||||||||||||
Expected return on plan assets | -127 | -125 | -112 | -77 | -66 | -66 | ||||||||||||||||
Amortization of: | ||||||||||||||||||||||
Net loss | 101 | 79 | 65 | 26 | 46 | 30 | ||||||||||||||||
Prior service cost (credit) | 3 | 5 | 5 | -31 | -20 | -20 | ||||||||||||||||
Net periodic cost (credit) | $ | 131 | $ | 113 | $ | 113 | $ | 12 | $ | 74 | $ | 48 | ||||||||||
Consumers | ||||||||||||||||||||||
Net periodic cost (credit) | ||||||||||||||||||||||
Service cost | $ | 52 | $ | 48 | $ | 48 | $ | 28 | $ | 31 | $ | 26 | ||||||||||
Interest expense | 96 | 100 | 101 | 63 | 79 | 74 | ||||||||||||||||
Expected return on plan assets | -124 | -122 | -109 | -72 | -61 | -61 | ||||||||||||||||
Amortization of: | ||||||||||||||||||||||
Net loss | 98 | 77 | 63 | 27 | 47 | 31 | ||||||||||||||||
Prior service cost (credit) | 3 | 5 | 5 | -30 | -20 | -20 | ||||||||||||||||
Net periodic cost (credit) | $ | 125 | $ | 108 | $ | 108 | $ | 16 | $ | 76 | $ | 50 | ||||||||||
For CMS Energy, the estimated net loss and prior service cost for the defined benefit Pension Plans that will be amortized into net periodic benefit cost in 2014 from the regulatory asset is $57 million and from AOCI is $2 million. For Consumers, the estimated net loss and prior service cost for the defined benefit Pension Plans that will be amortized into net periodic benefit cost in 2014 from the regulatory asset is $57 million. For CMS Energy, the estimated net loss and prior service credit for the OPEB Plan that will be amortized into net periodic benefit cost in 2014 from the regulatory liability is $37 million, with a decrease from AOCI of $1 million. For Consumers, the estimated net loss and prior service credit for the OPEB Plan that will be amortized into net periodic benefit cost in 2014 from the regulatory liability is $37 million. | ||||||||||||||||||||||
CMS Energy and Consumers amortize net gains and losses in excess of ten percent of the greater of the PBO or the MRV over the average remaining service period. The estimated period of amortization of gains and losses for CMS Energy and Consumers was ten years for pension for the year ended December 31, 2013 and 11 years for pension for the years ended December 31, 2012 and 2011 and 13 years for OPEB for the years ended December 31, 2013, 2012, and 2011. Prior service cost (credit) amortization is established in the year in which the prior service cost (credit) first occurred, and is based on the same amortization period for all future years until the prior service cost (credit) is fully amortized. CMS Energy and Consumers had a new prior service credit for OPEB in 2013. The estimated period of amortization of this new prior service credit for CMS Energy and Consumers is ten years for OPEB for the year ended December 31, 2013. | ||||||||||||||||||||||
Reconciliations: Presented in the following table are reconciliations of the funded status of CMS Energy’s and Consumers’ retirement benefits plans with their retirement benefits plans’ liabilities: | ||||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Pension | DB SERP | OPEB | ||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Benefit obligation at beginning of | $ | 2,354 | $ | 2,072 | $ | 144 | $ | 127 | $ | 1,729 | $ | 1,641 | ||||||||||
period | ||||||||||||||||||||||
Service cost | 53 | 48 | 1 | 1 | 29 | 32 | ||||||||||||||||
Interest cost | 94 | 99 | 6 | 6 | 65 | 82 | ||||||||||||||||
Plan amendments | - | - | - | - | -208 | 2 | - | |||||||||||||||
Actuarial (gain) loss | -308 | 249 | -12 | 16 | -440 | 25 | ||||||||||||||||
Benefits paid | -120 | -114 | -7 | -6 | -52 | 3 | -51 | 3 | ||||||||||||||
Benefit obligation at end of period | $ | 2,073 | $ | 2,354 | $ | 132 | $ | 144 | $ | 1,123 | $ | 1,729 | 4 | |||||||||
Plan assets at fair value at | $ | 1,727 | $ | 1,626 | $ | - | $ | - | $ | 1,047 | $ | 924 | ||||||||||
beginning of period | ||||||||||||||||||||||
Actual return on plan assets | 206 | 215 | - | - | 150 | 108 | ||||||||||||||||
Company contribution | 150 | - | 7 | 6 | 72 | 65 | ||||||||||||||||
Actual benefits paid | -119 | -114 | -7 | -6 | -51 | 3 | -50 | 3 | ||||||||||||||
Plan assets at fair value at end of | $ | 1,964 | $ | 1,727 | $ | - | $ | - | $ | 1,218 | $ | 1,047 | ||||||||||
period | ||||||||||||||||||||||
Funded status | $ | -109 | 1 | $ | -627 | 1 | $ | -132 | $ | -144 | $ | 95 | $ | -682 | ||||||||
Consumers | ||||||||||||||||||||||
Benefit obligation at beginning of | $ | 100 | $ | 85 | $ | 1,670 | $ | 1,585 | ||||||||||||||
period | ||||||||||||||||||||||
Service cost | 1 | 1 | 28 | 31 | ||||||||||||||||||
Interest cost | 4 | 4 | 63 | 79 | ||||||||||||||||||
Plan amendments | - | - | -200 | 2 | - | |||||||||||||||||
Actuarial (gain) loss | -8 | 13 | -424 | 24 | ||||||||||||||||||
Benefits paid | -4 | -3 | -49 | 3 | -49 | 3 | ||||||||||||||||
Benefit obligation at end of period | $ | 93 | $ | 100 | $ | 1,088 | $ | 1,670 | 4 | |||||||||||||
Plan assets at fair value at | $ | - | $ | - | $ | 978 | $ | 861 | ||||||||||||||
beginning of period | ||||||||||||||||||||||
Actual return on plan assets | - | - | 141 | 101 | ||||||||||||||||||
Company contribution | 4 | 3 | 71 | 64 | ||||||||||||||||||
Actual benefits paid | -4 | -3 | -49 | 3 | -48 | 3 | ||||||||||||||||
Plan assets at fair value at end of | $ | - | $ | - | $ | 1,141 | $ | 978 | ||||||||||||||
period | ||||||||||||||||||||||
Funded status | $ | -93 | $ | -100 | $ | 53 | $ | -692 | ||||||||||||||
1At December 31, 2013, $86 million of the total funded status of the Pension Plan was attributable to Consumers based on an allocation of expenses. At December 31, 2012, $590 million of the total funded status of the Pension Plan was attributable to Consumers based on an allocation of expenses. | ||||||||||||||||||||||
2 Plan amendments resulted from changing the Medicare drug program provided through the OPEB Plan from an employer-sponsored prescription drug plan with a retiree drug subsidy to an EGWP to begin on January 1, 2015, and from certain benefit changes to the OPEB Plan, to begin on January 1, 2016. | ||||||||||||||||||||||
3CMS Energy received payments of $5 million in each of 2013, 2012, and 2011 for the Medicare Part D subsidies. Consumers received payments of $4 million in 2013 and $5 million in each of 2012 and 2011 for the Medicare Part D subsidies. The Medicare Part D subsidy payments are used to pay OPEB Plan benefits. | ||||||||||||||||||||||
4The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 established a prescription drug benefit under Medicare (Medicare Part D) and a federal subsidy, which is tax-exempt, to sponsors of retiree health care benefit plans that provide a benefit that is actuarially equivalent to Medicare Part D. In 2010, the Health Care Acts repealed these tax-exempt deductions for years beginning after December 31, 2012. The Medicare Part D subsidy annualized reduction in net OPEB cost for CMS Energy was $20 million for 2012 and $26 million for 2011. Consumers’ Medicare Part D subsidy annualized reduction in net OPEB costs was $19 million for 2012 and $25 million for 2011. The reduction for CMS Energy and Consumers included $7 million for 2012 and $9 million for 2011 in capitalized OPEB costs. | ||||||||||||||||||||||
Presented in the following table is the classification of CMS Energy’s and Consumers’ retirement benefit plans’ assets (liabilities): | ||||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | ||||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Current assets (liabilities) | ||||||||||||||||||||||
DB SERP | $ | -8 | $ | -7 | ||||||||||||||||||
Non-current assets (liabilities) | ||||||||||||||||||||||
DB SERP | -124 | -137 | ||||||||||||||||||||
OPEB | 95 | -682 | ||||||||||||||||||||
Pension | -109 | -627 | ||||||||||||||||||||
Consumers | ||||||||||||||||||||||
Current assets (liabilities) | ||||||||||||||||||||||
DB SERP | $ | -5 | $ | -4 | ||||||||||||||||||
Non-current assets (liabilities) | ||||||||||||||||||||||
DB SERP | -88 | -96 | ||||||||||||||||||||
OPEB | 53 | -692 | ||||||||||||||||||||
Pension | -86 | -590 | ||||||||||||||||||||
Presented in the following table are the Pension Plan PBO, ABO, and fair value of plan assets: | ||||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | ||||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Pension PBO | $ | 2,073 | $ | 2,354 | ||||||||||||||||||
Pension ABO | 1,843 | 2,054 | ||||||||||||||||||||
Fair value of Pension Plan assets | 1,964 | 1,727 | ||||||||||||||||||||
Items Not Yet Recognized as a Component of Net Periodic Benefit Cost: Presented in the following table are the amounts recognized in regulatory assets, regulatory liabilities, and AOCI that have not been recognized as components of net periodic benefit cost. For additional details on regulatory assets and liabilities, see Note 2, Regulatory Matters. | ||||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Pension and DB SERP | OPEB | |||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Regulatory assets (liabilities) | ||||||||||||||||||||||
Net loss | $ | 625 | $ | 1,095 | $ | 184 | $ | 704 | ||||||||||||||
Prior service cost (credit) | 9 | 13 | -282 | -112 | ||||||||||||||||||
Regulatory assets (liabilities) | $ | 634 | $ | 1,108 | $ | -98 | $ | 592 | ||||||||||||||
AOCI | ||||||||||||||||||||||
Net loss (gain) | 69 | 98 | -26 | -7 | ||||||||||||||||||
Prior service cost (credit) | - | - | -10 | -3 | ||||||||||||||||||
Total amounts recognized in regulatory assets | $ | 703 | $ | 1,206 | $ | -134 | $ | 582 | ||||||||||||||
(liabilities) and AOCI | ||||||||||||||||||||||
Consumers | ||||||||||||||||||||||
Regulatory assets (liabilities) | ||||||||||||||||||||||
Net loss | $ | 625 | $ | 1,095 | $ | 184 | $ | 704 | ||||||||||||||
Prior service cost (credit) | 9 | 13 | -282 | -112 | ||||||||||||||||||
Regulatory assets (liabilities) | $ | 634 | $ | 1,108 | $ | -98 | $ | 592 | ||||||||||||||
AOCI | ||||||||||||||||||||||
Net loss | 25 | 38 | - | - | ||||||||||||||||||
Total amounts recognized in regulatory assets | $ | 659 | $ | 1,146 | $ | -98 | $ | 592 | ||||||||||||||
(liabilities) and AOCI | ||||||||||||||||||||||
Plan Assets: Presented in the following tables are the fair values of CMS Energy’s and Consumers’ Pension Plan and OPEB Plan assets, by asset category and by level within the fair value hierarchy. For additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements. | ||||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Pension Plan | ||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||
Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | |||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Asset category | ||||||||||||||||||||||
Cash and short-term | $ | 109 | $ | 109 | $ | - | $ | 33 | $ | 33 | $ | - | ||||||||||
investments | ||||||||||||||||||||||
U.S. government and | 25 | - | 25 | 26 | - | 26 | ||||||||||||||||
agencies securities | ||||||||||||||||||||||
Corporate debt | 188 | - | 188 | 277 | - | 277 | ||||||||||||||||
State and municipal bonds | 5 | - | 5 | 8 | - | 8 | ||||||||||||||||
Foreign corporate bonds | 20 | - | 20 | 27 | - | 27 | ||||||||||||||||
Mutual funds | 449 | 449 | - | 319 | 319 | - | ||||||||||||||||
Pooled funds | 1,168 | - | 1,168 | 1,037 | - | 1,037 | ||||||||||||||||
Total | $ | 1,964 | $ | 558 | $ | 1,406 | $ | 1,727 | $ | 352 | $ | 1,375 | ||||||||||
In Millions | ||||||||||||||||||||||
OPEB Plan | ||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||
Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | |||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Asset category | ||||||||||||||||||||||
Cash and short-term | $ | 44 | $ | 44 | $ | - | $ | 118 | $ | 118 | $ | - | ||||||||||
investments | ||||||||||||||||||||||
U.S. government and | 3 | - | 3 | 4 | - | 4 | ||||||||||||||||
agencies securities | ||||||||||||||||||||||
Corporate debt | 26 | - | 26 | 38 | - | 38 | ||||||||||||||||
State and municipal bonds | 1 | - | 1 | 1 | - | 1 | ||||||||||||||||
Foreign corporate bonds | 3 | - | 3 | 4 | - | 4 | ||||||||||||||||
Common stocks | 71 | 71 | - | 75 | 75 | - | ||||||||||||||||
Mutual funds | 343 | 343 | - | 300 | 300 | - | ||||||||||||||||
Pooled funds | 727 | - | 727 | 507 | - | 507 | ||||||||||||||||
Total | $ | 1,218 | $ | 458 | $ | 760 | $ | 1,047 | $ | 493 | $ | 554 | ||||||||||
Consumers | ||||||||||||||||||||||
Asset category | ||||||||||||||||||||||
Cash and short-term | $ | 41 | $ | 41 | $ | - | $ | 111 | $ | 111 | $ | - | ||||||||||
investments | ||||||||||||||||||||||
U.S. government and | 3 | - | 3 | 3 | - | 3 | ||||||||||||||||
agencies securities | ||||||||||||||||||||||
Corporate debt | 25 | - | 25 | 35 | - | 35 | ||||||||||||||||
State and municipal bonds | 1 | - | 1 | 1 | - | 1 | ||||||||||||||||
Foreign corporate bonds | 3 | - | 3 | 3 | - | 3 | ||||||||||||||||
Common stocks | 66 | 66 | - | 70 | 70 | - | ||||||||||||||||
Mutual funds | 321 | 321 | - | 281 | 281 | - | ||||||||||||||||
Pooled funds | 681 | - | 681 | 474 | - | 474 | ||||||||||||||||
Total | $ | 1,141 | $ | 428 | $ | 713 | $ | 978 | $ | 462 | $ | 516 | ||||||||||
Cash and Short-term Investments: Cash and short-term investments consist of money market funds with daily liquidity. | ||||||||||||||||||||||
U.S. Government and Agencies Securities: U.S. government and agencies securities consist of U.S. Treasury notes and other debt securities backed by the U.S. government and related agencies. These securities were valued based on quoted market prices. | ||||||||||||||||||||||
Corporate Debt: At December 31, 2013, corporate debt investments in the Pension Plan and OPEB Plan comprised investment grade bonds of U.S. issuers from diverse industries. At December 31, 2012, corporate debt investments in the Pension Plan and OPEB Plan comprised investment grade bonds (68 percent) and non‑investment grade, high-yield bonds (32 percent) of U.S. issuers from diverse industries. These securities are valued based on quoted market prices, when available, or yields presently available on comparable securities of issuers with similar credit ratings. | ||||||||||||||||||||||
State and Municipal Bonds: State and municipal bonds were valued using a matrix-pricing model that incorporates Level 2 market-based information. The fair value of the bonds was derived from various observable inputs, including benchmark yields, reported securities trades, broker/dealer quotes, bond ratings, and general information on market movements for investment grade state and municipal securities normally considered by market participants when pricing such debt securities. | ||||||||||||||||||||||
Foreign Corporate Bonds: Foreign corporate debt securities were valued based on quoted market prices, when available, or on yields available on comparable securities of issuers with similar credit ratings. | ||||||||||||||||||||||
Common Stocks: Common stocks in the OPEB Plan consist of equity securities with low transaction costs that were actively managed and tracked by the S&P 500 Index. These securities were valued at their quoted closing prices. | ||||||||||||||||||||||
Mutual Funds: Mutual funds represent shares in registered investment companies that are priced based on the daily quoted NAVs that are publicly available and are the basis for transactions to buy or sell shares in the funds. | ||||||||||||||||||||||
Pooled Funds: Pooled funds in the Pension Plan and OPEB Plan include both common and collective trust funds as well as special funds that contain only employee benefit plan assets from two or more unrelated benefit plans. At December 31, 2013, these funds comprised investments in U.S. equity securities (Pension: 61 percent; OPEB: 60 percent), foreign equity securities (Pension: 28 percent; OPEB: 20 percent), foreign fixed-income securities (Pension: three percent; OPEB: four percent), U.S. fixed-income securities (Pension: four percent; OPEB: 14 percent), and alternative investments (Pension: four percent; OPEB: two percent). | ||||||||||||||||||||||
At December 31, 2012, these funds comprised investments in U.S. equity securities (Pension: 51 percent; OPEB: 65 percent), foreign equity securities (Pension: 26 percent; OPEB: 21 percent), foreign fixed-income securities (Pension: 14 percent; OPEB: nine percent), U.S. fixed-income securities (Pension: four percent; OPEB: three percent), and alternative investments (Pension: five percent; OPEB: two percent). These investments were valued at the quoted NAV provided by the fund managers that is the basis for transactions to buy or sell shares in the funds. | ||||||||||||||||||||||
Presented in the following table are the contributions to CMS Energy’s and Consumers’ OPEB Plan and Pension Plan: | ||||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | ||||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
OPEB1 | ||||||||||||||||||||||
VEBA trust | $ | 55 | $ | 45 | ||||||||||||||||||
401(h) component | 17 | 20 | ||||||||||||||||||||
$ | 72 | $ | 65 | |||||||||||||||||||
Pension2 | $ | 150 | $ | - | ||||||||||||||||||
Consumers | ||||||||||||||||||||||
OPEB1 | ||||||||||||||||||||||
VEBA trust | $ | 55 | $ | 45 | ||||||||||||||||||
401(h) component | 16 | 19 | ||||||||||||||||||||
$ | 71 | $ | 64 | |||||||||||||||||||
Pension2 | $ | 147 | $ | - | ||||||||||||||||||
1 | CMS Energy, including Consumers, plans to contribute $75 million to the OPEB Plan in 2014, of which Consumers plans to contribute $74 million. | |||||||||||||||||||||
2 | CMS Energy, including Consumers, does not presently plan to contribute to the Pension Plan in 2014. | |||||||||||||||||||||
Contributions include required and discretionary amounts. Actual future contributions will depend on future investment performance, changes in discount rates, and various factors related to the populations participating in the plans. | ||||||||||||||||||||||
In 2011, CMS Energy reached its target asset allocation for Pension Plan assets of 50 percent equity, 30 percent fixed income, and 20 percent alternative-strategy investments. This target asset allocation is expected to continue to maximize the long-term return on plan assets, while maintaining a prudent level of risk. The level of acceptable risk is a function of the liabilities of the plan. Equity investments are diversified mostly across the S&P 500 Index, with lesser allocations to the S&P MidCap and SmallCap Indexes and Foreign Equity Funds. Fixed-income investments are diversified across investment grade instruments of government and corporate issuers as well as high-yield and global bond funds. Alternative strategies are diversified across absolute return investment approaches and global tactical asset allocation. CMS Energy and Consumers use annual liability measurements, quarterly portfolio reviews, and periodic asset/liability studies to evaluate the need for adjustments to the portfolio allocation. | ||||||||||||||||||||||
CMS Energy and Consumers established union and non‑union VEBA trusts to fund their future retiree health and life insurance benefits. These trusts are funded through the ratemaking process for Consumers and through direct contributions from the non‑utility subsidiaries. In 2012, CMS Energy and Consumers adjusted their target asset allocation to 50 percent equity, 20 percent fixed income, and 30 percent alternative-strategy investments. This target allocation is expected to continue to maximize the long-term return on plan assets, while maintaining a prudent level of risk. The level of acceptable risk is a function of the liabilities of the plan. Equity investments are diversified mostly across the S&P 500 Index, with lesser allocations to the S&P SmallCap Index and Foreign Equity Funds. Fixed-income investments are diversified across investment grade instruments of government and corporate issuers. Alternative strategies are diversified across absolute return investment approaches and global tactical asset allocation. CMS Energy and Consumers use annual liability measurements, quarterly portfolio reviews, and periodic asset/liability studies to evaluate the need for adjustments to the portfolio allocation. | ||||||||||||||||||||||
Benefit Payments: Presented in the following table are the expected benefit payments for each of the next five years and the five-year period thereafter: | ||||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Pension | DB SERP | OPEB1 | ||||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
2014 | $ | 119 | $ | 8 | $ | 58 | ||||||||||||||||
2015 | 127 | 8 | 59 | |||||||||||||||||||
2016 | 134 | 8 | 61 | |||||||||||||||||||
2017 | 139 | 8 | 64 | |||||||||||||||||||
2018 | 144 | 8 | 66 | |||||||||||||||||||
2019-2023 | 760 | 48 | 364 | |||||||||||||||||||
Consumers | ||||||||||||||||||||||
2014 | $ | 116 | $ | 4 | $ | 56 | ||||||||||||||||
2015 | 124 | 5 | 57 | |||||||||||||||||||
2016 | 131 | 5 | 59 | |||||||||||||||||||
2017 | 136 | 5 | 61 | |||||||||||||||||||
2018 | 140 | 5 | 64 | |||||||||||||||||||
2019-2023 | 740 | 27 | 349 | |||||||||||||||||||
1 | CMS Energy’s and Consumers’ OPEB benefit payments are net of employee contributions and expected Medicare Part D subsidy payments for 2014. CMS Energy and Consumers plan to change the Medicare drug program provided through the OPEB Plan from an employer-sponsored drug plan to an EGWP to begin on January 1, 2015; therefore, no Medicare Part D subsidy is expected after 2014. For CMS Energy, subsidies to be received are estimated to be $6 million for 2014. For Consumers, subsidies to be received are estimated to be $5 million for 2014. | |||||||||||||||||||||
Collective Bargaining Agreements: At December 31, 2013, unions represented 43 percent of CMS Energy’s employees and 45 percent of Consumers’ employees. The UWUA represents Consumers’ operating, maintenance, construction, and call center employees. The USW represents Zeeland employees. Union contracts expire in 2015. | ||||||||||||||||||||||
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Stock-Based Compensation | ' | ||||||||||
12:STOCK-BASED COMPENSATION | |||||||||||
CMS Energy and Consumers provide a PISP to key employees and non‑employee directors based on their contributions to the successful management of the company. The PISP has a five-year term, expiring in May 2014. | |||||||||||
All grants under the PISP for 2013, 2012, and 2011 were in the form of TSR restricted stock and time-lapse restricted stock. Of the restricted stock awards granted to officers in 2013 and 2012, 75 percent were TSR restricted stock and 25 percent were time-lapse restricted stock. Restricted stock award recipients receive shares of CMS Energy common stock that have dividend and voting rights. In lieu of cash dividend payments, however, the TSR restricted stock shares receive additional restricted shares equal to the value of the dividend. These additional restricted shares are subject to the same vesting conditions as the underlying restricted stock shares. | |||||||||||
TSR restricted stock vesting is contingent on meeting a three-year service requirement and a specific market condition. The market condition is based entirely on a comparison of CMS Energy’s TSR with the median TSR of a peer group over the same three-year period. Depending on the outcome of the market condition, a recipient may earn a total award ranging from zero to 200 percent of the initial grant. Time-lapse restricted stock vests after a service period of three years. | |||||||||||
All restricted stock awards vest fully upon death. Upon a change of control of CMS Energy or termination under an officer separation agreement, restricted stock awards will vest in accordance with specific officer agreements. For restricted stock award recipients who terminate employment due to retirement or disability, a pro-rata portion of the award equal to the portion of the service period served between the award grant date and the employee’s termination date will vest upon termination with any TSR award also contingent upon the outcome of the market condition. The remaining portion of the award will be forfeited. Restricted shares are forfeited fully if employment terminates for any other reason or if the minimum service requirements are not met or waived. | |||||||||||
The PISP also allows for stock options, stock appreciation rights, phantom shares, performance units, and incentive options, none of which was granted in 2013, 2012, or 2011. | |||||||||||
Shares awarded or subject to stock options, phantom shares, or performance units may not exceed 6 million shares from June 2009 through May 2014, nor may such awards to any recipient exceed 500,000 shares in any fiscal year. CMS Energy and Consumers may issue awards of up to 2,068,751 shares of common stock under the PISP at December 31, 2013. Shares for which payment or exercise is in cash, as well as shares or stock options forfeited for any reason other than failure to meet a market condition, may be awarded or granted again under the PISP. | |||||||||||
Presented in the following table is restricted stock activity under the PISP: | |||||||||||
Year Ended December 31, 2013 | Number of Shares | Weighted-Average Grant Date | |||||||||
Fair Value per Share | |||||||||||
CMS Energy, including Consumers | |||||||||||
Nonvested at beginning of period | 1,654,776 | $ | 19.15 | ||||||||
Granted1 | 920,587 | 16.65 | |||||||||
Vested | -927,164 | 10.85 | |||||||||
Forfeited | -22,343 | 22.33 | |||||||||
Nonvested at end of period | 1,625,856 | $ | 22.42 | ||||||||
Consumers | |||||||||||
Nonvested at beginning of period | 1,547,123 | $ | 19.22 | ||||||||
Granted1 | 879,150 | 16.76 | |||||||||
Vested | -841,728 | 10.84 | |||||||||
Forfeited | -22,343 | 22.33 | |||||||||
Nonvested at end of period | 1,562,202 | $ | 22.31 | ||||||||
1 | During 2013, CMS Energy granted 326,518 TSR shares, 271,250 time-lapse shares, 45,486 shares from dividends paid on TSR shares, and 277,333 shares granted as a result of the outcome of the TSR awards’ market condition. During 2013, Consumers granted 310,454 TSR shares, 264,283 time-lapse shares, 43,450 shares from dividends paid on TSR shares, and 260,963 shares granted as a result of the outcome of the TSR awards’ market condition. | ||||||||||
CMS Energy and Consumers charge the fair value of the awards to expense over the required service period. TSR restricted stock awards have graded vesting features for retirement-eligible employees, and CMS Energy and Consumers recognize expense for those awards on a graded vesting schedule over the required service period. Expense for TSR restricted stock awards for non-retirement-eligible employees and time-lapse awards is recognized on a straight-line basis over the required service period. | |||||||||||
The fair value of time-lapse restricted stock is based on the price of CMS Energy’s common stock on the grant date. The fair value of TSR restricted stock awards is calculated on the grant date using a Monte Carlo simulation. CMS Energy and Consumers base expected volatilities on the historical volatility of the price of CMS Energy common stock. The risk-free rate for valuation of the TSR restricted stock awards was based on the three-year U.S. Treasury yield at the award grant date. | |||||||||||
Presented in the following table are the significant assumptions used to estimate the fair value of the TSR restricted stock awards: | |||||||||||
2013 | 2012 | 2011 | |||||||||
Expected volatility | 17.4 | % | 20.3 | % | 29.6 | % | |||||
Expected dividend yield | 3.9 | 4.1 | 4.6 | ||||||||
Risk-free rate | 0.4 | 0.3 | 1.0 | ||||||||
Presented in the following table is the weighted-average grant-date fair value of all awards under the PISP: | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
CMS Energy, including Consumers | |||||||||||
Weighted-average grant-date fair value per share | |||||||||||
Restricted stock granted | $ | 16.65 | $ | 12.32 | $ | 13.89 | |||||
Consumers | |||||||||||
Weighted-average grant-date fair value per share | |||||||||||
Restricted stock granted | $ | 16.76 | $ | 12.28 | $ | 14.17 | |||||
Presented in the following table are amounts related to all restricted stock awards: | |||||||||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
CMS Energy, including Consumers | |||||||||||
Fair value of shares that vested during the year | $ | 10 | $ | 10 | $ | 7 | |||||
Compensation expense recognized | 14 | 12 | 10 | ||||||||
Income tax benefit recognized | 5 | 5 | 4 | ||||||||
Consumers | |||||||||||
Fair value of shares that vested during the year | $ | 9 | $ | 8 | $ | 7 | |||||
Compensation expense recognized | 14 | 11 | 10 | ||||||||
Income tax benefit recognized | 5 | 4 | 4 | ||||||||
At December 31, 2013, $10 million of total unrecognized compensation cost was related to restricted stock for CMS Energy, including Consumers, and $10 million of total unrecognized compensation cost was related to restricted stock for Consumers. CMS Energy and Consumers expect to recognize this cost over a weighted-average period of 1.8 years. | |||||||||||
Since CMS Energy has utilized tax loss carryforwards, CMS Energy was unable to realize excess tax benefits upon vesting of restricted stock. Therefore, CMS Energy did not recognize the related excess tax benefits in equity. As of December 31, 2013, CMS Energy has $58 million of unrealized excess tax benefits. | |||||||||||
Consumers Energy Company [Member] | ' | ||||||||||
Stock-Based Compensation | ' | ||||||||||
12:STOCK-BASED COMPENSATION | |||||||||||
CMS Energy and Consumers provide a PISP to key employees and non‑employee directors based on their contributions to the successful management of the company. The PISP has a five-year term, expiring in May 2014. | |||||||||||
All grants under the PISP for 2013, 2012, and 2011 were in the form of TSR restricted stock and time-lapse restricted stock. Of the restricted stock awards granted to officers in 2013 and 2012, 75 percent were TSR restricted stock and 25 percent were time-lapse restricted stock. Restricted stock award recipients receive shares of CMS Energy common stock that have dividend and voting rights. In lieu of cash dividend payments, however, the TSR restricted stock shares receive additional restricted shares equal to the value of the dividend. These additional restricted shares are subject to the same vesting conditions as the underlying restricted stock shares. | |||||||||||
TSR restricted stock vesting is contingent on meeting a three-year service requirement and a specific market condition. The market condition is based entirely on a comparison of CMS Energy’s TSR with the median TSR of a peer group over the same three-year period. Depending on the outcome of the market condition, a recipient may earn a total award ranging from zero to 200 percent of the initial grant. Time-lapse restricted stock vests after a service period of three years. | |||||||||||
All restricted stock awards vest fully upon death. Upon a change of control of CMS Energy or termination under an officer separation agreement, restricted stock awards will vest in accordance with specific officer agreements. For restricted stock award recipients who terminate employment due to retirement or disability, a pro-rata portion of the award equal to the portion of the service period served between the award grant date and the employee’s termination date will vest upon termination with any TSR award also contingent upon the outcome of the market condition. The remaining portion of the award will be forfeited. Restricted shares are forfeited fully if employment terminates for any other reason or if the minimum service requirements are not met or waived. | |||||||||||
The PISP also allows for stock options, stock appreciation rights, phantom shares, performance units, and incentive options, none of which was granted in 2013, 2012, or 2011. | |||||||||||
Shares awarded or subject to stock options, phantom shares, or performance units may not exceed 6 million shares from June 2009 through May 2014, nor may such awards to any recipient exceed 500,000 shares in any fiscal year. CMS Energy and Consumers may issue awards of up to 2,068,751 shares of common stock under the PISP at December 31, 2013. Shares for which payment or exercise is in cash, as well as shares or stock options forfeited for any reason other than failure to meet a market condition, may be awarded or granted again under the PISP. | |||||||||||
Presented in the following table is restricted stock activity under the PISP: | |||||||||||
Year Ended December 31, 2013 | Number of Shares | Weighted-Average Grant Date | |||||||||
Fair Value per Share | |||||||||||
CMS Energy, including Consumers | |||||||||||
Nonvested at beginning of period | 1,654,776 | $ | 19.15 | ||||||||
Granted1 | 920,587 | 16.65 | |||||||||
Vested | -927,164 | 10.85 | |||||||||
Forfeited | -22,343 | 22.33 | |||||||||
Nonvested at end of period | 1,625,856 | $ | 22.42 | ||||||||
Consumers | |||||||||||
Nonvested at beginning of period | 1,547,123 | $ | 19.22 | ||||||||
Granted1 | 879,150 | 16.76 | |||||||||
Vested | -841,728 | 10.84 | |||||||||
Forfeited | -22,343 | 22.33 | |||||||||
Nonvested at end of period | 1,562,202 | $ | 22.31 | ||||||||
1 | During 2013, CMS Energy granted 326,518 TSR shares, 271,250 time-lapse shares, 45,486 shares from dividends paid on TSR shares, and 277,333 shares granted as a result of the outcome of the TSR awards’ market condition. During 2013, Consumers granted 310,454 TSR shares, 264,283 time-lapse shares, 43,450 shares from dividends paid on TSR shares, and 260,963 shares granted as a result of the outcome of the TSR awards’ market condition. | ||||||||||
CMS Energy and Consumers charge the fair value of the awards to expense over the required service period. TSR restricted stock awards have graded vesting features for retirement-eligible employees, and CMS Energy and Consumers recognize expense for those awards on a graded vesting schedule over the required service period. Expense for TSR restricted stock awards for non-retirement-eligible employees and time-lapse awards is recognized on a straight-line basis over the required service period. | |||||||||||
The fair value of time-lapse restricted stock is based on the price of CMS Energy’s common stock on the grant date. The fair value of TSR restricted stock awards is calculated on the grant date using a Monte Carlo simulation. CMS Energy and Consumers base expected volatilities on the historical volatility of the price of CMS Energy common stock. The risk-free rate for valuation of the TSR restricted stock awards was based on the three-year U.S. Treasury yield at the award grant date. | |||||||||||
Presented in the following table are the significant assumptions used to estimate the fair value of the TSR restricted stock awards: | |||||||||||
2013 | 2012 | 2011 | |||||||||
Expected volatility | 17.4 | % | 20.3 | % | 29.6 | % | |||||
Expected dividend yield | 3.9 | 4.1 | 4.6 | ||||||||
Risk-free rate | 0.4 | 0.3 | 1.0 | ||||||||
Presented in the following table is the weighted-average grant-date fair value of all awards under the PISP: | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
CMS Energy, including Consumers | |||||||||||
Weighted-average grant-date fair value per share | |||||||||||
Restricted stock granted | $ | 16.65 | $ | 12.32 | $ | 13.89 | |||||
Consumers | |||||||||||
Weighted-average grant-date fair value per share | |||||||||||
Restricted stock granted | $ | 16.76 | $ | 12.28 | $ | 14.17 | |||||
Presented in the following table are amounts related to all restricted stock awards: | |||||||||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
CMS Energy, including Consumers | |||||||||||
Fair value of shares that vested during the year | $ | 10 | $ | 10 | $ | 7 | |||||
Compensation expense recognized | 14 | 12 | 10 | ||||||||
Income tax benefit recognized | 5 | 5 | 4 | ||||||||
Consumers | |||||||||||
Fair value of shares that vested during the year | $ | 9 | $ | 8 | $ | 7 | |||||
Compensation expense recognized | 14 | 11 | 10 | ||||||||
Income tax benefit recognized | 5 | 4 | 4 | ||||||||
At December 31, 2013, $10 million of total unrecognized compensation cost was related to restricted stock for CMS Energy, including Consumers, and $10 million of total unrecognized compensation cost was related to restricted stock for Consumers. CMS Energy and Consumers expect to recognize this cost over a weighted-average period of 1.8 years. | |||||||||||
Since CMS Energy has utilized tax loss carryforwards, CMS Energy was unable to realize excess tax benefits upon vesting of restricted stock. Therefore, CMS Energy did not recognize the related excess tax benefits in equity. As of December 31, 2013, CMS Energy has $58 million of unrealized excess tax benefits. | |||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Income Taxes | ' | |||||||||||||
13:INCOME TAXES | ||||||||||||||
CMS Energy and its subsidiaries file a consolidated U.S. federal income tax return and a unitary Michigan income tax return. Income taxes are allocated based on each company’s separate taxable income in accordance with the CMS Energy tax sharing agreement. | ||||||||||||||
Presented in the following table is the difference between actual income tax expense on continuing operations, excluding noncontrolling interests, and income tax expense computed by applying the statutory U.S. federal income tax rate: | ||||||||||||||
In Millions, Except Tax Rate | ||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||||
CMS Energy, including Consumers | ||||||||||||||
Income from continuing operations before income taxes | $ | 754 | $ | 620 | $ | 604 | ||||||||
Income tax expense at statutory rate | 264 | 217 | 211 | |||||||||||
Increase (decrease) in income taxes from: | ||||||||||||||
MCIT law change, net of federal effect1 | - | - | -32 | |||||||||||
State and local income taxes, net of federal effect | 37 | 27 | 21 | |||||||||||
Other, net | 1 | 1 | -9 | |||||||||||
Income tax expense | $ | 302 | $ | 245 | $ | 191 | ||||||||
Effective tax rate | 40.1 | % | 39.5 | % | 31.6 | % | ||||||||
Consumers | ||||||||||||||
Income from continuing operations before income taxes | $ | 880 | $ | 736 | $ | 734 | ||||||||
Income tax expense at statutory rate | 308 | 258 | 257 | |||||||||||
Increase (decrease) in income taxes from: | ||||||||||||||
State and local income taxes, net of federal effect | 43 | 36 | 24 | |||||||||||
Other, net | -5 | 3 | -14 | |||||||||||
Income tax expense | $ | 346 | $ | 297 | $ | 267 | ||||||||
Effective tax rate | 39.3 | % | 40.4 | % | 36.4 | % | ||||||||
1 | For the year ended December 31, 2011, CMS Energy and Consumers remeasured their Michigan deferred income tax assets and liabilities due to the enactment in May 2011 of the MCIT, which became effective January 1, 2012. The MCIT, a simplified six percent corporate income tax, replaced the MBT, a complex multi-part tax. CMS Energy recognized a one-time non-cash deferred tax benefit of $32 million as a result of this remeasurement. Consumers recognized a $128 million regulatory asset (not including the effects of income tax gross-ups) related to this change in tax law. | |||||||||||||
Presented in the following table are the significant components of income tax expense on continuing operations: | ||||||||||||||
In Millions | ||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||||
CMS Energy, including Consumers | ||||||||||||||
Current income taxes | ||||||||||||||
Federal | $ | - | $ | 1 | $ | 2 | ||||||||
State and local | 34 | 21 | 24 | |||||||||||
$ | 34 | $ | 22 | $ | 26 | |||||||||
Deferred income taxes | ||||||||||||||
Federal | $ | 248 | $ | 205 | $ | 207 | ||||||||
State and local | 23 | 21 | 11 | |||||||||||
MCIT law change | - | - | -49 | |||||||||||
$ | 271 | $ | 226 | $ | 169 | |||||||||
Deferred income tax credit | -3 | -3 | -4 | |||||||||||
Tax expense | $ | 302 | $ | 245 | $ | 191 | ||||||||
Consumers | ||||||||||||||
Current income taxes | ||||||||||||||
Federal | $ | 137 | $ | 110 | $ | 74 | ||||||||
State and local | 45 | 37 | 32 | |||||||||||
$ | 182 | $ | 147 | $ | 106 | |||||||||
Deferred income taxes | ||||||||||||||
Federal | $ | 147 | $ | 134 | $ | 159 | ||||||||
State and local | 20 | 19 | 6 | |||||||||||
$ | 167 | $ | 153 | $ | 165 | |||||||||
Deferred income tax credit | -3 | -3 | -4 | |||||||||||
Tax expense | $ | 346 | $ | 297 | $ | 267 | ||||||||
Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized: | ||||||||||||||
In Millions | ||||||||||||||
December 31 | 2013 | 2012 | ||||||||||||
CMS Energy, including Consumers | ||||||||||||||
Employee benefits | $ | -99 | $ | 3 | ||||||||||
Gas inventory | -130 | -147 | ||||||||||||
Plant, property, and equipment | -1,856 | -1,783 | ||||||||||||
Net regulatory tax liability | 86 | 131 | ||||||||||||
Reserves and accruals | 57 | 71 | ||||||||||||
Securitized costs | -190 | -73 | ||||||||||||
Tax loss and credit carryforwards | 629 | 733 | ||||||||||||
Other | 15 | -15 | ||||||||||||
$ | -1,488 | $ | -1,080 | |||||||||||
Less valuation allowance | -2 | -3 | ||||||||||||
Total net deferred income tax liabilities | $ | -1,490 | $ | -1,083 | ||||||||||
Deferred tax assets, net of valuation reserves | $ | 785 | $ | 935 | ||||||||||
Deferred tax liabilities | -2,275 | -2,018 | ||||||||||||
Total net deferred income tax liabilities | $ | -1,490 | $ | -1,083 | ||||||||||
Consumers | ||||||||||||||
Employee benefits | $ | -119 | $ | -36 | ||||||||||
Gas inventory | -130 | -147 | ||||||||||||
Plant, property, and equipment | -1,911 | -1,848 | ||||||||||||
Net regulatory tax liability | 86 | 131 | ||||||||||||
Reserves and accruals | 31 | 41 | ||||||||||||
Securitized costs | -190 | -73 | ||||||||||||
Tax loss and credit carryforwards | 48 | 61 | ||||||||||||
Other | 16 | -13 | ||||||||||||
$ | -2,169 | $ | -1,884 | |||||||||||
Less valuation allowance | -1 | -1 | ||||||||||||
Total net deferred income tax liabilities | $ | -2,170 | $ | -1,885 | ||||||||||
Deferred tax assets, net of valuation reserves | $ | 180 | $ | 232 | ||||||||||
Deferred tax liabilities | -2,350 | -2,117 | ||||||||||||
Total net deferred income tax liabilities | $ | -2,170 | $ | -1,885 | ||||||||||
Deferred tax assets and liabilities are recognized for the estimated future tax effect of temporary differences between the tax basis of assets or liabilities and the reported amounts on CMS Energy’s and Consumers’ consolidated financial statements. Deferred tax assets and liabilities are classified as current or non‑current according to the classification of the related assets or liabilities. Deferred tax assets and liabilities not related to assets or liabilities are classified according to the expected reversal date of the temporary differences. | ||||||||||||||
Presented in the following table are the tax loss and credit carryforwards at December 31, 2013: | ||||||||||||||
In Millions | ||||||||||||||
Gross Amount | Tax Attribute | Expiration | ||||||||||||
CMS Energy, including Consumers | ||||||||||||||
Federal net operating loss carryforward | $ | 900 | $ | 315 | 2026 – 2031 | |||||||||
Local net operating loss carryforwards | 420 | 4 | 2023 – 2031 | |||||||||||
State capital loss carryforward | 18 | 1 | 2014 | |||||||||||
Alternative minimum tax credits | 270 | 270 | No expiration | |||||||||||
Charitable contribution carryover | 5 | 2 | 2016 | |||||||||||
General business credits | 37 | 37 | 2018 – 2033 | |||||||||||
Total tax attributes | $ | 629 | ||||||||||||
Consumers | ||||||||||||||
Federal net operating loss carryforward | $ | 129 | $ | 45 | 2026 – 2031 | |||||||||
State capital loss carryforward | 10 | 1 | 2014 | |||||||||||
Charitable contribution carryover | 5 | 2 | 2016 | |||||||||||
Total tax attributes | $ | 48 | ||||||||||||
CMS Energy has provided a valuation allowance of $1 million for the local tax loss carryforward, and a valuation allowance of $1 million for the state capital loss carryforward. Consumers has provided a valuation allowance of $1 million for the state capital loss carryforward. CMS Energy and Consumers expect to utilize fully tax loss and credit carryforwards for which no valuation has been provided. It is reasonably possible that further adjustments will be made to the valuation allowances within one year. | ||||||||||||||
Presented in the following table is a reconciliation of the beginning and ending amount of uncertain tax benefits: | ||||||||||||||
In Millions | ||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||||
CMS Energy, including Consumers | ||||||||||||||
Balance at beginning of period | $ | 1 | $ | 4 | $ | 4 | ||||||||
Reductions for prior-year tax positions | - | -4 | -1 | |||||||||||
Additions for prior-year tax positions | 3 | 1 | 1 | |||||||||||
Balance at end of period | $ | 4 | $ | 1 | $ | 4 | ||||||||
Consumers | ||||||||||||||
Balance at beginning of period | $ | 1 | $ | 4 | $ | 3 | ||||||||
Reductions for prior-year tax positions | - | -4 | - | |||||||||||
Additions for prior-year tax positions | 3 | 1 | 1 | |||||||||||
Balance at end of period | $ | 4 | $ | 1 | $ | 4 | ||||||||
CMS Energy, including Consumers, had uncertain tax benefits of $4 million at December 31, 2013, $1 million at December 31, 2012 and $4 million at December 31, 2011 that, if recognized, would affect the annual effective tax rate in future years. Consumers had uncertain tax benefits of $4 million at December 31, 2013, $1 million at December 31, 2012, and $4 million at December 31, 2011 that, if recognized, would affect the annual effective tax rate in future years. | ||||||||||||||
CMS Energy and Consumers recognize accrued interest and penalties, where applicable, as part of income tax expense. CMS Energy, including Consumers, recognized no interest for the years ended December 31, 2013, 2012, or 2011. | ||||||||||||||
In May 2012, the IRS completed its audit of CMS Energy and its subsidiaries for 2008 and 2009, as well as its audit of research and development tax credit claims for 2001 through 2009. The audits resulted in a $45 million increase in the net operating loss carryforward. The impact to net income as a result of the completion of the audits was a decrease of $1 million. | ||||||||||||||
CMS Energy’s federal income tax returns for 2010 and subsequent years remain subject to examination by the IRS. CMS Energy’s MCIT and MBT returns for 2008 and subsequent years remain subject to examination by the State of Michigan. | ||||||||||||||
The amount of income taxes paid is subject to ongoing audits by federal, state, local, and foreign tax authorities, which can result in proposed assessments. CMS Energy’s and Consumers’ estimate of the potential outcome for any uncertain tax issue is highly judgmental. CMS Energy and Consumers believe that their accrued tax liabilities at December 31, 2013 were adequate for all years. | ||||||||||||||
Consumers Energy Company [Member] | ' | |||||||||||||
Income Taxes | ' | |||||||||||||
13:INCOME TAXES | ||||||||||||||
CMS Energy and its subsidiaries file a consolidated U.S. federal income tax return and a unitary Michigan income tax return. Income taxes are allocated based on each company’s separate taxable income in accordance with the CMS Energy tax sharing agreement. | ||||||||||||||
Presented in the following table is the difference between actual income tax expense on continuing operations, excluding noncontrolling interests, and income tax expense computed by applying the statutory U.S. federal income tax rate: | ||||||||||||||
In Millions, Except Tax Rate | ||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||||
CMS Energy, including Consumers | ||||||||||||||
Income from continuing operations before income taxes | $ | 754 | $ | 620 | $ | 604 | ||||||||
Income tax expense at statutory rate | 264 | 217 | 211 | |||||||||||
Increase (decrease) in income taxes from: | ||||||||||||||
MCIT law change, net of federal effect1 | - | - | -32 | |||||||||||
State and local income taxes, net of federal effect | 37 | 27 | 21 | |||||||||||
Other, net | 1 | 1 | -9 | |||||||||||
Income tax expense | $ | 302 | $ | 245 | $ | 191 | ||||||||
Effective tax rate | 40.1 | % | 39.5 | % | 31.6 | % | ||||||||
Consumers | ||||||||||||||
Income from continuing operations before income taxes | $ | 880 | $ | 736 | $ | 734 | ||||||||
Income tax expense at statutory rate | 308 | 258 | 257 | |||||||||||
Increase (decrease) in income taxes from: | ||||||||||||||
State and local income taxes, net of federal effect | 43 | 36 | 24 | |||||||||||
Other, net | -5 | 3 | -14 | |||||||||||
Income tax expense | $ | 346 | $ | 297 | $ | 267 | ||||||||
Effective tax rate | 39.3 | % | 40.4 | % | 36.4 | % | ||||||||
1 | For the year ended December 31, 2011, CMS Energy and Consumers remeasured their Michigan deferred income tax assets and liabilities due to the enactment in May 2011 of the MCIT, which became effective January 1, 2012. The MCIT, a simplified six percent corporate income tax, replaced the MBT, a complex multi-part tax. CMS Energy recognized a one-time non-cash deferred tax benefit of $32 million as a result of this remeasurement. Consumers recognized a $128 million regulatory asset (not including the effects of income tax gross-ups) related to this change in tax law. | |||||||||||||
Presented in the following table are the significant components of income tax expense on continuing operations: | ||||||||||||||
In Millions | ||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||||
CMS Energy, including Consumers | ||||||||||||||
Current income taxes | ||||||||||||||
Federal | $ | - | $ | 1 | $ | 2 | ||||||||
State and local | 34 | 21 | 24 | |||||||||||
$ | 34 | $ | 22 | $ | 26 | |||||||||
Deferred income taxes | ||||||||||||||
Federal | $ | 248 | $ | 205 | $ | 207 | ||||||||
State and local | 23 | 21 | 11 | |||||||||||
MCIT law change | - | - | -49 | |||||||||||
$ | 271 | $ | 226 | $ | 169 | |||||||||
Deferred income tax credit | -3 | -3 | -4 | |||||||||||
Tax expense | $ | 302 | $ | 245 | $ | 191 | ||||||||
Consumers | ||||||||||||||
Current income taxes | ||||||||||||||
Federal | $ | 137 | $ | 110 | $ | 74 | ||||||||
State and local | 45 | 37 | 32 | |||||||||||
$ | 182 | $ | 147 | $ | 106 | |||||||||
Deferred income taxes | ||||||||||||||
Federal | $ | 147 | $ | 134 | $ | 159 | ||||||||
State and local | 20 | 19 | 6 | |||||||||||
$ | 167 | $ | 153 | $ | 165 | |||||||||
Deferred income tax credit | -3 | -3 | -4 | |||||||||||
Tax expense | $ | 346 | $ | 297 | $ | 267 | ||||||||
Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized: | ||||||||||||||
In Millions | ||||||||||||||
December 31 | 2013 | 2012 | ||||||||||||
CMS Energy, including Consumers | ||||||||||||||
Employee benefits | $ | -99 | $ | 3 | ||||||||||
Gas inventory | -130 | -147 | ||||||||||||
Plant, property, and equipment | -1,856 | -1,783 | ||||||||||||
Net regulatory tax liability | 86 | 131 | ||||||||||||
Reserves and accruals | 57 | 71 | ||||||||||||
Securitized costs | -190 | -73 | ||||||||||||
Tax loss and credit carryforwards | 629 | 733 | ||||||||||||
Other | 15 | -15 | ||||||||||||
$ | -1,488 | $ | -1,080 | |||||||||||
Less valuation allowance | -2 | -3 | ||||||||||||
Total net deferred income tax liabilities | $ | -1,490 | $ | -1,083 | ||||||||||
Deferred tax assets, net of valuation reserves | $ | 785 | $ | 935 | ||||||||||
Deferred tax liabilities | -2,275 | -2,018 | ||||||||||||
Total net deferred income tax liabilities | $ | -1,490 | $ | -1,083 | ||||||||||
Consumers | ||||||||||||||
Employee benefits | $ | -119 | $ | -36 | ||||||||||
Gas inventory | -130 | -147 | ||||||||||||
Plant, property, and equipment | -1,911 | -1,848 | ||||||||||||
Net regulatory tax liability | 86 | 131 | ||||||||||||
Reserves and accruals | 31 | 41 | ||||||||||||
Securitized costs | -190 | -73 | ||||||||||||
Tax loss and credit carryforwards | 48 | 61 | ||||||||||||
Other | 16 | -13 | ||||||||||||
$ | -2,169 | $ | -1,884 | |||||||||||
Less valuation allowance | -1 | -1 | ||||||||||||
Total net deferred income tax liabilities | $ | -2,170 | $ | -1,885 | ||||||||||
Deferred tax assets, net of valuation reserves | $ | 180 | $ | 232 | ||||||||||
Deferred tax liabilities | -2,350 | -2,117 | ||||||||||||
Total net deferred income tax liabilities | $ | -2,170 | $ | -1,885 | ||||||||||
Deferred tax assets and liabilities are recognized for the estimated future tax effect of temporary differences between the tax basis of assets or liabilities and the reported amounts on CMS Energy’s and Consumers’ consolidated financial statements. Deferred tax assets and liabilities are classified as current or non‑current according to the classification of the related assets or liabilities. Deferred tax assets and liabilities not related to assets or liabilities are classified according to the expected reversal date of the temporary differences. | ||||||||||||||
Presented in the following table are the tax loss and credit carryforwards at December 31, 2013: | ||||||||||||||
In Millions | ||||||||||||||
Gross Amount | Tax Attribute | Expiration | ||||||||||||
CMS Energy, including Consumers | ||||||||||||||
Federal net operating loss carryforward | $ | 900 | $ | 315 | 2026 – 2031 | |||||||||
Local net operating loss carryforwards | 420 | 4 | 2023 – 2031 | |||||||||||
State capital loss carryforward | 18 | 1 | 2014 | |||||||||||
Alternative minimum tax credits | 270 | 270 | No expiration | |||||||||||
Charitable contribution carryover | 5 | 2 | 2016 | |||||||||||
General business credits | 37 | 37 | 2018 – 2033 | |||||||||||
Total tax attributes | $ | 629 | ||||||||||||
Consumers | ||||||||||||||
Federal net operating loss carryforward | $ | 129 | $ | 45 | 2026 – 2031 | |||||||||
State capital loss carryforward | 10 | 1 | 2014 | |||||||||||
Charitable contribution carryover | 5 | 2 | 2016 | |||||||||||
Total tax attributes | $ | 48 | ||||||||||||
CMS Energy has provided a valuation allowance of $1 million for the local tax loss carryforward, and a valuation allowance of $1 million for the state capital loss carryforward. Consumers has provided a valuation allowance of $1 million for the state capital loss carryforward. CMS Energy and Consumers expect to utilize fully tax loss and credit carryforwards for which no valuation has been provided. It is reasonably possible that further adjustments will be made to the valuation allowances within one year. | ||||||||||||||
Presented in the following table is a reconciliation of the beginning and ending amount of uncertain tax benefits: | ||||||||||||||
In Millions | ||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||||
CMS Energy, including Consumers | ||||||||||||||
Balance at beginning of period | $ | 1 | $ | 4 | $ | 4 | ||||||||
Reductions for prior-year tax positions | - | -4 | -1 | |||||||||||
Additions for prior-year tax positions | 3 | 1 | 1 | |||||||||||
Balance at end of period | $ | 4 | $ | 1 | $ | 4 | ||||||||
Consumers | ||||||||||||||
Balance at beginning of period | $ | 1 | $ | 4 | $ | 3 | ||||||||
Reductions for prior-year tax positions | - | -4 | - | |||||||||||
Additions for prior-year tax positions | 3 | 1 | 1 | |||||||||||
Balance at end of period | $ | 4 | $ | 1 | $ | 4 | ||||||||
CMS Energy, including Consumers, had uncertain tax benefits of $4 million at December 31, 2013, $1 million at December 31, 2012 and $4 million at December 31, 2011 that, if recognized, would affect the annual effective tax rate in future years. Consumers had uncertain tax benefits of $4 million at December 31, 2013, $1 million at December 31, 2012, and $4 million at December 31, 2011 that, if recognized, would affect the annual effective tax rate in future years. | ||||||||||||||
CMS Energy and Consumers recognize accrued interest and penalties, where applicable, as part of income tax expense. CMS Energy, including Consumers, recognized no interest for the years ended December 31, 2013, 2012, or 2011. | ||||||||||||||
In May 2012, the IRS completed its audit of CMS Energy and its subsidiaries for 2008 and 2009, as well as its audit of research and development tax credit claims for 2001 through 2009. The audits resulted in a $45 million increase in the net operating loss carryforward. The impact to net income as a result of the completion of the audits was a decrease of $1 million. | ||||||||||||||
CMS Energy’s federal income tax returns for 2010 and subsequent years remain subject to examination by the IRS. CMS Energy’s MCIT and MBT returns for 2008 and subsequent years remain subject to examination by the State of Michigan. | ||||||||||||||
The amount of income taxes paid is subject to ongoing audits by federal, state, local, and foreign tax authorities, which can result in proposed assessments. CMS Energy’s and Consumers’ estimate of the potential outcome for any uncertain tax issue is highly judgmental. CMS Energy and Consumers believe that their accrued tax liabilities at December 31, 2013 were adequate for all years. | ||||||||||||||
Earnings_Per_Share_CMS_Energy
Earnings Per Share - CMS Energy | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Earnings Per Share - CMS Energy [Abstract] | ' | ||||||||||
Earnings Per Share - CMS Energy | ' | ||||||||||
14: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 | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
Income available to common stockholders | |||||||||||
Income from continuing operations | $ | 454 | $ | 377 | $ | 415 | |||||
Less income attributable to noncontrolling interests | 2 | 2 | 2 | ||||||||
Income from continuing operations available to | $ | 452 | $ | 375 | $ | 413 | |||||
common stockholders – basic and diluted | |||||||||||
Average common shares outstanding | |||||||||||
Weighted-average shares – basic | 264.5 | 260.7 | 250.8 | ||||||||
Add dilutive contingently convertible securities | 6.4 | 6.8 | 12.2 | ||||||||
Add dilutive non-vested stock awards and options | 1.0 | 1.1 | 0.4 | ||||||||
Weighted-average shares – diluted | 271.9 | 268.6 | 263.4 | ||||||||
Income from continuing operations per average | |||||||||||
common share available to common stockholders | |||||||||||
Basic | $ | 1.71 | $ | 1.43 | $ | 1.65 | |||||
Diluted | 1.66 | 1.39 | 1.57 | ||||||||
Contingently Convertible Securities | |||||||||||
When CMS Energy has earnings from continuing operations, its contingently convertible securities dilute EPS to the extent that the conversion value of a security, which is based on the average market price of CMS Energy common stock, exceeds the principal value of that security. | |||||||||||
Non‑vested Stock Awards | |||||||||||
CMS Energy’s non‑vested stock awards are composed of participating and non‑participating securities. The participating securities accrue cash dividends when common stockholders receive dividends. Since the recipient is not required to return the dividends to CMS Energy if the recipient forfeits the award, the non‑vested stock awards are considered participating securities. As such, the participating non‑vested stock awards were included in the computation of basic EPS. The non‑participating securities accrue stock dividends that vest concurrently with the stock award. If the recipient forfeits the award, the stock dividends accrued on the non‑participating securities are also forfeited. Accordingly, the non‑participating awards and stock dividends were included in the computation of diluted EPS, but not basic EPS. | |||||||||||
Other_Income_and_Other_Expense
Other Income and Other Expense | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Other Income and Other Expense | ' | ||||||||||
15:OTHER INCOME AND OTHER EXPENSE | |||||||||||
Presented in the following tables are the components of other income and other expense at CMS Energy and Consumers: | |||||||||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
Other income | |||||||||||
CMS Energy, including Consumers | |||||||||||
Regulatory return on capital expenditures | $ | - | $ | 1 | $ | - | |||||
Return on stranded costs | - | 1 | 3 | ||||||||
Fee income | 7 | 7 | 8 | ||||||||
All other | 3 | 2 | 5 | ||||||||
Total other income | $ | 10 | $ | 11 | $ | 16 | |||||
Consumers | |||||||||||
Regulatory return on capital expenditures | $ | - | $ | 1 | $ | - | |||||
Gain on CMS Energy common stock | 4 | 5 | 4 | ||||||||
Return on stranded costs | - | 1 | 3 | ||||||||
Fee income | 7 | 7 | 8 | ||||||||
All other | 3 | 2 | 4 | ||||||||
Total other income | $ | 14 | $ | 16 | $ | 19 | |||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
Other expense | |||||||||||
CMS Energy, including Consumers | |||||||||||
Loss on reacquired and extinguished debt | $ | -4 | $ | - | $ | -1 | |||||
Donations | -4 | -11 | -11 | ||||||||
Civic and political expenditures | -5 | -17 | -3 | ||||||||
All other | -7 | -5 | -7 | ||||||||
Total other expense | $ | -20 | $ | -33 | $ | -22 | |||||
Consumers | |||||||||||
Donations | $ | -4 | $ | -11 | $ | -11 | |||||
Civic and political expenditures | -5 | -17 | -3 | ||||||||
All other | -7 | -5 | -6 | ||||||||
Total other expense | $ | -16 | $ | -33 | $ | -20 | |||||
Consumers Energy Company [Member] | ' | ||||||||||
Other Income and Other Expense | ' | ||||||||||
15:OTHER INCOME AND OTHER EXPENSE | |||||||||||
Presented in the following tables are the components of other income and other expense at CMS Energy and Consumers: | |||||||||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
Other income | |||||||||||
CMS Energy, including Consumers | |||||||||||
Regulatory return on capital expenditures | $ | - | $ | 1 | $ | - | |||||
Return on stranded costs | - | 1 | 3 | ||||||||
Fee income | 7 | 7 | 8 | ||||||||
All other | 3 | 2 | 5 | ||||||||
Total other income | $ | 10 | $ | 11 | $ | 16 | |||||
Consumers | |||||||||||
Regulatory return on capital expenditures | $ | - | $ | 1 | $ | - | |||||
Gain on CMS Energy common stock | 4 | 5 | 4 | ||||||||
Return on stranded costs | - | 1 | 3 | ||||||||
Fee income | 7 | 7 | 8 | ||||||||
All other | 3 | 2 | 4 | ||||||||
Total other income | $ | 14 | $ | 16 | $ | 19 | |||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
Other expense | |||||||||||
CMS Energy, including Consumers | |||||||||||
Loss on reacquired and extinguished debt | $ | -4 | $ | - | $ | -1 | |||||
Donations | -4 | -11 | -11 | ||||||||
Civic and political expenditures | -5 | -17 | -3 | ||||||||
All other | -7 | -5 | -7 | ||||||||
Total other expense | $ | -20 | $ | -33 | $ | -22 | |||||
Consumers | |||||||||||
Donations | $ | -4 | $ | -11 | $ | -11 | |||||
Civic and political expenditures | -5 | -17 | -3 | ||||||||
All other | -7 | -5 | -6 | ||||||||
Total other expense | $ | -16 | $ | -33 | $ | -20 | |||||
Reportable_Segments
Reportable Segments | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Reportable Segments | ' | ||||||||||
16:REPORTABLE SEGMENTS | |||||||||||
Reportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders. The reportable segments for CMS Energy and Consumers are: | |||||||||||
CMS Energy: | |||||||||||
· | electric utility, consisting of regulated activities associated with the generation and distribution of electricity in Michigan; | ||||||||||
· | gas utility, consisting of regulated activities associated with the transportation, storage, and distribution of natural gas in Michigan; | ||||||||||
· | enterprises, consisting of various subsidiaries engaging primarily in domestic independent power production; and | ||||||||||
· | other, including EnerBank, corporate interest and other expenses, and discontinued operations. | ||||||||||
Consumers: | |||||||||||
· | electric utility, consisting of regulated activities associated with the generation and distribution of electricity in Michigan; | ||||||||||
· | gas utility, consisting of regulated activities associated with the transportation, storage, and distribution of natural gas in Michigan; and | ||||||||||
· | other, including a consolidated special-purpose entity for the sale of accounts receivable. | ||||||||||
Accounting policies for CMS Energy’s and Consumers’ segments are as described in Note 1, Significant Accounting Policies. The consolidated financial statements reflect the assets, liabilities, revenues, and expenses of the individual segments when appropriate. Accounts are allocated among the segments when common accounts are attributable to more than one segment. The allocations are based on certain measures of business activities, such as revenue, labor dollars, customers, other operation and maintenance expense, construction expense, leased property, taxes, or functional surveys. For example, customer receivables are allocated based on revenue, and pension provisions are allocated based on labor dollars. | |||||||||||
Inter-segment sales and transfers are accounted for at current market prices and are eliminated in consolidated net income available to common stockholders by segment. | |||||||||||
Presented in the following tables is financial information by reportable segment: | |||||||||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
CMS Energy, including Consumers | |||||||||||
Operating revenue | |||||||||||
Electric utility | $ | 4,173 | $ | 4,031 | $ | 3,913 | |||||
Gas utility | 2,148 | 1,982 | 2,340 | ||||||||
Enterprises | 181 | 183 | 204 | ||||||||
Other | 64 | 57 | 46 | ||||||||
Total operating revenue – CMS Energy | $ | 6,566 | $ | 6,253 | $ | 6,503 | |||||
Consumers | |||||||||||
Operating revenue | |||||||||||
Electric utility | $ | 4,173 | $ | 4,031 | $ | 3,913 | |||||
Gas utility | 2,148 | 1,982 | 2,340 | ||||||||
Total operating revenue – Consumers | $ | 6,321 | $ | 6,013 | $ | 6,253 | |||||
CMS Energy, including Consumers | |||||||||||
Depreciation and amortization | |||||||||||
Electric utility | $ | 484 | $ | 459 | $ | 412 | |||||
Gas utility | 138 | 133 | 130 | ||||||||
Enterprises | 3 | 4 | 3 | ||||||||
Other | 3 | 2 | 1 | ||||||||
Total depreciation and amortization – CMS Energy | $ | 628 | $ | 598 | $ | 546 | |||||
Consumers | |||||||||||
Depreciation and amortization | |||||||||||
Electric utility | $ | 484 | $ | 459 | $ | 412 | |||||
Gas utility | 138 | 133 | 130 | ||||||||
Total depreciation and amortization – Consumers | $ | 622 | $ | 592 | $ | 542 | |||||
CMS Energy, including Consumers | |||||||||||
Income from equity method investees1 | |||||||||||
Enterprises | $ | 13 | $ | 17 | $ | 9 | |||||
Total income from equity method investees – CMS Energy | $ | 13 | $ | 17 | $ | 9 | |||||
CMS Energy, including Consumers | |||||||||||
Interest charges | |||||||||||
Electric utility | $ | 179 | $ | 179 | $ | 192 | |||||
Gas utility | 64 | 63 | 71 | ||||||||
Other | 155 | 147 | 152 | ||||||||
Total interest charges – CMS Energy | $ | 398 | $ | 389 | $ | 415 | |||||
Consumers | |||||||||||
Interest charges | |||||||||||
Electric utility | $ | 179 | $ | 179 | $ | 192 | |||||
Gas utility | 64 | 63 | 71 | ||||||||
Other | 2 | 2 | 2 | ||||||||
Total interest charges – Consumers | $ | 245 | $ | 244 | $ | 265 | |||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
CMS Energy, including Consumers | |||||||||||
Income tax expense (benefit) | |||||||||||
Electric utility | $ | 242 | $ | 227 | $ | 190 | |||||
Gas utility | 104 | 70 | 77 | ||||||||
Enterprises | -4 | -1 | -24 | ||||||||
Other | -40 | -51 | -52 | ||||||||
Total income tax expense – CMS Energy | $ | 302 | $ | 245 | $ | 191 | |||||
Consumers | |||||||||||
Income tax expense | |||||||||||
Electric utility | $ | 242 | $ | 227 | $ | 190 | |||||
Gas utility | 104 | 70 | 77 | ||||||||
Total income tax expense – Consumers | $ | 346 | $ | 297 | $ | 267 | |||||
CMS Energy, including Consumers | |||||||||||
Net income (loss) available to common stockholders | |||||||||||
Electric utility | $ | 363 | $ | 325 | $ | 333 | |||||
Gas utility | 168 | 110 | 130 | ||||||||
Enterprises | 2 | 16 | 32 | ||||||||
Other | -81 | -69 | -80 | ||||||||
Total net income available to common stockholders – | $ | 452 | $ | 382 | $ | 415 | |||||
CMS Energy | |||||||||||
Consumers | |||||||||||
Net income available to common stockholder | |||||||||||
Electric utility | $ | 363 | $ | 325 | $ | 333 | |||||
Gas utility | 168 | 110 | 130 | ||||||||
Other | 1 | 2 | 2 | ||||||||
Total net income available to common stockholder – | $ | 532 | $ | 437 | $ | 465 | |||||
Consumers | |||||||||||
CMS Energy, including Consumers | |||||||||||
Plant, property, and equipment, gross | |||||||||||
Electric utility | $ | 11,186 | $ | 11,041 | $ | 10,400 | |||||
Gas utility | 4,843 | 4,400 | 4,206 | ||||||||
Enterprises | 115 | 113 | 109 | ||||||||
Other | 40 | 38 | 36 | ||||||||
Total plant, property, and equipment – CMS Energy | $ | 16,184 | $ | 15,592 | $ | 14,751 | |||||
Consumers | |||||||||||
Plant, property, and equipment, gross | |||||||||||
Electric utility | $ | 11,186 | $ | 11,041 | $ | 10,400 | |||||
Gas utility | 4,843 | 4,400 | 4,206 | ||||||||
Other | 15 | 15 | 15 | ||||||||
Total plant, property, and equipment – Consumers | $ | 16,044 | $ | 15,456 | $ | 14,621 | |||||
CMS Energy, including Consumers | |||||||||||
Investments in equity method investees1 | |||||||||||
Enterprises | $ | 57 | $ | 55 | $ | 49 | |||||
Other | 2 | 2 | 1 | ||||||||
Total investments in equity method investees – CMS Energy | $ | 59 | $ | 57 | $ | 50 | |||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
CMS Energy, including Consumers | |||||||||||
Total assets | |||||||||||
Electric utility2 | $ | 10,487 | $ | 10,423 | $ | 9,938 | |||||
Gas utility2 | 4,784 | 5,016 | 4,956 | ||||||||
Enterprises | 332 | 181 | 242 | ||||||||
Other | 1,813 | 1,511 | 1,316 | ||||||||
Total assets – CMS Energy | $ | 17,416 | $ | 17,131 | $ | 16,452 | |||||
Consumers | |||||||||||
Total assets | |||||||||||
Electric utility2 | $ | 10,487 | $ | 10,423 | $ | 9,938 | |||||
Gas utility2 | 4,784 | 5,016 | 4,956 | ||||||||
Other | 908 | 836 | 768 | ||||||||
Total assets – Consumers | $ | 16,179 | $ | 16,275 | $ | 15,662 | |||||
CMS Energy, including Consumers | |||||||||||
Capital expenditures3 | |||||||||||
Electric utility | $ | 996 | $ | 921 | $ | 661 | |||||
Gas utility | 407 | 340 | 261 | ||||||||
Enterprises | 1 | 1 | 5 | ||||||||
Other | 4 | 4 | 1 | ||||||||
Total capital expenditures – CMS Energy | $ | 1,408 | $ | 1,266 | $ | 928 | |||||
Consumers | |||||||||||
Capital expenditures3 | |||||||||||
Electric utility | $ | 996 | $ | 921 | $ | 661 | |||||
Gas utility | 407 | 340 | 261 | ||||||||
Total capital expenditures – Consumers | $ | 1,403 | $ | 1,261 | $ | 922 | |||||
1 | Consumers had no significant equity method investments. | ||||||||||
2 | Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. | ||||||||||
3 | Amounts include purchase of capital lease additions. Amounts also include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses. | ||||||||||
Consumers Energy Company [Member] | ' | ||||||||||
Reportable Segments | ' | ||||||||||
16:REPORTABLE SEGMENTS | |||||||||||
Reportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders. The reportable segments for CMS Energy and Consumers are: | |||||||||||
CMS Energy: | |||||||||||
· | electric utility, consisting of regulated activities associated with the generation and distribution of electricity in Michigan; | ||||||||||
· | gas utility, consisting of regulated activities associated with the transportation, storage, and distribution of natural gas in Michigan; | ||||||||||
· | enterprises, consisting of various subsidiaries engaging primarily in domestic independent power production; and | ||||||||||
· | other, including EnerBank, corporate interest and other expenses, and discontinued operations. | ||||||||||
Consumers: | |||||||||||
· | electric utility, consisting of regulated activities associated with the generation and distribution of electricity in Michigan; | ||||||||||
· | gas utility, consisting of regulated activities associated with the transportation, storage, and distribution of natural gas in Michigan; and | ||||||||||
· | other, including a consolidated special-purpose entity for the sale of accounts receivable. | ||||||||||
Accounting policies for CMS Energy’s and Consumers’ segments are as described in Note 1, Significant Accounting Policies. The consolidated financial statements reflect the assets, liabilities, revenues, and expenses of the individual segments when appropriate. Accounts are allocated among the segments when common accounts are attributable to more than one segment. The allocations are based on certain measures of business activities, such as revenue, labor dollars, customers, other operation and maintenance expense, construction expense, leased property, taxes, or functional surveys. For example, customer receivables are allocated based on revenue, and pension provisions are allocated based on labor dollars. | |||||||||||
Inter-segment sales and transfers are accounted for at current market prices and are eliminated in consolidated net income available to common stockholders by segment. | |||||||||||
Presented in the following tables is financial information by reportable segment: | |||||||||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
CMS Energy, including Consumers | |||||||||||
Operating revenue | |||||||||||
Electric utility | $ | 4,173 | $ | 4,031 | $ | 3,913 | |||||
Gas utility | 2,148 | 1,982 | 2,340 | ||||||||
Enterprises | 181 | 183 | 204 | ||||||||
Other | 64 | 57 | 46 | ||||||||
Total operating revenue – CMS Energy | $ | 6,566 | $ | 6,253 | $ | 6,503 | |||||
Consumers | |||||||||||
Operating revenue | |||||||||||
Electric utility | $ | 4,173 | $ | 4,031 | $ | 3,913 | |||||
Gas utility | 2,148 | 1,982 | 2,340 | ||||||||
Total operating revenue – Consumers | $ | 6,321 | $ | 6,013 | $ | 6,253 | |||||
CMS Energy, including Consumers | |||||||||||
Depreciation and amortization | |||||||||||
Electric utility | $ | 484 | $ | 459 | $ | 412 | |||||
Gas utility | 138 | 133 | 130 | ||||||||
Enterprises | 3 | 4 | 3 | ||||||||
Other | 3 | 2 | 1 | ||||||||
Total depreciation and amortization – CMS Energy | $ | 628 | $ | 598 | $ | 546 | |||||
Consumers | |||||||||||
Depreciation and amortization | |||||||||||
Electric utility | $ | 484 | $ | 459 | $ | 412 | |||||
Gas utility | 138 | 133 | 130 | ||||||||
Total depreciation and amortization – Consumers | $ | 622 | $ | 592 | $ | 542 | |||||
CMS Energy, including Consumers | |||||||||||
Income from equity method investees1 | |||||||||||
Enterprises | $ | 13 | $ | 17 | $ | 9 | |||||
Total income from equity method investees – CMS Energy | $ | 13 | $ | 17 | $ | 9 | |||||
CMS Energy, including Consumers | |||||||||||
Interest charges | |||||||||||
Electric utility | $ | 179 | $ | 179 | $ | 192 | |||||
Gas utility | 64 | 63 | 71 | ||||||||
Other | 155 | 147 | 152 | ||||||||
Total interest charges – CMS Energy | $ | 398 | $ | 389 | $ | 415 | |||||
Consumers | |||||||||||
Interest charges | |||||||||||
Electric utility | $ | 179 | $ | 179 | $ | 192 | |||||
Gas utility | 64 | 63 | 71 | ||||||||
Other | 2 | 2 | 2 | ||||||||
Total interest charges – Consumers | $ | 245 | $ | 244 | $ | 265 | |||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
CMS Energy, including Consumers | |||||||||||
Income tax expense (benefit) | |||||||||||
Electric utility | $ | 242 | $ | 227 | $ | 190 | |||||
Gas utility | 104 | 70 | 77 | ||||||||
Enterprises | -4 | -1 | -24 | ||||||||
Other | -40 | -51 | -52 | ||||||||
Total income tax expense – CMS Energy | $ | 302 | $ | 245 | $ | 191 | |||||
Consumers | |||||||||||
Income tax expense | |||||||||||
Electric utility | $ | 242 | $ | 227 | $ | 190 | |||||
Gas utility | 104 | 70 | 77 | ||||||||
Total income tax expense – Consumers | $ | 346 | $ | 297 | $ | 267 | |||||
CMS Energy, including Consumers | |||||||||||
Net income (loss) available to common stockholders | |||||||||||
Electric utility | $ | 363 | $ | 325 | $ | 333 | |||||
Gas utility | 168 | 110 | 130 | ||||||||
Enterprises | 2 | 16 | 32 | ||||||||
Other | -81 | -69 | -80 | ||||||||
Total net income available to common stockholders – | $ | 452 | $ | 382 | $ | 415 | |||||
CMS Energy | |||||||||||
Consumers | |||||||||||
Net income available to common stockholder | |||||||||||
Electric utility | $ | 363 | $ | 325 | $ | 333 | |||||
Gas utility | 168 | 110 | 130 | ||||||||
Other | 1 | 2 | 2 | ||||||||
Total net income available to common stockholder – | $ | 532 | $ | 437 | $ | 465 | |||||
Consumers | |||||||||||
CMS Energy, including Consumers | |||||||||||
Plant, property, and equipment, gross | |||||||||||
Electric utility | $ | 11,186 | $ | 11,041 | $ | 10,400 | |||||
Gas utility | 4,843 | 4,400 | 4,206 | ||||||||
Enterprises | 115 | 113 | 109 | ||||||||
Other | 40 | 38 | 36 | ||||||||
Total plant, property, and equipment – CMS Energy | $ | 16,184 | $ | 15,592 | $ | 14,751 | |||||
Consumers | |||||||||||
Plant, property, and equipment, gross | |||||||||||
Electric utility | $ | 11,186 | $ | 11,041 | $ | 10,400 | |||||
Gas utility | 4,843 | 4,400 | 4,206 | ||||||||
Other | 15 | 15 | 15 | ||||||||
Total plant, property, and equipment – Consumers | $ | 16,044 | $ | 15,456 | $ | 14,621 | |||||
CMS Energy, including Consumers | |||||||||||
Investments in equity method investees1 | |||||||||||
Enterprises | $ | 57 | $ | 55 | $ | 49 | |||||
Other | 2 | 2 | 1 | ||||||||
Total investments in equity method investees – CMS Energy | $ | 59 | $ | 57 | $ | 50 | |||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
CMS Energy, including Consumers | |||||||||||
Total assets | |||||||||||
Electric utility2 | $ | 10,487 | $ | 10,423 | $ | 9,938 | |||||
Gas utility2 | 4,784 | 5,016 | 4,956 | ||||||||
Enterprises | 332 | 181 | 242 | ||||||||
Other | 1,813 | 1,511 | 1,316 | ||||||||
Total assets – CMS Energy | $ | 17,416 | $ | 17,131 | $ | 16,452 | |||||
Consumers | |||||||||||
Total assets | |||||||||||
Electric utility2 | $ | 10,487 | $ | 10,423 | $ | 9,938 | |||||
Gas utility2 | 4,784 | 5,016 | 4,956 | ||||||||
Other | 908 | 836 | 768 | ||||||||
Total assets – Consumers | $ | 16,179 | $ | 16,275 | $ | 15,662 | |||||
CMS Energy, including Consumers | |||||||||||
Capital expenditures3 | |||||||||||
Electric utility | $ | 996 | $ | 921 | $ | 661 | |||||
Gas utility | 407 | 340 | 261 | ||||||||
Enterprises | 1 | 1 | 5 | ||||||||
Other | 4 | 4 | 1 | ||||||||
Total capital expenditures – CMS Energy | $ | 1,408 | $ | 1,266 | $ | 928 | |||||
Consumers | |||||||||||
Capital expenditures3 | |||||||||||
Electric utility | $ | 996 | $ | 921 | $ | 661 | |||||
Gas utility | 407 | 340 | 261 | ||||||||
Total capital expenditures – Consumers | $ | 1,403 | $ | 1,261 | $ | 922 | |||||
1 | Consumers had no significant equity method investments. | ||||||||||
2 | Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. | ||||||||||
3 | Amounts include purchase of capital lease additions. Amounts also include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses. | ||||||||||
Related_Party_Transactions_Con
Related Party Transactions - Consumers (Consumers Energy Company [Member]) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Consumers Energy Company [Member] | ' | |||||||||||
Related Party Transactions - Consumers | ' | |||||||||||
17:RELATED-PARTY TRANSACTIONS – CONSUMERS | ||||||||||||
Consumers enters into a number of significant transactions with related parties. These transactions include: | ||||||||||||
· | purchase and sale of electricity from and to affiliates of CMS Enterprises; | |||||||||||
· | payment of parent company overhead costs to CMS Energy; and | |||||||||||
· | investment in CMS Energy common stock. | |||||||||||
Transactions involving power supply purchases from certain affiliates of CMS Enterprises are based on avoided costs under the Public Utility Regulatory Policies Act of 1978, state law, and competitive bidding. The payment of parent company overhead costs is based on the use of accepted industry allocation methodologies. These payments are for costs that occur in the normal course of business. | ||||||||||||
Presented in the following table are Consumers’ recorded income and expense from related parties as of December 31: | ||||||||||||
In Millions | ||||||||||||
Description | Related Party | 2013 | 2012 | 2011 | ||||||||
Purchases of capacity and energy | Affiliates of CMS Enterprises | $ | 89 | $ | 86 | $ | 81 | |||||
Amounts payable to related parties for purchased power and other services were $13 million at December 31, 2013 and $11 million at December 31, 2012. | ||||||||||||
Consumers owned 1.1 million shares of CMS Energy common stock with a fair value of $29 million at December 31, 2013. For additional details on Consumers’ investment in CMS Energy common stock, see Note 6, Financial Instruments. | ||||||||||||
In January 2014, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $300 million. At December 31, 2013, there were no outstanding loans under the prior agreement. | ||||||||||||
Variable_Interest_Entities
Variable Interest Entities | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Variable Interest Entities [Abstract] | ' | |||||
Variable Interest Entities | ' | |||||
18:VARIABLE INTEREST ENTITIES | ||||||
Variable interests are contractual, ownership, or other interests in an entity that change as the fair value of the VIE’s net assets, excluding variable interests, changes. An entity is considered to be a VIE when its capital is insufficient to permit it to finance its activities without additional subordinated financial support or its equity investors, as a group, lack the characteristics of having a controlling financial interest. | ||||||
Entities that are VIEs must be consolidated if the reporting entity determines that it has a controlling financial interest. The entity that is required to consolidate the VIE is called the primary beneficiary. The primary beneficiary is the entity that has both (1) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses of the VIE that could potentially be significant to the VIE. | ||||||
CMS Energy has variable interests in T.E.S. Filer City, Grayling, and Genesee. CMS Energy is not the primary beneficiary of any of these partnerships because power is shared among unrelated parties, and no one party has the power to direct activities, such as operations and maintenance, plant dispatch, and fuel strategy, that most significantly impact the entities’ economic performance. The partners must agree on all major decisions for each of the partnerships. | ||||||
Presented in the following table is information about these partnerships: | ||||||
Name (Ownership Interest) | Nature of the Entity | Financing of Partnership | ||||
T.E.S. Filer City (50%) | Coal-fueled power generator | Non-recourse long-term debt that matured in | ||||
December 2007. | ||||||
Grayling (50%) | Wood waste-fueled power generator | Sale of revenue bonds that were retired in | ||||
March 2012. | ||||||
Genesee (50%) | Wood waste-fueled power generator | Sale of revenue bonds that mature in 2021 and bear interest at fixed rates. The debt is non-recourse to the partners and secured by a CMS Energy guarantee capped at $3 million annually. | ||||
CMS Energy has operating and management contracts with Grayling and Genesee, and Consumers is the primary purchaser of power from each partnership through long-term PPAs. Consumers also has reduced dispatch agreements with Grayling and Genesee, which allow these facilities to be dispatched based on the market price of wood waste. This results in fuel cost savings that each partnership shares with Consumers’ customers. | ||||||
CMS Energy’s investment in these partnerships is included in investments on its consolidated balance sheets in the amount of $56 million as of December 31, 2013 and $56 million as of December 31, 2012. The creditors of these partnerships do not have recourse to the general credit of CMS Energy or Consumers, except through a guarantee provided by CMS Energy of $3 million annually. CMS Energy has deferred collections on certain receivables owed by Genesee. CMS Energy’s maximum exposure to loss from these receivables is $7 million. Consumers has not provided any financial or other support during the periods presented that was not previously contractually required. | ||||||
Asset_Sales_And_Discontinued_O
Asset Sales And Discontinued Operations | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Asset Sales And Discontinued Operations | ' | |||||||||
19:ASSET SALES AND DISCONTINUED OPERATIONS | ||||||||||
Asset Sales | ||||||||||
The impacts of asset sales are included in income from discontinued operations on CMS Energy’s consolidated statements of income. CMS Energy had no significant asset sales during the years ended December 31, 2013 or 2012. In 2011, CMS Energy sold its interest in Exeter Energy Limited Partnership, which had been written down to fair value in 2010. Consumers had no significant asset sales during the years ended December 31, 2013, 2012, or 2011. | ||||||||||
Discontinued Operations | ||||||||||
CMS Energy included the following amounts in income from discontinued operations: | ||||||||||
In Millions | ||||||||||
Years Ended December 31 | 2012 | 2011 | ||||||||
Discontinued operations | ||||||||||
Pretax income from discontinued operations | $ | 11 | $ | 2 | ||||||
Income tax expense | 4 | - | ||||||||
Income from discontinued operations, net of tax expense | $ | 7 | 1 | $ | 2 | 2 | ||||
1 | Includes an $11 million ($7 million net of tax) reversal of a loss on disposal due to the elimination of a liability associated with the 2003 sale of Panhandle. | |||||||||
2 | Includes an operating gain of $3 million related to a litigation settlement at CMS Viron. | |||||||||
Discontinued operations include a provision for closing costs and a portion of CMS Energy’s parent company interest expense. CMS Energy allocated no interest expense in 2013 or 2012 and allocated less than $1 million of interest expense in 2011. CMS Energy allocates its interest expense by applying its total interest expense to the net carrying amount of the asset sold divided by CMS Energy’s total capitalization. | ||||||||||
Consumers Energy Company [Member] | ' | |||||||||
Asset Sales And Discontinued Operations | ' | |||||||||
19:ASSET SALES AND DISCONTINUED OPERATIONS | ||||||||||
Asset Sales | ||||||||||
The impacts of asset sales are included in income from discontinued operations on CMS Energy’s consolidated statements of income. CMS Energy had no significant asset sales during the years ended December 31, 2013 or 2012. In 2011, CMS Energy sold its interest in Exeter Energy Limited Partnership, which had been written down to fair value in 2010. Consumers had no significant asset sales during the years ended December 31, 2013, 2012, or 2011. | ||||||||||
Discontinued Operations | ||||||||||
CMS Energy included the following amounts in income from discontinued operations: | ||||||||||
In Millions | ||||||||||
Years Ended December 31 | 2012 | 2011 | ||||||||
Discontinued operations | ||||||||||
Pretax income from discontinued operations | $ | 11 | $ | 2 | ||||||
Income tax expense | 4 | - | ||||||||
Income from discontinued operations, net of tax expense | $ | 7 | 1 | $ | 2 | 2 | ||||
1 | Includes an $11 million ($7 million net of tax) reversal of a loss on disposal due to the elimination of a liability associated with the 2003 sale of Panhandle. | |||||||||
2 | Includes an operating gain of $3 million related to a litigation settlement at CMS Viron. | |||||||||
Discontinued operations include a provision for closing costs and a portion of CMS Energy’s parent company interest expense. CMS Energy allocated no interest expense in 2013 or 2012 and allocated less than $1 million of interest expense in 2011. CMS Energy allocates its interest expense by applying its total interest expense to the net carrying amount of the asset sold divided by CMS Energy’s total capitalization. | ||||||||||
Quarterly_Financial_And_Common
Quarterly Financial And Common Stock Information | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Quarterly Financial and Common Stock Information | ' | |||||||||||||
20:QUARTERLY FINANCIAL AND COMMON STOCK INFORMATION (UNAUDITED) | ||||||||||||||
In Millions, Except Per Share Amounts and Stock Prices | ||||||||||||||
2013 | ||||||||||||||
Quarters Ended | March 31 | June 30 | Sept 30 | Dec 31 | ||||||||||
CMS Energy, including Consumers | ||||||||||||||
Operating revenue | $ | 1,979 | $ | 1,406 | $ | 1,445 | $ | 1,736 | ||||||
Operating income | 329 | 232 | 317 | 264 | ||||||||||
Income from continuing operations | 144 | 81 | 127 | 102 | ||||||||||
Net income | 144 | 81 | 127 | 102 | ||||||||||
Income attributable to noncontrolling interests | - | 1 | 1 | - | ||||||||||
Net income available to common stockholders | 144 | 80 | 126 | 102 | ||||||||||
Earnings from continuing operations per average | 0.55 | 0.30 | 0.48 | 0.38 | ||||||||||
common share-basic1 | ||||||||||||||
Earnings from continuing operations per average | 0.53 | 0.29 | 0.46 | 0.37 | ||||||||||
common share-diluted1 | ||||||||||||||
Basic earnings per average common share1 | 0.55 | 0.30 | 0.48 | 0.38 | ||||||||||
Diluted earnings per average common share1 | 0.53 | 0.29 | 0.46 | 0.37 | ||||||||||
Common stock prices2 | ||||||||||||||
High | 27.94 | 29.94 | 28.52 | 28.05 | ||||||||||
Low | 24.76 | 25.95 | 25.86 | 25.90 | ||||||||||
Consumers | ||||||||||||||
Operating revenue | $ | 1,919 | $ | 1,342 | $ | 1,386 | $ | 1,674 | ||||||
Operating income | 319 | 227 | 314 | 258 | ||||||||||
Net income | 162 | 100 | 153 | 119 | ||||||||||
Preferred stock dividends and distribution | - | 1 | 1 | - | ||||||||||
Net income available to common stockholder | 162 | 99 | 152 | 119 | ||||||||||
In Millions, Except Per Share Amounts and Stock Prices | ||||||||||||||
2012 | ||||||||||||||
Quarters Ended | March 31 | June 30 | Sept 30 | Dec 31 | ||||||||||
CMS Energy, including Consumers | ||||||||||||||
Operating revenue | $ | 1,743 | $ | 1,333 | $ | 1,507 | $ | 1,670 | ||||||
Operating income | 188 | 260 | 343 | 212 | ||||||||||
Income from continuing operations | 60 | 101 | 149 | 67 | ||||||||||
Income from discontinued operations | 7 | - | - | - | ||||||||||
Net income | 67 | 101 | 149 | 67 | ||||||||||
Income attributable to noncontrolling interests | - | 1 | 1 | - | ||||||||||
Net income available to common stockholders | 67 | 100 | 148 | 67 | ||||||||||
Earnings from continuing operations per average | 0.23 | 0.38 | 0.56 | 0.26 | ||||||||||
common share-basic1 | ||||||||||||||
Earnings from continuing operations per average | 0.22 | 0.37 | 0.55 | 0.25 | ||||||||||
common share-diluted1 | ||||||||||||||
Basic earnings per average common share1 | 0.26 | 0.38 | 0.56 | 0.26 | ||||||||||
Diluted earnings per average common share1 | 0.25 | 0.37 | 0.55 | 0.25 | ||||||||||
Common stock prices2 | ||||||||||||||
High | 22.31 | 23.87 | 24.81 | 24.70 | ||||||||||
Low | 21.33 | 21.52 | 22.70 | 22.79 | ||||||||||
Consumers | ||||||||||||||
Operating revenue | $ | 1,675 | $ | 1,282 | $ | 1,448 | $ | 1,608 | ||||||
Operating income | 183 | 260 | 334 | 207 | ||||||||||
Net income | 76 | 122 | 163 | 78 | ||||||||||
Preferred stock dividends | - | 1 | 1 | - | ||||||||||
Net income available to common stockholder | 76 | 121 | 162 | 78 | ||||||||||
1 | The sum of the quarters may not equal annual EPS due to changes in the number of shares outstanding. | |||||||||||||
2 | Based on New York Stock Exchange composite transactions. | |||||||||||||
3 | ||||||||||||||
Consumers Energy Company [Member] | ' | |||||||||||||
Quarterly Financial and Common Stock Information | ' | |||||||||||||
20:QUARTERLY FINANCIAL AND COMMON STOCK INFORMATION (UNAUDITED) | ||||||||||||||
In Millions, Except Per Share Amounts and Stock Prices | ||||||||||||||
2013 | ||||||||||||||
Quarters Ended | March 31 | June 30 | Sept 30 | Dec 31 | ||||||||||
CMS Energy, including Consumers | ||||||||||||||
Operating revenue | $ | 1,979 | $ | 1,406 | $ | 1,445 | $ | 1,736 | ||||||
Operating income | 329 | 232 | 317 | 264 | ||||||||||
Income from continuing operations | 144 | 81 | 127 | 102 | ||||||||||
Net income | 144 | 81 | 127 | 102 | ||||||||||
Income attributable to noncontrolling interests | - | 1 | 1 | - | ||||||||||
Net income available to common stockholders | 144 | 80 | 126 | 102 | ||||||||||
Earnings from continuing operations per average | 0.55 | 0.30 | 0.48 | 0.38 | ||||||||||
common share-basic1 | ||||||||||||||
Earnings from continuing operations per average | 0.53 | 0.29 | 0.46 | 0.37 | ||||||||||
common share-diluted1 | ||||||||||||||
Basic earnings per average common share1 | 0.55 | 0.30 | 0.48 | 0.38 | ||||||||||
Diluted earnings per average common share1 | 0.53 | 0.29 | 0.46 | 0.37 | ||||||||||
Common stock prices2 | ||||||||||||||
High | 27.94 | 29.94 | 28.52 | 28.05 | ||||||||||
Low | 24.76 | 25.95 | 25.86 | 25.90 | ||||||||||
Consumers | ||||||||||||||
Operating revenue | $ | 1,919 | $ | 1,342 | $ | 1,386 | $ | 1,674 | ||||||
Operating income | 319 | 227 | 314 | 258 | ||||||||||
Net income | 162 | 100 | 153 | 119 | ||||||||||
Preferred stock dividends and distribution | - | 1 | 1 | - | ||||||||||
Net income available to common stockholder | 162 | 99 | 152 | 119 | ||||||||||
In Millions, Except Per Share Amounts and Stock Prices | ||||||||||||||
2012 | ||||||||||||||
Quarters Ended | March 31 | June 30 | Sept 30 | Dec 31 | ||||||||||
CMS Energy, including Consumers | ||||||||||||||
Operating revenue | $ | 1,743 | $ | 1,333 | $ | 1,507 | $ | 1,670 | ||||||
Operating income | 188 | 260 | 343 | 212 | ||||||||||
Income from continuing operations | 60 | 101 | 149 | 67 | ||||||||||
Income from discontinued operations | 7 | - | - | - | ||||||||||
Net income | 67 | 101 | 149 | 67 | ||||||||||
Income attributable to noncontrolling interests | - | 1 | 1 | - | ||||||||||
Net income available to common stockholders | 67 | 100 | 148 | 67 | ||||||||||
Earnings from continuing operations per average | 0.23 | 0.38 | 0.56 | 0.26 | ||||||||||
common share-basic1 | ||||||||||||||
Earnings from continuing operations per average | 0.22 | 0.37 | 0.55 | 0.25 | ||||||||||
common share-diluted1 | ||||||||||||||
Basic earnings per average common share1 | 0.26 | 0.38 | 0.56 | 0.26 | ||||||||||
Diluted earnings per average common share1 | 0.25 | 0.37 | 0.55 | 0.25 | ||||||||||
Common stock prices2 | ||||||||||||||
High | 22.31 | 23.87 | 24.81 | 24.70 | ||||||||||
Low | 21.33 | 21.52 | 22.70 | 22.79 | ||||||||||
Consumers | ||||||||||||||
Operating revenue | $ | 1,675 | $ | 1,282 | $ | 1,448 | $ | 1,608 | ||||||
Operating income | 183 | 260 | 334 | 207 | ||||||||||
Net income | 76 | 122 | 163 | 78 | ||||||||||
Preferred stock dividends | - | 1 | 1 | - | ||||||||||
Net income available to common stockholder | 76 | 121 | 162 | 78 | ||||||||||
1 | The sum of the quarters may not equal annual EPS due to changes in the number of shares outstanding. | |||||||||||||
2 | Based on New York Stock Exchange composite transactions. | |||||||||||||
3 | ||||||||||||||
Schedule_I_Condensed_Financial
Schedule I - Condensed Financial Information of Registrant | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Schedule I - Condensed Financial Information of Registrant [Abtract] | ' | ||||||||||
Schedule I - Condensed Financial Information of Registrant | ' | ||||||||||
CMS Energy Corporation | |||||||||||
Schedule I – Condensed Financial Information of Registrant | |||||||||||
CMS Energy – Parent Company | |||||||||||
Condensed Statements of Income | |||||||||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
Operating Expenses | |||||||||||
Other operating expenses | $ | -6 | $ | -8 | $ | -9 | |||||
General taxes | - | - | 6 | ||||||||
Total operating expenses | -6 | -8 | -3 | ||||||||
Operating Loss | -6 | -8 | -3 | ||||||||
Other Income (Expense) | |||||||||||
Equity earnings of subsidiaries | 566 | 477 | 510 | ||||||||
Interest income | 1 | 1 | 1 | ||||||||
Other expense | -8 | -5 | -5 | ||||||||
Total other income | 559 | 473 | 506 | ||||||||
Interest Charges | |||||||||||
Interest on long-term debt | 148 | 140 | 143 | ||||||||
Intercompany interest expense and other | 3 | 5 | 6 | ||||||||
Total interest charges | 151 | 145 | 149 | ||||||||
Income Before Income Taxes | 402 | 320 | 354 | ||||||||
Income Tax Benefit | -50 | -62 | -61 | ||||||||
Income From Continuing Operations | 452 | 382 | 415 | ||||||||
Net Income Available to Common Stockholders | $ | 452 | $ | 382 | $ | 415 | |||||
The accompanying notes are an integral part of these statements. | |||||||||||
CMS Energy Corporation | |||||||||||
Schedule I – Condensed Financial Information of Registrant | |||||||||||
CMS Energy – Parent Company | |||||||||||
Condensed Statements of Cash Flows | |||||||||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
Cash Flows from Operating Activities | |||||||||||
Net income | $ | 452 | $ | 382 | $ | 415 | |||||
Adjustments to reconcile net income to net cash provided by | |||||||||||
operating activities | |||||||||||
Equity earnings of subsidiaries | -566 | -477 | -510 | ||||||||
Dividends received from subsidiaries | 435 | 401 | 474 | ||||||||
Deferred income taxes | 48 | -25 | 14 | ||||||||
Cash provided by (used in) changes in assets and liabilities | |||||||||||
Accounts and notes receivable | -3 | 2 | -1 | ||||||||
Accounts payable | 2 | - | - | ||||||||
Accrued taxes | 48 | 9 | -97 | ||||||||
Other current and non-current assets and liabilities | 18 | -14 | 12 | ||||||||
Net cash provided by operating activities | 434 | 278 | 307 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Investment in subsidiaries | -150 | -151 | -125 | ||||||||
Net cash used in investing activities | -150 | -151 | -125 | ||||||||
Cash Flows from Financing Activities | |||||||||||
Proceeds from issuance of long-term debt | 275 | 575 | 375 | ||||||||
Issuance of common stock | 36 | 30 | 29 | ||||||||
Retirement of long-term debt | -275 | -463 | -376 | ||||||||
Payment of common stock dividends | -271 | -252 | -211 | ||||||||
Debt issuance costs and financing fees | -4 | -4 | -6 | ||||||||
Increase (decrease) in notes payable | -47 | -11 | 7 | ||||||||
Net cash used in financing activities | -286 | -125 | -182 | ||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | -2 | 2 | - | ||||||||
Cash and Cash Equivalents, Beginning of Period | 2 | - | - | ||||||||
Cash and Cash Equivalents, End of Period | $ | - | $ | 2 | $ | - | |||||
The accompanying notes are an integral part of these statements. | |||||||||||
CMS Energy Corporation | |||||||||||
Schedule I – Condensed Financial Information of Registrant | |||||||||||
CMS Energy – Parent Company | |||||||||||
Condensed Balance Sheets | |||||||||||
ASSETS | |||||||||||
In Millions | |||||||||||
31-Dec | 2013 | 2012 | |||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | - | $ | 2 | |||||||
Notes and accrued interest receivable | 1 | 1 | |||||||||
Accounts receivable, including intercompany and related parties | 7 | 4 | |||||||||
Accrued taxes | - | 7 | |||||||||
Deferred income taxes | 2 | 3 | |||||||||
Total current assets | 10 | 17 | |||||||||
Plant, Property, and Equipment | |||||||||||
Plant, property, and equipment, gross | 16 | 16 | |||||||||
Less accumulated depreciation and amortization | 16 | 16 | |||||||||
Total plant, property, and equipment | - | - | |||||||||
Other Non-current Assets | |||||||||||
Deferred income taxes | 345 | 392 | |||||||||
Investments in subsidiaries | 5,626 | 5,312 | |||||||||
Other investments – DB SERP | 23 | 24 | |||||||||
Other | 23 | 26 | |||||||||
Total other non-current assets | 6,017 | 5,754 | |||||||||
Total Assets | $ | 6,027 | $ | 5,771 | |||||||
LIABILITIES AND EQUITY | |||||||||||
In Millions | |||||||||||
31-Dec | 2013 | 2012 | |||||||||
Current Liabilities | |||||||||||
Current portion of long-term debt | $ | 172 | $ | 172 | |||||||
Accounts and notes payable, including intercompany and related parties | 107 | 152 | |||||||||
Accrued interest, including intercompany | 32 | 30 | |||||||||
Accrued taxes | 41 | - | |||||||||
Other current liabilities | 4 | 5 | |||||||||
Total current liabilities | 356 | 359 | |||||||||
Non-current Liabilities | |||||||||||
Long-term debt | 2,205 | 2,205 | |||||||||
Unamortized discount | -9 | -13 | |||||||||
Postretirement benefits | 19 | 24 | |||||||||
Other non-current liabilities | 2 | 2 | |||||||||
Total non-current liabilities | 2,217 | 2,218 | |||||||||
Equity | |||||||||||
Common stockholders equity | 3,454 | 3,194 | |||||||||
Total Liabilities and Equity | $ | 6,027 | $ | 5,771 | |||||||
The accompanying notes are an integral part of these statements. | |||||||||||
CMS Energy Corporation | |||||||||||
Schedule I – Condensed Financial Information of Registrant | |||||||||||
CMS Energy – Parent Company | |||||||||||
Notes to the Condensed Financial Statements | |||||||||||
1:Basis of Presentation | |||||||||||
CMS Energy’s condensed financial statements have been prepared on a parent-only basis. In accordance with Rule 12‑04 of Regulation S‑X, these parent-only financial statements do not include all of the information and notes required by GAAP for annual financial statements, and therefore these parent-only financial statements and other information included should be read in conjunction with CMS Energy’s audited consolidated financial statements contained within Item 8. Financial Statements and Supplementary Data. | |||||||||||
2:Guarantees | |||||||||||
CMS Energy has issued guarantees with a maximum potential obligation of $187 million on behalf of some of its wholly owned subsidiaries and related parties. CMS Energy’s maximum potential obligation consists primarily of potential payments: | |||||||||||
· | to third parties under certain commodity purchase and swap agreements entered into with CMS ERM; | ||||||||||
· | to third parties in support of non-recourse revenue bonds issued by Genesee; | ||||||||||
· | to the MDEQ on behalf of CMS Land and CMS Capital, for environmental remediation obligations at Bay Harbor; and | ||||||||||
· | to the DOE on behalf of Consumers, in relation to Consumers’ 2011 settlement agreement with the DOE regarding damages resulting from the DOE’s failure to accept spent nuclear fuel from Palisades and Big Rock. | ||||||||||
The expiry dates of these guarantees vary, depending upon contractual provisions or upon the statute of limitations under the relevant governing law. | |||||||||||
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts and Reserves | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Schedule II - Valuation and Qualifying Accounts and Reserves | ' | ||||||||||||||||
CMS Energy Corporation | |||||||||||||||||
Schedule II – Valuation and Qualifying Accounts and Reserves | |||||||||||||||||
Years Ended December 31, 2013, 2012, and 2011 | |||||||||||||||||
In Millions | |||||||||||||||||
Description | Balance at | Charged to | Charged to | Deductions | Balance at | ||||||||||||
Beginning | Expense | Other | End of | ||||||||||||||
of Period | Accounts | Period | |||||||||||||||
Allowance for uncollectible accounts1 | |||||||||||||||||
2013 | $ | 32 | $ | 63 | $ | - | $ | 62 | $ | 33 | |||||||
2012 | 35 | 53 | - | 56 | 32 | ||||||||||||
2011 | 25 | 70 | - | 60 | 35 | ||||||||||||
Deferred tax valuation allowance | |||||||||||||||||
2013 | $ | 3 | $ | - | $ | - | $ | 1 | $ | 2 | |||||||
2012 | 20 | - | -15 | 2 | 3 | ||||||||||||
2011 | 19 | 1 | - | - | 20 | ||||||||||||
Allowance for notes receivable1 | |||||||||||||||||
2013 | $ | 5 | $ | 4 | $ | - | $ | 4 | $ | 5 | |||||||
2012 | 5 | 4 | - | 4 | 5 | ||||||||||||
2011 | 5 | 4 | - | 4 | 5 | ||||||||||||
1 | Deductions are write-offs of uncollectible accounts, net of recoveries. | ||||||||||||||||
Consumers Energy Company | |||||||||||||||||
Schedule II – Valuation and Qualifying Accounts and Reserves | |||||||||||||||||
Years Ended December 31, 2013, 2012, and 2011 | |||||||||||||||||
In Millions | |||||||||||||||||
Description | Balance at | Charged to | Charged to | Deductions | Balance at | ||||||||||||
Beginning | Expense | Other | End of | ||||||||||||||
of Period | Accounts | Period | |||||||||||||||
Allowance for uncollectible accounts1 | |||||||||||||||||
2013 | $ | 30 | $ | 63 | $ | - | $ | 62 | $ | 31 | |||||||
2012 | 33 | 53 | - | 56 | 30 | ||||||||||||
2011 | 23 | 70 | - | 60 | 33 | ||||||||||||
Deferred tax valuation allowance | |||||||||||||||||
2013 | $ | 1 | $ | - | $ | - | $ | - | $ | 1 | |||||||
2012 | 1 | - | - | - | 1 | ||||||||||||
2011 | - | 1 | - | - | 1 | ||||||||||||
1 | Deductions are write-offs of uncollectible accounts, net of recoveries. | ||||||||||||||||
Consumers Energy Company [Member] | ' | ||||||||||||||||
Schedule II - Valuation and Qualifying Accounts and Reserves | ' | ||||||||||||||||
CMS Energy Corporation | |||||||||||||||||
Schedule II – Valuation and Qualifying Accounts and Reserves | |||||||||||||||||
Years Ended December 31, 2013, 2012, and 2011 | |||||||||||||||||
In Millions | |||||||||||||||||
Description | Balance at | Charged to | Charged to | Deductions | Balance at | ||||||||||||
Beginning | Expense | Other | End of | ||||||||||||||
of Period | Accounts | Period | |||||||||||||||
Allowance for uncollectible accounts1 | |||||||||||||||||
2013 | $ | 32 | $ | 63 | $ | - | $ | 62 | $ | 33 | |||||||
2012 | 35 | 53 | - | 56 | 32 | ||||||||||||
2011 | 25 | 70 | - | 60 | 35 | ||||||||||||
Deferred tax valuation allowance | |||||||||||||||||
2013 | $ | 3 | $ | - | $ | - | $ | 1 | $ | 2 | |||||||
2012 | 20 | - | -15 | 2 | 3 | ||||||||||||
2011 | 19 | 1 | - | - | 20 | ||||||||||||
Allowance for notes receivable1 | |||||||||||||||||
2013 | $ | 5 | $ | 4 | $ | - | $ | 4 | $ | 5 | |||||||
2012 | 5 | 4 | - | 4 | 5 | ||||||||||||
2011 | 5 | 4 | - | 4 | 5 | ||||||||||||
1 | Deductions are write-offs of uncollectible accounts, net of recoveries. | ||||||||||||||||
Consumers Energy Company | |||||||||||||||||
Schedule II – Valuation and Qualifying Accounts and Reserves | |||||||||||||||||
Years Ended December 31, 2013, 2012, and 2011 | |||||||||||||||||
In Millions | |||||||||||||||||
Description | Balance at | Charged to | Charged to | Deductions | Balance at | ||||||||||||
Beginning | Expense | Other | End of | ||||||||||||||
of Period | Accounts | Period | |||||||||||||||
Allowance for uncollectible accounts1 | |||||||||||||||||
2013 | $ | 30 | $ | 63 | $ | - | $ | 62 | $ | 31 | |||||||
2012 | 33 | 53 | - | 56 | 30 | ||||||||||||
2011 | 23 | 70 | - | 60 | 33 | ||||||||||||
Deferred tax valuation allowance | |||||||||||||||||
2013 | $ | 1 | $ | - | $ | - | $ | - | $ | 1 | |||||||
2012 | 1 | - | - | - | 1 | ||||||||||||
2011 | - | 1 | - | - | 1 | ||||||||||||
1 | Deductions are write-offs of uncollectible accounts, net of recoveries. | ||||||||||||||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policy) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Principles of Consolidation | ' | |||
Principles of Consolidation: CMS Energy and Consumers prepare their consolidated financial statements in conformity with GAAP. CMS Energy’s consolidated financial statements comprise CMS Energy, Consumers, CMS Enterprises, and all other entities in which CMS Energy has a controlling financial interest or is the primary beneficiary. Consumers’ consolidated financial statements comprise Consumers and all other entities in which it has a controlling financial interest or is the primary beneficiary. CMS Energy uses the equity method of accounting for investments in companies and partnerships that are not consolidated, where they have significant influence over operations and financial policies but are not the primary beneficiary. CMS Energy and Consumers eliminate intercompany transactions and balances. | ||||
Use of Estimates | ' | |||
Use of Estimates: CMS Energy and Consumers are required to make estimates using assumptions that may affect reported amounts and disclosures. Actual results could differ from those estimates. | ||||
Revenue Recognition Policy - General | ' | |||
Revenue Recognition Policy: CMS Energy and Consumers recognize revenue from deliveries of electricity and natural gas, and from the transportation, processing, and storage of natural gas, when services are provided. CMS Energy and Consumers record unbilled revenue for the estimated amount of energy delivered to customers but not yet billed. CMS Energy and Consumers record sales tax net and exclude it from revenue. CMS Energy recognizes revenue on sales of marketed electricity, natural gas, and other energy products at delivery. | ||||
Revenue Recognition Policy - Alternative-Revenue Programs | ' | |||
Alternative-Revenue Programs: The MPSC’s 2009 order in Consumers’ gas rate case authorized Consumers to implement a gas revenue decoupling mechanism. This mechanism, which the MPSC extended through April 2012 in its 2010 order in Consumers’ gas rate case, allowed Consumers to adjust future gas rates to the degree that actual average weather-adjusted sales per customer differed from the rate order. Consumers accounted for this program as an alternative-revenue program that met the criteria for recognizing the effects of decoupling adjustments on revenue as gas was delivered. | ||||
In 2009, the MPSC approved an energy optimization incentive mechanism that provides a financial incentive if the energy savings of Consumers’ customers exceed annual targets established by the MPSC. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing revenue related to the incentive as soon as energy savings exceed the annual targets established by the MPSC. | ||||
Revenue Recognition Policy - Self-Implemented Rates | ' | |||
Self-Implemented Rates: Unless prohibited by the MPSC upon a showing of good cause, Consumers is allowed to self-implement new energy rates six months after a new rate case filing if the MPSC has not issued an order in the case. The MPSC then has another six months to issue a final order. If the MPSC does not issue a final order within that period, the filed rates are considered approved. If the MPSC issues a final order within that period, the rates that Consumers self-implemented may be subject to refund, with interest. Consumers recognizes revenue associated with self-implemented rates. If Consumers considers it probable that it will be required to refund a portion of its self-implemented rates, then Consumers records a provision for revenue subject to refund. | ||||
Accounts Receivable | ' | |||
Accounts Receivable: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost, which approximates fair value. CMS Energy and Consumers establish an allowance for uncollectible accounts based on historical losses, management’s assessment of existing economic conditions, customer trends, and other factors. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. CMS Energy and Consumers charge off accounts deemed uncollectible to operating expense. | ||||
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. | ||||
Contingencies | ' | |||
Contingencies: CMS Energy and Consumers record estimated liabilities for contingencies on their consolidated financial statements when it is probable that a liability has been incurred and when the amount of loss can be reasonably estimated. CMS Energy and Consumers expense legal fees as incurred; fees incurred but not yet billed are accrued based on estimates of work performed. This policy also applies to any fees incurred on behalf of employees and officers under indemnification agreements; such fees are billed directly to CMS Energy or Consumers. | ||||
Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs | ' | |||
Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs: CMS Energy and Consumers defer issuance costs, discounts, and premiums associated with long-term debt and amortize those amounts over the terms of the debt issues. For the non‑regulated portions of CMS Energy’s and Consumers’ businesses, refinancing costs are expensed as incurred. For the regulated portions of CMS Energy’s and Consumers’ businesses, any remaining unamortized issuance costs, discounts, and premiums associated with refinanced debt are amortized over the term of the newly issued debt. | ||||
Derivative Instruments | ' | |||
Derivative Instruments: In order to support ongoing operations, CMS Energy and Consumers enter into contracts for the future purchase and sale of various commodities, such as electricity, natural gas, and coal. These forward contracts are generally long-term in nature and result in physical delivery of the commodity at a contracted price. Most of these contracts are not subject to derivative accounting because: | ||||
· | they do not have a notional amount (that is, a number of units specified in a derivative instrument, such as MWh of electricity or bcf of natural gas); | |||
· | they qualify for the normal purchases and sales exception; or | |||
· | there is not an active market for the commodity. | |||
Consumers’ coal purchase contracts are not derivatives because there is not an active market for the coal it purchases. If an active market for coal develops in the future, some of these contracts may qualify as derivatives. Since Consumers is subject to regulatory accounting, the resulting fair value gains and losses would be deferred as regulatory assets or liabilities and would not affect net income. | ||||
Consumers also uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion-related transmission charges. Consumers accounts for FTRs as derivatives. All changes in fair value associated with FTRs are deferred as regulatory assets and liabilities until the instruments are settled. | ||||
CMS Energy and Consumers record derivative contracts that do not qualify for the normal purchases and sales exception at fair value on their consolidated balance sheets. Each reporting period, the resulting asset or liability is adjusted to reflect any change in the fair value of the contract. Since none of CMS Energy’s or Consumers’ derivatives has been designated as an accounting hedge, all changes in fair value are either reported in earnings or deferred as regulatory assets or liabilities. CMS Energy and Consumers did not have significant amounts recorded as derivative assets or liabilities at December 31, 2013 or 2012. Additionally, the gains and losses recognized in earnings were not significant for the years ended December 31, 2013, 2012, or 2011. | ||||
Determination of Pension and OPEB MRV of Plan Assets | ' | |||
Determination of Pension and OPEB MRV of Plan Assets: CMS Energy and Consumers determine the MRV for Pension Plan assets as the fair value of plan assets on the measurement date, adjusted by the gains or losses that will not be admitted into the MRV until future years. CMS Energy and Consumers reflect each year’s gain or loss in the MRV in equal amounts over a five-year period beginning on the date the original amount was determined. CMS Energy and Consumers determine the MRV for OPEB Plan assets as the fair value of assets on the measurement date. CMS Energy and Consumers use the MRV in the calculation of net pension and OPEB costs. For further details, see Note 11, Retirement Benefits. | ||||
Earnings Per Share | ' | |||
Earnings Per Share: CMS Energy calculates basic and diluted EPS using the weighted-average number of shares of common stock and dilutive potential common stock outstanding during the period. Potential common stock, for purposes of determining diluted EPS, includes the effects of dilutive stock options, non-vested stock awards, and convertible securities. CMS Energy computes the effect on potential common stock using the treasury stock method or the if‑converted method, as applicable. Diluted EPS excludes the impact of antidilutive securities, which are those securities resulting in an increase in EPS or a decrease in loss per share. For EPS computations, see Note 14, Earnings Per Share – CMS Energy. | ||||
Financial Instruments | ' | |||
Financial Instruments: CMS Energy and Consumers record debt and equity securities classified as available for sale at fair value as determined from quoted market prices or other observable, market-based inputs. Unrealized gains and losses resulting from changes in fair value of these securities are determined on a specific-identification basis. CMS Energy and Consumers report unrealized gains and losses on these securities, net of tax, in equity as part of AOCI, except that unrealized losses determined to be other than temporary are reported in earnings. For additional details regarding financial instruments, see Note 6, Financial Instruments. | ||||
Impairment of Long-Lived Assets | ' | |||
Impairment of Long-Lived Assets and Equity Method Investments: CMS Energy and Consumers perform tests of impairment if certain triggering events occur or if there has been a decline in value that may be other than temporary. | ||||
CMS Energy and Consumers evaluate long-lived assets held in use for impairment by calculating the undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. If the undiscounted future cash flows are less than the carrying amount, CMS Energy and Consumers recognize an impairment loss equal to the amount by which the carrying amount exceeds the fair value. CMS Energy and Consumers estimate the fair value of the asset using quoted market prices, market prices of similar assets, or discounted future cash flow analyses. | ||||
Impairment of Equity Method Investments | ' | |||
CMS Energy also assesses equity method investments for impairment whenever there has been a decline in value that is other than temporary. This assessment requires CMS Energy to determine the fair value of the equity method investment. CMS Energy determines fair value using valuation methodologies, including discounted cash flows, and assesses the ability of the investee to sustain an earnings capacity that justifies the carrying amount of the investment. CMS Energy records an impairment if the fair value is less than the carrying amount and the decline in value is considered to be other than temporary. | ||||
Inventory - Gas and Coal | ' | |||
Inventory: CMS Energy and Consumers use the weighted-average cost method for valuing working gas, recoverable base gas in underground storage facilities, and materials and supplies inventory. CMS Energy and Consumers also use this method for valuing coal inventory, and they classify these amounts as generating plant fuel stock on their consolidated balance sheets. | ||||
Inventory - RECs and Emission Allowances | ' | |||
CMS Energy and Consumers account for RECs and emission allowances as inventory and use the weighted-average cost method to remove amounts from inventory. RECs and emission allowances are used to satisfy compliance obligations related to the generation of power. | ||||
Inventory - Impairment | ' | |||
CMS Energy and Consumers use the lower-of-cost-or-market method to evaluate inventory for impairment. | ||||
Accounting for MISO Transactions | ' | |||
MISO Transactions: MISO requires the submission of hourly day-ahead and real-time bids and offers for energy at locations across the MISO region. CMS Energy and Consumers account for MISO transactions on a net hourly basis in each of the real-time and day-ahead markets, netted across all MISO energy market locations. CMS Energy and Consumers record net hourly purchases in purchased and interchange power and net hourly sales in operating revenue on their consolidated statements of income. They record net billing adjustments upon receipt of settlement statements, record accruals for future net purchases and sales adjustments based on historical experience, and reconcile accruals to actual expenses and sales upon receipt of settlement statements. | ||||
Property Taxes | ' | |||
Property Taxes: Property taxes are based on the taxable value of Consumers’ real and personal property assessed by local taxing authorities. Consumers records property tax expense over the fiscal year of the taxing authority for which the taxes are levied based on Consumers’ budgeted customer sales. The deferred property tax balance represents the amount of Consumers’ accrued property tax that will be recognized over future governmental fiscal periods. | ||||
Renewable Energy Grant | ' | |||
Renewable Energy Grant: In January 2013, Consumers received a $69 million renewable energy cash grant for Lake Winds® Energy Park under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009. Upon receipt of the grant, Consumers recorded a regulatory liability for $69 million, which Consumers is amortizing over the life of Lake Winds® Energy Park. Consumers presents the amortization as a reduction to maintenance and other operating expense. Consumers recorded the deferred income taxes related to the grant as a reduction of the book basis of Lake Winds® Energy Park. | ||||
Restricted Cash and Cash Equivalents | ' | |||
Restricted Cash and Cash Equivalents: CMS Energy and Consumers have restricted cash and cash equivalents dedicated for repayment of Securitization bonds and for payment under performance guarantees. CMS Energy and Consumers classify these amounts as a current asset if they relate to payments that could or will occur within one year. | ||||
Consumers Energy Company [Member] | ' | |||
Principles of Consolidation | ' | |||
Principles of Consolidation: CMS Energy and Consumers prepare their consolidated financial statements in conformity with GAAP. CMS Energy’s consolidated financial statements comprise CMS Energy, Consumers, CMS Enterprises, and all other entities in which CMS Energy has a controlling financial interest or is the primary beneficiary. Consumers’ consolidated financial statements comprise Consumers and all other entities in which it has a controlling financial interest or is the primary beneficiary. CMS Energy uses the equity method of accounting for investments in companies and partnerships that are not consolidated, where they have significant influence over operations and financial policies but are not the primary beneficiary. CMS Energy and Consumers eliminate intercompany transactions and balances. | ||||
Use of Estimates | ' | |||
Use of Estimates: CMS Energy and Consumers are required to make estimates using assumptions that may affect reported amounts and disclosures. Actual results could differ from those estimates. | ||||
Revenue Recognition Policy - General | ' | |||
Revenue Recognition Policy: CMS Energy and Consumers recognize revenue from deliveries of electricity and natural gas, and from the transportation, processing, and storage of natural gas, when services are provided. CMS Energy and Consumers record unbilled revenue for the estimated amount of energy delivered to customers but not yet billed. CMS Energy and Consumers record sales tax net and exclude it from revenue. CMS Energy recognizes revenue on sales of marketed electricity, natural gas, and other energy products at delivery. | ||||
Revenue Recognition Policy - Alternative-Revenue Programs | ' | |||
Alternative-Revenue Programs: The MPSC’s 2009 order in Consumers’ gas rate case authorized Consumers to implement a gas revenue decoupling mechanism. This mechanism, which the MPSC extended through April 2012 in its 2010 order in Consumers’ gas rate case, allowed Consumers to adjust future gas rates to the degree that actual average weather-adjusted sales per customer differed from the rate order. Consumers accounted for this program as an alternative-revenue program that met the criteria for recognizing the effects of decoupling adjustments on revenue as gas was delivered. | ||||
In 2009, the MPSC approved an energy optimization incentive mechanism that provides a financial incentive if the energy savings of Consumers’ customers exceed annual targets established by the MPSC. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing revenue related to the incentive as soon as energy savings exceed the annual targets established by the MPSC. | ||||
Revenue Recognition Policy - Self-Implemented Rates | ' | |||
Self-Implemented Rates: Unless prohibited by the MPSC upon a showing of good cause, Consumers is allowed to self-implement new energy rates six months after a new rate case filing if the MPSC has not issued an order in the case. The MPSC then has another six months to issue a final order. If the MPSC does not issue a final order within that period, the filed rates are considered approved. If the MPSC issues a final order within that period, the rates that Consumers self-implemented may be subject to refund, with interest. Consumers recognizes revenue associated with self-implemented rates. If Consumers considers it probable that it will be required to refund a portion of its self-implemented rates, then Consumers records a provision for revenue subject to refund. | ||||
Accounts Receivable | ' | |||
Accounts Receivable: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost, which approximates fair value. CMS Energy and Consumers establish an allowance for uncollectible accounts based on historical losses, management’s assessment of existing economic conditions, customer trends, and other factors. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. CMS Energy and Consumers charge off accounts deemed uncollectible to operating expense. | ||||
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. | ||||
Contingencies | ' | |||
Contingencies: CMS Energy and Consumers record estimated liabilities for contingencies on their consolidated financial statements when it is probable that a liability has been incurred and when the amount of loss can be reasonably estimated. CMS Energy and Consumers expense legal fees as incurred; fees incurred but not yet billed are accrued based on estimates of work performed. This policy also applies to any fees incurred on behalf of employees and officers under indemnification agreements; such fees are billed directly to CMS Energy or Consumers. | ||||
Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs | ' | |||
Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs: CMS Energy and Consumers defer issuance costs, discounts, and premiums associated with long-term debt and amortize those amounts over the terms of the debt issues. For the non‑regulated portions of CMS Energy’s and Consumers’ businesses, refinancing costs are expensed as incurred. For the regulated portions of CMS Energy’s and Consumers’ businesses, any remaining unamortized issuance costs, discounts, and premiums associated with refinanced debt are amortized over the term of the newly issued debt. | ||||
Derivative Instruments | ' | |||
Derivative Instruments: In order to support ongoing operations, CMS Energy and Consumers enter into contracts for the future purchase and sale of various commodities, such as electricity, natural gas, and coal. These forward contracts are generally long-term in nature and result in physical delivery of the commodity at a contracted price. Most of these contracts are not subject to derivative accounting because: | ||||
· | they do not have a notional amount (that is, a number of units specified in a derivative instrument, such as MWh of electricity or bcf of natural gas); | |||
· | they qualify for the normal purchases and sales exception; or | |||
· | there is not an active market for the commodity. | |||
Consumers’ coal purchase contracts are not derivatives because there is not an active market for the coal it purchases. If an active market for coal develops in the future, some of these contracts may qualify as derivatives. Since Consumers is subject to regulatory accounting, the resulting fair value gains and losses would be deferred as regulatory assets or liabilities and would not affect net income. | ||||
Consumers also uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion-related transmission charges. Consumers accounts for FTRs as derivatives. All changes in fair value associated with FTRs are deferred as regulatory assets and liabilities until the instruments are settled. | ||||
CMS Energy and Consumers record derivative contracts that do not qualify for the normal purchases and sales exception at fair value on their consolidated balance sheets. Each reporting period, the resulting asset or liability is adjusted to reflect any change in the fair value of the contract. Since none of CMS Energy’s or Consumers’ derivatives has been designated as an accounting hedge, all changes in fair value are either reported in earnings or deferred as regulatory assets or liabilities. CMS Energy and Consumers did not have significant amounts recorded as derivative assets or liabilities at December 31, 2013 or 2012. Additionally, the gains and losses recognized in earnings were not significant for the years ended December 31, 2013, 2012, or 2011. | ||||
Determination of Pension and OPEB MRV of Plan Assets | ' | |||
Determination of Pension and OPEB MRV of Plan Assets: CMS Energy and Consumers determine the MRV for Pension Plan assets as the fair value of plan assets on the measurement date, adjusted by the gains or losses that will not be admitted into the MRV until future years. CMS Energy and Consumers reflect each year’s gain or loss in the MRV in equal amounts over a five-year period beginning on the date the original amount was determined. CMS Energy and Consumers determine the MRV for OPEB Plan assets as the fair value of assets on the measurement date. CMS Energy and Consumers use the MRV in the calculation of net pension and OPEB costs. For further details, see Note 11, Retirement Benefits. | ||||
Financial Instruments | ' | |||
Financial Instruments: CMS Energy and Consumers record debt and equity securities classified as available for sale at fair value as determined from quoted market prices or other observable, market-based inputs. Unrealized gains and losses resulting from changes in fair value of these securities are determined on a specific-identification basis. CMS Energy and Consumers report unrealized gains and losses on these securities, net of tax, in equity as part of AOCI, except that unrealized losses determined to be other than temporary are reported in earnings. For additional details regarding financial instruments, see Note 6, Financial Instruments. | ||||
Impairment of Long-Lived Assets | ' | |||
Impairment of Long-Lived Assets and Equity Method Investments: CMS Energy and Consumers perform tests of impairment if certain triggering events occur or if there has been a decline in value that may be other than temporary. | ||||
CMS Energy and Consumers evaluate long-lived assets held in use for impairment by calculating the undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. If the undiscounted future cash flows are less than the carrying amount, CMS Energy and Consumers recognize an impairment loss equal to the amount by which the carrying amount exceeds the fair value. CMS Energy and Consumers estimate the fair value of the asset using quoted market prices, market prices of similar assets, or discounted future cash flow analyses. | ||||
Inventory - Gas and Coal | ' | |||
Inventory: CMS Energy and Consumers use the weighted-average cost method for valuing working gas, recoverable base gas in underground storage facilities, and materials and supplies inventory. CMS Energy and Consumers also use this method for valuing coal inventory, and they classify these amounts as generating plant fuel stock on their consolidated balance sheets. | ||||
Inventory - RECs and Emission Allowances | ' | |||
CMS Energy and Consumers account for RECs and emission allowances as inventory and use the weighted-average cost method to remove amounts from inventory. RECs and emission allowances are used to satisfy compliance obligations related to the generation of power. | ||||
Inventory - Impairment | ' | |||
CMS Energy and Consumers use the lower-of-cost-or-market method to evaluate inventory for impairment. | ||||
Accounting for MISO Transactions | ' | |||
MISO Transactions: MISO requires the submission of hourly day-ahead and real-time bids and offers for energy at locations across the MISO region. CMS Energy and Consumers account for MISO transactions on a net hourly basis in each of the real-time and day-ahead markets, netted across all MISO energy market locations. CMS Energy and Consumers record net hourly purchases in purchased and interchange power and net hourly sales in operating revenue on their consolidated statements of income. They record net billing adjustments upon receipt of settlement statements, record accruals for future net purchases and sales adjustments based on historical experience, and reconcile accruals to actual expenses and sales upon receipt of settlement statements. | ||||
Property Taxes | ' | |||
Property Taxes: Property taxes are based on the taxable value of Consumers’ real and personal property assessed by local taxing authorities. Consumers records property tax expense over the fiscal year of the taxing authority for which the taxes are levied based on Consumers’ budgeted customer sales. The deferred property tax balance represents the amount of Consumers’ accrued property tax that will be recognized over future governmental fiscal periods. | ||||
Renewable Energy Grant | ' | |||
Renewable Energy Grant: In January 2013, Consumers received a $69 million renewable energy cash grant for Lake Winds® Energy Park under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009. Upon receipt of the grant, Consumers recorded a regulatory liability for $69 million, which Consumers is amortizing over the life of Lake Winds® Energy Park. Consumers presents the amortization as a reduction to maintenance and other operating expense. Consumers recorded the deferred income taxes related to the grant as a reduction of the book basis of Lake Winds® Energy Park. | ||||
Restricted Cash and Cash Equivalents | ' | |||
Restricted Cash and Cash Equivalents: CMS Energy and Consumers have restricted cash and cash equivalents dedicated for repayment of Securitization bonds and for payment under performance guarantees. CMS Energy and Consumers classify these amounts as a current asset if they relate to payments that could or will occur within one year. | ||||
Notes_Receivable_Policy
Notes Receivable (Policy) | 12 Months Ended |
Dec. 31, 2013 | |
Notes Receivable [Abstract] | ' |
Allowance For Loan Losses Policy | ' |
The allowance for loan losses is a valuation allowance to reflect estimated credit losses. The allowance is increased by the provision for loan losses and decreased by loan charge-offs net of recoveries. Management estimates the allowance balance required by taking into consideration historical loan loss experience, the nature and volume of the portfolio, economic conditions, and other factors. Loan losses are charged against the allowance when the loss is confirmed, but no later than the point at which a loan becomes 120 days past due. | |
Income_Taxes_Policy
Income Taxes (Policy) | 12 Months Ended |
Dec. 31, 2013 | |
Income Tax Policy | ' |
CMS Energy and its subsidiaries file a consolidated U.S. federal income tax return and a unitary Michigan income tax return. Income taxes are allocated based on each company’s separate taxable income in accordance with the CMS Energy tax sharing agreement. | |
Consumers Energy Company [Member] | ' |
Income Tax Policy | ' |
CMS Energy and its subsidiaries file a consolidated U.S. federal income tax return and a unitary Michigan income tax return. Income taxes are allocated based on each company’s separate taxable income in accordance with the CMS Energy tax sharing agreement. | |
Regulatory_Matters_Tables
Regulatory Matters (Tables) (Consumers Energy Company [Member]) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ||||||||
Schedule of Regulatory Assets and Liabilities | ' | ||||||||
In Millions | |||||||||
December 31 | End of Recovery | 2013 | 2012 | ||||||
or Refund Period | |||||||||
Regulatory assets | |||||||||
Current | |||||||||
Energy optimization plan incentive1 | 2014 | $ | 17 | $ | 15 | ||||
Gas revenue decoupling mechanism1 | 2014 | 17 | 16 | ||||||
Cancelled coal-fueled plant costs2 | 2014 | 5 | 4 | ||||||
Other2 | 2014 | 1 | - | ||||||
Total current regulatory assets | $ | 40 | $ | 35 | |||||
Non-current | |||||||||
Postretirement benefits3 | various | $ | 634 | $ | 1,700 | ||||
Costs of electric generating units to be retired and securitized2 | 2029 | 362 | - | ||||||
MGP sites4 | various | 148 | 152 | ||||||
Other securitized costs2 | 2016 | 129 | 192 | ||||||
ARO4 | various | 129 | 123 | ||||||
Unamortized debt costs4 | various | 74 | 55 | ||||||
Gas storage inventory adjustments4 | various | 23 | 15 | ||||||
Energy optimization plan incentive1 | 2015 | 18 | 17 | ||||||
Major maintenance2 | various | 10 | 5 | ||||||
Cancelled coal-fueled plant costs2 | 2015 | 2 | 7 | ||||||
Gas revenue decoupling mechanism1 | 2014 | - | 17 | ||||||
Other2 | various | 1 | 4 | ||||||
Total non-current regulatory assets | $ | 1,530 | $ | 2,287 | |||||
Total regulatory assets | $ | 1,570 | $ | 2,322 | |||||
Regulatory liabilities | |||||||||
Current | |||||||||
Income taxes, net | 2014 | $ | 64 | $ | - | ||||
Renewable energy grant | 2014 | 2 | - | ||||||
DOE settlement | 2013 | - | 23 | ||||||
Other | 2014 | 1 | 2 | ||||||
Total current regulatory liabilities | $ | 67 | $ | 25 | |||||
Non-current | |||||||||
Cost of removal | various | $ | 1,599 | $ | 1,441 | ||||
Renewable energy plan | 2028 | 159 | 175 | ||||||
Income taxes, net | various | 157 | 336 | ||||||
Postretirement benefits | various | 98 | - | ||||||
ARO | various | 93 | 103 | ||||||
Renewable energy grant | 2043 | 65 | - | ||||||
Energy optimization plan | 2015 | 31 | 34 | ||||||
Other | various | 13 | 12 | ||||||
Total non-current regulatory liabilities | $ | 2,215 | $ | 2,101 | |||||
Total regulatory liabilities | $ | 2,282 | $ | 2,126 | |||||
1These regulatory assets have arisen from alternative revenue programs and are not associated with incurred costs or capital investments. Therefore, the MPSC has provided for recovery without a return. | |||||||||
2These regulatory assets either are included in rate base (or are expected to be included, for costs incurred subsequent to the most recently approved rate case), thereby providing a return on expenditures, or provide a specific return on investment authorized by the MPSC. | |||||||||
3This regulatory asset is offset partially by liabilities. The net amount is included in rate base, thereby providing a return. | |||||||||
4These regulatory assets represent incurred costs for which the MPSC has provided, or Consumers expects, recovery without a return on investment. | |||||||||
Schedule of Assets and Liabilities for PSCR and GCR Underrecoveries and Overrecoveries | ' | ||||||||
In Millions | |||||||||
31-Dec | 2013 | 2012 | |||||||
Accrued power supply revenue | $ | - | $ | 32 | |||||
Accrued rate refunds | 12 | 6 | |||||||
Power Supply Cost Recover (PSCR) [Member] | ' | ||||||||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ||||||||
Schedule of Reconciliation Filings Pending with MPSC | ' | ||||||||
PSCR Year | Date Filed | Net | PSCR Cost of | ||||||
Underrecovery | Power Sold | ||||||||
(In Millions) | (In Billions) | ||||||||
2012 | Mar-13 | $ | 18 | $ | 1.9 | ||||
Gas Cost Recover (GCR) [Member] | ' | ||||||||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ||||||||
Schedule of Reconciliation Filings Pending with MPSC | ' | ||||||||
GCR Year | Date Filed | Net | GCR Cost of | ||||||
Underrecovery | Gas Sold | ||||||||
(In Millions) | (In Billions) | ||||||||
2012-2013 | Jun-13 | $ | 22 | $ | 0.9 | ||||
Contingencies_And_Commitments_
Contingencies And Commitments (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Expected Remediation Cost By Year | ' | ||||||||||||||||||||||
In Millions | |||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||||
Consumers | |||||||||||||||||||||||
Remediation and other response activity costs | $ | 8 | $ | 12 | $ | 12 | $ | 9 | $ | 19 | |||||||||||||
Guarantees | ' | ||||||||||||||||||||||
In Millions | |||||||||||||||||||||||
Maximum | Carrying | ||||||||||||||||||||||
Guarantee Description | Issue Date | Expiration Date | Obligation | Amount | |||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||
Indemnity obligations from asset sales | Various | Various through September 2029 | $ | 471 | 1 | $ | 16 | ||||||||||||||||
and other agreements | |||||||||||||||||||||||
Guarantees | Various | Various through March 2021 | 57 | - | |||||||||||||||||||
Consumers | |||||||||||||||||||||||
Indemnity obligations and other guarantees | Various | Various through September 2029 | $ | 30 | $ | 1 | |||||||||||||||||
1 | The majority of this amount arises from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy, other than Consumers, indemnified the purchaser for losses resulting from various matters, including claims related to tax disputes, claims related to power purchase agreements, and defects in title to the assets or stock sold to the purchaser by CMS Energy subsidiaries. Except for items described elsewhere in this Note, CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities. | ||||||||||||||||||||||
Purchase Obligations | ' | ||||||||||||||||||||||
In Millions | |||||||||||||||||||||||
Payments Due | |||||||||||||||||||||||
Total | 2014 | 2015 | 2016 | 2017 | 2018 | Beyond | |||||||||||||||||
2018 | |||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||
Purchase obligations | $ | 12,068 | $ | 1,879 | $ | 983 | $ | 1,032 | $ | 1,001 | $ | 1,006 | $ | 6,167 | |||||||||
Purchase obligations – | 1,244 | 89 | 84 | 86 | 88 | 87 | 810 | ||||||||||||||||
related parties | |||||||||||||||||||||||
Consumers | |||||||||||||||||||||||
Purchase obligations | $ | 11,838 | $ | 1,803 | $ | 955 | $ | 1,005 | $ | 974 | $ | 979 | $ | 6,122 | |||||||||
Purchase obligations – | 1,244 | 89 | 84 | 86 | 88 | 87 | 810 | ||||||||||||||||
related parties | |||||||||||||||||||||||
Consumers Energy Company [Member] | ' | ||||||||||||||||||||||
Expected Remediation Cost By Year | ' | ||||||||||||||||||||||
In Millions | |||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||||
Consumers | |||||||||||||||||||||||
Remediation and other response activity costs | $ | 8 | $ | 12 | $ | 12 | $ | 9 | $ | 19 | |||||||||||||
Guarantees | ' | ||||||||||||||||||||||
In Millions | |||||||||||||||||||||||
Maximum | Carrying | ||||||||||||||||||||||
Guarantee Description | Issue Date | Expiration Date | Obligation | Amount | |||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||
Indemnity obligations from asset sales | Various | Various through September 2029 | $ | 471 | 1 | $ | 16 | ||||||||||||||||
and other agreements | |||||||||||||||||||||||
Guarantees | Various | Various through March 2021 | 57 | - | |||||||||||||||||||
Consumers | |||||||||||||||||||||||
Indemnity obligations and other guarantees | Various | Various through September 2029 | $ | 30 | $ | 1 | |||||||||||||||||
1 | The majority of this amount arises from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy, other than Consumers, indemnified the purchaser for losses resulting from various matters, including claims related to tax disputes, claims related to power purchase agreements, and defects in title to the assets or stock sold to the purchaser by CMS Energy subsidiaries. Except for items described elsewhere in this Note, CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities. | ||||||||||||||||||||||
Purchase Obligations | ' | ||||||||||||||||||||||
In Millions | |||||||||||||||||||||||
Payments Due | |||||||||||||||||||||||
Total | 2014 | 2015 | 2016 | 2017 | 2018 | Beyond | |||||||||||||||||
2018 | |||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||
Purchase obligations | $ | 12,068 | $ | 1,879 | $ | 983 | $ | 1,032 | $ | 1,001 | $ | 1,006 | $ | 6,167 | |||||||||
Purchase obligations – | 1,244 | 89 | 84 | 86 | 88 | 87 | 810 | ||||||||||||||||
related parties | |||||||||||||||||||||||
Consumers | |||||||||||||||||||||||
Purchase obligations | $ | 11,838 | $ | 1,803 | $ | 955 | $ | 1,005 | $ | 974 | $ | 979 | $ | 6,122 | |||||||||
Purchase obligations – | 1,244 | 89 | 84 | 86 | 88 | 87 | 810 | ||||||||||||||||
related parties | |||||||||||||||||||||||
Financings_And_Capitalization_
Financings And Capitalization (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Summary Of Long-Term Debt Outstanding | ' | ||||||||||||||||
In Millions | |||||||||||||||||
Interest Rate | Maturity | 2013 | 2012 | ||||||||||||||
(%) | |||||||||||||||||
CMS Energy | |||||||||||||||||
Senior notes | 2.750 | 1 | 2014 | $ | - | $ | 250 | ||||||||||
6.875 | 2015 | 125 | 125 | ||||||||||||||
4.250 | 2015 | 250 | 250 | ||||||||||||||
6.550 | 2017 | 250 | 250 | ||||||||||||||
5.050 | 2018 | 250 | 250 | ||||||||||||||
8.750 | 2019 | 300 | 300 | ||||||||||||||
6.250 | 2020 | 300 | 300 | ||||||||||||||
5.050 | 2022 | 300 | 300 | ||||||||||||||
5.500 | 2 | 2029 | 172 | 172 | |||||||||||||
4.700 | 2043 | 250 | - | ||||||||||||||
Total CMS Energy senior notes | $ | 2,197 | $ | 2,197 | |||||||||||||
Term loan facility | variable | 3 | 2016 | 180 | 180 | ||||||||||||
Total CMS Energy parent | $ | 2,377 | $ | 2,377 | |||||||||||||
Consumers | $ | 4,625 | $ | 4,341 | |||||||||||||
Other CMS Energy subsidiaries | |||||||||||||||||
EnerBank certificates of deposits | 1.095 | 4 | 2014-2021 | $ | 652 | $ | 527 | ||||||||||
Total other CMS Energy subsidiaries | $ | 652 | $ | 527 | |||||||||||||
Total CMS Energy principal amount outstanding | $ | 7,654 | $ | 7,245 | |||||||||||||
Current amounts | -541 | -519 | |||||||||||||||
Net unamortized discounts | -12 | -16 | |||||||||||||||
Total CMS Energy long-term debt | $ | 7,101 | $ | 6,710 | |||||||||||||
1 | In September 2013, CMS Energy retired its 2.75 percent senior notes. | ||||||||||||||||
2 | CMS Energy’s contingently convertible notes. See the “Contingently Convertible Securities” section in this Note for further discussion of the conversion features. | ||||||||||||||||
3 | Outstanding borrowings bear interest at an annual interest rate of LIBOR plus 1.75 percent (1.92 percent at December 31, 2013). | ||||||||||||||||
4 | The weighted-average interest rate for EnerBank’s certificates of deposit was 1.09 percent at December 31, 2013 and 1.16 percent at December 31, 2012. EnerBank’s primary deposit product consists of brokered certificates of deposit with varying maturities and having a face value of $1,000. | ||||||||||||||||
Summary Of Major Long-Term Debt Transactions | ' | ||||||||||||||||
Principal | Issue/Retirement | ||||||||||||||||
(In Millions) | Interest Rate | Date | Maturity Date | ||||||||||||||
Debt issuances | |||||||||||||||||
CMS Energy | |||||||||||||||||
Senior notes | $ | 250 | 4.700 | % | March 2013 | March 2043 | |||||||||||
Total CMS Energy parent | $ | 250 | |||||||||||||||
Consumers | |||||||||||||||||
FMBs | $ | 425 | 3.950 | % | May 2013 | May 2043 | |||||||||||
FMBs | 325 | 3.375 | % | Aug-13 | Aug-23 | ||||||||||||
Total Consumers | $ | 750 | |||||||||||||||
Total debt issuances | $ | 1,000 | |||||||||||||||
Debt retirements | |||||||||||||||||
CMS Energy | |||||||||||||||||
Senior notes | $ | 250 | 2.750 | % | Sep-13 | May-14 | |||||||||||
Total CMS Energy parent | $ | 250 | |||||||||||||||
Consumers | |||||||||||||||||
FMBs | $ | 200 | 6.000 | % | Jun-13 | February 2014 | |||||||||||
FMBs | 225 | 5.000 | % | Jun-13 | Mar-15 | ||||||||||||
Total Consumers | $ | 425 | |||||||||||||||
Total debt retirements | $ | 675 | |||||||||||||||
Debt Maturities | ' | ||||||||||||||||
In Millions | |||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||
CMS Energy, including Consumers | |||||||||||||||||
Long-term debt | $ | 368 | $ | 599 | $ | 608 | $ | 657 | $ | 786 | |||||||
Consumers | |||||||||||||||||
Long-term debt | $ | 43 | $ | 99 | $ | 350 | $ | 350 | $ | 498 | |||||||
Revolving Credit Facilities | ' | ||||||||||||||||
In Millions | |||||||||||||||||
Letters of Credit | |||||||||||||||||
Expiration Date | Amount of Facility | Amount Borrowed | Outstanding | Amount Available | |||||||||||||
CMS Energy | |||||||||||||||||
December 20, 20181 | $ | 550 | $ | - | $ | 2 | $ | 548 | |||||||||
Consumers | |||||||||||||||||
December 20, 20182 | $ | 650 | $ | - | $ | - | $ | 650 | |||||||||
September 9, 20142 | 30 | - | 30 | - | |||||||||||||
1 | Obligations under this facility are secured by Consumers common stock. CMS Energy’s average borrowings during the year ended December 31, 2013 were $4 million, with a weighted-average annual interest rate of 1.67 percent, representing LIBOR plus 1.50 percent. | ||||||||||||||||
2 | Obligations under this facility are secured by FMBs of Consumers. | ||||||||||||||||
Contingently Convertible Securities | ' | ||||||||||||||||
Outstanding | Adjusted | Adjusted | |||||||||||||||
Security | Maturity | (In Millions) | Conversion Price | Trigger Price | |||||||||||||
5.50% senior notes | 2029 | $ | 172 | $ | 13.55 | $ | 17.61 | ||||||||||
Issuance Of Stock | ' | ||||||||||||||||
Number of | Average | Proceeds | |||||||||||||||
Shares Issued | Price per Share | (In Millions) | |||||||||||||||
Jun-11 | 762,925 | $ | 19.66 | $ | 15 | ||||||||||||
Jun-12 | 650,235 | 23.07 | 15 | ||||||||||||||
Mar-13 | 735,873 | 27.18 | 20 | ||||||||||||||
Total | 2,149,033 | $ | 23.27 | $ | 50 | ||||||||||||
Consumers Energy Company [Member] | ' | ||||||||||||||||
Summary Of Long-Term Debt Outstanding | ' | ||||||||||||||||
In Millions | |||||||||||||||||
Interest Rate | Maturity | 2013 | 2012 | ||||||||||||||
(%) | |||||||||||||||||
Consumers | |||||||||||||||||
FMBs1 | 6.000 | 2 | 2014 | $ | - | $ | 200 | ||||||||||
5.000 | 2 | 2015 | - | 225 | |||||||||||||
2.600 | 2015 | 50 | 50 | ||||||||||||||
5.500 | 2016 | 350 | 350 | ||||||||||||||
5.150 | 2017 | 250 | 250 | ||||||||||||||
3.210 | 2017 | 100 | 100 | ||||||||||||||
5.650 | 2018 | 250 | 250 | ||||||||||||||
6.125 | 2019 | 350 | 350 | ||||||||||||||
6.700 | 2019 | 500 | 500 | ||||||||||||||
5.650 | 2020 | 300 | 300 | ||||||||||||||
3.770 | 2020 | 100 | 100 | ||||||||||||||
5.300 | 2022 | 250 | 250 | ||||||||||||||
2.850 | 2022 | 375 | 375 | ||||||||||||||
3.375 | 2023 | 325 | - | ||||||||||||||
3.190 | 2024 | 52 | 52 | ||||||||||||||
3.390 | 2027 | 35 | 35 | ||||||||||||||
5.800 | 2035 | 175 | 175 | ||||||||||||||
6.170 | 2040 | 50 | 50 | ||||||||||||||
4.970 | 2040 | 50 | 50 | ||||||||||||||
4.310 | 2042 | 263 | 263 | ||||||||||||||
3.950 | 2043 | 425 | - | ||||||||||||||
$ | 4,250 | $ | 3,925 | ||||||||||||||
Senior notes | 6.875 | 2018 | 180 | 180 | |||||||||||||
Securitization bonds | 5.760 | 3 | 2015 | 92 | 133 | ||||||||||||
Tax-exempt pollution control revenue bonds | various | 2018-2035 | 103 | 103 | |||||||||||||
Total Consumers principal amount outstanding | $ | 4,625 | $ | 4,341 | |||||||||||||
Current amounts | -43 | -41 | |||||||||||||||
Net unamortized discounts | -3 | -3 | |||||||||||||||
Total Consumers long-term debt | $ | 4,579 | $ | 4,297 | |||||||||||||
1 | The weighted-average interest rate for Consumers’ FMBs was 4.90 percent at December 31, 2013 and 5.19 percent at December 31, 2012. | ||||||||||||||||
2 | In June 2013, Consumers retired its 6.00 percent and 5.00 percent FMBs. | ||||||||||||||||
3 | The weighted-average interest rate for Consumers’ Securitization bonds was 5.76 percent at December 31, 2013 and 5.72 percent at December 31, 2012. | ||||||||||||||||
Summary Of Major Long-Term Debt Transactions | ' | ||||||||||||||||
Principal | Issue/Retirement | ||||||||||||||||
(In Millions) | Interest Rate | Date | Maturity Date | ||||||||||||||
Debt issuances | |||||||||||||||||
CMS Energy | |||||||||||||||||
Senior notes | $ | 250 | 4.700 | % | March 2013 | March 2043 | |||||||||||
Total CMS Energy parent | $ | 250 | |||||||||||||||
Consumers | |||||||||||||||||
FMBs | $ | 425 | 3.950 | % | May 2013 | May 2043 | |||||||||||
FMBs | 325 | 3.375 | % | Aug-13 | Aug-23 | ||||||||||||
Total Consumers | $ | 750 | |||||||||||||||
Total debt issuances | $ | 1,000 | |||||||||||||||
Debt retirements | |||||||||||||||||
CMS Energy | |||||||||||||||||
Senior notes | $ | 250 | 2.750 | % | Sep-13 | May-14 | |||||||||||
Total CMS Energy parent | $ | 250 | |||||||||||||||
Consumers | |||||||||||||||||
FMBs | $ | 200 | 6.000 | % | Jun-13 | February 2014 | |||||||||||
FMBs | 225 | 5.000 | % | Jun-13 | Mar-15 | ||||||||||||
Total Consumers | $ | 425 | |||||||||||||||
Total debt retirements | $ | 675 | |||||||||||||||
Debt Maturities | ' | ||||||||||||||||
In Millions | |||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||
CMS Energy, including Consumers | |||||||||||||||||
Long-term debt | $ | 368 | $ | 599 | $ | 608 | $ | 657 | $ | 786 | |||||||
Consumers | |||||||||||||||||
Long-term debt | $ | 43 | $ | 99 | $ | 350 | $ | 350 | $ | 498 | |||||||
Revolving Credit Facilities | ' | ||||||||||||||||
In Millions | |||||||||||||||||
Letters of Credit | |||||||||||||||||
Expiration Date | Amount of Facility | Amount Borrowed | Outstanding | Amount Available | |||||||||||||
CMS Energy | |||||||||||||||||
December 20, 20181 | $ | 550 | $ | - | $ | 2 | $ | 548 | |||||||||
Consumers | |||||||||||||||||
December 20, 20182 | $ | 650 | $ | - | $ | - | $ | 650 | |||||||||
September 9, 20142 | 30 | - | 30 | - | |||||||||||||
1 | Obligations under this facility are secured by Consumers common stock. CMS Energy’s average borrowings during the year ended December 31, 2013 were $4 million, with a weighted-average annual interest rate of 1.67 percent, representing LIBOR plus 1.50 percent. | ||||||||||||||||
2 | Obligations under this facility are secured by FMBs of Consumers. | ||||||||||||||||
Issuance Of Stock | ' | ||||||||||||||||
Optional | Number of | Balance | |||||||||||||||
Redemption | Shares | Outstanding | |||||||||||||||
Series | Price | Outstanding | (In Millions) | ||||||||||||||
31-Dec | 2013 | 2012 | |||||||||||||||
Cumulative, $100 par value, authorized | $ | 4.50 | $ | 110.00 | 373,148 | $ | 37 | $ | 37 | ||||||||
7,500,000 shares, with no mandatory | |||||||||||||||||
redemption | |||||||||||||||||
4.16 | 103.25 | 68,451 | - | 7 | |||||||||||||
Total preferred stock of Consumers | $ | 37 | $ | 44 | |||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Assets And Liabilities Measured At Fair Value On A Recurring Basis | ' | ||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||
Level | Level | ||||||||||||||||||||||||||
Total | 1 | 2 | 3 | Total | 1 | 2 | 3 | ||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Cash equivalents | $ | 87 | $ | 87 | $ | - | $ | - | $ | 53 | $ | 53 | $ | - | $ | - | |||||||||||
Restricted cash equivalents | 16 | 16 | - | - | 14 | 14 | - | - | |||||||||||||||||||
Nonqualified deferred | 6 | 6 | - | - | 5 | 5 | - | - | |||||||||||||||||||
compensation plan assets | |||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||
Cash equivalents | - | - | - | - | 2 | 2 | - | - | |||||||||||||||||||
Mutual funds | 136 | 136 | - | - | 126 | 126 | - | - | |||||||||||||||||||
Derivative instruments | |||||||||||||||||||||||||||
Commodity contracts | 5 | - | 1 | 4 | 3 | - | - | 3 | |||||||||||||||||||
Total | $ | 250 | $ | 245 | $ | 1 | $ | 4 | $ | 203 | $ | 200 | $ | - | $ | 3 | |||||||||||
Liabilities | |||||||||||||||||||||||||||
Nonqualified deferred | $ | 6 | $ | 6 | $ | - | $ | - | $ | 5 | $ | 5 | $ | - | $ | - | |||||||||||
compensation plan liabilities | |||||||||||||||||||||||||||
Derivative instruments | |||||||||||||||||||||||||||
Commodity contracts | 1 | - | 1 | - | 4 | - | 3 | 1 | |||||||||||||||||||
Total | $ | 7 | $ | 6 | $ | 1 | $ | - | $ | 9 | $ | 5 | $ | 3 | $ | 1 | |||||||||||
Consumers | |||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Restricted cash equivalents | $ | 15 | $ | 15 | $ | - | $ | - | $ | 13 | $ | 13 | $ | - | $ | - | |||||||||||
CMS Energy common stock | 29 | 29 | - | - | 32 | 32 | - | - | |||||||||||||||||||
Nonqualified deferred | 4 | 4 | - | - | 4 | 4 | - | - | |||||||||||||||||||
compensation plan assets | |||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||
Cash equivalents | - | - | - | - | 1 | 1 | - | - | |||||||||||||||||||
Mutual funds | 95 | 95 | - | - | 85 | 85 | - | - | |||||||||||||||||||
Derivative instruments | |||||||||||||||||||||||||||
Commodity contracts | 4 | - | - | 4 | 2 | - | - | 2 | |||||||||||||||||||
Total | $ | 147 | $ | 143 | $ | - | $ | 4 | $ | 137 | $ | 135 | $ | - | $ | 2 | |||||||||||
Liabilities | |||||||||||||||||||||||||||
Nonqualified deferred | $ | 4 | $ | 4 | $ | - | $ | - | $ | 4 | $ | 4 | $ | - | $ | - | |||||||||||
compensation plan liabilities | |||||||||||||||||||||||||||
Total | $ | 4 | $ | 4 | $ | - | $ | - | $ | 4 | $ | 4 | $ | - | $ | - | |||||||||||
Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Significant Level 3 Inputs | ' | ||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||
Balance at beginning of period | $ | 2 | $ | -2 | $ | -3 | |||||||||||||||||||||
Total gains included in earnings1 | - | 3 | 2 | ||||||||||||||||||||||||
Total gains offset through regulatory accounting | 3 | 6 | 2 | ||||||||||||||||||||||||
Purchases | - | 1 | 1 | ||||||||||||||||||||||||
Sales | - | - | -4 | ||||||||||||||||||||||||
Settlements | -1 | -6 | - | ||||||||||||||||||||||||
Balance at end of period | $ | 4 | $ | 2 | $ | -2 | |||||||||||||||||||||
Unrealized gains (losses) included in earnings relating to assets and liabilities | |||||||||||||||||||||||||||
still held at end of period1 | $ | -1 | $ | 2 | $ | 2 | |||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||
Balance at beginning of period | $ | 2 | $ | 2 | $ | 1 | |||||||||||||||||||||
Total gains offset through regulatory accounting | 3 | 6 | 2 | ||||||||||||||||||||||||
Purchases | - | 1 | 1 | ||||||||||||||||||||||||
Settlements | -1 | -7 | -2 | ||||||||||||||||||||||||
Balance at end of period | $ | 4 | $ | 2 | $ | 2 | |||||||||||||||||||||
1CMS Energy records realized and unrealized gains and losses for Level 3 recurring fair value measurements in earnings as a component of operating revenue or maintenance and other operating expenses on its consolidated statements of income. | |||||||||||||||||||||||||||
Consumers Energy Company [Member] | ' | ||||||||||||||||||||||||||
Assets And Liabilities Measured At Fair Value On A Recurring Basis | ' | ||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||
Level | Level | ||||||||||||||||||||||||||
Total | 1 | 2 | 3 | Total | 1 | 2 | 3 | ||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Cash equivalents | $ | 87 | $ | 87 | $ | - | $ | - | $ | 53 | $ | 53 | $ | - | $ | - | |||||||||||
Restricted cash equivalents | 16 | 16 | - | - | 14 | 14 | - | - | |||||||||||||||||||
Nonqualified deferred | 6 | 6 | - | - | 5 | 5 | - | - | |||||||||||||||||||
compensation plan assets | |||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||
Cash equivalents | - | - | - | - | 2 | 2 | - | - | |||||||||||||||||||
Mutual funds | 136 | 136 | - | - | 126 | 126 | - | - | |||||||||||||||||||
Derivative instruments | |||||||||||||||||||||||||||
Commodity contracts | 5 | - | 1 | 4 | 3 | - | - | 3 | |||||||||||||||||||
Total | $ | 250 | $ | 245 | $ | 1 | $ | 4 | $ | 203 | $ | 200 | $ | - | $ | 3 | |||||||||||
Liabilities | |||||||||||||||||||||||||||
Nonqualified deferred | $ | 6 | $ | 6 | $ | - | $ | - | $ | 5 | $ | 5 | $ | - | $ | - | |||||||||||
compensation plan liabilities | |||||||||||||||||||||||||||
Derivative instruments | |||||||||||||||||||||||||||
Commodity contracts | 1 | - | 1 | - | 4 | - | 3 | 1 | |||||||||||||||||||
Total | $ | 7 | $ | 6 | $ | 1 | $ | - | $ | 9 | $ | 5 | $ | 3 | $ | 1 | |||||||||||
Consumers | |||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Restricted cash equivalents | $ | 15 | $ | 15 | $ | - | $ | - | $ | 13 | $ | 13 | $ | - | $ | - | |||||||||||
CMS Energy common stock | 29 | 29 | - | - | 32 | 32 | - | - | |||||||||||||||||||
Nonqualified deferred | 4 | 4 | - | - | 4 | 4 | - | - | |||||||||||||||||||
compensation plan assets | |||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||
Cash equivalents | - | - | - | - | 1 | 1 | - | - | |||||||||||||||||||
Mutual funds | 95 | 95 | - | - | 85 | 85 | - | - | |||||||||||||||||||
Derivative instruments | |||||||||||||||||||||||||||
Commodity contracts | 4 | - | - | 4 | 2 | - | - | 2 | |||||||||||||||||||
Total | $ | 147 | $ | 143 | $ | - | $ | 4 | $ | 137 | $ | 135 | $ | - | $ | 2 | |||||||||||
Liabilities | |||||||||||||||||||||||||||
Nonqualified deferred | $ | 4 | $ | 4 | $ | - | $ | - | $ | 4 | $ | 4 | $ | - | $ | - | |||||||||||
compensation plan liabilities | |||||||||||||||||||||||||||
Total | $ | 4 | $ | 4 | $ | - | $ | - | $ | 4 | $ | 4 | $ | - | $ | - | |||||||||||
Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Significant Level 3 Inputs | ' | ||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||
Balance at beginning of period | $ | 2 | $ | -2 | $ | -3 | |||||||||||||||||||||
Total gains included in earnings1 | - | 3 | 2 | ||||||||||||||||||||||||
Total gains offset through regulatory accounting | 3 | 6 | 2 | ||||||||||||||||||||||||
Purchases | - | 1 | 1 | ||||||||||||||||||||||||
Sales | - | - | -4 | ||||||||||||||||||||||||
Settlements | -1 | -6 | - | ||||||||||||||||||||||||
Balance at end of period | $ | 4 | $ | 2 | $ | -2 | |||||||||||||||||||||
Unrealized gains (losses) included in earnings relating to assets and liabilities | |||||||||||||||||||||||||||
still held at end of period1 | $ | -1 | $ | 2 | $ | 2 | |||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||
Balance at beginning of period | $ | 2 | $ | 2 | $ | 1 | |||||||||||||||||||||
Total gains offset through regulatory accounting | 3 | 6 | 2 | ||||||||||||||||||||||||
Purchases | - | 1 | 1 | ||||||||||||||||||||||||
Settlements | -1 | -7 | -2 | ||||||||||||||||||||||||
Balance at end of period | $ | 4 | $ | 2 | $ | 2 | |||||||||||||||||||||
1CMS Energy records realized and unrealized gains and losses for Level 3 recurring fair value measurements in earnings as a component of operating revenue or maintenance and other operating expenses on its consolidated statements of income. | |||||||||||||||||||||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments | ' | ||||||||||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||||||||||||
Carrying | Level | Carrying | Level | ||||||||||||||||||||||||||||||||
Amount | Total | 1 | 2 | 3 | Amount | Total | 1 | 2 | 3 | ||||||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||||||||||
Securities held | $ | 10 | $ | 10 | $ | - | $ | 10 | $ | - | $ | 9 | $ | 10 | $ | - | $ | 10 | $ | - | |||||||||||||||
to maturity | |||||||||||||||||||||||||||||||||||
Notes | 683 | 724 | - | - | 724 | 544 | 581 | - | - | 581 | |||||||||||||||||||||||||
receivable1 | |||||||||||||||||||||||||||||||||||
Long-term | 7,642 | 8,368 | - | 7,406 | 962 | 7,229 | 8,347 | - | 7,321 | 1,026 | |||||||||||||||||||||||||
debt2 | |||||||||||||||||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||||||||||
Long-term | $ | 4,622 | $ | 4,940 | $ | - | $ | 3,978 | $ | 962 | $ | 4,338 | $ | 5,015 | $ | - | $ | 3,989 | $ | 1,026 | |||||||||||||||
debt3 | |||||||||||||||||||||||||||||||||||
1 | Includes current portion of notes receivable of $48 million at December 31, 2013 and $40 million at December 31, 2012. | ||||||||||||||||||||||||||||||||||
2 | Includes current portion of long-term debt of $541 million at December 31, 2013 and $519 million at December 31, 2012. | ||||||||||||||||||||||||||||||||||
3 | Includes current portion of long-term debt of $43 million at December 31, 2013 and $41 million at December 31, 2012. | ||||||||||||||||||||||||||||||||||
Schedule Of Investment Securities | ' | ||||||||||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||
Unrealized | Unrealized | Fair | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||
Cost | Gains | Losses | Value | Cost | Gains | Losses | Value | ||||||||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||||||||||
Mutual funds | $ | 136 | $ | - | $ | - | $ | 136 | $ | 123 | $ | 3 | $ | - | $ | 126 | |||||||||||||||||||
Held to maturity | |||||||||||||||||||||||||||||||||||
Debt securities | 10 | - | - | 10 | 9 | 1 | - | 10 | |||||||||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||||||||||
Mutual funds | $ | 95 | $ | - | $ | - | $ | 95 | $ | 83 | $ | 2 | $ | - | $ | 85 | |||||||||||||||||||
CMS Energy | |||||||||||||||||||||||||||||||||||
common stock | 5 | 24 | - | 29 | 6 | 26 | - | 32 | |||||||||||||||||||||||||||
Schedule Of Proceeds And Gross Realized Gains/Losses From Sales Of Available-For-Sale Securities | ' | ||||||||||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||||||||||
Proceeds from sales of investment securities | $ | 3 | $ | 3 | $ | 29 | |||||||||||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||||||||||
Proceeds from sales of investment securities | $ | 2 | $ | 2 | $ | 19 | |||||||||||||||||||||||||||||
Consumers Energy Company [Member] | ' | ||||||||||||||||||||||||||||||||||
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments | ' | ||||||||||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||||||||||||
Carrying | Level | Carrying | Level | ||||||||||||||||||||||||||||||||
Amount | Total | 1 | 2 | 3 | Amount | Total | 1 | 2 | 3 | ||||||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||||||||||
Securities held | $ | 10 | $ | 10 | $ | - | $ | 10 | $ | - | $ | 9 | $ | 10 | $ | - | $ | 10 | $ | - | |||||||||||||||
to maturity | |||||||||||||||||||||||||||||||||||
Notes | 683 | 724 | - | - | 724 | 544 | 581 | - | - | 581 | |||||||||||||||||||||||||
receivable1 | |||||||||||||||||||||||||||||||||||
Long-term | 7,642 | 8,368 | - | 7,406 | 962 | 7,229 | 8,347 | - | 7,321 | 1,026 | |||||||||||||||||||||||||
debt2 | |||||||||||||||||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||||||||||
Long-term | $ | 4,622 | $ | 4,940 | $ | - | $ | 3,978 | $ | 962 | $ | 4,338 | $ | 5,015 | $ | - | $ | 3,989 | $ | 1,026 | |||||||||||||||
debt3 | |||||||||||||||||||||||||||||||||||
1 | Includes current portion of notes receivable of $48 million at December 31, 2013 and $40 million at December 31, 2012. | ||||||||||||||||||||||||||||||||||
2 | Includes current portion of long-term debt of $541 million at December 31, 2013 and $519 million at December 31, 2012. | ||||||||||||||||||||||||||||||||||
3 | Includes current portion of long-term debt of $43 million at December 31, 2013 and $41 million at December 31, 2012. | ||||||||||||||||||||||||||||||||||
Schedule Of Investment Securities | ' | ||||||||||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||||
Unrealized | Unrealized | Fair | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||
Cost | Gains | Losses | Value | Cost | Gains | Losses | Value | ||||||||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||||||||||
Mutual funds | $ | 136 | $ | - | $ | - | $ | 136 | $ | 123 | $ | 3 | $ | - | $ | 126 | |||||||||||||||||||
Held to maturity | |||||||||||||||||||||||||||||||||||
Debt securities | 10 | - | - | 10 | 9 | 1 | - | 10 | |||||||||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||||||||||||
DB SERP | |||||||||||||||||||||||||||||||||||
Mutual funds | $ | 95 | $ | - | $ | - | $ | 95 | $ | 83 | $ | 2 | $ | - | $ | 85 | |||||||||||||||||||
CMS Energy | |||||||||||||||||||||||||||||||||||
common stock | 5 | 24 | - | 29 | 6 | 26 | - | 32 | |||||||||||||||||||||||||||
Schedule Of Proceeds And Gross Realized Gains/Losses From Sales Of Available-For-Sale Securities | ' | ||||||||||||||||||||||||||||||||||
In Millions | |||||||||||||||||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||
CMS Energy, including Consumers | |||||||||||||||||||||||||||||||||||
Proceeds from sales of investment securities | $ | 3 | $ | 3 | $ | 29 | |||||||||||||||||||||||||||||
Consumers | |||||||||||||||||||||||||||||||||||
Proceeds from sales of investment securities | $ | 2 | $ | 2 | $ | 19 | |||||||||||||||||||||||||||||
Notes_Receivable_Tables
Notes Receivable (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Schedule Of Current And Non-Current Notes Receivable | ' | |||||||
In Millions | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
CMS Energy, including Consumers | ||||||||
Current | ||||||||
EnerBank notes receivable, net of allowance for loan losses | $ | 48 | $ | 40 | ||||
Other | 15 | 1 | ||||||
Non-current | ||||||||
EnerBank notes receivable, net of allowance for loan losses | 635 | 504 | ||||||
Other | - | 16 | ||||||
Total notes receivable | $ | 698 | $ | 561 | ||||
Consumers | ||||||||
Current | ||||||||
Other | $ | 14 | $ | - | ||||
Non-current | ||||||||
Other | - | 16 | ||||||
Total notes receivable | $ | 14 | $ | 16 | ||||
Schedule Of Allowance For Loan Losses | ' | |||||||
In Millions | ||||||||
Years Ended December 31 | 2013 | 2012 | ||||||
Balance at beginning of period | $ | 5 | $ | 5 | ||||
Charge-offs | -5 | -5 | ||||||
Recoveries | 1 | 1 | ||||||
Provision for loan losses | 4 | 4 | ||||||
Balance at end of period | $ | 5 | $ | 5 | ||||
Consumers Energy Company [Member] | ' | |||||||
Schedule Of Current And Non-Current Notes Receivable | ' | |||||||
In Millions | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
CMS Energy, including Consumers | ||||||||
Current | ||||||||
EnerBank notes receivable, net of allowance for loan losses | $ | 48 | $ | 40 | ||||
Other | 15 | 1 | ||||||
Non-current | ||||||||
EnerBank notes receivable, net of allowance for loan losses | 635 | 504 | ||||||
Other | - | 16 | ||||||
Total notes receivable | $ | 698 | $ | 561 | ||||
Consumers | ||||||||
Current | ||||||||
Other | $ | 14 | $ | - | ||||
Non-current | ||||||||
Other | - | 16 | ||||||
Total notes receivable | $ | 14 | $ | 16 | ||||
Plant_Property_and_Equipment_T
Plant, Property, and Equipment (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Property, Plant and Equipment Table | ' | |||||||||||||||||||
In Millions | ||||||||||||||||||||
Years Ended December 31 | Estimated | 2013 | 2012 | |||||||||||||||||
Depreciable | ||||||||||||||||||||
Life in Years | ||||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||
Electric | ||||||||||||||||||||
Generation | 22 | - | 125 | $ | 3,992 | $ | 4,254 | |||||||||||||
Distribution | 23 | - | 75 | 6,140 | 5,831 | |||||||||||||||
Other | 5 | - | 50 | 770 | 677 | |||||||||||||||
Assets under capital leases and other arrangements | 284 | 279 | ||||||||||||||||||
Gas | ||||||||||||||||||||
Distribution | 28 | - | 80 | 3,015 | 2,861 | |||||||||||||||
Transmission | 17 | - | 75 | 821 | 770 | |||||||||||||||
Underground storage facilities1 | 29 | - | 65 | 535 | 339 | |||||||||||||||
Other | 5 | - | 50 | 465 | 424 | |||||||||||||||
Capital leases | 7 | 6 | ||||||||||||||||||
Enterprises | ||||||||||||||||||||
Independent power production | 3 | - | 30 | 89 | 89 | |||||||||||||||
Other | 3 | - | 40 | 26 | 24 | |||||||||||||||
Other | 1 | - | 51 | 40 | 38 | |||||||||||||||
Construction work in progress | 1,149 | 1,080 | ||||||||||||||||||
Less accumulated depreciation and amortization | -5,087 | -5,121 | ||||||||||||||||||
Net plant, property, and equipment2 | $ | 12,246 | $ | 11,551 | ||||||||||||||||
Consumers | ||||||||||||||||||||
Electric | ||||||||||||||||||||
Generation | 22 | - | 125 | $ | 3,992 | $ | 4,254 | |||||||||||||
Distribution | 23 | - | 75 | 6,140 | 5,831 | |||||||||||||||
Other | 5 | - | 50 | 770 | 677 | |||||||||||||||
Assets under capital leases and other arrangements | 284 | 279 | ||||||||||||||||||
Gas | ||||||||||||||||||||
Distribution | 28 | - | 80 | 3,015 | 2,861 | |||||||||||||||
Transmission | 17 | - | 75 | 821 | 770 | |||||||||||||||
Underground storage facilities1 | 29 | - | 65 | 535 | 339 | |||||||||||||||
Other | 5 | - | 50 | 465 | 424 | |||||||||||||||
Capital leases | 7 | 6 | ||||||||||||||||||
Other non-utility property | 8 | - | 51 | 15 | 15 | |||||||||||||||
Construction work in progress | 1,147 | 1,080 | ||||||||||||||||||
Less accumulated depreciation and amortization | -5,022 | -5,061 | ||||||||||||||||||
Net plant, property, and equipment2 | $ | 12,169 | $ | 11,475 | ||||||||||||||||
1 | Underground storage includes base natural gas of $26 million at December 31, 2013 and 2012. Base natural gas is not subject to depreciation. | |||||||||||||||||||
2 | For the year ended December 31, 2013, utility plant additions were $1.3 billion and utility plant retirements were $156 million. Subject to a successful Securitization transaction, Consumers plans to retire seven smaller coal-fueled electric generating units and three smaller gas-fueled electric generating units by April 2016. Accordingly, Consumers removed the net book value of the ten units from plant, property, and equipment and recorded this amount as a regulatory asset at December 31, 2013. As a result, net plant, property, and equipment decreased by $362 million. For additional details, see Note 2, Regulatory Matters. | |||||||||||||||||||
For the year ended December 31, 2012, utility plant additions were $999 million and utility plant retirements were $168 million. | ||||||||||||||||||||
Public Utilities Property Plant and Equipment Schedule of Accumulated Depreciation and Amortization Table | ' | |||||||||||||||||||
In Millions | ||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | ||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||
Utility plant assets | $ | 5,021 | $ | 5,060 | ||||||||||||||||
Non-utility plant assets | 66 | 61 | ||||||||||||||||||
Consumers | ||||||||||||||||||||
Utility plant assets | $ | 5,021 | $ | 5,060 | ||||||||||||||||
Non-utility plant assets | 1 | 1 | ||||||||||||||||||
Schedule of Finite-Lived Intangible Assets by Major Class Table | ' | |||||||||||||||||||
In Millions | ||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | ||||||||||||||||||
Description | Amortization | Gross Cost1 | Accumulated | Gross Cost1 | Accumulated | |||||||||||||||
Life in years | Amortization | Amortization | ||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||
Software development | 3 | - | 15 | $ | 508 | $ | 174 | $ | 466 | $ | 172 | |||||||||
Plant acquisition adjustments | 40 | - | 46 | 216 | 32 | 214 | 27 | |||||||||||||
Rights of way | 50 | - | 75 | 135 | 42 | 130 | 40 | |||||||||||||
Leasehold improvements | various2 | 14 | 11 | 13 | 10 | |||||||||||||||
Franchises and consents | 5 | - | 30 | 15 | 7 | 14 | 6 | |||||||||||||
Other intangibles | various | 21 | 14 | 18 | 14 | |||||||||||||||
Total | $ | 909 | $ | 280 | $ | 855 | $ | 269 | ||||||||||||
Consumers | ||||||||||||||||||||
Software development | 3 | - | 15 | $ | 506 | $ | 173 | $ | 464 | $ | 172 | |||||||||
Plant acquisition adjustments | 40 | - | 46 | 216 | 32 | 214 | 27 | |||||||||||||
Rights of way | 50 | - | 75 | 135 | 42 | 130 | 40 | |||||||||||||
Leasehold improvements | various2 | 14 | 11 | 13 | 10 | |||||||||||||||
Franchises and consents | 5 | - | 30 | 15 | 7 | 14 | 6 | |||||||||||||
Other intangibles | various | 20 | 14 | 18 | 14 | |||||||||||||||
Total | $ | 906 | $ | 279 | $ | 853 | $ | 269 | ||||||||||||
1 | Net intangible asset additions for Consumers’ utility plant were $53 million during 2013 and $108 million during 2012 and primarily represented software development costs. | |||||||||||||||||||
2 | Leasehold improvements are amortized over the life of the lease, which may change whenever the lease is renewed or extended. | |||||||||||||||||||
Schedule of Finite Lived Intangible Assets Amortization Expense Table | ' | |||||||||||||||||||
In Millions | ||||||||||||||||||||
CMS Energy, including Consumers | Consumers | |||||||||||||||||||
Years Ended December 31 | Total | Software | Total | Software | ||||||||||||||||
Amortization | Amortization | Amortization | Amortization | |||||||||||||||||
Expense | Expense | Expense | Expense | |||||||||||||||||
2013 | $ | 48 | $ | 39 | $ | 47 | $ | 39 | ||||||||||||
2012 | 39 | 31 | 38 | 30 | ||||||||||||||||
2011 | 32 | 24 | 32 | 24 | ||||||||||||||||
Jointly Owned Regulated Utility Facilities | ' | |||||||||||||||||||
In Millions, Except Ownership Share | ||||||||||||||||||||
J.H. Campbell Unit 3 | Ludington | Distribution | ||||||||||||||||||
Ownership share | 93.3 | % | 51.0 | % | various | |||||||||||||||
Utility plant in service | $ | 1,073 | $ | 193 | $ | 190 | ||||||||||||||
Accumulated depreciation | -456 | -152 | -59 | |||||||||||||||||
Construction work-in-progress | 81 | 71 | 2 | |||||||||||||||||
Net investment | $ | 698 | $ | 112 | $ | 133 | ||||||||||||||
Consumers Energy Company [Member] | ' | |||||||||||||||||||
Property, Plant and Equipment Table | ' | |||||||||||||||||||
In Millions | ||||||||||||||||||||
Years Ended December 31 | Estimated | 2013 | 2012 | |||||||||||||||||
Depreciable | ||||||||||||||||||||
Life in Years | ||||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||
Electric | ||||||||||||||||||||
Generation | 22 | - | 125 | $ | 3,992 | $ | 4,254 | |||||||||||||
Distribution | 23 | - | 75 | 6,140 | 5,831 | |||||||||||||||
Other | 5 | - | 50 | 770 | 677 | |||||||||||||||
Assets under capital leases and other arrangements | 284 | 279 | ||||||||||||||||||
Gas | ||||||||||||||||||||
Distribution | 28 | - | 80 | 3,015 | 2,861 | |||||||||||||||
Transmission | 17 | - | 75 | 821 | 770 | |||||||||||||||
Underground storage facilities1 | 29 | - | 65 | 535 | 339 | |||||||||||||||
Other | 5 | - | 50 | 465 | 424 | |||||||||||||||
Capital leases | 7 | 6 | ||||||||||||||||||
Enterprises | ||||||||||||||||||||
Independent power production | 3 | - | 30 | 89 | 89 | |||||||||||||||
Other | 3 | - | 40 | 26 | 24 | |||||||||||||||
Other | 1 | - | 51 | 40 | 38 | |||||||||||||||
Construction work in progress | 1,149 | 1,080 | ||||||||||||||||||
Less accumulated depreciation and amortization | -5,087 | -5,121 | ||||||||||||||||||
Net plant, property, and equipment2 | $ | 12,246 | $ | 11,551 | ||||||||||||||||
Consumers | ||||||||||||||||||||
Electric | ||||||||||||||||||||
Generation | 22 | - | 125 | $ | 3,992 | $ | 4,254 | |||||||||||||
Distribution | 23 | - | 75 | 6,140 | 5,831 | |||||||||||||||
Other | 5 | - | 50 | 770 | 677 | |||||||||||||||
Assets under capital leases and other arrangements | 284 | 279 | ||||||||||||||||||
Gas | ||||||||||||||||||||
Distribution | 28 | - | 80 | 3,015 | 2,861 | |||||||||||||||
Transmission | 17 | - | 75 | 821 | 770 | |||||||||||||||
Underground storage facilities1 | 29 | - | 65 | 535 | 339 | |||||||||||||||
Other | 5 | - | 50 | 465 | 424 | |||||||||||||||
Capital leases | 7 | 6 | ||||||||||||||||||
Other non-utility property | 8 | - | 51 | 15 | 15 | |||||||||||||||
Construction work in progress | 1,147 | 1,080 | ||||||||||||||||||
Less accumulated depreciation and amortization | -5,022 | -5,061 | ||||||||||||||||||
Net plant, property, and equipment2 | $ | 12,169 | $ | 11,475 | ||||||||||||||||
1 | Underground storage includes base natural gas of $26 million at December 31, 2013 and 2012. Base natural gas is not subject to depreciation. | |||||||||||||||||||
2 | For the year ended December 31, 2013, utility plant additions were $1.3 billion and utility plant retirements were $156 million. Subject to a successful Securitization transaction, Consumers plans to retire seven smaller coal-fueled electric generating units and three smaller gas-fueled electric generating units by April 2016. Accordingly, Consumers removed the net book value of the ten units from plant, property, and equipment and recorded this amount as a regulatory asset at December 31, 2013. As a result, net plant, property, and equipment decreased by $362 million. For additional details, see Note 2, Regulatory Matters. | |||||||||||||||||||
For the year ended December 31, 2012, utility plant additions were $999 million and utility plant retirements were $168 million. | ||||||||||||||||||||
Schedule of Capital Leased Asssets Table | ' | |||||||||||||||||||
In Millions | ||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | ||||||||||||||||||
Consumers | ||||||||||||||||||||
Balance at beginning of period | $ | 285 | $ | 280 | ||||||||||||||||
Additions | 12 | 9 | ||||||||||||||||||
Net retirements and other adjustments | -6 | -4 | ||||||||||||||||||
Balance at end of period | $ | 291 | $ | 285 | ||||||||||||||||
Public Utilities Property Plant and Equipment Schedule of Accumulated Depreciation and Amortization Table | ' | |||||||||||||||||||
In Millions | ||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | ||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||
Utility plant assets | $ | 5,021 | $ | 5,060 | ||||||||||||||||
Non-utility plant assets | 66 | 61 | ||||||||||||||||||
Consumers | ||||||||||||||||||||
Utility plant assets | $ | 5,021 | $ | 5,060 | ||||||||||||||||
Non-utility plant assets | 1 | 1 | ||||||||||||||||||
Public Utilities Property Plant and Equipment Schedule of Composite Depreciation Rate Table | ' | |||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||||||||||
Electric utility property | 3.5 | % | 3.2 | % | 3.0 | % | ||||||||||||||
Gas utility property | 2.8 | % | 2.9 | % | 2.9 | % | ||||||||||||||
Other property | 7.0 | % | 7.2 | % | 7.4 | % | ||||||||||||||
Public Utilities, Allowance for Funds Used During Construction, Schedule of Composite Rate Table | ' | |||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||||||||||
AFUDC capitalization rate | 7.3 | % | 7.3 | % | 7.6 | % | ||||||||||||||
Schedule of Finite-Lived Intangible Assets by Major Class Table | ' | |||||||||||||||||||
In Millions | ||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | ||||||||||||||||||
Description | Amortization | Gross Cost1 | Accumulated | Gross Cost1 | Accumulated | |||||||||||||||
Life in years | Amortization | Amortization | ||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||
Software development | 3 | - | 15 | $ | 508 | $ | 174 | $ | 466 | $ | 172 | |||||||||
Plant acquisition adjustments | 40 | - | 46 | 216 | 32 | 214 | 27 | |||||||||||||
Rights of way | 50 | - | 75 | 135 | 42 | 130 | 40 | |||||||||||||
Leasehold improvements | various2 | 14 | 11 | 13 | 10 | |||||||||||||||
Franchises and consents | 5 | - | 30 | 15 | 7 | 14 | 6 | |||||||||||||
Other intangibles | various | 21 | 14 | 18 | 14 | |||||||||||||||
Total | $ | 909 | $ | 280 | $ | 855 | $ | 269 | ||||||||||||
Consumers | ||||||||||||||||||||
Software development | 3 | - | 15 | $ | 506 | $ | 173 | $ | 464 | $ | 172 | |||||||||
Plant acquisition adjustments | 40 | - | 46 | 216 | 32 | 214 | 27 | |||||||||||||
Rights of way | 50 | - | 75 | 135 | 42 | 130 | 40 | |||||||||||||
Leasehold improvements | various2 | 14 | 11 | 13 | 10 | |||||||||||||||
Franchises and consents | 5 | - | 30 | 15 | 7 | 14 | 6 | |||||||||||||
Other intangibles | various | 20 | 14 | 18 | 14 | |||||||||||||||
Total | $ | 906 | $ | 279 | $ | 853 | $ | 269 | ||||||||||||
1 | Net intangible asset additions for Consumers’ utility plant were $53 million during 2013 and $108 million during 2012 and primarily represented software development costs. | |||||||||||||||||||
2 | Leasehold improvements are amortized over the life of the lease, which may change whenever the lease is renewed or extended. | |||||||||||||||||||
Schedule of Finite Lived Intangible Assets Amortization Expense Table | ' | |||||||||||||||||||
In Millions | ||||||||||||||||||||
CMS Energy, including Consumers | Consumers | |||||||||||||||||||
Years Ended December 31 | Total | Software | Total | Software | ||||||||||||||||
Amortization | Amortization | Amortization | Amortization | |||||||||||||||||
Expense | Expense | Expense | Expense | |||||||||||||||||
2013 | $ | 48 | $ | 39 | $ | 47 | $ | 39 | ||||||||||||
2012 | 39 | 31 | 38 | 30 | ||||||||||||||||
2011 | 32 | 24 | 32 | 24 | ||||||||||||||||
Jointly Owned Regulated Utility Facilities | ' | |||||||||||||||||||
In Millions, Except Ownership Share | ||||||||||||||||||||
J.H. Campbell Unit 3 | Ludington | Distribution | ||||||||||||||||||
Ownership share | 93.3 | % | 51.0 | % | various | |||||||||||||||
Utility plant in service | $ | 1,073 | $ | 193 | $ | 190 | ||||||||||||||
Accumulated depreciation | -456 | -152 | -59 | |||||||||||||||||
Construction work-in-progress | 81 | 71 | 2 | |||||||||||||||||
Net investment | $ | 698 | $ | 112 | $ | 133 | ||||||||||||||
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Schedule of Rent Expense | ' | ||||||||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
Consumers | |||||||||||
Minimum operating lease expense | |||||||||||
PPAs | $ | 6 | $ | 6 | $ | 10 | |||||
Other agreements | 21 | 23 | 22 | ||||||||
Contingent rental expense1 | 77 | 33 | 11 | ||||||||
1Contingent rental expense is related to capital and operating lease PPAs and is based on delivery of energy and capacity in excess of minimum lease payments. | |||||||||||
Schedule of Future Minimum Lease Payments for Leases | ' | ||||||||||
In Millions | |||||||||||
Capital Leases | Financing1 | Operating Leases | |||||||||
Consumers | |||||||||||
2014 | $ | 14 | $ | 19 | $ | 26 | |||||
2015 | 14 | 18 | 25 | ||||||||
2016 | 11 | 17 | 20 | ||||||||
2017 | 10 | 17 | 20 | ||||||||
2018 | 10 | 16 | 17 | ||||||||
2019 and thereafter | 31 | 46 | 56 | ||||||||
Total minimum lease payments | $ | 90 | $ | 133 | $ | 164 | |||||
Less imputed interest | 39 | 25 | |||||||||
Present value of net minimum lease payments | $ | 51 | $ | 108 | |||||||
Less current portion | 8 | 13 | |||||||||
Non-current portion | $ | 43 | $ | 95 | |||||||
1 | In 2007, Consumers sold Palisades to Entergy and entered into a 15-year PPA to buy all of the capacity and energy then capable of being produced by Palisades. Consumers has continuing involvement with Palisades through security provided to Entergy for Consumers’ PPA obligation and other arrangements. Because of these ongoing arrangements, Consumers accounted for the transaction as a financing of Palisades and not a sale. Accordingly, no gain on the sale of Palisades was recognized on the consolidated statements of income. Consumers accounted for the remaining non-real-estate assets and liabilities associated with the transaction as a sale. | ||||||||||
Consumers Energy Company [Member] | ' | ||||||||||
Schedule of Rent Expense | ' | ||||||||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
Consumers | |||||||||||
Minimum operating lease expense | |||||||||||
PPAs | $ | 6 | $ | 6 | $ | 10 | |||||
Other agreements | 21 | 23 | 22 | ||||||||
Contingent rental expense1 | 77 | 33 | 11 | ||||||||
1Contingent rental expense is related to capital and operating lease PPAs and is based on delivery of energy and capacity in excess of minimum lease payments. | |||||||||||
Schedule of Future Minimum Lease Payments for Leases | ' | ||||||||||
In Millions | |||||||||||
Capital Leases | Financing1 | Operating Leases | |||||||||
Consumers | |||||||||||
2014 | $ | 14 | $ | 19 | $ | 26 | |||||
2015 | 14 | 18 | 25 | ||||||||
2016 | 11 | 17 | 20 | ||||||||
2017 | 10 | 17 | 20 | ||||||||
2018 | 10 | 16 | 17 | ||||||||
2019 and thereafter | 31 | 46 | 56 | ||||||||
Total minimum lease payments | $ | 90 | $ | 133 | $ | 164 | |||||
Less imputed interest | 39 | 25 | |||||||||
Present value of net minimum lease payments | $ | 51 | $ | 108 | |||||||
Less current portion | 8 | 13 | |||||||||
Non-current portion | $ | 43 | $ | 95 | |||||||
1 | In 2007, Consumers sold Palisades to Entergy and entered into a 15-year PPA to buy all of the capacity and energy then capable of being produced by Palisades. Consumers has continuing involvement with Palisades through security provided to Entergy for Consumers’ PPA obligation and other arrangements. Because of these ongoing arrangements, Consumers accounted for the transaction as a financing of Palisades and not a sale. Accordingly, no gain on the sale of Palisades was recognized on the consolidated statements of income. Consumers accounted for the remaining non-real-estate assets and liabilities associated with the transaction as a sale. | ||||||||||
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Schedule of Change in Asset Retirement Obligation Table | ' | |||||||||||||||||||
In Millions | ||||||||||||||||||||
ARO | ARO | |||||||||||||||||||
Liability | Cash flow | Liability | ||||||||||||||||||
Company and ARO Description | 12/31/2012 | Incurred | Settled1 | Accretion | Revisions | 12/31/2013 | ||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||
Gas treating plant and gas wells | $ | 1 | $ | - | $ | - | $ | - | $ | - | $ | 1 | ||||||||
Consumers | 311 | -3 | -6 | 18 | 4 | 324 | ||||||||||||||
Total CMS Energy | $ | 312 | $ | -3 | $ | -6 | $ | 18 | $ | 4 | $ | 325 | ||||||||
Consumers | ||||||||||||||||||||
Coal ash disposal areas | $ | 114 | $ | - | $ | -1 | $ | 5 | $ | - | $ | 118 | ||||||||
Asbestos abatement | 43 | - | -1 | 3 | 4 | 49 | ||||||||||||||
Gas distribution cut, purge, | 151 | -3 | -4 | 10 | - | 154 | ||||||||||||||
and cap | ||||||||||||||||||||
Wind park | 3 | - | - | - | - | 3 | ||||||||||||||
Total Consumers | $ | 311 | $ | -3 | $ | -6 | $ | 18 | $ | 4 | $ | 324 | ||||||||
In Millions | ||||||||||||||||||||
ARO | ARO | |||||||||||||||||||
Liability | Cash flow | Liability | ||||||||||||||||||
Company and ARO Description | 12/31/2011 | Incurred | Settled1 | Accretion | Revisions | 12/31/2012 | ||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||
Gas treating plant and gas wells | $ | 1 | $ | - | $ | - | $ | - | $ | - | $ | 1 | ||||||||
Consumers | 253 | 7 | -8 | 19 | 40 | 311 | ||||||||||||||
Total CMS Energy | $ | 254 | $ | 7 | $ | -8 | $ | 19 | $ | 40 | $ | 312 | ||||||||
Consumers | ||||||||||||||||||||
Coal ash disposal areas | $ | 70 | $ | - | $ | -3 | $ | 7 | $ | 40 | $ | 114 | ||||||||
Wells at gas storage fields | 1 | - | -1 | - | - | - | ||||||||||||||
Asbestos abatement | 42 | - | -1 | 2 | - | 43 | ||||||||||||||
Gas distribution cut, purge, | 140 | 4 | -3 | 10 | - | 151 | ||||||||||||||
and cap | ||||||||||||||||||||
Wind park | - | 3 | - | - | - | 3 | ||||||||||||||
Total Consumers | $ | 253 | $ | 7 | $ | -8 | $ | 19 | $ | 40 | $ | 311 | ||||||||
1Cash payments of $6 million in 2013 and $8 million in 2012 were included in other current and non-current assets and liabilities as a component of net cash provided by operating activities in CMS Energy’s and Consumers’ consolidated statements of cash flow. | ||||||||||||||||||||
Consumers Energy Company [Member] | ' | |||||||||||||||||||
Schedule of Change in Asset Retirement Obligation Table | ' | |||||||||||||||||||
In Millions | ||||||||||||||||||||
ARO | ARO | |||||||||||||||||||
Liability | Cash flow | Liability | ||||||||||||||||||
Company and ARO Description | 12/31/2012 | Incurred | Settled1 | Accretion | Revisions | 12/31/2013 | ||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||
Gas treating plant and gas wells | $ | 1 | $ | - | $ | - | $ | - | $ | - | $ | 1 | ||||||||
Consumers | 311 | -3 | -6 | 18 | 4 | 324 | ||||||||||||||
Total CMS Energy | $ | 312 | $ | -3 | $ | -6 | $ | 18 | $ | 4 | $ | 325 | ||||||||
Consumers | ||||||||||||||||||||
Coal ash disposal areas | $ | 114 | $ | - | $ | -1 | $ | 5 | $ | - | $ | 118 | ||||||||
Asbestos abatement | 43 | - | -1 | 3 | 4 | 49 | ||||||||||||||
Gas distribution cut, purge, | 151 | -3 | -4 | 10 | - | 154 | ||||||||||||||
and cap | ||||||||||||||||||||
Wind park | 3 | - | - | - | - | 3 | ||||||||||||||
Total Consumers | $ | 311 | $ | -3 | $ | -6 | $ | 18 | $ | 4 | $ | 324 | ||||||||
In Millions | ||||||||||||||||||||
ARO | ARO | |||||||||||||||||||
Liability | Cash flow | Liability | ||||||||||||||||||
Company and ARO Description | 12/31/2011 | Incurred | Settled1 | Accretion | Revisions | 12/31/2012 | ||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||
Gas treating plant and gas wells | $ | 1 | $ | - | $ | - | $ | - | $ | - | $ | 1 | ||||||||
Consumers | 253 | 7 | -8 | 19 | 40 | 311 | ||||||||||||||
Total CMS Energy | $ | 254 | $ | 7 | $ | -8 | $ | 19 | $ | 40 | $ | 312 | ||||||||
Consumers | ||||||||||||||||||||
Coal ash disposal areas | $ | 70 | $ | - | $ | -3 | $ | 7 | $ | 40 | $ | 114 | ||||||||
Wells at gas storage fields | 1 | - | -1 | - | - | - | ||||||||||||||
Asbestos abatement | 42 | - | -1 | 2 | - | 43 | ||||||||||||||
Gas distribution cut, purge, | 140 | 4 | -3 | 10 | - | 151 | ||||||||||||||
and cap | ||||||||||||||||||||
Wind park | - | 3 | - | - | - | 3 | ||||||||||||||
Total Consumers | $ | 253 | $ | 7 | $ | -8 | $ | 19 | $ | 40 | $ | 311 | ||||||||
1Cash payments of $6 million in 2013 and $8 million in 2012 were included in other current and non-current assets and liabilities as a component of net cash provided by operating activities in CMS Energy’s and Consumers’ consolidated statements of cash flow. | ||||||||||||||||||||
Retirement_Benefits_Tables
Retirement Benefits (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | |||||||||||||||||||||
Schedule Of SERP Trust Assets, ABO And Contributions | ' | |||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | ||||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Trust assets | $ | 136 | $ | 128 | ||||||||||||||||||
ABO | 122 | 130 | ||||||||||||||||||||
Contributions | 16 | 13 | ||||||||||||||||||||
Consumers | ||||||||||||||||||||||
Trust assets | $ | 96 | $ | 87 | ||||||||||||||||||
ABO | 82 | 86 | ||||||||||||||||||||
Contributions | 13 | 9 | ||||||||||||||||||||
Schedule Of Effect Of One-Percentage-Point Change In Assumed Health Care Cost Trend Rates | ' | |||||||||||||||||||||
In Millions | ||||||||||||||||||||||
One Percentage | One Percentage | |||||||||||||||||||||
Years Ended December 31 | Point Increase | Point Decrease | ||||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Effect on total service and interest cost component | $ | 16 | $ | -14 | ||||||||||||||||||
Effect on PBO | 151 | -133 | ||||||||||||||||||||
Consumers | ||||||||||||||||||||||
Effect on total service and interest cost component | $ | 16 | $ | -13 | ||||||||||||||||||
Effect on PBO | 147 | -130 | ||||||||||||||||||||
Schedule Of Assumptions Used | ' | |||||||||||||||||||||
Pension and DB SERP | OPEB | |||||||||||||||||||||
31-Dec | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Weighted average for benefit | ||||||||||||||||||||||
obligations | ||||||||||||||||||||||
Discount rate1 | 4.90 | % | 4.10 | % | 4.90 | % | 5.10 | % | 4.40 | % | 5.10 | % | ||||||||||
Mortality table2 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | ||||||||||||||||
Rate of compensation increase | ||||||||||||||||||||||
Pension | 3.00 | % | 3.00 | % | 3.50 | % | ||||||||||||||||
DB SERP | 5.50 | % | 5.50 | % | 5.50 | % | ||||||||||||||||
Weighted average for net periodic | ||||||||||||||||||||||
benefit cost obligations | ||||||||||||||||||||||
Discount rate1 | 4.10 | % | 4.90 | % | 5.40 | % | 4.40 | % | 5.10 | % | 5.60 | % | ||||||||||
Expected long-term rate of | 7.75 | % | 7.75 | % | 8.00 | % | 7.25 | % | 7.25 | % | 7.50 | % | ||||||||||
return on plan assets3 | ||||||||||||||||||||||
Mortality table2 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | ||||||||||||||||
Rate of compensation increase | ||||||||||||||||||||||
Pension | 3.00 | % | 3.50 | % | 4.00 | % | ||||||||||||||||
DB SERP | 5.50 | % | 5.50 | % | 5.50 | % | ||||||||||||||||
1The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ Pension Plan and OPEB Plan and the yields on high quality corporate bonds rated Aa or better. | ||||||||||||||||||||||
2The mortality assumption was based on the RP-2000 mortality tables with projection of future mortality improvements using Scale AA, which aligned with the IRS prescriptions for cash funding valuations under the Pension Protection Act of 2006. | ||||||||||||||||||||||
3CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on Pension Plan assets was 7.75 percent in 2013. The actual return on Pension Plan assets was 12.5 percent in 2013, 14.1 percent in 2012, and 4.0 percent in 2011. | ||||||||||||||||||||||
Schedule Of Net Benefit Costs | ' | |||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Pension and DB SERP | OPEB | |||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Net periodic cost (credit) | ||||||||||||||||||||||
Service cost | $ | 54 | $ | 49 | $ | 49 | $ | 29 | $ | 32 | $ | 27 | ||||||||||
Interest expense | 100 | 105 | 106 | 65 | 82 | 77 | ||||||||||||||||
Expected return on plan assets | -127 | -125 | -112 | -77 | -66 | -66 | ||||||||||||||||
Amortization of: | ||||||||||||||||||||||
Net loss | 101 | 79 | 65 | 26 | 46 | 30 | ||||||||||||||||
Prior service cost (credit) | 3 | 5 | 5 | -31 | -20 | -20 | ||||||||||||||||
Net periodic cost (credit) | $ | 131 | $ | 113 | $ | 113 | $ | 12 | $ | 74 | $ | 48 | ||||||||||
Consumers | ||||||||||||||||||||||
Net periodic cost (credit) | ||||||||||||||||||||||
Service cost | $ | 52 | $ | 48 | $ | 48 | $ | 28 | $ | 31 | $ | 26 | ||||||||||
Interest expense | 96 | 100 | 101 | 63 | 79 | 74 | ||||||||||||||||
Expected return on plan assets | -124 | -122 | -109 | -72 | -61 | -61 | ||||||||||||||||
Amortization of: | ||||||||||||||||||||||
Net loss | 98 | 77 | 63 | 27 | 47 | 31 | ||||||||||||||||
Prior service cost (credit) | 3 | 5 | 5 | -30 | -20 | -20 | ||||||||||||||||
Net periodic cost (credit) | $ | 125 | $ | 108 | $ | 108 | $ | 16 | $ | 76 | $ | 50 | ||||||||||
Schedule Of Benefit Obligations In Excess Of Fair Value Of Plan Assets | ' | |||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Pension | DB SERP | OPEB | ||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Benefit obligation at beginning of | $ | 2,354 | $ | 2,072 | $ | 144 | $ | 127 | $ | 1,729 | $ | 1,641 | ||||||||||
period | ||||||||||||||||||||||
Service cost | 53 | 48 | 1 | 1 | 29 | 32 | ||||||||||||||||
Interest cost | 94 | 99 | 6 | 6 | 65 | 82 | ||||||||||||||||
Plan amendments | - | - | - | - | -208 | 2 | - | |||||||||||||||
Actuarial (gain) loss | -308 | 249 | -12 | 16 | -440 | 25 | ||||||||||||||||
Benefits paid | -120 | -114 | -7 | -6 | -52 | 3 | -51 | 3 | ||||||||||||||
Benefit obligation at end of period | $ | 2,073 | $ | 2,354 | $ | 132 | $ | 144 | $ | 1,123 | $ | 1,729 | 4 | |||||||||
Plan assets at fair value at | $ | 1,727 | $ | 1,626 | $ | - | $ | - | $ | 1,047 | $ | 924 | ||||||||||
beginning of period | ||||||||||||||||||||||
Actual return on plan assets | 206 | 215 | - | - | 150 | 108 | ||||||||||||||||
Company contribution | 150 | - | 7 | 6 | 72 | 65 | ||||||||||||||||
Actual benefits paid | -119 | -114 | -7 | -6 | -51 | 3 | -50 | 3 | ||||||||||||||
Plan assets at fair value at end of | $ | 1,964 | $ | 1,727 | $ | - | $ | - | $ | 1,218 | $ | 1,047 | ||||||||||
period | ||||||||||||||||||||||
Funded status | $ | -109 | 1 | $ | -627 | 1 | $ | -132 | $ | -144 | $ | 95 | $ | -682 | ||||||||
Consumers | ||||||||||||||||||||||
Benefit obligation at beginning of | $ | 100 | $ | 85 | $ | 1,670 | $ | 1,585 | ||||||||||||||
period | ||||||||||||||||||||||
Service cost | 1 | 1 | 28 | 31 | ||||||||||||||||||
Interest cost | 4 | 4 | 63 | 79 | ||||||||||||||||||
Plan amendments | - | - | -200 | 2 | - | |||||||||||||||||
Actuarial (gain) loss | -8 | 13 | -424 | 24 | ||||||||||||||||||
Benefits paid | -4 | -3 | -49 | 3 | -49 | 3 | ||||||||||||||||
Benefit obligation at end of period | $ | 93 | $ | 100 | $ | 1,088 | $ | 1,670 | 4 | |||||||||||||
Plan assets at fair value at | $ | - | $ | - | $ | 978 | $ | 861 | ||||||||||||||
beginning of period | ||||||||||||||||||||||
Actual return on plan assets | - | - | 141 | 101 | ||||||||||||||||||
Company contribution | 4 | 3 | 71 | 64 | ||||||||||||||||||
Actual benefits paid | -4 | -3 | -49 | 3 | -48 | 3 | ||||||||||||||||
Plan assets at fair value at end of | $ | - | $ | - | $ | 1,141 | $ | 978 | ||||||||||||||
period | ||||||||||||||||||||||
Funded status | $ | -93 | $ | -100 | $ | 53 | $ | -692 | ||||||||||||||
1At December 31, 2013, $86 million of the total funded status of the Pension Plan was attributable to Consumers based on an allocation of expenses. At December 31, 2012, $590 million of the total funded status of the Pension Plan was attributable to Consumers based on an allocation of expenses. | ||||||||||||||||||||||
2 Plan amendments resulted from changing the Medicare drug program provided through the OPEB Plan from an employer-sponsored prescription drug plan with a retiree drug subsidy to an EGWP to begin on January 1, 2015, and from certain benefit changes to the OPEB Plan, to begin on January 1, 2016. | ||||||||||||||||||||||
3CMS Energy received payments of $5 million in each of 2013, 2012, and 2011 for the Medicare Part D subsidies. Consumers received payments of $4 million in 2013 and $5 million in each of 2012 and 2011 for the Medicare Part D subsidies. The Medicare Part D subsidy payments are used to pay OPEB Plan benefits. | ||||||||||||||||||||||
4The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 established a prescription drug benefit under Medicare (Medicare Part D) and a federal subsidy, which is tax-exempt, to sponsors of retiree health care benefit plans that provide a benefit that is actuarially equivalent to Medicare Part D. In 2010, the Health Care Acts repealed these tax-exempt deductions for years beginning after December 31, 2012. The Medicare Part D subsidy annualized reduction in net OPEB cost for CMS Energy was $20 million for 2012 and $26 million for 2011. Consumers’ Medicare Part D subsidy annualized reduction in net OPEB costs was $19 million for 2012 and $25 million for 2011. The reduction for CMS Energy and Consumers included $7 million for 2012 and $9 million for 2011 in capitalized OPEB costs. | ||||||||||||||||||||||
Schedule Of Retirement Benefit Plan Assets (Liabilities) | ' | |||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | ||||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Current assets (liabilities) | ||||||||||||||||||||||
DB SERP | $ | -8 | $ | -7 | ||||||||||||||||||
Non-current assets (liabilities) | ||||||||||||||||||||||
DB SERP | -124 | -137 | ||||||||||||||||||||
OPEB | 95 | -682 | ||||||||||||||||||||
Pension | -109 | -627 | ||||||||||||||||||||
Consumers | ||||||||||||||||||||||
Current assets (liabilities) | ||||||||||||||||||||||
DB SERP | $ | -5 | $ | -4 | ||||||||||||||||||
Non-current assets (liabilities) | ||||||||||||||||||||||
DB SERP | -88 | -96 | ||||||||||||||||||||
OPEB | 53 | -692 | ||||||||||||||||||||
Pension | -86 | -590 | ||||||||||||||||||||
Schedule Of Accumulated And Projected Benefit Obligations | ' | |||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | ||||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Pension PBO | $ | 2,073 | $ | 2,354 | ||||||||||||||||||
Pension ABO | 1,843 | 2,054 | ||||||||||||||||||||
Fair value of Pension Plan assets | 1,964 | 1,727 | ||||||||||||||||||||
Schedule Of Net Periodic Benefit Cost Not Yet Recognized Including Regulatory Assets | ' | |||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Pension and DB SERP | OPEB | |||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Regulatory assets (liabilities) | ||||||||||||||||||||||
Net loss | $ | 625 | $ | 1,095 | $ | 184 | $ | 704 | ||||||||||||||
Prior service cost (credit) | 9 | 13 | -282 | -112 | ||||||||||||||||||
Regulatory assets (liabilities) | $ | 634 | $ | 1,108 | $ | -98 | $ | 592 | ||||||||||||||
AOCI | ||||||||||||||||||||||
Net loss (gain) | 69 | 98 | -26 | -7 | ||||||||||||||||||
Prior service cost (credit) | - | - | -10 | -3 | ||||||||||||||||||
Total amounts recognized in regulatory assets | $ | 703 | $ | 1,206 | $ | -134 | $ | 582 | ||||||||||||||
(liabilities) and AOCI | ||||||||||||||||||||||
Consumers | ||||||||||||||||||||||
Regulatory assets (liabilities) | ||||||||||||||||||||||
Net loss | $ | 625 | $ | 1,095 | $ | 184 | $ | 704 | ||||||||||||||
Prior service cost (credit) | 9 | 13 | -282 | -112 | ||||||||||||||||||
Regulatory assets (liabilities) | $ | 634 | $ | 1,108 | $ | -98 | $ | 592 | ||||||||||||||
AOCI | ||||||||||||||||||||||
Net loss | 25 | 38 | - | - | ||||||||||||||||||
Total amounts recognized in regulatory assets | $ | 659 | $ | 1,146 | $ | -98 | $ | 592 | ||||||||||||||
(liabilities) and AOCI | ||||||||||||||||||||||
Schedule Of Allocation Of Plan Assets | ' | |||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Pension Plan | ||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||
Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | |||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Asset category | ||||||||||||||||||||||
Cash and short-term | $ | 109 | $ | 109 | $ | - | $ | 33 | $ | 33 | $ | - | ||||||||||
investments | ||||||||||||||||||||||
U.S. government and | 25 | - | 25 | 26 | - | 26 | ||||||||||||||||
agencies securities | ||||||||||||||||||||||
Corporate debt | 188 | - | 188 | 277 | - | 277 | ||||||||||||||||
State and municipal bonds | 5 | - | 5 | 8 | - | 8 | ||||||||||||||||
Foreign corporate bonds | 20 | - | 20 | 27 | - | 27 | ||||||||||||||||
Mutual funds | 449 | 449 | - | 319 | 319 | - | ||||||||||||||||
Pooled funds | 1,168 | - | 1,168 | 1,037 | - | 1,037 | ||||||||||||||||
Total | $ | 1,964 | $ | 558 | $ | 1,406 | $ | 1,727 | $ | 352 | $ | 1,375 | ||||||||||
In Millions | ||||||||||||||||||||||
OPEB Plan | ||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||
Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | |||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Asset category | ||||||||||||||||||||||
Cash and short-term | $ | 44 | $ | 44 | $ | - | $ | 118 | $ | 118 | $ | - | ||||||||||
investments | ||||||||||||||||||||||
U.S. government and | 3 | - | 3 | 4 | - | 4 | ||||||||||||||||
agencies securities | ||||||||||||||||||||||
Corporate debt | 26 | - | 26 | 38 | - | 38 | ||||||||||||||||
State and municipal bonds | 1 | - | 1 | 1 | - | 1 | ||||||||||||||||
Foreign corporate bonds | 3 | - | 3 | 4 | - | 4 | ||||||||||||||||
Common stocks | 71 | 71 | - | 75 | 75 | - | ||||||||||||||||
Mutual funds | 343 | 343 | - | 300 | 300 | - | ||||||||||||||||
Pooled funds | 727 | - | 727 | 507 | - | 507 | ||||||||||||||||
Total | $ | 1,218 | $ | 458 | $ | 760 | $ | 1,047 | $ | 493 | $ | 554 | ||||||||||
Consumers | ||||||||||||||||||||||
Asset category | ||||||||||||||||||||||
Cash and short-term | $ | 41 | $ | 41 | $ | - | $ | 111 | $ | 111 | $ | - | ||||||||||
investments | ||||||||||||||||||||||
U.S. government and | 3 | - | 3 | 3 | - | 3 | ||||||||||||||||
agencies securities | ||||||||||||||||||||||
Corporate debt | 25 | - | 25 | 35 | - | 35 | ||||||||||||||||
State and municipal bonds | 1 | - | 1 | 1 | - | 1 | ||||||||||||||||
Foreign corporate bonds | 3 | - | 3 | 3 | - | 3 | ||||||||||||||||
Common stocks | 66 | 66 | - | 70 | 70 | - | ||||||||||||||||
Mutual funds | 321 | 321 | - | 281 | 281 | - | ||||||||||||||||
Pooled funds | 681 | - | 681 | 474 | - | 474 | ||||||||||||||||
Total | $ | 1,141 | $ | 428 | $ | 713 | $ | 978 | $ | 462 | $ | 516 | ||||||||||
Schedule Of Plan Contributions | ' | |||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | ||||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
OPEB1 | ||||||||||||||||||||||
VEBA trust | $ | 55 | $ | 45 | ||||||||||||||||||
401(h) component | 17 | 20 | ||||||||||||||||||||
$ | 72 | $ | 65 | |||||||||||||||||||
Pension2 | $ | 150 | $ | - | ||||||||||||||||||
Consumers | ||||||||||||||||||||||
OPEB1 | ||||||||||||||||||||||
VEBA trust | $ | 55 | $ | 45 | ||||||||||||||||||
401(h) component | 16 | 19 | ||||||||||||||||||||
$ | 71 | $ | 64 | |||||||||||||||||||
Pension2 | $ | 147 | $ | - | ||||||||||||||||||
1 | CMS Energy, including Consumers, plans to contribute $75 million to the OPEB Plan in 2014, of which Consumers plans to contribute $74 million. | |||||||||||||||||||||
2 | CMS Energy, including Consumers, does not presently plan to contribute to the Pension Plan in 2014. | |||||||||||||||||||||
Schedule Of Expected Benefit Payments | ' | |||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Pension | DB SERP | OPEB1 | ||||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
2014 | $ | 119 | $ | 8 | $ | 58 | ||||||||||||||||
2015 | 127 | 8 | 59 | |||||||||||||||||||
2016 | 134 | 8 | 61 | |||||||||||||||||||
2017 | 139 | 8 | 64 | |||||||||||||||||||
2018 | 144 | 8 | 66 | |||||||||||||||||||
2019-2023 | 760 | 48 | 364 | |||||||||||||||||||
Consumers | ||||||||||||||||||||||
2014 | $ | 116 | $ | 4 | $ | 56 | ||||||||||||||||
2015 | 124 | 5 | 57 | |||||||||||||||||||
2016 | 131 | 5 | 59 | |||||||||||||||||||
2017 | 136 | 5 | 61 | |||||||||||||||||||
2018 | 140 | 5 | 64 | |||||||||||||||||||
2019-2023 | 740 | 27 | 349 | |||||||||||||||||||
1 | CMS Energy’s and Consumers’ OPEB benefit payments are net of employee contributions and expected Medicare Part D subsidy payments for 2014. CMS Energy and Consumers plan to change the Medicare drug program provided through the OPEB Plan from an employer-sponsored drug plan to an EGWP to begin on January 1, 2015; therefore, no Medicare Part D subsidy is expected after 2014. For CMS Energy, subsidies to be received are estimated to be $6 million for 2014. For Consumers, subsidies to be received are estimated to be $5 million for 2014. | |||||||||||||||||||||
Consumers Energy Company [Member] | ' | |||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | |||||||||||||||||||||
Schedule Of SERP Trust Assets, ABO And Contributions | ' | |||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | ||||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Trust assets | $ | 136 | $ | 128 | ||||||||||||||||||
ABO | 122 | 130 | ||||||||||||||||||||
Contributions | 16 | 13 | ||||||||||||||||||||
Consumers | ||||||||||||||||||||||
Trust assets | $ | 96 | $ | 87 | ||||||||||||||||||
ABO | 82 | 86 | ||||||||||||||||||||
Contributions | 13 | 9 | ||||||||||||||||||||
Schedule Of Effect Of One-Percentage-Point Change In Assumed Health Care Cost Trend Rates | ' | |||||||||||||||||||||
In Millions | ||||||||||||||||||||||
One Percentage | One Percentage | |||||||||||||||||||||
Years Ended December 31 | Point Increase | Point Decrease | ||||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Effect on total service and interest cost component | $ | 16 | $ | -14 | ||||||||||||||||||
Effect on PBO | 151 | -133 | ||||||||||||||||||||
Consumers | ||||||||||||||||||||||
Effect on total service and interest cost component | $ | 16 | $ | -13 | ||||||||||||||||||
Effect on PBO | 147 | -130 | ||||||||||||||||||||
Schedule Of Assumptions Used | ' | |||||||||||||||||||||
Pension and DB SERP | OPEB | |||||||||||||||||||||
31-Dec | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Weighted average for benefit | ||||||||||||||||||||||
obligations | ||||||||||||||||||||||
Discount rate1 | 4.90 | % | 4.10 | % | 4.90 | % | 5.10 | % | 4.40 | % | 5.10 | % | ||||||||||
Mortality table2 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | ||||||||||||||||
Rate of compensation increase | ||||||||||||||||||||||
Pension | 3.00 | % | 3.00 | % | 3.50 | % | ||||||||||||||||
DB SERP | 5.50 | % | 5.50 | % | 5.50 | % | ||||||||||||||||
Weighted average for net periodic | ||||||||||||||||||||||
benefit cost obligations | ||||||||||||||||||||||
Discount rate1 | 4.10 | % | 4.90 | % | 5.40 | % | 4.40 | % | 5.10 | % | 5.60 | % | ||||||||||
Expected long-term rate of | 7.75 | % | 7.75 | % | 8.00 | % | 7.25 | % | 7.25 | % | 7.50 | % | ||||||||||
return on plan assets3 | ||||||||||||||||||||||
Mortality table2 | 2000 | 2000 | 2000 | 2000 | 2000 | 2000 | ||||||||||||||||
Rate of compensation increase | ||||||||||||||||||||||
Pension | 3.00 | % | 3.50 | % | 4.00 | % | ||||||||||||||||
DB SERP | 5.50 | % | 5.50 | % | 5.50 | % | ||||||||||||||||
1The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ Pension Plan and OPEB Plan and the yields on high quality corporate bonds rated Aa or better. | ||||||||||||||||||||||
2The mortality assumption was based on the RP-2000 mortality tables with projection of future mortality improvements using Scale AA, which aligned with the IRS prescriptions for cash funding valuations under the Pension Protection Act of 2006. | ||||||||||||||||||||||
3CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on Pension Plan assets was 7.75 percent in 2013. The actual return on Pension Plan assets was 12.5 percent in 2013, 14.1 percent in 2012, and 4.0 percent in 2011. | ||||||||||||||||||||||
Schedule Of Net Benefit Costs | ' | |||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Pension and DB SERP | OPEB | |||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Net periodic cost (credit) | ||||||||||||||||||||||
Service cost | $ | 54 | $ | 49 | $ | 49 | $ | 29 | $ | 32 | $ | 27 | ||||||||||
Interest expense | 100 | 105 | 106 | 65 | 82 | 77 | ||||||||||||||||
Expected return on plan assets | -127 | -125 | -112 | -77 | -66 | -66 | ||||||||||||||||
Amortization of: | ||||||||||||||||||||||
Net loss | 101 | 79 | 65 | 26 | 46 | 30 | ||||||||||||||||
Prior service cost (credit) | 3 | 5 | 5 | -31 | -20 | -20 | ||||||||||||||||
Net periodic cost (credit) | $ | 131 | $ | 113 | $ | 113 | $ | 12 | $ | 74 | $ | 48 | ||||||||||
Consumers | ||||||||||||||||||||||
Net periodic cost (credit) | ||||||||||||||||||||||
Service cost | $ | 52 | $ | 48 | $ | 48 | $ | 28 | $ | 31 | $ | 26 | ||||||||||
Interest expense | 96 | 100 | 101 | 63 | 79 | 74 | ||||||||||||||||
Expected return on plan assets | -124 | -122 | -109 | -72 | -61 | -61 | ||||||||||||||||
Amortization of: | ||||||||||||||||||||||
Net loss | 98 | 77 | 63 | 27 | 47 | 31 | ||||||||||||||||
Prior service cost (credit) | 3 | 5 | 5 | -30 | -20 | -20 | ||||||||||||||||
Net periodic cost (credit) | $ | 125 | $ | 108 | $ | 108 | $ | 16 | $ | 76 | $ | 50 | ||||||||||
Schedule Of Benefit Obligations In Excess Of Fair Value Of Plan Assets | ' | |||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Pension | DB SERP | OPEB | ||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Benefit obligation at beginning of | $ | 2,354 | $ | 2,072 | $ | 144 | $ | 127 | $ | 1,729 | $ | 1,641 | ||||||||||
period | ||||||||||||||||||||||
Service cost | 53 | 48 | 1 | 1 | 29 | 32 | ||||||||||||||||
Interest cost | 94 | 99 | 6 | 6 | 65 | 82 | ||||||||||||||||
Plan amendments | - | - | - | - | -208 | 2 | - | |||||||||||||||
Actuarial (gain) loss | -308 | 249 | -12 | 16 | -440 | 25 | ||||||||||||||||
Benefits paid | -120 | -114 | -7 | -6 | -52 | 3 | -51 | 3 | ||||||||||||||
Benefit obligation at end of period | $ | 2,073 | $ | 2,354 | $ | 132 | $ | 144 | $ | 1,123 | $ | 1,729 | 4 | |||||||||
Plan assets at fair value at | $ | 1,727 | $ | 1,626 | $ | - | $ | - | $ | 1,047 | $ | 924 | ||||||||||
beginning of period | ||||||||||||||||||||||
Actual return on plan assets | 206 | 215 | - | - | 150 | 108 | ||||||||||||||||
Company contribution | 150 | - | 7 | 6 | 72 | 65 | ||||||||||||||||
Actual benefits paid | -119 | -114 | -7 | -6 | -51 | 3 | -50 | 3 | ||||||||||||||
Plan assets at fair value at end of | $ | 1,964 | $ | 1,727 | $ | - | $ | - | $ | 1,218 | $ | 1,047 | ||||||||||
period | ||||||||||||||||||||||
Funded status | $ | -109 | 1 | $ | -627 | 1 | $ | -132 | $ | -144 | $ | 95 | $ | -682 | ||||||||
Consumers | ||||||||||||||||||||||
Benefit obligation at beginning of | $ | 100 | $ | 85 | $ | 1,670 | $ | 1,585 | ||||||||||||||
period | ||||||||||||||||||||||
Service cost | 1 | 1 | 28 | 31 | ||||||||||||||||||
Interest cost | 4 | 4 | 63 | 79 | ||||||||||||||||||
Plan amendments | - | - | -200 | 2 | - | |||||||||||||||||
Actuarial (gain) loss | -8 | 13 | -424 | 24 | ||||||||||||||||||
Benefits paid | -4 | -3 | -49 | 3 | -49 | 3 | ||||||||||||||||
Benefit obligation at end of period | $ | 93 | $ | 100 | $ | 1,088 | $ | 1,670 | 4 | |||||||||||||
Plan assets at fair value at | $ | - | $ | - | $ | 978 | $ | 861 | ||||||||||||||
beginning of period | ||||||||||||||||||||||
Actual return on plan assets | - | - | 141 | 101 | ||||||||||||||||||
Company contribution | 4 | 3 | 71 | 64 | ||||||||||||||||||
Actual benefits paid | -4 | -3 | -49 | 3 | -48 | 3 | ||||||||||||||||
Plan assets at fair value at end of | $ | - | $ | - | $ | 1,141 | $ | 978 | ||||||||||||||
period | ||||||||||||||||||||||
Funded status | $ | -93 | $ | -100 | $ | 53 | $ | -692 | ||||||||||||||
1At December 31, 2013, $86 million of the total funded status of the Pension Plan was attributable to Consumers based on an allocation of expenses. At December 31, 2012, $590 million of the total funded status of the Pension Plan was attributable to Consumers based on an allocation of expenses. | ||||||||||||||||||||||
2 Plan amendments resulted from changing the Medicare drug program provided through the OPEB Plan from an employer-sponsored prescription drug plan with a retiree drug subsidy to an EGWP to begin on January 1, 2015, and from certain benefit changes to the OPEB Plan, to begin on January 1, 2016. | ||||||||||||||||||||||
3CMS Energy received payments of $5 million in each of 2013, 2012, and 2011 for the Medicare Part D subsidies. Consumers received payments of $4 million in 2013 and $5 million in each of 2012 and 2011 for the Medicare Part D subsidies. The Medicare Part D subsidy payments are used to pay OPEB Plan benefits. | ||||||||||||||||||||||
4The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 established a prescription drug benefit under Medicare (Medicare Part D) and a federal subsidy, which is tax-exempt, to sponsors of retiree health care benefit plans that provide a benefit that is actuarially equivalent to Medicare Part D. In 2010, the Health Care Acts repealed these tax-exempt deductions for years beginning after December 31, 2012. The Medicare Part D subsidy annualized reduction in net OPEB cost for CMS Energy was $20 million for 2012 and $26 million for 2011. Consumers’ Medicare Part D subsidy annualized reduction in net OPEB costs was $19 million for 2012 and $25 million for 2011. The reduction for CMS Energy and Consumers included $7 million for 2012 and $9 million for 2011 in capitalized OPEB costs. | ||||||||||||||||||||||
Schedule Of Retirement Benefit Plan Assets (Liabilities) | ' | |||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | ||||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Current assets (liabilities) | ||||||||||||||||||||||
DB SERP | $ | -8 | $ | -7 | ||||||||||||||||||
Non-current assets (liabilities) | ||||||||||||||||||||||
DB SERP | -124 | -137 | ||||||||||||||||||||
OPEB | 95 | -682 | ||||||||||||||||||||
Pension | -109 | -627 | ||||||||||||||||||||
Consumers | ||||||||||||||||||||||
Current assets (liabilities) | ||||||||||||||||||||||
DB SERP | $ | -5 | $ | -4 | ||||||||||||||||||
Non-current assets (liabilities) | ||||||||||||||||||||||
DB SERP | -88 | -96 | ||||||||||||||||||||
OPEB | 53 | -692 | ||||||||||||||||||||
Pension | -86 | -590 | ||||||||||||||||||||
Schedule Of Net Periodic Benefit Cost Not Yet Recognized Including Regulatory Assets | ' | |||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Pension and DB SERP | OPEB | |||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Regulatory assets (liabilities) | ||||||||||||||||||||||
Net loss | $ | 625 | $ | 1,095 | $ | 184 | $ | 704 | ||||||||||||||
Prior service cost (credit) | 9 | 13 | -282 | -112 | ||||||||||||||||||
Regulatory assets (liabilities) | $ | 634 | $ | 1,108 | $ | -98 | $ | 592 | ||||||||||||||
AOCI | ||||||||||||||||||||||
Net loss (gain) | 69 | 98 | -26 | -7 | ||||||||||||||||||
Prior service cost (credit) | - | - | -10 | -3 | ||||||||||||||||||
Total amounts recognized in regulatory assets | $ | 703 | $ | 1,206 | $ | -134 | $ | 582 | ||||||||||||||
(liabilities) and AOCI | ||||||||||||||||||||||
Consumers | ||||||||||||||||||||||
Regulatory assets (liabilities) | ||||||||||||||||||||||
Net loss | $ | 625 | $ | 1,095 | $ | 184 | $ | 704 | ||||||||||||||
Prior service cost (credit) | 9 | 13 | -282 | -112 | ||||||||||||||||||
Regulatory assets (liabilities) | $ | 634 | $ | 1,108 | $ | -98 | $ | 592 | ||||||||||||||
AOCI | ||||||||||||||||||||||
Net loss | 25 | 38 | - | - | ||||||||||||||||||
Total amounts recognized in regulatory assets | $ | 659 | $ | 1,146 | $ | -98 | $ | 592 | ||||||||||||||
(liabilities) and AOCI | ||||||||||||||||||||||
Schedule Of Allocation Of Plan Assets | ' | |||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Pension Plan | ||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||
Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | |||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Asset category | ||||||||||||||||||||||
Cash and short-term | $ | 109 | $ | 109 | $ | - | $ | 33 | $ | 33 | $ | - | ||||||||||
investments | ||||||||||||||||||||||
U.S. government and | 25 | - | 25 | 26 | - | 26 | ||||||||||||||||
agencies securities | ||||||||||||||||||||||
Corporate debt | 188 | - | 188 | 277 | - | 277 | ||||||||||||||||
State and municipal bonds | 5 | - | 5 | 8 | - | 8 | ||||||||||||||||
Foreign corporate bonds | 20 | - | 20 | 27 | - | 27 | ||||||||||||||||
Mutual funds | 449 | 449 | - | 319 | 319 | - | ||||||||||||||||
Pooled funds | 1,168 | - | 1,168 | 1,037 | - | 1,037 | ||||||||||||||||
Total | $ | 1,964 | $ | 558 | $ | 1,406 | $ | 1,727 | $ | 352 | $ | 1,375 | ||||||||||
In Millions | ||||||||||||||||||||||
OPEB Plan | ||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||
Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | |||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
Asset category | ||||||||||||||||||||||
Cash and short-term | $ | 44 | $ | 44 | $ | - | $ | 118 | $ | 118 | $ | - | ||||||||||
investments | ||||||||||||||||||||||
U.S. government and | 3 | - | 3 | 4 | - | 4 | ||||||||||||||||
agencies securities | ||||||||||||||||||||||
Corporate debt | 26 | - | 26 | 38 | - | 38 | ||||||||||||||||
State and municipal bonds | 1 | - | 1 | 1 | - | 1 | ||||||||||||||||
Foreign corporate bonds | 3 | - | 3 | 4 | - | 4 | ||||||||||||||||
Common stocks | 71 | 71 | - | 75 | 75 | - | ||||||||||||||||
Mutual funds | 343 | 343 | - | 300 | 300 | - | ||||||||||||||||
Pooled funds | 727 | - | 727 | 507 | - | 507 | ||||||||||||||||
Total | $ | 1,218 | $ | 458 | $ | 760 | $ | 1,047 | $ | 493 | $ | 554 | ||||||||||
Consumers | ||||||||||||||||||||||
Asset category | ||||||||||||||||||||||
Cash and short-term | $ | 41 | $ | 41 | $ | - | $ | 111 | $ | 111 | $ | - | ||||||||||
investments | ||||||||||||||||||||||
U.S. government and | 3 | - | 3 | 3 | - | 3 | ||||||||||||||||
agencies securities | ||||||||||||||||||||||
Corporate debt | 25 | - | 25 | 35 | - | 35 | ||||||||||||||||
State and municipal bonds | 1 | - | 1 | 1 | - | 1 | ||||||||||||||||
Foreign corporate bonds | 3 | - | 3 | 3 | - | 3 | ||||||||||||||||
Common stocks | 66 | 66 | - | 70 | 70 | - | ||||||||||||||||
Mutual funds | 321 | 321 | - | 281 | 281 | - | ||||||||||||||||
Pooled funds | 681 | - | 681 | 474 | - | 474 | ||||||||||||||||
Total | $ | 1,141 | $ | 428 | $ | 713 | $ | 978 | $ | 462 | $ | 516 | ||||||||||
Schedule Of Plan Contributions | ' | |||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Years Ended December 31 | 2013 | 2012 | ||||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
OPEB1 | ||||||||||||||||||||||
VEBA trust | $ | 55 | $ | 45 | ||||||||||||||||||
401(h) component | 17 | 20 | ||||||||||||||||||||
$ | 72 | $ | 65 | |||||||||||||||||||
Pension2 | $ | 150 | $ | - | ||||||||||||||||||
Consumers | ||||||||||||||||||||||
OPEB1 | ||||||||||||||||||||||
VEBA trust | $ | 55 | $ | 45 | ||||||||||||||||||
401(h) component | 16 | 19 | ||||||||||||||||||||
$ | 71 | $ | 64 | |||||||||||||||||||
Pension2 | $ | 147 | $ | - | ||||||||||||||||||
1 | CMS Energy, including Consumers, plans to contribute $75 million to the OPEB Plan in 2014, of which Consumers plans to contribute $74 million. | |||||||||||||||||||||
2 | CMS Energy, including Consumers, does not presently plan to contribute to the Pension Plan in 2014. | |||||||||||||||||||||
Schedule Of Expected Benefit Payments | ' | |||||||||||||||||||||
In Millions | ||||||||||||||||||||||
Pension | DB SERP | OPEB1 | ||||||||||||||||||||
CMS Energy, including Consumers | ||||||||||||||||||||||
2014 | $ | 119 | $ | 8 | $ | 58 | ||||||||||||||||
2015 | 127 | 8 | 59 | |||||||||||||||||||
2016 | 134 | 8 | 61 | |||||||||||||||||||
2017 | 139 | 8 | 64 | |||||||||||||||||||
2018 | 144 | 8 | 66 | |||||||||||||||||||
2019-2023 | 760 | 48 | 364 | |||||||||||||||||||
Consumers | ||||||||||||||||||||||
2014 | $ | 116 | $ | 4 | $ | 56 | ||||||||||||||||
2015 | 124 | 5 | 57 | |||||||||||||||||||
2016 | 131 | 5 | 59 | |||||||||||||||||||
2017 | 136 | 5 | 61 | |||||||||||||||||||
2018 | 140 | 5 | 64 | |||||||||||||||||||
2019-2023 | 740 | 27 | 349 | |||||||||||||||||||
1 | CMS Energy’s and Consumers’ OPEB benefit payments are net of employee contributions and expected Medicare Part D subsidy payments for 2014. CMS Energy and Consumers plan to change the Medicare drug program provided through the OPEB Plan from an employer-sponsored drug plan to an EGWP to begin on January 1, 2015; therefore, no Medicare Part D subsidy is expected after 2014. For CMS Energy, subsidies to be received are estimated to be $6 million for 2014. For Consumers, subsidies to be received are estimated to be $5 million for 2014. | |||||||||||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | ' | ||||||||||
Year Ended December 31, 2013 | Number of Shares | Weighted-Average Grant Date | |||||||||
Fair Value per Share | |||||||||||
CMS Energy, including Consumers | |||||||||||
Nonvested at beginning of period | 1,654,776 | $ | 19.15 | ||||||||
Granted1 | 920,587 | 16.65 | |||||||||
Vested | -927,164 | 10.85 | |||||||||
Forfeited | -22,343 | 22.33 | |||||||||
Nonvested at end of period | 1,625,856 | $ | 22.42 | ||||||||
Consumers | |||||||||||
Nonvested at beginning of period | 1,547,123 | $ | 19.22 | ||||||||
Granted1 | 879,150 | 16.76 | |||||||||
Vested | -841,728 | 10.84 | |||||||||
Forfeited | -22,343 | 22.33 | |||||||||
Nonvested at end of period | 1,562,202 | $ | 22.31 | ||||||||
1 | During 2013, CMS Energy granted 326,518 TSR shares, 271,250 time-lapse shares, 45,486 shares from dividends paid on TSR shares, and 277,333 shares granted as a result of the outcome of the TSR awards’ market condition. During 2013, Consumers granted 310,454 TSR shares, 264,283 time-lapse shares, 43,450 shares from dividends paid on TSR shares, and 260,963 shares granted as a result of the outcome of the TSR awards’ market condition. | ||||||||||
Schedule of Share-based Payment Award, Restricted Stock, Valuation Assumptions | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
Expected volatility | 17.4 | % | 20.3 | % | 29.6 | % | |||||
Expected dividend yield | 3.9 | 4.1 | 4.6 | ||||||||
Risk-free rate | 0.4 | 0.3 | 1.0 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | ' | ||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
CMS Energy, including Consumers | |||||||||||
Weighted-average grant-date fair value per share | |||||||||||
Restricted stock granted | $ | 16.65 | $ | 12.32 | $ | 13.89 | |||||
Consumers | |||||||||||
Weighted-average grant-date fair value per share | |||||||||||
Restricted stock granted | $ | 16.76 | $ | 12.28 | $ | 14.17 | |||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | ' | ||||||||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
CMS Energy, including Consumers | |||||||||||
Fair value of shares that vested during the year | $ | 10 | $ | 10 | $ | 7 | |||||
Compensation expense recognized | 14 | 12 | 10 | ||||||||
Income tax benefit recognized | 5 | 5 | 4 | ||||||||
Consumers | |||||||||||
Fair value of shares that vested during the year | $ | 9 | $ | 8 | $ | 7 | |||||
Compensation expense recognized | 14 | 11 | 10 | ||||||||
Income tax benefit recognized | 5 | 4 | 4 | ||||||||
Consumers Energy Company [Member] | ' | ||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | ' | ||||||||||
Year Ended December 31, 2013 | Number of Shares | Weighted-Average Grant Date | |||||||||
Fair Value per Share | |||||||||||
CMS Energy, including Consumers | |||||||||||
Nonvested at beginning of period | 1,654,776 | $ | 19.15 | ||||||||
Granted1 | 920,587 | 16.65 | |||||||||
Vested | -927,164 | 10.85 | |||||||||
Forfeited | -22,343 | 22.33 | |||||||||
Nonvested at end of period | 1,625,856 | $ | 22.42 | ||||||||
Consumers | |||||||||||
Nonvested at beginning of period | 1,547,123 | $ | 19.22 | ||||||||
Granted1 | 879,150 | 16.76 | |||||||||
Vested | -841,728 | 10.84 | |||||||||
Forfeited | -22,343 | 22.33 | |||||||||
Nonvested at end of period | 1,562,202 | $ | 22.31 | ||||||||
1 | During 2013, CMS Energy granted 326,518 TSR shares, 271,250 time-lapse shares, 45,486 shares from dividends paid on TSR shares, and 277,333 shares granted as a result of the outcome of the TSR awards’ market condition. During 2013, Consumers granted 310,454 TSR shares, 264,283 time-lapse shares, 43,450 shares from dividends paid on TSR shares, and 260,963 shares granted as a result of the outcome of the TSR awards’ market condition. | ||||||||||
Schedule of Share-based Payment Award, Restricted Stock, Valuation Assumptions | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
Expected volatility | 17.4 | % | 20.3 | % | 29.6 | % | |||||
Expected dividend yield | 3.9 | 4.1 | 4.6 | ||||||||
Risk-free rate | 0.4 | 0.3 | 1.0 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | ' | ||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
CMS Energy, including Consumers | |||||||||||
Weighted-average grant-date fair value per share | |||||||||||
Restricted stock granted | $ | 16.65 | $ | 12.32 | $ | 13.89 | |||||
Consumers | |||||||||||
Weighted-average grant-date fair value per share | |||||||||||
Restricted stock granted | $ | 16.76 | $ | 12.28 | $ | 14.17 | |||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | ' | ||||||||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
CMS Energy, including Consumers | |||||||||||
Fair value of shares that vested during the year | $ | 10 | $ | 10 | $ | 7 | |||||
Compensation expense recognized | 14 | 12 | 10 | ||||||||
Income tax benefit recognized | 5 | 5 | 4 | ||||||||
Consumers | |||||||||||
Fair value of shares that vested during the year | $ | 9 | $ | 8 | $ | 7 | |||||
Compensation expense recognized | 14 | 11 | 10 | ||||||||
Income tax benefit recognized | 5 | 4 | 4 | ||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Schedule Of Effective Income Tax Rate Reconciliation | ' | |||||||||||||
In Millions, Except Tax Rate | ||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||||
CMS Energy, including Consumers | ||||||||||||||
Income from continuing operations before income taxes | $ | 754 | $ | 620 | $ | 604 | ||||||||
Income tax expense at statutory rate | 264 | 217 | 211 | |||||||||||
Increase (decrease) in income taxes from: | ||||||||||||||
MCIT law change, net of federal effect1 | - | - | -32 | |||||||||||
State and local income taxes, net of federal effect | 37 | 27 | 21 | |||||||||||
Other, net | 1 | 1 | -9 | |||||||||||
Income tax expense | $ | 302 | $ | 245 | $ | 191 | ||||||||
Effective tax rate | 40.1 | % | 39.5 | % | 31.6 | % | ||||||||
Consumers | ||||||||||||||
Income from continuing operations before income taxes | $ | 880 | $ | 736 | $ | 734 | ||||||||
Income tax expense at statutory rate | 308 | 258 | 257 | |||||||||||
Increase (decrease) in income taxes from: | ||||||||||||||
State and local income taxes, net of federal effect | 43 | 36 | 24 | |||||||||||
Other, net | -5 | 3 | -14 | |||||||||||
Income tax expense | $ | 346 | $ | 297 | $ | 267 | ||||||||
Effective tax rate | 39.3 | % | 40.4 | % | 36.4 | % | ||||||||
1 | For the year ended December 31, 2011, CMS Energy and Consumers remeasured their Michigan deferred income tax assets and liabilities due to the enactment in May 2011 of the MCIT, which became effective January 1, 2012. The MCIT, a simplified six percent corporate income tax, replaced the MBT, a complex multi-part tax. CMS Energy recognized a one-time non-cash deferred tax benefit of $32 million as a result of this remeasurement. Consumers recognized a $128 million regulatory asset (not including the effects of income tax gross-ups) related to this change in tax law. | |||||||||||||
Significant Components Of Income Tax Expense Table | ' | |||||||||||||
In Millions | ||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||||
CMS Energy, including Consumers | ||||||||||||||
Current income taxes | ||||||||||||||
Federal | $ | - | $ | 1 | $ | 2 | ||||||||
State and local | 34 | 21 | 24 | |||||||||||
$ | 34 | $ | 22 | $ | 26 | |||||||||
Deferred income taxes | ||||||||||||||
Federal | $ | 248 | $ | 205 | $ | 207 | ||||||||
State and local | 23 | 21 | 11 | |||||||||||
MCIT law change | - | - | -49 | |||||||||||
$ | 271 | $ | 226 | $ | 169 | |||||||||
Deferred income tax credit | -3 | -3 | -4 | |||||||||||
Tax expense | $ | 302 | $ | 245 | $ | 191 | ||||||||
Consumers | ||||||||||||||
Current income taxes | ||||||||||||||
Federal | $ | 137 | $ | 110 | $ | 74 | ||||||||
State and local | 45 | 37 | 32 | |||||||||||
$ | 182 | $ | 147 | $ | 106 | |||||||||
Deferred income taxes | ||||||||||||||
Federal | $ | 147 | $ | 134 | $ | 159 | ||||||||
State and local | 20 | 19 | 6 | |||||||||||
$ | 167 | $ | 153 | $ | 165 | |||||||||
Deferred income tax credit | -3 | -3 | -4 | |||||||||||
Tax expense | $ | 346 | $ | 297 | $ | 267 | ||||||||
Principal Components Of Deferred Income Tax Assets Table | ' | |||||||||||||
In Millions | ||||||||||||||
December 31 | 2013 | 2012 | ||||||||||||
CMS Energy, including Consumers | ||||||||||||||
Employee benefits | $ | -99 | $ | 3 | ||||||||||
Gas inventory | -130 | -147 | ||||||||||||
Plant, property, and equipment | -1,856 | -1,783 | ||||||||||||
Net regulatory tax liability | 86 | 131 | ||||||||||||
Reserves and accruals | 57 | 71 | ||||||||||||
Securitized costs | -190 | -73 | ||||||||||||
Tax loss and credit carryforwards | 629 | 733 | ||||||||||||
Other | 15 | -15 | ||||||||||||
$ | -1,488 | $ | -1,080 | |||||||||||
Less valuation allowance | -2 | -3 | ||||||||||||
Total net deferred income tax liabilities | $ | -1,490 | $ | -1,083 | ||||||||||
Deferred tax assets, net of valuation reserves | $ | 785 | $ | 935 | ||||||||||
Deferred tax liabilities | -2,275 | -2,018 | ||||||||||||
Total net deferred income tax liabilities | $ | -1,490 | $ | -1,083 | ||||||||||
Consumers | ||||||||||||||
Employee benefits | $ | -119 | $ | -36 | ||||||||||
Gas inventory | -130 | -147 | ||||||||||||
Plant, property, and equipment | -1,911 | -1,848 | ||||||||||||
Net regulatory tax liability | 86 | 131 | ||||||||||||
Reserves and accruals | 31 | 41 | ||||||||||||
Securitized costs | -190 | -73 | ||||||||||||
Tax loss and credit carryforwards | 48 | 61 | ||||||||||||
Other | 16 | -13 | ||||||||||||
$ | -2,169 | $ | -1,884 | |||||||||||
Less valuation allowance | -1 | -1 | ||||||||||||
Total net deferred income tax liabilities | $ | -2,170 | $ | -1,885 | ||||||||||
Deferred tax assets, net of valuation reserves | $ | 180 | $ | 232 | ||||||||||
Deferred tax liabilities | -2,350 | -2,117 | ||||||||||||
Total net deferred income tax liabilities | $ | -2,170 | $ | -1,885 | ||||||||||
Loss And Credit Carryforwards Table | ' | |||||||||||||
In Millions | ||||||||||||||
Gross Amount | Tax Attribute | Expiration | ||||||||||||
CMS Energy, including Consumers | ||||||||||||||
Federal net operating loss carryforward | $ | 900 | $ | 315 | 2026 – 2031 | |||||||||
Local net operating loss carryforwards | 420 | 4 | 2023 – 2031 | |||||||||||
State capital loss carryforward | 18 | 1 | 2014 | |||||||||||
Alternative minimum tax credits | 270 | 270 | No expiration | |||||||||||
Charitable contribution carryover | 5 | 2 | 2016 | |||||||||||
General business credits | 37 | 37 | 2018 – 2033 | |||||||||||
Total tax attributes | $ | 629 | ||||||||||||
Consumers | ||||||||||||||
Federal net operating loss carryforward | $ | 129 | $ | 45 | 2026 – 2031 | |||||||||
State capital loss carryforward | 10 | 1 | 2014 | |||||||||||
Charitable contribution carryover | 5 | 2 | 2016 | |||||||||||
Total tax attributes | $ | 48 | ||||||||||||
Reconciliation Of Beginning And Ending Uncertain Tax Benefits Table | ' | |||||||||||||
In Millions | ||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||||
CMS Energy, including Consumers | ||||||||||||||
Balance at beginning of period | $ | 1 | $ | 4 | $ | 4 | ||||||||
Reductions for prior-year tax positions | - | -4 | -1 | |||||||||||
Additions for prior-year tax positions | 3 | 1 | 1 | |||||||||||
Balance at end of period | $ | 4 | $ | 1 | $ | 4 | ||||||||
Consumers | ||||||||||||||
Balance at beginning of period | $ | 1 | $ | 4 | $ | 3 | ||||||||
Reductions for prior-year tax positions | - | -4 | - | |||||||||||
Additions for prior-year tax positions | 3 | 1 | 1 | |||||||||||
Balance at end of period | $ | 4 | $ | 1 | $ | 4 | ||||||||
Consumers Energy Company [Member] | ' | |||||||||||||
Schedule Of Effective Income Tax Rate Reconciliation | ' | |||||||||||||
In Millions, Except Tax Rate | ||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||||
CMS Energy, including Consumers | ||||||||||||||
Income from continuing operations before income taxes | $ | 754 | $ | 620 | $ | 604 | ||||||||
Income tax expense at statutory rate | 264 | 217 | 211 | |||||||||||
Increase (decrease) in income taxes from: | ||||||||||||||
MCIT law change, net of federal effect1 | - | - | -32 | |||||||||||
State and local income taxes, net of federal effect | 37 | 27 | 21 | |||||||||||
Other, net | 1 | 1 | -9 | |||||||||||
Income tax expense | $ | 302 | $ | 245 | $ | 191 | ||||||||
Effective tax rate | 40.1 | % | 39.5 | % | 31.6 | % | ||||||||
Consumers | ||||||||||||||
Income from continuing operations before income taxes | $ | 880 | $ | 736 | $ | 734 | ||||||||
Income tax expense at statutory rate | 308 | 258 | 257 | |||||||||||
Increase (decrease) in income taxes from: | ||||||||||||||
State and local income taxes, net of federal effect | 43 | 36 | 24 | |||||||||||
Other, net | -5 | 3 | -14 | |||||||||||
Income tax expense | $ | 346 | $ | 297 | $ | 267 | ||||||||
Effective tax rate | 39.3 | % | 40.4 | % | 36.4 | % | ||||||||
1 | For the year ended December 31, 2011, CMS Energy and Consumers remeasured their Michigan deferred income tax assets and liabilities due to the enactment in May 2011 of the MCIT, which became effective January 1, 2012. The MCIT, a simplified six percent corporate income tax, replaced the MBT, a complex multi-part tax. CMS Energy recognized a one-time non-cash deferred tax benefit of $32 million as a result of this remeasurement. Consumers recognized a $128 million regulatory asset (not including the effects of income tax gross-ups) related to this change in tax law. | |||||||||||||
Significant Components Of Income Tax Expense Table | ' | |||||||||||||
In Millions | ||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||||
CMS Energy, including Consumers | ||||||||||||||
Current income taxes | ||||||||||||||
Federal | $ | - | $ | 1 | $ | 2 | ||||||||
State and local | 34 | 21 | 24 | |||||||||||
$ | 34 | $ | 22 | $ | 26 | |||||||||
Deferred income taxes | ||||||||||||||
Federal | $ | 248 | $ | 205 | $ | 207 | ||||||||
State and local | 23 | 21 | 11 | |||||||||||
MCIT law change | - | - | -49 | |||||||||||
$ | 271 | $ | 226 | $ | 169 | |||||||||
Deferred income tax credit | -3 | -3 | -4 | |||||||||||
Tax expense | $ | 302 | $ | 245 | $ | 191 | ||||||||
Consumers | ||||||||||||||
Current income taxes | ||||||||||||||
Federal | $ | 137 | $ | 110 | $ | 74 | ||||||||
State and local | 45 | 37 | 32 | |||||||||||
$ | 182 | $ | 147 | $ | 106 | |||||||||
Deferred income taxes | ||||||||||||||
Federal | $ | 147 | $ | 134 | $ | 159 | ||||||||
State and local | 20 | 19 | 6 | |||||||||||
$ | 167 | $ | 153 | $ | 165 | |||||||||
Deferred income tax credit | -3 | -3 | -4 | |||||||||||
Tax expense | $ | 346 | $ | 297 | $ | 267 | ||||||||
Principal Components Of Deferred Income Tax Assets Table | ' | |||||||||||||
In Millions | ||||||||||||||
December 31 | 2013 | 2012 | ||||||||||||
CMS Energy, including Consumers | ||||||||||||||
Employee benefits | $ | -99 | $ | 3 | ||||||||||
Gas inventory | -130 | -147 | ||||||||||||
Plant, property, and equipment | -1,856 | -1,783 | ||||||||||||
Net regulatory tax liability | 86 | 131 | ||||||||||||
Reserves and accruals | 57 | 71 | ||||||||||||
Securitized costs | -190 | -73 | ||||||||||||
Tax loss and credit carryforwards | 629 | 733 | ||||||||||||
Other | 15 | -15 | ||||||||||||
$ | -1,488 | $ | -1,080 | |||||||||||
Less valuation allowance | -2 | -3 | ||||||||||||
Total net deferred income tax liabilities | $ | -1,490 | $ | -1,083 | ||||||||||
Deferred tax assets, net of valuation reserves | $ | 785 | $ | 935 | ||||||||||
Deferred tax liabilities | -2,275 | -2,018 | ||||||||||||
Total net deferred income tax liabilities | $ | -1,490 | $ | -1,083 | ||||||||||
Consumers | ||||||||||||||
Employee benefits | $ | -119 | $ | -36 | ||||||||||
Gas inventory | -130 | -147 | ||||||||||||
Plant, property, and equipment | -1,911 | -1,848 | ||||||||||||
Net regulatory tax liability | 86 | 131 | ||||||||||||
Reserves and accruals | 31 | 41 | ||||||||||||
Securitized costs | -190 | -73 | ||||||||||||
Tax loss and credit carryforwards | 48 | 61 | ||||||||||||
Other | 16 | -13 | ||||||||||||
$ | -2,169 | $ | -1,884 | |||||||||||
Less valuation allowance | -1 | -1 | ||||||||||||
Total net deferred income tax liabilities | $ | -2,170 | $ | -1,885 | ||||||||||
Deferred tax assets, net of valuation reserves | $ | 180 | $ | 232 | ||||||||||
Deferred tax liabilities | -2,350 | -2,117 | ||||||||||||
Total net deferred income tax liabilities | $ | -2,170 | $ | -1,885 | ||||||||||
Loss And Credit Carryforwards Table | ' | |||||||||||||
In Millions | ||||||||||||||
Gross Amount | Tax Attribute | Expiration | ||||||||||||
CMS Energy, including Consumers | ||||||||||||||
Federal net operating loss carryforward | $ | 900 | $ | 315 | 2026 – 2031 | |||||||||
Local net operating loss carryforwards | 420 | 4 | 2023 – 2031 | |||||||||||
State capital loss carryforward | 18 | 1 | 2014 | |||||||||||
Alternative minimum tax credits | 270 | 270 | No expiration | |||||||||||
Charitable contribution carryover | 5 | 2 | 2016 | |||||||||||
General business credits | 37 | 37 | 2018 – 2033 | |||||||||||
Total tax attributes | $ | 629 | ||||||||||||
Consumers | ||||||||||||||
Federal net operating loss carryforward | $ | 129 | $ | 45 | 2026 – 2031 | |||||||||
State capital loss carryforward | 10 | 1 | 2014 | |||||||||||
Charitable contribution carryover | 5 | 2 | 2016 | |||||||||||
Total tax attributes | $ | 48 | ||||||||||||
Reconciliation Of Beginning And Ending Uncertain Tax Benefits Table | ' | |||||||||||||
In Millions | ||||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | |||||||||||
CMS Energy, including Consumers | ||||||||||||||
Balance at beginning of period | $ | 1 | $ | 4 | $ | 4 | ||||||||
Reductions for prior-year tax positions | - | -4 | -1 | |||||||||||
Additions for prior-year tax positions | 3 | 1 | 1 | |||||||||||
Balance at end of period | $ | 4 | $ | 1 | $ | 4 | ||||||||
Consumers | ||||||||||||||
Balance at beginning of period | $ | 1 | $ | 4 | $ | 3 | ||||||||
Reductions for prior-year tax positions | - | -4 | - | |||||||||||
Additions for prior-year tax positions | 3 | 1 | 1 | |||||||||||
Balance at end of period | $ | 4 | $ | 1 | $ | 4 | ||||||||
Earnings_Per_Share_CMS_Energy_
Earnings Per Share - CMS Energy (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Earnings Per Share - CMS Energy [Abstract] | ' | ||||||||||
Basic And Diluted EPS Computations | ' | ||||||||||
In Millions, Except Per Share Amounts | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
Income available to common stockholders | |||||||||||
Income from continuing operations | $ | 454 | $ | 377 | $ | 415 | |||||
Less income attributable to noncontrolling interests | 2 | 2 | 2 | ||||||||
Income from continuing operations available to | $ | 452 | $ | 375 | $ | 413 | |||||
common stockholders – basic and diluted | |||||||||||
Average common shares outstanding | |||||||||||
Weighted-average shares – basic | 264.5 | 260.7 | 250.8 | ||||||||
Add dilutive contingently convertible securities | 6.4 | 6.8 | 12.2 | ||||||||
Add dilutive non-vested stock awards and options | 1.0 | 1.1 | 0.4 | ||||||||
Weighted-average shares – diluted | 271.9 | 268.6 | 263.4 | ||||||||
Income from continuing operations per average | |||||||||||
common share available to common stockholders | |||||||||||
Basic | $ | 1.71 | $ | 1.43 | $ | 1.65 | |||||
Diluted | 1.66 | 1.39 | 1.57 | ||||||||
Other_Income_and_Other_Expense1
Other Income and Other Expense (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Other Income (Table) | ' | ||||||||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
Other income | |||||||||||
CMS Energy, including Consumers | |||||||||||
Regulatory return on capital expenditures | $ | - | $ | 1 | $ | - | |||||
Return on stranded costs | - | 1 | 3 | ||||||||
Fee income | 7 | 7 | 8 | ||||||||
All other | 3 | 2 | 5 | ||||||||
Total other income | $ | 10 | $ | 11 | $ | 16 | |||||
Consumers | |||||||||||
Regulatory return on capital expenditures | $ | - | $ | 1 | $ | - | |||||
Gain on CMS Energy common stock | 4 | 5 | 4 | ||||||||
Return on stranded costs | - | 1 | 3 | ||||||||
Fee income | 7 | 7 | 8 | ||||||||
All other | 3 | 2 | 4 | ||||||||
Total other income | $ | 14 | $ | 16 | $ | 19 | |||||
Other Expense (Table) | ' | ||||||||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
Other expense | |||||||||||
CMS Energy, including Consumers | |||||||||||
Loss on reacquired and extinguished debt | $ | -4 | $ | - | $ | -1 | |||||
Donations | -4 | -11 | -11 | ||||||||
Civic and political expenditures | -5 | -17 | -3 | ||||||||
All other | -7 | -5 | -7 | ||||||||
Total other expense | $ | -20 | $ | -33 | $ | -22 | |||||
Consumers | |||||||||||
Donations | $ | -4 | $ | -11 | $ | -11 | |||||
Civic and political expenditures | -5 | -17 | -3 | ||||||||
All other | -7 | -5 | -6 | ||||||||
Total other expense | $ | -16 | $ | -33 | $ | -20 | |||||
Consumers Energy Company [Member] | ' | ||||||||||
Other Income (Table) | ' | ||||||||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
Other income | |||||||||||
CMS Energy, including Consumers | |||||||||||
Regulatory return on capital expenditures | $ | - | $ | 1 | $ | - | |||||
Return on stranded costs | - | 1 | 3 | ||||||||
Fee income | 7 | 7 | 8 | ||||||||
All other | 3 | 2 | 5 | ||||||||
Total other income | $ | 10 | $ | 11 | $ | 16 | |||||
Consumers | |||||||||||
Regulatory return on capital expenditures | $ | - | $ | 1 | $ | - | |||||
Gain on CMS Energy common stock | 4 | 5 | 4 | ||||||||
Return on stranded costs | - | 1 | 3 | ||||||||
Fee income | 7 | 7 | 8 | ||||||||
All other | 3 | 2 | 4 | ||||||||
Total other income | $ | 14 | $ | 16 | $ | 19 | |||||
Other Expense (Table) | ' | ||||||||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
Other expense | |||||||||||
CMS Energy, including Consumers | |||||||||||
Loss on reacquired and extinguished debt | $ | -4 | $ | - | $ | -1 | |||||
Donations | -4 | -11 | -11 | ||||||||
Civic and political expenditures | -5 | -17 | -3 | ||||||||
All other | -7 | -5 | -7 | ||||||||
Total other expense | $ | -20 | $ | -33 | $ | -22 | |||||
Consumers | |||||||||||
Donations | $ | -4 | $ | -11 | $ | -11 | |||||
Civic and political expenditures | -5 | -17 | -3 | ||||||||
All other | -7 | -5 | -6 | ||||||||
Total other expense | $ | -16 | $ | -33 | $ | -20 | |||||
Reportable_Segments_Tables
Reportable Segments (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Reconciliation Of Segments To Consolidated | ' | ||||||||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
CMS Energy, including Consumers | |||||||||||
Operating revenue | |||||||||||
Electric utility | $ | 4,173 | $ | 4,031 | $ | 3,913 | |||||
Gas utility | 2,148 | 1,982 | 2,340 | ||||||||
Enterprises | 181 | 183 | 204 | ||||||||
Other | 64 | 57 | 46 | ||||||||
Total operating revenue – CMS Energy | $ | 6,566 | $ | 6,253 | $ | 6,503 | |||||
Consumers | |||||||||||
Operating revenue | |||||||||||
Electric utility | $ | 4,173 | $ | 4,031 | $ | 3,913 | |||||
Gas utility | 2,148 | 1,982 | 2,340 | ||||||||
Total operating revenue – Consumers | $ | 6,321 | $ | 6,013 | $ | 6,253 | |||||
CMS Energy, including Consumers | |||||||||||
Depreciation and amortization | |||||||||||
Electric utility | $ | 484 | $ | 459 | $ | 412 | |||||
Gas utility | 138 | 133 | 130 | ||||||||
Enterprises | 3 | 4 | 3 | ||||||||
Other | 3 | 2 | 1 | ||||||||
Total depreciation and amortization – CMS Energy | $ | 628 | $ | 598 | $ | 546 | |||||
Consumers | |||||||||||
Depreciation and amortization | |||||||||||
Electric utility | $ | 484 | $ | 459 | $ | 412 | |||||
Gas utility | 138 | 133 | 130 | ||||||||
Total depreciation and amortization – Consumers | $ | 622 | $ | 592 | $ | 542 | |||||
CMS Energy, including Consumers | |||||||||||
Income from equity method investees1 | |||||||||||
Enterprises | $ | 13 | $ | 17 | $ | 9 | |||||
Total income from equity method investees – CMS Energy | $ | 13 | $ | 17 | $ | 9 | |||||
CMS Energy, including Consumers | |||||||||||
Interest charges | |||||||||||
Electric utility | $ | 179 | $ | 179 | $ | 192 | |||||
Gas utility | 64 | 63 | 71 | ||||||||
Other | 155 | 147 | 152 | ||||||||
Total interest charges – CMS Energy | $ | 398 | $ | 389 | $ | 415 | |||||
Consumers | |||||||||||
Interest charges | |||||||||||
Electric utility | $ | 179 | $ | 179 | $ | 192 | |||||
Gas utility | 64 | 63 | 71 | ||||||||
Other | 2 | 2 | 2 | ||||||||
Total interest charges – Consumers | $ | 245 | $ | 244 | $ | 265 | |||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
CMS Energy, including Consumers | |||||||||||
Income tax expense (benefit) | |||||||||||
Electric utility | $ | 242 | $ | 227 | $ | 190 | |||||
Gas utility | 104 | 70 | 77 | ||||||||
Enterprises | -4 | -1 | -24 | ||||||||
Other | -40 | -51 | -52 | ||||||||
Total income tax expense – CMS Energy | $ | 302 | $ | 245 | $ | 191 | |||||
Consumers | |||||||||||
Income tax expense | |||||||||||
Electric utility | $ | 242 | $ | 227 | $ | 190 | |||||
Gas utility | 104 | 70 | 77 | ||||||||
Total income tax expense – Consumers | $ | 346 | $ | 297 | $ | 267 | |||||
CMS Energy, including Consumers | |||||||||||
Net income (loss) available to common stockholders | |||||||||||
Electric utility | $ | 363 | $ | 325 | $ | 333 | |||||
Gas utility | 168 | 110 | 130 | ||||||||
Enterprises | 2 | 16 | 32 | ||||||||
Other | -81 | -69 | -80 | ||||||||
Total net income available to common stockholders – | $ | 452 | $ | 382 | $ | 415 | |||||
CMS Energy | |||||||||||
Consumers | |||||||||||
Net income available to common stockholder | |||||||||||
Electric utility | $ | 363 | $ | 325 | $ | 333 | |||||
Gas utility | 168 | 110 | 130 | ||||||||
Other | 1 | 2 | 2 | ||||||||
Total net income available to common stockholder – | $ | 532 | $ | 437 | $ | 465 | |||||
Consumers | |||||||||||
CMS Energy, including Consumers | |||||||||||
Plant, property, and equipment, gross | |||||||||||
Electric utility | $ | 11,186 | $ | 11,041 | $ | 10,400 | |||||
Gas utility | 4,843 | 4,400 | 4,206 | ||||||||
Enterprises | 115 | 113 | 109 | ||||||||
Other | 40 | 38 | 36 | ||||||||
Total plant, property, and equipment – CMS Energy | $ | 16,184 | $ | 15,592 | $ | 14,751 | |||||
Consumers | |||||||||||
Plant, property, and equipment, gross | |||||||||||
Electric utility | $ | 11,186 | $ | 11,041 | $ | 10,400 | |||||
Gas utility | 4,843 | 4,400 | 4,206 | ||||||||
Other | 15 | 15 | 15 | ||||||||
Total plant, property, and equipment – Consumers | $ | 16,044 | $ | 15,456 | $ | 14,621 | |||||
CMS Energy, including Consumers | |||||||||||
Investments in equity method investees1 | |||||||||||
Enterprises | $ | 57 | $ | 55 | $ | 49 | |||||
Other | 2 | 2 | 1 | ||||||||
Total investments in equity method investees – CMS Energy | $ | 59 | $ | 57 | $ | 50 | |||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
CMS Energy, including Consumers | |||||||||||
Total assets | |||||||||||
Electric utility2 | $ | 10,487 | $ | 10,423 | $ | 9,938 | |||||
Gas utility2 | 4,784 | 5,016 | 4,956 | ||||||||
Enterprises | 332 | 181 | 242 | ||||||||
Other | 1,813 | 1,511 | 1,316 | ||||||||
Total assets – CMS Energy | $ | 17,416 | $ | 17,131 | $ | 16,452 | |||||
Consumers | |||||||||||
Total assets | |||||||||||
Electric utility2 | $ | 10,487 | $ | 10,423 | $ | 9,938 | |||||
Gas utility2 | 4,784 | 5,016 | 4,956 | ||||||||
Other | 908 | 836 | 768 | ||||||||
Total assets – Consumers | $ | 16,179 | $ | 16,275 | $ | 15,662 | |||||
CMS Energy, including Consumers | |||||||||||
Capital expenditures3 | |||||||||||
Electric utility | $ | 996 | $ | 921 | $ | 661 | |||||
Gas utility | 407 | 340 | 261 | ||||||||
Enterprises | 1 | 1 | 5 | ||||||||
Other | 4 | 4 | 1 | ||||||||
Total capital expenditures – CMS Energy | $ | 1,408 | $ | 1,266 | $ | 928 | |||||
Consumers | |||||||||||
Capital expenditures3 | |||||||||||
Electric utility | $ | 996 | $ | 921 | $ | 661 | |||||
Gas utility | 407 | 340 | 261 | ||||||||
Total capital expenditures – Consumers | $ | 1,403 | $ | 1,261 | $ | 922 | |||||
1 | Consumers had no significant equity method investments. | ||||||||||
2 | Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. | ||||||||||
3 | Amounts include purchase of capital lease additions. Amounts also include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses. | ||||||||||
Consumers Energy Company [Member] | ' | ||||||||||
Reconciliation Of Segments To Consolidated | ' | ||||||||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
CMS Energy, including Consumers | |||||||||||
Operating revenue | |||||||||||
Electric utility | $ | 4,173 | $ | 4,031 | $ | 3,913 | |||||
Gas utility | 2,148 | 1,982 | 2,340 | ||||||||
Enterprises | 181 | 183 | 204 | ||||||||
Other | 64 | 57 | 46 | ||||||||
Total operating revenue – CMS Energy | $ | 6,566 | $ | 6,253 | $ | 6,503 | |||||
Consumers | |||||||||||
Operating revenue | |||||||||||
Electric utility | $ | 4,173 | $ | 4,031 | $ | 3,913 | |||||
Gas utility | 2,148 | 1,982 | 2,340 | ||||||||
Total operating revenue – Consumers | $ | 6,321 | $ | 6,013 | $ | 6,253 | |||||
CMS Energy, including Consumers | |||||||||||
Depreciation and amortization | |||||||||||
Electric utility | $ | 484 | $ | 459 | $ | 412 | |||||
Gas utility | 138 | 133 | 130 | ||||||||
Enterprises | 3 | 4 | 3 | ||||||||
Other | 3 | 2 | 1 | ||||||||
Total depreciation and amortization – CMS Energy | $ | 628 | $ | 598 | $ | 546 | |||||
Consumers | |||||||||||
Depreciation and amortization | |||||||||||
Electric utility | $ | 484 | $ | 459 | $ | 412 | |||||
Gas utility | 138 | 133 | 130 | ||||||||
Total depreciation and amortization – Consumers | $ | 622 | $ | 592 | $ | 542 | |||||
CMS Energy, including Consumers | |||||||||||
Income from equity method investees1 | |||||||||||
Enterprises | $ | 13 | $ | 17 | $ | 9 | |||||
Total income from equity method investees – CMS Energy | $ | 13 | $ | 17 | $ | 9 | |||||
CMS Energy, including Consumers | |||||||||||
Interest charges | |||||||||||
Electric utility | $ | 179 | $ | 179 | $ | 192 | |||||
Gas utility | 64 | 63 | 71 | ||||||||
Other | 155 | 147 | 152 | ||||||||
Total interest charges – CMS Energy | $ | 398 | $ | 389 | $ | 415 | |||||
Consumers | |||||||||||
Interest charges | |||||||||||
Electric utility | $ | 179 | $ | 179 | $ | 192 | |||||
Gas utility | 64 | 63 | 71 | ||||||||
Other | 2 | 2 | 2 | ||||||||
Total interest charges – Consumers | $ | 245 | $ | 244 | $ | 265 | |||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
CMS Energy, including Consumers | |||||||||||
Income tax expense (benefit) | |||||||||||
Electric utility | $ | 242 | $ | 227 | $ | 190 | |||||
Gas utility | 104 | 70 | 77 | ||||||||
Enterprises | -4 | -1 | -24 | ||||||||
Other | -40 | -51 | -52 | ||||||||
Total income tax expense – CMS Energy | $ | 302 | $ | 245 | $ | 191 | |||||
Consumers | |||||||||||
Income tax expense | |||||||||||
Electric utility | $ | 242 | $ | 227 | $ | 190 | |||||
Gas utility | 104 | 70 | 77 | ||||||||
Total income tax expense – Consumers | $ | 346 | $ | 297 | $ | 267 | |||||
CMS Energy, including Consumers | |||||||||||
Net income (loss) available to common stockholders | |||||||||||
Electric utility | $ | 363 | $ | 325 | $ | 333 | |||||
Gas utility | 168 | 110 | 130 | ||||||||
Enterprises | 2 | 16 | 32 | ||||||||
Other | -81 | -69 | -80 | ||||||||
Total net income available to common stockholders – | $ | 452 | $ | 382 | $ | 415 | |||||
CMS Energy | |||||||||||
Consumers | |||||||||||
Net income available to common stockholder | |||||||||||
Electric utility | $ | 363 | $ | 325 | $ | 333 | |||||
Gas utility | 168 | 110 | 130 | ||||||||
Other | 1 | 2 | 2 | ||||||||
Total net income available to common stockholder – | $ | 532 | $ | 437 | $ | 465 | |||||
Consumers | |||||||||||
CMS Energy, including Consumers | |||||||||||
Plant, property, and equipment, gross | |||||||||||
Electric utility | $ | 11,186 | $ | 11,041 | $ | 10,400 | |||||
Gas utility | 4,843 | 4,400 | 4,206 | ||||||||
Enterprises | 115 | 113 | 109 | ||||||||
Other | 40 | 38 | 36 | ||||||||
Total plant, property, and equipment – CMS Energy | $ | 16,184 | $ | 15,592 | $ | 14,751 | |||||
Consumers | |||||||||||
Plant, property, and equipment, gross | |||||||||||
Electric utility | $ | 11,186 | $ | 11,041 | $ | 10,400 | |||||
Gas utility | 4,843 | 4,400 | 4,206 | ||||||||
Other | 15 | 15 | 15 | ||||||||
Total plant, property, and equipment – Consumers | $ | 16,044 | $ | 15,456 | $ | 14,621 | |||||
CMS Energy, including Consumers | |||||||||||
Investments in equity method investees1 | |||||||||||
Enterprises | $ | 57 | $ | 55 | $ | 49 | |||||
Other | 2 | 2 | 1 | ||||||||
Total investments in equity method investees – CMS Energy | $ | 59 | $ | 57 | $ | 50 | |||||
In Millions | |||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||
CMS Energy, including Consumers | |||||||||||
Total assets | |||||||||||
Electric utility2 | $ | 10,487 | $ | 10,423 | $ | 9,938 | |||||
Gas utility2 | 4,784 | 5,016 | 4,956 | ||||||||
Enterprises | 332 | 181 | 242 | ||||||||
Other | 1,813 | 1,511 | 1,316 | ||||||||
Total assets – CMS Energy | $ | 17,416 | $ | 17,131 | $ | 16,452 | |||||
Consumers | |||||||||||
Total assets | |||||||||||
Electric utility2 | $ | 10,487 | $ | 10,423 | $ | 9,938 | |||||
Gas utility2 | 4,784 | 5,016 | 4,956 | ||||||||
Other | 908 | 836 | 768 | ||||||||
Total assets – Consumers | $ | 16,179 | $ | 16,275 | $ | 15,662 | |||||
CMS Energy, including Consumers | |||||||||||
Capital expenditures3 | |||||||||||
Electric utility | $ | 996 | $ | 921 | $ | 661 | |||||
Gas utility | 407 | 340 | 261 | ||||||||
Enterprises | 1 | 1 | 5 | ||||||||
Other | 4 | 4 | 1 | ||||||||
Total capital expenditures – CMS Energy | $ | 1,408 | $ | 1,266 | $ | 928 | |||||
Consumers | |||||||||||
Capital expenditures3 | |||||||||||
Electric utility | $ | 996 | $ | 921 | $ | 661 | |||||
Gas utility | 407 | 340 | 261 | ||||||||
Total capital expenditures – Consumers | $ | 1,403 | $ | 1,261 | $ | 922 | |||||
1 | Consumers had no significant equity method investments. | ||||||||||
2 | Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. | ||||||||||
3 | Amounts include purchase of capital lease additions. Amounts also include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses. | ||||||||||
Related_Party_Transactions_Con1
Related Party Transactions - Consumers (Tables) (Consumers Energy Company [Member]) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Consumers Energy Company [Member] | ' | |||||||||||
Schedule of Related Party Transactions, by Related Party Table | ' | |||||||||||
In Millions | ||||||||||||
Description | Related Party | 2013 | 2012 | 2011 | ||||||||
Purchases of capacity and energy | Affiliates of CMS Enterprises | $ | 89 | $ | 86 | $ | 81 | |||||
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Variable Interest Entities [Abstract] | ' | |||||
Schedule Of Variable Interest Entities | ' | |||||
Name (Ownership Interest) | Nature of the Entity | Financing of Partnership | ||||
T.E.S. Filer City (50%) | Coal-fueled power generator | Non-recourse long-term debt that matured in | ||||
December 2007. | ||||||
Grayling (50%) | Wood waste-fueled power generator | Sale of revenue bonds that were retired in | ||||
March 2012. | ||||||
Genesee (50%) | Wood waste-fueled power generator | Sale of revenue bonds that mature in 2021 and bear interest at fixed rates. The debt is non-recourse to the partners and secured by a CMS Energy guarantee capped at $3 million annually. | ||||
Asset_Sales_And_Discontinued_O1
Asset Sales And Discontinued Operations (Tables) (Discontinued Operations [Member]) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Discontinued Operations [Member] | ' | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | |||||||||
Schedule of Discontinued Operations | ' | |||||||||
In Millions | ||||||||||
Years Ended December 31 | 2012 | 2011 | ||||||||
Discontinued operations | ||||||||||
Pretax income from discontinued operations | $ | 11 | $ | 2 | ||||||
Income tax expense | 4 | - | ||||||||
Income from discontinued operations, net of tax expense | $ | 7 | 1 | $ | 2 | 2 | ||||
1 | Includes an $11 million ($7 million net of tax) reversal of a loss on disposal due to the elimination of a liability associated with the 2003 sale of Panhandle. | |||||||||
2 | Includes an operating gain of $3 million related to a litigation settlement at CMS Viron. | |||||||||
Quarterly_Financial_And_Common1
Quarterly Financial And Common Stock Information (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Schedule of Quarterly Financial Information Table | ' | |||||||||||||
In Millions, Except Per Share Amounts and Stock Prices | ||||||||||||||
2013 | ||||||||||||||
Quarters Ended | March 31 | June 30 | Sept 30 | Dec 31 | ||||||||||
CMS Energy, including Consumers | ||||||||||||||
Operating revenue | $ | 1,979 | $ | 1,406 | $ | 1,445 | $ | 1,736 | ||||||
Operating income | 329 | 232 | 317 | 264 | ||||||||||
Income from continuing operations | 144 | 81 | 127 | 102 | ||||||||||
Net income | 144 | 81 | 127 | 102 | ||||||||||
Income attributable to noncontrolling interests | - | 1 | 1 | - | ||||||||||
Net income available to common stockholders | 144 | 80 | 126 | 102 | ||||||||||
Earnings from continuing operations per average | 0.55 | 0.30 | 0.48 | 0.38 | ||||||||||
common share-basic1 | ||||||||||||||
Earnings from continuing operations per average | 0.53 | 0.29 | 0.46 | 0.37 | ||||||||||
common share-diluted1 | ||||||||||||||
Basic earnings per average common share1 | 0.55 | 0.30 | 0.48 | 0.38 | ||||||||||
Diluted earnings per average common share1 | 0.53 | 0.29 | 0.46 | 0.37 | ||||||||||
Common stock prices2 | ||||||||||||||
High | 27.94 | 29.94 | 28.52 | 28.05 | ||||||||||
Low | 24.76 | 25.95 | 25.86 | 25.90 | ||||||||||
Consumers | ||||||||||||||
Operating revenue | $ | 1,919 | $ | 1,342 | $ | 1,386 | $ | 1,674 | ||||||
Operating income | 319 | 227 | 314 | 258 | ||||||||||
Net income | 162 | 100 | 153 | 119 | ||||||||||
Preferred stock dividends and distribution | - | 1 | 1 | - | ||||||||||
Net income available to common stockholder | 162 | 99 | 152 | 119 | ||||||||||
In Millions, Except Per Share Amounts and Stock Prices | ||||||||||||||
2012 | ||||||||||||||
Quarters Ended | March 31 | June 30 | Sept 30 | Dec 31 | ||||||||||
CMS Energy, including Consumers | ||||||||||||||
Operating revenue | $ | 1,743 | $ | 1,333 | $ | 1,507 | $ | 1,670 | ||||||
Operating income | 188 | 260 | 343 | 212 | ||||||||||
Income from continuing operations | 60 | 101 | 149 | 67 | ||||||||||
Income from discontinued operations | 7 | - | - | - | ||||||||||
Net income | 67 | 101 | 149 | 67 | ||||||||||
Income attributable to noncontrolling interests | - | 1 | 1 | - | ||||||||||
Net income available to common stockholders | 67 | 100 | 148 | 67 | ||||||||||
Earnings from continuing operations per average | 0.23 | 0.38 | 0.56 | 0.26 | ||||||||||
common share-basic1 | ||||||||||||||
Earnings from continuing operations per average | 0.22 | 0.37 | 0.55 | 0.25 | ||||||||||
common share-diluted1 | ||||||||||||||
Basic earnings per average common share1 | 0.26 | 0.38 | 0.56 | 0.26 | ||||||||||
Diluted earnings per average common share1 | 0.25 | 0.37 | 0.55 | 0.25 | ||||||||||
Common stock prices2 | ||||||||||||||
High | 22.31 | 23.87 | 24.81 | 24.70 | ||||||||||
Low | 21.33 | 21.52 | 22.70 | 22.79 | ||||||||||
Consumers | ||||||||||||||
Operating revenue | $ | 1,675 | $ | 1,282 | $ | 1,448 | $ | 1,608 | ||||||
Operating income | 183 | 260 | 334 | 207 | ||||||||||
Net income | 76 | 122 | 163 | 78 | ||||||||||
Preferred stock dividends | - | 1 | 1 | - | ||||||||||
Net income available to common stockholder | 76 | 121 | 162 | 78 | ||||||||||
1 | The sum of the quarters may not equal annual EPS due to changes in the number of shares outstanding. | |||||||||||||
2 | Based on New York Stock Exchange composite transactions. | |||||||||||||
Consumers Energy Company [Member] | ' | |||||||||||||
Schedule of Quarterly Financial Information Table | ' | |||||||||||||
In Millions, Except Per Share Amounts and Stock Prices | ||||||||||||||
2013 | ||||||||||||||
Quarters Ended | March 31 | June 30 | Sept 30 | Dec 31 | ||||||||||
CMS Energy, including Consumers | ||||||||||||||
Operating revenue | $ | 1,979 | $ | 1,406 | $ | 1,445 | $ | 1,736 | ||||||
Operating income | 329 | 232 | 317 | 264 | ||||||||||
Income from continuing operations | 144 | 81 | 127 | 102 | ||||||||||
Net income | 144 | 81 | 127 | 102 | ||||||||||
Income attributable to noncontrolling interests | - | 1 | 1 | - | ||||||||||
Net income available to common stockholders | 144 | 80 | 126 | 102 | ||||||||||
Earnings from continuing operations per average | 0.55 | 0.30 | 0.48 | 0.38 | ||||||||||
common share-basic1 | ||||||||||||||
Earnings from continuing operations per average | 0.53 | 0.29 | 0.46 | 0.37 | ||||||||||
common share-diluted1 | ||||||||||||||
Basic earnings per average common share1 | 0.55 | 0.30 | 0.48 | 0.38 | ||||||||||
Diluted earnings per average common share1 | 0.53 | 0.29 | 0.46 | 0.37 | ||||||||||
Common stock prices2 | ||||||||||||||
High | 27.94 | 29.94 | 28.52 | 28.05 | ||||||||||
Low | 24.76 | 25.95 | 25.86 | 25.90 | ||||||||||
Consumers | ||||||||||||||
Operating revenue | $ | 1,919 | $ | 1,342 | $ | 1,386 | $ | 1,674 | ||||||
Operating income | 319 | 227 | 314 | 258 | ||||||||||
Net income | 162 | 100 | 153 | 119 | ||||||||||
Preferred stock dividends and distribution | - | 1 | 1 | - | ||||||||||
Net income available to common stockholder | 162 | 99 | 152 | 119 | ||||||||||
In Millions, Except Per Share Amounts and Stock Prices | ||||||||||||||
2012 | ||||||||||||||
Quarters Ended | March 31 | June 30 | Sept 30 | Dec 31 | ||||||||||
CMS Energy, including Consumers | ||||||||||||||
Operating revenue | $ | 1,743 | $ | 1,333 | $ | 1,507 | $ | 1,670 | ||||||
Operating income | 188 | 260 | 343 | 212 | ||||||||||
Income from continuing operations | 60 | 101 | 149 | 67 | ||||||||||
Income from discontinued operations | 7 | - | - | - | ||||||||||
Net income | 67 | 101 | 149 | 67 | ||||||||||
Income attributable to noncontrolling interests | - | 1 | 1 | - | ||||||||||
Net income available to common stockholders | 67 | 100 | 148 | 67 | ||||||||||
Earnings from continuing operations per average | 0.23 | 0.38 | 0.56 | 0.26 | ||||||||||
common share-basic1 | ||||||||||||||
Earnings from continuing operations per average | 0.22 | 0.37 | 0.55 | 0.25 | ||||||||||
common share-diluted1 | ||||||||||||||
Basic earnings per average common share1 | 0.26 | 0.38 | 0.56 | 0.26 | ||||||||||
Diluted earnings per average common share1 | 0.25 | 0.37 | 0.55 | 0.25 | ||||||||||
Common stock prices2 | ||||||||||||||
High | 22.31 | 23.87 | 24.81 | 24.70 | ||||||||||
Low | 21.33 | 21.52 | 22.70 | 22.79 | ||||||||||
Consumers | ||||||||||||||
Operating revenue | $ | 1,675 | $ | 1,282 | $ | 1,448 | $ | 1,608 | ||||||
Operating income | 183 | 260 | 334 | 207 | ||||||||||
Net income | 76 | 122 | 163 | 78 | ||||||||||
Preferred stock dividends | - | 1 | 1 | - | ||||||||||
Net income available to common stockholder | 76 | 121 | 162 | 78 | ||||||||||
1 | The sum of the quarters may not equal annual EPS due to changes in the number of shares outstanding. | |||||||||||||
2 | Based on New York Stock Exchange composite transactions. | |||||||||||||
Significant_Accounting_Policie2
Significant Accounting Policies (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2013 |
Consumers Energy Company [Member] | Consumers Energy Company [Member] | Renewable Energy Grant [Member] | ||
Consumers Energy Company [Member] | ||||
Regulatory Liabilities [Line Items] | ' | ' | ' | ' |
Proceeds from government grant | $69 | $69 | ' | $69 |
Recorded liability | ' | $2,282 | $2,126 | $69 |
Regulatory_Matters_Narrative_D
Regulatory Matters (Narrative) (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 30, 2013 | 31-May-13 | Mar. 31, 2013 | Jan. 31, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | 31-May-13 | Mar. 31, 2013 | Mar. 31, 2012 | 31-May-13 | Aug. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 31, 2013 | |
Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Electric Rate Case [Member] | Electric Rate Case [Member] | Electric Rate Case [Member] | Electric Rate Case [Member] | Power Supply Cost Recover (PSCR) [Member] | Power Supply Cost Recover (PSCR) [Member] | Power Supply Cost Recover (PSCR) [Member] | Gas Cost Recover (GCR) [Member] | Gas Cost Recover (GCR) [Member] | Gas Cost Recover (GCR) [Member] | 2011-2012 Gas Revenue Decoupling Mechanism [Member] | Electric Energy Optimization Plan [Member] | Gas Energy Optimization Plan [Member] | Cancelled Coal-Fueled Plant Costs [Member] | Coal Fueled Electric Generating Units [Member] | Coal Fueled Electric Generating Units [Member] | Gas Fueled Electric Generating Units [Member] | Gas Fueled Electric Generating Units [Member] | Manufactured Gas Plant [Member] | Gas Storage Inventory Adjustments [Member] | DOE Settlement [Member] | DOE Settlement [Member] | Renewable Energy Grant [Member] | ||||
site | site | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | |||||||
site | site | site | site | site | |||||||||||||||||||||||||||
MW | |||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Energy optimization incentive authorized for exceeding 2012 savings targets | ' | ' | ' | ' | ' | ' | ' | $17,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of savings target achieved | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 140.00% | 122.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Energy optimization incentive requested for exceeding savings targets | ' | ' | ' | 18,000,000 | 18,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Requested recovery | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Authorized recovery, collection period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 months | ' | ' | ' | ' | ' | ' | ' | '10 years | '5 years | ' | ' | ' |
Authorized Recovery | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Authorized sale of securitized bonds | ' | ' | ' | 389,000,000 | 389,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of units planned to be retired | ' | ' | ' | 10 | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 | 7 | 3 | 3 | ' | ' | ' | ' | ' |
Number of former MGPs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23 | ' | ' | ' | ' |
Power generation of cancelled plant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 830 | ' | ' | ' | ' | ' | ' | ' |
Proceeds from government grant | 69,000,000 | ' | ' | ' | 69,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 69,000,000 |
Litigation settlement, gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120,000,000 | ' |
Approved refund of spent nuclear fuel costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,000,000 | ' | ' |
Annual rate increase requested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 145,000,000 | 148,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rate of return on equity requested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual rate increase authorized | ' | ' | ' | ' | ' | ' | ' | ' | 89,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rate of return on equity authorized | ' | ' | ' | ' | ' | ' | ' | ' | 10.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual rate increase self-implemented | ' | ' | ' | ' | ' | ' | ' | ' | ' | 110,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
PSCR Cost of Power Sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,900,000,000 | 1,800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Over recovery authorized by the MPSC | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000,000 | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of gas sold | $1,228,000,000 | $1,150,000,000 | $1,512,000,000 | ' | $1,187,000,000 | $1,110,000,000 | $1,438,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | $900,000,000 | $900,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Regulatory_Matters_Schedule_Of
Regulatory Matters (Schedule Of The Components Of Regulatory Assets and Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jan. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||
In Millions, unless otherwise specified | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Cost Of Removal [Member] | Cost Of Removal [Member] | Renewable Energy Plan [Member] | Renewable Energy Plan [Member] | Income Taxes, Net [Member] | Income Taxes, Net [Member] | Postretirement Benefits [Member] | ARO [Member] | ARO [Member] | Renewable Energy Grant [Member] | Renewable Energy Grant [Member] | DOE Settlement [Member] | DOE Settlement [Member] | Energy Optimization Plan [Member] | Energy Optimization Plan [Member] | Other Regulatory Liabilities [Member] | Other Regulatory Liabilities [Member] | Postretirement Benefits [Member] | Postretirement Benefits [Member] | Costs Of Electric Generating Units To Be Retired And Securitized [Member] | Manufactured Gas Plant [Member] | Manufactured Gas Plant [Member] | Other Securitized Costs [Member] | Other Securitized Costs [Member] | ARO [Member] | ARO [Member] | Unamortized Debt Costs [Member] | Unamortized Debt Costs [Member] | Gas Storage Inventory Adjustments [Member] | Gas Storage Inventory Adjustments [Member] | Energy Optimization Plan Incentive [Member] | Energy Optimization Plan Incentive [Member] | Major Maintenance [Member] | Major Maintenance [Member] | Cancelled Coal-Fueled Plant Costs [Member] | Cancelled Coal-Fueled Plant Costs [Member] | Gas Revenue Decoupling Mechanism [Member] | Gas Revenue Decoupling Mechanism [Member] | Other Regulatory Assets [Member] | Other Regulatory Assets [Member] | |||||||||||||||||||||||||
Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | ||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||
Regulatory Current Asset, End Date for Recovery | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2014 | [1] | ' | ' | ' | '2014 | [2] | ' | '2014 | [1] | ' | '2014 | [2] | ' | |||||||||||||||||||
Noncurrent Regulatory Asset Recovery End Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2029 | [2] | ' | ' | '2016 | [2] | ' | ' | ' | ' | ' | ' | ' | '2015 | [1] | ' | ' | ' | '2015 | [2] | ' | '2014 | [1] | ' | ' | ' | ||||||||||||||||||
Current Regulatory Liability Recovery End Date | ' | ' | ' | ' | ' | ' | ' | ' | '2014 | ' | ' | ' | ' | '2014 | ' | '2013 | ' | ' | ' | '2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||
Noncurrent Regulatory Liability, Recovery End Date | ' | ' | ' | ' | ' | ' | '2028 | ' | ' | ' | ' | ' | ' | '2043 | ' | ' | ' | '2015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||
Regulatory assets, current | $40 | $35 | $40 | $35 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $17 | [1] | $15 | [1] | ' | ' | $5 | [2] | $4 | [2] | $17 | [1] | $16 | [1] | $1 | [2] | ' | ||||||||||||||||
Regulatory assets, noncurrent | 1,530 | 2,287 | 1,530 | 2,287 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 634 | [3] | 1,700 | [3] | 362 | [2] | 148 | [4] | 152 | [4] | 129 | [2] | 192 | [2] | 129 | [4] | 123 | [4] | 74 | [4] | 55 | [4] | 23 | [4] | 15 | [4] | 18 | [1] | 17 | [1] | 10 | [2] | 5 | [2] | 2 | [2] | 7 | [2] | ' | 17 | [1] | 1 | [2] | 4 | [2] | |
Total regulatory asset | ' | ' | 1,570 | 2,322 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||
Regulatory liabilities, current | 67 | 25 | 67 | 25 | ' | ' | ' | ' | 64 | ' | ' | ' | ' | 2 | ' | ' | 23 | ' | ' | 1 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||
Regulatory liabilities, noncurrent | 2,215 | 2,101 | 2,215 | 2,101 | 1,599 | 1,441 | 159 | 175 | 157 | 336 | 98 | 93 | 103 | 65 | ' | ' | ' | 31 | 34 | 13 | 12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||
Total regulatory liabilities | ' | ' | $2,282 | $2,126 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $69 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||
[1] | These regulatory assets have arisen from alternative revenue programs and are not associated with incurred costs or capital investments. Therefore, the MPSC has provided for recovery without a return. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | These regulatory assets either are included in rate base (or are expected to be included, for costs incurred subsequent to the most recently approved rate case), thereby providing a return on expenditures, or provide a specific return on investment authorized by the MPSC. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | This regulatory asset is offset partially by liabilities. The net amount is included in rate base, thereby providing a return. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[4] | These regulatory assets represent incurred costs for which the MPSC has provided, or Consumers expects, recovery without a return on investment. |
Recovered_Sheet1
Regulatory Matters (Schedule of PSCR Reconciliation Filings Pending with the MPSC) (Details) (Power Supply Cost Recover (PSCR) [Member], Consumers Energy Company [Member], USD $) | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2011 | |
Power Supply Cost Recover (PSCR) [Member] | Consumers Energy Company [Member] | ' | ' |
Regulatory Matters [Line Items] | ' | ' |
Date of Filing | 'March 2013 | ' |
Net Over Under Recovery Of Expense Including Interest Requested | ($18,000,000) | ' |
PSCR Cost of Power Sold | $1,900,000,000 | $1,800,000,000 |
Regulatory_Matters_Schedule_of1
Regulatory Matters (Schedule of GCR Reconciliation Filing Pending with the MPSC) (Details) (USD $) | 12 Months Ended | |||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2013 | Mar. 31, 2012 |
Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Gas Cost Recover (GCR) [Member] | Gas Cost Recover (GCR) [Member] | ||||
Consumers Energy Company [Member] | Consumers Energy Company [Member] | |||||||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Date Of Filing | ' | ' | ' | ' | ' | ' | 'June 2013 | ' |
Net Over/(Under) Recovery, Including Interest, Requested by Consumers | ' | ' | ' | ' | ' | ' | ($22) | ' |
Cost of gas sold | $1,228 | $1,150 | $1,512 | $1,187 | $1,110 | $1,438 | $900 | $900 |
Regulatory_Matters_Schedule_of2
Regulatory Matters (Schedule of the Components of PSCR and GCR Over/(Under) Recoveries) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Accrued power supply revenue | ' | $32 |
Accrued rate refunds | 12 | 6 |
Consumers Energy Company [Member] | ' | ' |
Accrued power supply revenue | ' | 32 |
Accrued rate refunds | $12 | $6 |
Contingencies_And_Commitments_1
Contingencies And Commitments (Contingencies And Commitments) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Oct. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
In Millions, unless otherwise specified | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Bay Harbor [Member] | Bay Harbor [Member] | CERCLA Liability [Member] | Manufactured Gas Plant [Member] | Electric Utility [Member] | Electric Utility [Member] | Gas Utility [Member] | Manufactured Gas Plant [Member] | Manufactured Gas Plant [Member] | DOE Settlement [Member] | ||||
Consumers Energy Company [Member] | Consumers Energy Company [Member] | item | NREPA [Member] | NREPA [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | |||||||||
site | Consumers Energy Company [Member] | Consumers Energy Company [Member] | site | |||||||||||||
Regulatory Matters [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Environmental remediation permit renewal term | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Demand for payment by USEPA | ' | ' | ' | ' | ' | $7 | ' | ' | ' | ' | ' | ' | ' | ' | ||
Cumulative environmental charge | ' | ' | ' | ' | 229 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Accrual for environmental loss contingencies | ' | ' | ' | ' | 52 | ' | 3 | 117 | ' | 4 | 1 | ' | ' | ' | ||
Discounted projected costs rate | ' | ' | ' | ' | 4.34% | ' | ' | 2.57% | ' | ' | ' | ' | ' | ' | ||
Site contingency accrual inflation rate | ' | ' | ' | ' | 1.00% | ' | ' | 2.50% | ' | ' | ' | ' | ' | ' | ||
Remaining undiscounted obligation amount | ' | ' | ' | ' | 71 | ' | ' | 127 | ' | ' | ' | ' | ' | ' | ||
Foreign government tax claim on sale | 142 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Remediation and other response activity costs, minimum | ' | ' | ' | ' | ' | ' | 3 | ' | ' | 4 | ' | ' | ' | ' | ||
Remediation and other response activity costs. maximum | ' | ' | ' | ' | ' | ' | 9 | ' | ' | 6 | 3 | ' | ' | ' | ||
Number of boilers alleged to exceed emission limits | ' | ' | ' | ' | ' | ' | ' | ' | 14 | ' | ' | ' | ' | ' | ||
Alleged number of facilities in violation | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ||
Number of projects affected by alleged violations | ' | ' | ' | ' | ' | ' | ' | ' | 10 | ' | ' | ' | ' | ' | ||
Litigation settlement, gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120 | ||
Number of former MGPs | ' | ' | ' | ' | ' | ' | ' | 23 | ' | ' | ' | 23 | ' | ' | ||
Regulatory assets, noncurrent | $1,530 | $2,287 | $1,530 | $2,287 | ' | ' | ' | ' | ' | ' | ' | $148 | [1] | $152 | [1] | ' |
Authorized recovery, collection period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ||
[1] | These regulatory assets represent incurred costs for which the MPSC has provided, or Consumers expects, recovery without a return on investment. |
Contingencies_And_Commitments_2
Contingencies And Commitments (Expected Remediation Cost By Year) (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Manufactured Gas Plant [Member] | Consumers Energy Company [Member] | ' |
Site Contingency [Line Items] | ' |
Undiscounted amount due in next fiscal year | $8 |
Undiscounted amount due within two year | 12 |
Undiscounted amount due within third year | 12 |
Undiscounted amount due within fourth year | 9 |
Undiscounted amount due within five year | 19 |
Bay Harbor [Member] | ' |
Site Contingency [Line Items] | ' |
Undiscounted amount due in next fiscal year | 6 |
Undiscounted amount due within two year | 5 |
Undiscounted amount due within third year | 5 |
Undiscounted amount due within fourth year | 4 |
Undiscounted amount due within five year | $4 |
Contingencies_And_Commitments_3
Contingencies And Commitments (Guarantees) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
MW | ||||
Consumers Energy Company [Member] | ' | ' | ' | |
Guarantor Obligations [Line Items] | ' | ' | ' | |
Expiration Date | 'Various through September 2029 | ' | ' | |
Maximum obligation | $30 | ' | ' | |
Carrying Amount | 1 | ' | ' | |
Guarantees [Member] | ' | ' | ' | |
Guarantor Obligations [Line Items] | ' | ' | ' | |
Expiration Date | 'Various through March 2021 | ' | ' | |
Maximum obligation | 57 | ' | ' | |
Indemnity Obligations From Asset Sales And Other Agreements [Member] | ' | ' | ' | |
Guarantor Obligations [Line Items] | ' | ' | ' | |
Expiration Date | 'Various through September 2029 | [1] | ' | ' |
Maximum obligation | 471 | [1] | ' | ' |
Carrying Amount | 16 | [1] | ' | ' |
Non-Related Parties [Member] | ' | ' | ' | |
Guarantor Obligations [Line Items] | ' | ' | ' | |
Purchase Obligations Total | 12,068 | ' | ' | |
Purchase Obligations Due in Year One | 1,879 | ' | ' | |
Purchase Obligations Due in Year Two | 983 | ' | ' | |
Purchase Obligations Due in Year Three | 1,032 | ' | ' | |
Purchase Obligations Due in Year Four | 1,001 | ' | ' | |
Purchase Obligations Due in Year Five | 1,006 | ' | ' | |
Purchase Obligations Due After Year Five | 6,167 | ' | ' | |
Non-Related Parties [Member] | Consumers Energy Company [Member] | ' | ' | ' | |
Guarantor Obligations [Line Items] | ' | ' | ' | |
Purchase Obligations Total | 11,838 | ' | ' | |
Purchase Obligations Due in Year One | 1,803 | ' | ' | |
Purchase Obligations Due in Year Two | 955 | ' | ' | |
Purchase Obligations Due in Year Three | 1,005 | ' | ' | |
Purchase Obligations Due in Year Four | 974 | ' | ' | |
Purchase Obligations Due in Year Five | 979 | ' | ' | |
Purchase Obligations Due After Year Five | 6,122 | ' | ' | |
Related Parties [Member] | ' | ' | ' | |
Guarantor Obligations [Line Items] | ' | ' | ' | |
Purchase Obligations Total | 1,244 | ' | ' | |
Purchase Obligations Due in Year One | 89 | ' | ' | |
Purchase Obligations Due in Year Two | 84 | ' | ' | |
Purchase Obligations Due in Year Three | 86 | ' | ' | |
Purchase Obligations Due in Year Four | 88 | ' | ' | |
Purchase Obligations Due in Year Five | 87 | ' | ' | |
Purchase Obligations Due After Year Five | 810 | ' | ' | |
Related Parties [Member] | Consumers Energy Company [Member] | ' | ' | ' | |
Guarantor Obligations [Line Items] | ' | ' | ' | |
Purchase Obligations Total | 1,244 | ' | ' | |
Purchase Obligations Due in Year One | 89 | ' | ' | |
Purchase Obligations Due in Year Two | 84 | ' | ' | |
Purchase Obligations Due in Year Three | 86 | ' | ' | |
Purchase Obligations Due in Year Four | 88 | ' | ' | |
Purchase Obligations Due in Year Five | 87 | ' | ' | |
Purchase Obligations Due After Year Five | 810 | ' | ' | |
MCV PPA [Member] | Consumers Energy Company [Member] | ' | ' | ' | |
Guarantor Obligations [Line Items] | ' | ' | ' | |
Term of Unrecorded Unconditional Purchase Obligations | '35 years | ' | ' | |
Unrecorded Unconditional Purchase Obligations, Minimum Quantity Required | 1,240 | ' | ' | |
Unrecorded Unconditional Purchase Obligation Capacity Charge Per Mwh | 10.14 | ' | ' | |
Unrecorded Unconditional Purchase Obligation, Annual Contribution to Renewable Resources Program By Counterparty | 5 | ' | ' | |
Unrecorded Unconditional Purchase Obligation, Contract Extension Period | '5 years | ' | ' | |
Unrecorded Unconditional Purchase Obligation, Purchases | 278 | 319 | 292 | |
Unrecorded Unconditional Purchase Obligation, Estimated Average Capacity and Energy Charges | 320 | ' | ' | |
Palisades PPA [Member] | Consumers Energy Company [Member] | ' | ' | ' | |
Guarantor Obligations [Line Items] | ' | ' | ' | |
Unrecorded Unconditional Purchase Obligation, Purchases | 338 | 331 | 311 | |
Unrecorded Unconditional Purchase Obligation, Estimated Average Capacity and Energy Charges | $370 | ' | ' | |
Unrecorded Unconditional Purchase Obligations, Maximum Quantity | 798 | ' | ' | |
[1] | The majority of this amount arises from stock and asset sale agreements under which CMSÂ Energy or a subsidiary of CMSÂ Energy, other than Consumers, indemnified the purchaser for losses resulting from various matters, including claims related to tax disputes, claims related to power purchase agreements, and defects in title to the assets or stock sold to the purchaser by CMSÂ Energy subsidiaries. Except for items described elsewhere in this Note, CMSÂ Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities |
Recovered_Sheet2
Financings and Capitalization (Narrative) (Details) (USD $) | 12 Months Ended | 12 Months Ended | 31 Months Ended | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Short-Term Borrowings [Member] | Continuous Equity Program [Member] | Senior Notes 5.5% Due June 2029 [Member] | Senior Notes 5.5% Due June 2029 [Member] | |||
$4.16 Series [Member] | Consumers Energy Company [Member] | ||||||||
Financing And Capitalization [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum allowed short term securities outstanding under FERC Authorization | $500,000,000 | ' | $500,000,000 | ' | ' | ' | ' | ' | ' |
Short-term securites, remaining availability under FERC Authorization | 200,000,000 | ' | 200,000,000 | ' | ' | ' | ' | ' | ' |
Maximum allowed long-term securites outstanding under FERC Authorization | 1,900,000,000 | ' | 1,900,000,000 | ' | ' | ' | ' | ' | ' |
Long-term securities, remaining availability under FERC Authorization | 800,000,000 | ' | 800,000,000 | ' | ' | ' | ' | ' | ' |
Amount of accounts receivable eligible for transfer | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' |
Outstanding balance of revolving accounts receivable sales program | ' | ' | ' | ' | ' | 170,000,000 | ' | ' | ' |
Average short-term borrowings | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' |
Weighted average annual interest rate | ' | ' | ' | ' | ' | 0.90% | ' | ' | ' |
Trigger price as a percentage of conversion price | ' | ' | ' | ' | ' | ' | ' | ' | 130.00% |
Number of trading days, adjusted trigger price contingencies were met | ' | ' | ' | ' | ' | ' | ' | '20 days | '20 days |
Number of trading days | ' | ' | ' | ' | ' | ' | ' | '30 days | '30 days |
Principal converted | ' | ' | ' | ' | ' | ' | ' | 17,000,000 | ' |
Convertible debt, interest rate | ' | ' | ' | ' | ' | ' | ' | 5.50% | ' |
Debt conversion, Ratio denominator | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' |
Debt Conversion, Converted Instrument, Amount per denominator amount | ' | ' | ' | ' | ' | ' | ' | 1,968 | ' |
Shares issued upon debt conversion | ' | ' | ' | ' | ' | ' | ' | 605,531 | ' |
Debt conversion, Cash paid upon settlement | ' | ' | ' | ' | ' | ' | ' | 17,000,000 | ' |
Limitation on payment of stock dividends | 3,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Unrestricted retained earnings | ' | ' | 662,000,000 | ' | ' | ' | ' | ' | ' |
Common stock dividends from Consumers | 406,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | 350,000,000 | 350,000,000 | 125,000,000 | 125,000,000 | ' | ' | ' | ' | ' |
Par value of Common Stock | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of Preferred Stock authorized | 10,000,000 | ' | 7,500,000 | 7,500,000 | ' | ' | ' | ' | ' |
Par value of Preferred Stock | $0.01 | ' | $100 | $100 | $4.16 | ' | ' | ' | ' |
Aggregate sales price of an equity offering program | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' |
Redemption price per share | ' | ' | ' | ' | $103.25 | ' | ' | ' | ' |
Redemption price | ' | ' | ' | ' | $7,000,000 | ' | ' | ' | ' |
Preferred shares outstanding | ' | ' | ' | ' | 68,451 | ' | ' | ' | ' |
Financings_and_Capitalization_1
Financings and Capitalization (Summary of Long-Term Debt Outstanding) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | |||
Debt Instrument [Line Items] | ' | ' | ||
Principal amounts outstanding | $7,654,000,000 | $7,245,000,000 | ||
Current portion of long-term debt | -541,000,000 | -519,000,000 | ||
Net unamortized discount | -12,000,000 | -16,000,000 | ||
Total long-term debt | 7,101,000,000 | 6,710,000,000 | ||
Consumers Energy Company [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Principal amounts outstanding | 4,625,000,000 | 4,341,000,000 | ||
Current portion of long-term debt | -43,000,000 | -41,000,000 | ||
Net unamortized discount | -3,000,000 | -3,000,000 | ||
Total long-term debt | 4,579,000,000 | 4,297,000,000 | ||
CMS Energy [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Principal amounts outstanding | 2,377,000,000 | 2,377,000,000 | ||
Net unamortized discount | 9,000,000 | 13,000,000 | ||
Total long-term debt | 2,205,000,000 | 2,205,000,000 | ||
Term Loan Facility Due December 2016 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Maturity Date | '2016 | ' | ||
Principal amounts outstanding | 180,000,000 | 180,000,000 | ||
Three-month LIBOR plus a spread, in basis points | 1.75% | ' | ||
Interest rate at period end | 1.92% | ' | ||
Securitization Bonds [Member] | Consumers Energy Company [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 5.76% | [1] | ' | |
Maturity Date | '2015 | ' | ||
Principal amounts outstanding | 92,000,000 | 133,000,000 | ||
Weighted-average Interest Rate (%) | 5.76% | 5.72% | ||
Tax-Exempt Pollution Control Revenue Bonds [Member] | Consumers Energy Company [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Maturity Date | '2018-2035 | ' | ||
Principal amounts outstanding | 103,000,000 | 103,000,000 | ||
Senior Notes [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Principal amounts outstanding | 2,197,000,000 | 2,197,000,000 | ||
Senior Notes [Member] | Senior Notes 2.75% Due May 2014 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 2.75% | [2] | ' | |
Maturity Date | '2014 | ' | ||
Principal amounts outstanding | ' | 250,000,000 | ||
Senior Notes [Member] | Senior Notes 6.875% Due December 2015 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 6.88% | ' | ||
Maturity Date | '2015 | ' | ||
Principal amounts outstanding | 125,000,000 | 125,000,000 | ||
Senior Notes [Member] | Senior Notes 4.25% Due September 2015 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 4.25% | ' | ||
Maturity Date | '2015 | ' | ||
Principal amounts outstanding | 250,000,000 | 250,000,000 | ||
Senior Notes [Member] | Senior Notes 6.55% Due July 2017 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 6.55% | ' | ||
Maturity Date | '2017 | ' | ||
Principal amounts outstanding | 250,000,000 | 250,000,000 | ||
Senior Notes [Member] | Senior Notes 5.05% Due February 2018 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 5.05% | ' | ||
Maturity Date | '2018 | ' | ||
Principal amounts outstanding | 250,000,000 | 250,000,000 | ||
Senior Notes [Member] | Senior Notes 8.75% Due June 2019 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 8.75% | ' | ||
Maturity Date | '2019 | ' | ||
Principal amounts outstanding | 300,000,000 | 300,000,000 | ||
Senior Notes [Member] | Senior Notes 6.25% Due February 2020 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 6.25% | ' | ||
Maturity Date | '2020 | ' | ||
Principal amounts outstanding | 300,000,000 | 300,000,000 | ||
Senior Notes [Member] | Senior Notes 5.05% Due March 2022 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 5.05% | ' | ||
Maturity Date | '2022 | ' | ||
Principal amounts outstanding | 300,000,000 | 300,000,000 | ||
Senior Notes [Member] | Senior Notes 5.5% Due June 2029 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 5.50% | [3] | ' | |
Maturity Date | '2029 | ' | ||
Principal amounts outstanding | 172,000,000 | 172,000,000 | ||
Senior Notes [Member] | Senior Notes 4.7% Due March 2043 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 4.70% | ' | ||
Maturity Date | '2043 | ' | ||
Principal amounts outstanding | 250,000,000 | ' | ||
Senior Notes [Member] | Senior Notes 6.875% Due March 2018 [Member] | Consumers Energy Company [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 6.88% | ' | ||
Maturity Date | '2018 | ' | ||
Principal amounts outstanding | 180,000,000 | 180,000,000 | ||
Other CMS Subsidiaries [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Principal amounts outstanding | 652,000,000 | 527,000,000 | ||
Other CMS Subsidiaries [Member] | EnerBank Certificates Of Deposit [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 1.10% | [4] | ' | |
Maturity Date | '2014-2021 | ' | ||
Interest-bearing Domestic Deposit, Brokered | 652,000,000 | 527,000,000 | ||
Weighted-average interest rate | 1.09% | 1.16% | ||
Certificate of deposit face value | 1,000 | ' | ||
First Mortgage Bonds [Member] | Consumers Energy Company [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Principal amounts outstanding | 4,250,000,000 | [5] | 3,925,000,000 | [5] |
Weighted-average Interest Rate (%) | 4.90% | 5.19% | ||
First Mortgage Bonds [Member] | FMB's 6% Due February 2014 [Member] | Consumers Energy Company [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 6.00% | [5],[6] | ' | |
Maturity Date | '2014 | [5] | ' | |
Principal amounts outstanding | ' | 200,000,000 | [5] | |
First Mortgage Bonds [Member] | FMB's 5% Due March 2015 [Member] | Consumers Energy Company [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 5.00% | [5],[6] | ' | |
Maturity Date | '2015 | [5] | ' | |
Principal amounts outstanding | ' | 225,000,000 | [5] | |
First Mortgage Bonds [Member] | FMBs 2.6% Due October 2015 [Member] | Consumers Energy Company [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 2.60% | [5] | ' | |
Maturity Date | '2015 | [5] | ' | |
Principal amounts outstanding | 50,000,000 | [5] | 50,000,000 | [5] |
First Mortgage Bonds [Member] | FMBs 5.5% Due August 2016 [Member] | Consumers Energy Company [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 5.50% | [5] | ' | |
Maturity Date | '2016 | [5] | ' | |
Principal amounts outstanding | 350,000,000 | [5] | 350,000,000 | [5] |
First Mortgage Bonds [Member] | FMBs 5.15% Due February 2017 [Member] | Consumers Energy Company [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 5.15% | [5] | ' | |
Maturity Date | '2017 | [5] | ' | |
Principal amounts outstanding | 250,000,000 | [5] | 250,000,000 | [5] |
First Mortgage Bonds [Member] | FMBs 3.21% Due October 2017 [Member] | Consumers Energy Company [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 3.21% | [5] | ' | |
Maturity Date | '2017 | [5] | ' | |
Principal amounts outstanding | 100,000,000 | [5] | 100,000,000 | [5] |
First Mortgage Bonds [Member] | FMBs 5.65% Due September 2018 [Member] | Consumers Energy Company [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 5.65% | [5] | ' | |
Maturity Date | '2018 | [5] | ' | |
Principal amounts outstanding | 250,000,000 | [5] | 250,000,000 | [5] |
First Mortgage Bonds [Member] | FMBs 6.125% Due March 2019 [Member] | Consumers Energy Company [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 6.13% | [5] | ' | |
Maturity Date | '2019 | [5] | ' | |
Principal amounts outstanding | 350,000,000 | [5] | 350,000,000 | [5] |
First Mortgage Bonds [Member] | FMBs 6.7% Due September 2019 [Member] | Consumers Energy Company [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 6.70% | [5] | ' | |
Maturity Date | '2019 | [5] | ' | |
Principal amounts outstanding | 500,000,000 | [5] | 500,000,000 | [5] |
First Mortgage Bonds [Member] | FMBs 5.65% Due April 2020 [Member] | Consumers Energy Company [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 5.65% | [5] | ' | |
Maturity Date | '2020 | [5] | ' | |
Principal amounts outstanding | 300,000,000 | [5] | 300,000,000 | [5] |
First Mortgage Bonds [Member] | FMBs 3.77% Due October 2020 [Member] | Consumers Energy Company [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 3.77% | [5] | ' | |
Maturity Date | '2020 | [5] | ' | |
Principal amounts outstanding | 100,000,000 | [5] | 100,000,000 | [5] |
First Mortgage Bonds [Member] | FMBs 5.3% Due September 2022 [Member] | Consumers Energy Company [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 5.30% | [5] | ' | |
Maturity Date | '2022 | [5] | ' | |
Principal amounts outstanding | 250,000,000 | [5] | 250,000,000 | [5] |
First Mortgage Bonds [Member] | FMB's 2.85% Due May 2022 [Member] | Consumers Energy Company [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 2.85% | [5] | ' | |
Maturity Date | '2022 | [5] | ' | |
Principal amounts outstanding | 375,000,000 | [5] | 375,000,000 | [5] |
First Mortgage Bonds [Member] | FMBs 3.375% Due August 2023 [Member] | Consumers Energy Company [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 3.38% | [5] | ' | |
Maturity Date | '2023 | [5] | ' | |
Principal amounts outstanding | 325,000,000 | [5] | ' | |
First Mortgage Bonds [Member] | FMB's 3.19% Due 2024 [Member] | Consumers Energy Company [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 3.19% | [5] | ' | |
Maturity Date | '2024 | [5] | ' | |
Principal amounts outstanding | 52,000,000 | [5] | 52,000,000 | [5] |
First Mortgage Bonds [Member] | FMB's 3.39% Due 2027 [Member] | Consumers Energy Company [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 3.39% | [5] | ' | |
Maturity Date | '2027 | [5] | ' | |
Principal amounts outstanding | 35,000,000 | [5] | 35,000,000 | [5] |
First Mortgage Bonds [Member] | FMBs 5.8% Due September 2035 [Member] | Consumers Energy Company [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 5.80% | [5] | ' | |
Maturity Date | '2035 | [5] | ' | |
Principal amounts outstanding | 175,000,000 | [5] | 175,000,000 | [5] |
First Mortgage Bonds [Member] | FMBs 6.17% Due September 2040 [Member] | Consumers Energy Company [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 6.17% | [5] | ' | |
Maturity Date | '2040 | [5] | ' | |
Principal amounts outstanding | 50,000,000 | [5] | 50,000,000 | [5] |
First Mortgage Bonds [Member] | FMBs 4.97% Due October 2040 [Member] | Consumers Energy Company [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 4.97% | [5] | ' | |
Maturity Date | '2040 | [5] | ' | |
Principal amounts outstanding | 50,000,000 | [5] | 50,000,000 | [5] |
First Mortgage Bonds [Member] | FMB's 4.31% Due 2042 [Member] | Consumers Energy Company [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 4.31% | [5] | ' | |
Maturity Date | '2042 | [5] | ' | |
Principal amounts outstanding | 263,000,000 | [5] | 263,000,000 | [5] |
First Mortgage Bonds [Member] | FMBs 3.95% Due May 2043 [Member] | Consumers Energy Company [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Interest rate | 3.95% | [5] | ' | |
Maturity Date | '2043 | [5] | ' | |
Principal amounts outstanding | $425,000,000 | [5] | ' | |
[1] | The weighted-average interest rate for Consumers’ Securitization bonds was 5.76 percent at December 31, 2013 and 5.72 percent at December 31, 2012. | |||
[2] | In September 2013, CMS Energy retired its 2.75 percent senior notes. | |||
[3] | CMS Energy’s contingently convertible notes. See the “Contingently Convertible Securities†section in this Note for further discussion of the conversion features. | |||
[4] | The weighted-average interest rate for EnerBank’s certificates of deposit was 1.09 percent at December 31, 2013 and 1.16 percent at December 31, 2012. EnerBank’s primary deposit product consists of brokered certificates of deposit with varying maturities and having a face value of $1,000. | |||
[5] | The weighted-average interest rate for Consumers’ FMBs was 4.90 percent at December 31, 2013 and 5.19 percent at December 31, 2012. | |||
[6] | In June 2013, Consumers retired its 6.00Â percent and 5.00Â percent FMBs. |
Recovered_Sheet3
Financings And Capitalization (Major Long-Term Debt Transactions) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Debt Issuance [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt issuance, principal | $1,000,000,000 |
Debt Issuance [Member] | CMS Energy [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt issuance, principal | 250,000,000 |
Debt Issuance [Member] | Consumers Energy Company [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt issuance, principal | 750,000,000 |
Debt Issuance [Member] | Senior Notes 4.70% Due March 2043 [Member] | CMS Energy [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt issuance, principal | 250,000,000 |
Interest rate | 4.70% |
Debt issuance date | 'March 2013 |
Maturity date | 'March 2043 |
Debt Issuance [Member] | FMBs 3.95% Due May 2043 [Member] | Consumers Energy Company [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt issuance, principal | 425,000,000 |
Interest rate | 3.95% |
Debt issuance date | 'May 2013 |
Maturity date | 'May 2043 |
Debt Issuance [Member] | FMBs 3.375% Due August 2023 [Member] | Consumers Energy Company [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt issuance, principal | 325,000,000 |
Interest rate | 3.38% |
Debt issuance date | 'August 2013 |
Maturity date | 'August 2023 |
Debt Retirements [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt retirement, principal | 675,000,000 |
Debt Retirements [Member] | CMS Energy [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt retirement, principal | 250,000,000 |
Debt Retirements [Member] | Consumers Energy Company [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt retirement, principal | 425,000,000 |
Debt Retirements [Member] | Senior Notes 2.750% Due May 2014 [Member] | CMS Energy [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt retirement, principal | 250,000,000 |
Interest rate | 2.75% |
Debt retirement date | 'September 2013 |
Maturity date | 'May 2014 |
Debt Retirements [Member] | FMB's 6% Due February 2014 [Member] | Consumers Energy Company [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt retirement, principal | 200,000,000 |
Interest rate | 6.00% |
Debt retirement date | 'June 2013 |
Maturity date | 'February 2014 |
Debt Retirements [Member] | FMB's 5% Due March 2015 [Member] | Consumers Energy Company [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt retirement, principal | $225,000,000 |
Interest rate | 5.00% |
Debt retirement date | 'June 2013 |
Maturity date | 'March 2015 |
Financings_and_Capitalization_2
Financings and Capitalization (Debt Maturities) (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Long-term debt maturities, 2014 | $368 |
Long-term debt maturities, 2015 | 599 |
Long-term debt maturities, 2016 | 608 |
Long-term debt maturities, 2017 | 657 |
Long-term debt maturities, 2018 | 786 |
Consumers Energy Company [Member] | ' |
Long-term debt maturities, 2014 | 43 |
Long-term debt maturities, 2015 | 99 |
Long-term debt maturities, 2016 | 350 |
Long-term debt maturities, 2017 | 350 |
Long-term debt maturities, 2018 | $498 |
Recovered_Sheet4
Financings And Capitalization (Revolving Credit Facilities) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | |
Revolving Credit Facilities December 20, 2018 [Member] | ' | |
Line of Credit Facility [Line Items] | ' | |
Expiration Date | 20-Dec-18 | [1] |
Amount of Facility | $550 | [1] |
Amount Borrowed | ' | [1] |
Letters of Credit Outstanding | 2 | [1] |
Amount Available | 548 | [1] |
Average borrowings | 4 | |
Weighted average interest rate | 1.67% | |
LIBOR plus | 1.50% | |
Revolving Credit Facilities December 20, 2018 [Member] | Consumers Energy Company [Member] | ' | |
Line of Credit Facility [Line Items] | ' | |
Expiration Date | 20-Dec-18 | [2] |
Amount of Facility | 650 | [2] |
Amount Borrowed | ' | [2] |
Amount Available | 650 | [2] |
Revolving Credit Facilities September 9, 2014 [Member] | Consumers Energy Company [Member] | ' | |
Line of Credit Facility [Line Items] | ' | |
Expiration Date | 9-Sep-14 | [2] |
Amount of Facility | 30 | [2] |
Amount Borrowed | ' | [2] |
Letters of Credit Outstanding | $30 | [2] |
[1] | Obligations under this facility are secured by Consumers common stock. CMS Energy’s average borrowings during the year ended December 31, 2013 were $4 million, with a weighted-average annual interest rate of 1.67 percent, representing LIBOR plus 1.50 percent. | |
[2] | Obligations under this facility are secured by FMBs of Consumers. |
Financings_And_Capitalization_3
Financings And Capitalization (Contingently Convertible Securities) (Details) (Senior Notes 5.5% Due June 2029 [Member], USD $) | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Senior Notes 5.5% Due June 2029 [Member] | ' |
Debt Instrument [Line Items] | ' |
Maturity Date | '2029 |
Outstanding | $172 |
Adjusted Conversion Price | $13.55 |
Adjusted Trigger Price | $17.61 |
Interest rate | 5.50% |
Financings_And_Capitalization_4
Financings And Capitalization (Issuance Of Common Stock) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 27 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2013 | Jun. 30, 2012 | Jun. 30, 2011 | Mar. 31, 2013 |
Financings And Capitalization [Abstract] | ' | ' | ' | ' |
Number of Shares Issued | 735,873 | 650,235 | 762,925 | 2,149,033 |
Average Price Per Share | $27.18 | $23.07 | $19.66 | $23.27 |
Proceeds | $20 | $15 | $15 | $50 |
Recovered_Sheet5
Financings and Capitalization (Preferred Stock of Subsidiary) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Par value of Preferred Stock | $0.01 | ' |
Shares of Preferred Stock authorized | 10,000,000 | ' |
Consumers Energy Company [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Par value of Preferred Stock | $100 | $100 |
Shares of Preferred Stock authorized | 7,500,000 | 7,500,000 |
Preferred stock Value | $37 | $44 |
Preferred Stock $4.50 Series [Member] | Consumers Energy Company [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Optional Redemption Price | $110 | $110 |
Number of Shares | 373,148 | 373,148 |
Preferred stock Value | 37 | 37 |
Preferred Stock $4.16 Series [Member] | Consumers Energy Company [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Optional Redemption Price | $103.25 | $103.25 |
Number of Shares | 68,451 | 68,451 |
Preferred stock Value | ' | $7 |
Fair_Value_Measurements_Assets
Fair Value Measurements (Assets And Liabilties Measured At Fair Value On A Recurring Basis) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | $87 | $53 |
Restricted cash equivalents | 16 | 14 |
Nonqualified deferred compensation plan assets | 6 | 5 |
Commodity contracts | 5 | 3 |
Total | 250 | 203 |
Nonqualified deferred compensation plan liabilities | 6 | 5 |
Commodity contracts | 1 | 4 |
Total | 7 | 9 |
Consumers Energy Company [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Restricted cash equivalents | 15 | 13 |
Nonqualified deferred compensation plan assets | 4 | 4 |
Commodity contracts | 4 | 2 |
Total | 147 | 137 |
Nonqualified deferred compensation plan liabilities | 4 | 4 |
Total | 4 | 4 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 87 | 53 |
Restricted cash equivalents | 16 | 14 |
Nonqualified deferred compensation plan assets | 6 | 5 |
Total | 245 | 200 |
Nonqualified deferred compensation plan liabilities | 6 | 5 |
Total | 6 | 5 |
Fair Value, Inputs, Level 1 [Member] | Consumers Energy Company [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Restricted cash equivalents | 15 | 13 |
Nonqualified deferred compensation plan assets | 4 | 4 |
Total | 143 | 135 |
Nonqualified deferred compensation plan liabilities | 4 | 4 |
Total | 4 | 4 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Commodity contracts | 1 | ' |
Total | 1 | ' |
Commodity contracts | 1 | 3 |
Total | 1 | 3 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Commodity contracts | 4 | 3 |
Total | 4 | 3 |
Commodity contracts | ' | 1 |
Total | ' | 1 |
Fair Value, Inputs, Level 3 [Member] | Consumers Energy Company [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Commodity contracts | 4 | 2 |
Total | 4 | 2 |
DB SERP [Member] | Cash Equivalents [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale - Fair Value | ' | 2 |
DB SERP [Member] | Cash Equivalents [Member] | Consumers Energy Company [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale - Fair Value | ' | 1 |
DB SERP [Member] | Mutual Fund [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale - Fair Value | 136 | 126 |
DB SERP [Member] | Mutual Fund [Member] | Consumers Energy Company [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale - Fair Value | 95 | 85 |
DB SERP [Member] | Fair Value, Inputs, Level 1 [Member] | Cash Equivalents [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale - Fair Value | ' | 2 |
DB SERP [Member] | Fair Value, Inputs, Level 1 [Member] | Cash Equivalents [Member] | Consumers Energy Company [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale - Fair Value | ' | 1 |
DB SERP [Member] | Fair Value, Inputs, Level 1 [Member] | Mutual Fund [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale - Fair Value | 136 | 126 |
DB SERP [Member] | Fair Value, Inputs, Level 1 [Member] | Mutual Fund [Member] | Consumers Energy Company [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale - Fair Value | 95 | 85 |
CMS Energy Common Stock [Member] | Consumers Energy Company [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale - Fair Value | 29 | 32 |
CMS Energy Common Stock [Member] | Fair Value, Inputs, Level 1 [Member] | Consumers Energy Company [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale - Fair Value | $29 | $32 |
Fair_Value_Measurements_Assets1
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Significant Level 3 Inputs) (Details) (Fair Value, Inputs, Level 3 [Member], USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | |||
Balance at beginning of period | $2 | ($2) | ($3) | |||
Total gains (losses) included in earnings | ' | 3 | [1] | 2 | [1] | |
Total gains (losses) offset through regulatory accounting | 3 | 6 | 2 | |||
Purchases | ' | 1 | 1 | |||
Sales | ' | ' | -4 | |||
Settlements | -1 | -6 | ' | |||
Balance at end of period | 4 | 2 | -2 | |||
Unrealized gains (losses) included in earnings relating to assets and liabilities still held at end of period | -1 | [1] | 2 | [1] | 2 | [1] |
Consumers Energy Company [Member] | ' | ' | ' | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | |||
Balance at beginning of period | 2 | 2 | 1 | |||
Total gains (losses) offset through regulatory accounting | 3 | 6 | 2 | |||
Purchases | ' | 1 | 1 | |||
Settlements | -1 | -7 | -2 | |||
Balance at end of period | $4 | $2 | $2 | |||
[1] | CMS Energy records realized and unrealized gains and losses for Level 3 recurring fair value measurements in earnings as a component of operating revenue or maintenance and other operating expenses on its consolidated statements of income. |
Financial_Instruments_Narrativ
Financial Instruments (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Financial Instruments [Line Items] | ' | ' | ' |
Portion of long-term debt supported by third-party credit enhancements | $103 | $103 | ' |
Consumers Energy Company [Member] | ' | ' | ' |
Financial Instruments [Line Items] | ' | ' | ' |
Portion of long-term debt supported by third-party credit enhancements | 103 | 103 | ' |
Gain on donation of CMS Energy common stock | 4 | 5 | 4 |
DB SERP [Member] | ' | ' | ' |
Financial Instruments [Line Items] | ' | ' | ' |
Contributions made to the plan | 16 | 13 | ' |
DB SERP [Member] | Consumers Energy Company [Member] | ' | ' | ' |
Financial Instruments [Line Items] | ' | ' | ' |
Contributions made to the plan | $13 | $9 | ' |
Financial_Instruments_Schedule
Financial Instruments (Schedule Of Carrying Amounts And Fair Values Of Financial Instruments) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities held to maturity, Carrying Amount | $10 | $9 | ||
Securities held to maturity - Fair Value | 10 | 10 | ||
Notes receivable, Carrying Amount | 698 | 561 | ||
Long-term debt, Carrying Amount | 7,642 | [1] | 7,229 | [1] |
Long-term debt, Fair Value | 8,368 | [1] | 8,347 | [1] |
Current notes receivable | 63 | 41 | ||
Current portion of long-term debt | 541 | 519 | ||
Consumers Energy Company [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Notes receivable, Carrying Amount | 14 | 16 | ||
Long-term debt, Carrying Amount | 4,622 | [2] | 4,338 | [2] |
Long-term debt, Fair Value | 4,940 | [2] | 5,015 | [2] |
Current notes receivable | 14 | ' | ||
Current portion of long-term debt | 43 | 41 | ||
EnerBank [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Notes receivable, Carrying Amount | 683 | [3] | 544 | [3] |
Notes receivable, Fair Value | 724 | [3] | 581 | [3] |
Current notes receivable | 48 | 40 | ||
Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Securities held to maturity - Fair Value | 10 | 10 | ||
Long-term debt, Fair Value | 7,406 | [1] | 7,321 | [1] |
Fair Value, Inputs, Level 2 [Member] | Consumers Energy Company [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Long-term debt, Fair Value | 3,978 | [2] | 3,989 | [2] |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Long-term debt, Fair Value | 962 | [1] | 1,026 | [1] |
Fair Value, Inputs, Level 3 [Member] | Consumers Energy Company [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Long-term debt, Fair Value | 962 | [2] | 1,026 | [2] |
Fair Value, Inputs, Level 3 [Member] | EnerBank [Member] | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Notes receivable, Fair Value | $724 | [3] | $581 | [3] |
[1] | Includes current portion of long-term debt of $541 million at December 31, 2013 and $519 million at December 31, 2012. | |||
[2] | Includes current portion of long-term debt of $43 million at December 31, 2013 and $41 million at December 31, 2012. | |||
[3] | Includes current portion of notes receivable of $48 million at December 31, 2013 and $40 million at December 31, 2012. |
Financial_Instruments_Schedule1
Financial Instruments (Schedule Of Investment Securities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Held to maturity Debt securities - Cost | $10 | $9 |
Held to maturity Debt securities - Unrealized Gains | ' | 1 |
Held to maturity Debt securities - Fair Value | 10 | 10 |
CMS Energy Common Stock [Member] | Consumers Energy Company [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Available for sale - Cost | 5 | 6 |
Available for sale - Unrealized Gains | 24 | 26 |
Available for sale - Fair Value | 29 | 32 |
DB SERP [Member] | Mutual Fund [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Available for sale - Cost | 136 | 123 |
Available for sale - Unrealized Gains | ' | 3 |
Available for sale - Fair Value | 136 | 126 |
DB SERP [Member] | Mutual Fund [Member] | Consumers Energy Company [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Available for sale - Cost | 95 | 83 |
Available for sale - Unrealized Gains | ' | 2 |
Available for sale - Fair Value | $95 | $85 |
Financial_Instruments_Summary_
Financial Instruments (Summary of the Sales Activity for Investment Securities) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Proceeds from Sales of Available-for-Sale Securities | $3 | $3 | $29 |
Consumers Energy Company [Member] | ' | ' | ' |
Proceeds from Sales of Available-for-Sale Securities | $2 | $2 | $19 |
Notes_Receivable_Schedule_Of_C
Notes Receivable (Schedule Of Current And Non-Current Notes Receivable) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Current notes receivable | $63 | $41 | ||
Total notes receivable | 698 | 561 | ||
Consumers Energy Company [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Current notes receivable | 14 | ' | ||
Total notes receivable | 14 | 16 | ||
EnerBank [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Current notes receivable | 48 | 40 | ||
Noncurrent notes receivable | 635 | 504 | ||
Total notes receivable | 683 | [1] | 544 | [1] |
Other [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Current notes receivable | 15 | 1 | ||
Noncurrent notes receivable | ' | 16 | ||
Other [Member] | Consumers Energy Company [Member] | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ||
Current notes receivable | 14 | ' | ||
Noncurrent notes receivable | ' | $16 | ||
[1] | Includes current portion of notes receivable of $48 million at December 31, 2013 and $40 million at December 31, 2012. |
Notes_Receivable_Schedule_Of_A
Notes Receivable (Schedule Of Allowance For Loan Losses) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Allowance for loan losses, at beginning of period | $5 | $5 |
Charge-offs | -5 | -5 |
Recoveries | 1 | 1 |
Provision for loan losses | 4 | 4 |
Allowance for loan losses, at end of period | 5 | 5 |
EnerBank [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Delinquent loans | 4 | 3 |
Loans modified as troubled debt restructurings | $1 | $1 |
Plant_Property_and_Equipment_P
Plant, Property, and Equipment (Property, Plant and Equipment Table) (Details) (USD $) | 1 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
site | site | ||||||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Construction work in progress | $1,149 | $1,149 | $1,080 | ' | |||
Accumulated Depreciation and Amortization | -5,087 | -5,087 | -5,121 | ' | |||
Public Utilities, Property, Plant and Equipment, Net | 12,246 | [1] | 12,246 | [1] | 11,551 | [1] | ' |
Public Utilities, Property Plant and Equipment Additions | ' | 1,300 | 999 | ' | |||
Public Utilities, Property Plant and Equipment Disposals | ' | 156 | 168 | ' | |||
Consumers Energy Company [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Capital Leased Assets, Gross | 291 | 291 | 285 | 280 | |||
Construction work in progress | 1,147 | 1,147 | 1,080 | ' | |||
Accumulated Depreciation and Amortization | -5,022 | -5,022 | -5,061 | ' | |||
Public Utilities, Property, Plant and Equipment, Net | 12,169 | [1] | 12,169 | [1] | 11,475 | [1] | ' |
Public Utilities, Property Plant and Equipment Additions | ' | 1,300 | 999 | ' | |||
Public Utilities, Property Plant and Equipment Disposals | ' | 156 | 168 | ' | |||
Number of units planned to be retired | 10 | 10 | ' | ' | |||
Consumers Energy Company [Member] | Coal Fueled Electric Generating Units [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Number of units planned to be retired | 7 | 7 | ' | ' | |||
Consumers Energy Company [Member] | Gas Fueled Electric Generating Units [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Number of units planned to be retired | 3 | 3 | ' | ' | |||
Electricity Generation Plant, Non-Nuclear [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Public Utilities, Property, Plant and Equipment, Generation or Processing | 3,992 | 3,992 | 4,254 | ' | |||
Electricity Generation Plant, Non-Nuclear [Member] | Minimum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Generation | ' | '22 years | ' | ' | |||
Electricity Generation Plant, Non-Nuclear [Member] | Maximum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Generation | ' | '125 years | ' | ' | |||
Electricity Generation Plant, Non-Nuclear [Member] | Consumers Energy Company [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Public Utilities, Property, Plant and Equipment, Generation or Processing | 3,992 | 3,992 | 4,254 | ' | |||
Decrease of net plant, property, and equipment | ' | 362 | ' | ' | |||
Electricity Generation Plant, Non-Nuclear [Member] | Consumers Energy Company [Member] | Minimum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Generation | ' | '22 years | ' | ' | |||
Electricity Generation Plant, Non-Nuclear [Member] | Consumers Energy Company [Member] | Maximum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Generation | ' | '125 years | ' | ' | |||
Electric Distribution [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Public Utilities, Property, Plant and Equipment, Distribution | 6,140 | 6,140 | 5,831 | ' | |||
Electric Distribution [Member] | Minimum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Distribution | ' | '23 years | ' | ' | |||
Electric Distribution [Member] | Maximum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Distribution | ' | '75 years | ' | ' | |||
Electric Distribution [Member] | Consumers Energy Company [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Public Utilities, Property, Plant and Equipment, Distribution | 6,140 | 6,140 | 5,831 | ' | |||
Electric Distribution [Member] | Consumers Energy Company [Member] | Minimum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Distribution | ' | '23 years | ' | ' | |||
Electric Distribution [Member] | Consumers Energy Company [Member] | Maximum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Distribution | ' | '75 years | ' | ' | |||
Electric Other [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Public Utilities, Property, Plant and Equipment, Other Property, Plant and Equipment | 770 | 770 | 677 | ' | |||
Electric Other [Member] | Minimum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Other | ' | '5 years | ' | ' | |||
Electric Other [Member] | Maximum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Other | ' | '50 years | ' | ' | |||
Electric Other [Member] | Consumers Energy Company [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Public Utilities, Property, Plant and Equipment, Other Property, Plant and Equipment | 770 | 770 | 677 | ' | |||
Electric Other [Member] | Consumers Energy Company [Member] | Minimum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Other | ' | '5 years | ' | ' | |||
Electric Other [Member] | Consumers Energy Company [Member] | Maximum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Other | ' | '50 years | ' | ' | |||
Electric Capital Leases [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Capital Leased Assets, Gross | 284 | 284 | 279 | ' | |||
Electric Capital Leases [Member] | Consumers Energy Company [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Capital Leased Assets, Gross | 284 | 284 | 279 | ' | |||
Gas Distribution [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Public Utilities, Property, Plant and Equipment, Distribution | 3,015 | 3,015 | 2,861 | ' | |||
Gas Distribution [Member] | Minimum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Distribution | ' | '28 years | ' | ' | |||
Gas Distribution [Member] | Maximum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Distribution | ' | '80 years | ' | ' | |||
Gas Distribution [Member] | Consumers Energy Company [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Public Utilities, Property, Plant and Equipment, Distribution | 3,015 | 3,015 | 2,861 | ' | |||
Gas Distribution [Member] | Consumers Energy Company [Member] | Minimum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Distribution | ' | '28 years | ' | ' | |||
Gas Distribution [Member] | Consumers Energy Company [Member] | Maximum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Distribution | ' | '80 years | ' | ' | |||
Gas Transmission [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Public Utilities, Property, Plant and Equipment, Transmission | 821 | 821 | 770 | ' | |||
Gas Transmission [Member] | Minimum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Transmission | ' | '17 years | ' | ' | |||
Gas Transmission [Member] | Maximum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Transmission | ' | '75 years | ' | ' | |||
Gas Transmission [Member] | Consumers Energy Company [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Public Utilities, Property, Plant and Equipment, Transmission | 821 | 821 | 770 | ' | |||
Gas Transmission [Member] | Consumers Energy Company [Member] | Minimum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Transmission | ' | '17 years | ' | ' | |||
Gas Transmission [Member] | Consumers Energy Company [Member] | Maximum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Transmission | ' | '75 years | ' | ' | |||
Gas Underground Storage Facilities [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Public Utilities, Property, Plant and Equipment, Other Property, Plant and Equipment | 535 | [2] | 535 | [2] | 339 | [2] | ' |
Gas Underground Storage Facilities [Member] | Minimum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Other | ' | '29 years | [2] | ' | ' | ||
Gas Underground Storage Facilities [Member] | Maximum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Other | ' | '65 years | [2] | ' | ' | ||
Gas Underground Storage Facilities [Member] | Consumers Energy Company [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Public Utilities, Property, Plant and Equipment, Other Property, Plant and Equipment | 535 | [2] | 535 | [2] | 339 | [2] | ' |
Gas Underground Storage Facilities [Member] | Consumers Energy Company [Member] | Minimum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Other | ' | '29 years | [2] | ' | ' | ||
Gas Underground Storage Facilities [Member] | Consumers Energy Company [Member] | Maximum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Other | ' | '65 years | [2] | ' | ' | ||
Gas Other [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Public Utilities, Property, Plant and Equipment, Other Property, Plant and Equipment | 465 | 465 | 424 | ' | |||
Gas Other [Member] | Minimum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Other | ' | '5 years | ' | ' | |||
Gas Other [Member] | Maximum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Other | ' | '50 years | ' | ' | |||
Gas Other [Member] | Consumers Energy Company [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Public Utilities, Property, Plant and Equipment, Other Property, Plant and Equipment | 465 | 465 | 424 | ' | |||
Gas Other [Member] | Consumers Energy Company [Member] | Minimum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Other | ' | '5 years | ' | ' | |||
Gas Other [Member] | Consumers Energy Company [Member] | Maximum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Other | ' | '50 years | ' | ' | |||
Gas Capital Leases [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Capital Leased Assets, Gross | 7 | 7 | 6 | ' | |||
Gas Capital Leases [Member] | Consumers Energy Company [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Capital Leased Assets, Gross | 7 | 7 | 6 | ' | |||
Enterprises IPP [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Plant, property, and equipment, gross | 89 | 89 | 89 | ' | |||
Enterprises IPP [Member] | Minimum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Other | ' | '3 years | ' | ' | |||
Enterprises IPP [Member] | Maximum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Other | ' | '30 years | ' | ' | |||
Enterprises Other [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Plant, property, and equipment, gross | 26 | 26 | 24 | ' | |||
Enterprises Other [Member] | Minimum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Other | ' | '3 years | ' | ' | |||
Enterprises Other [Member] | Maximum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Other | ' | '40 years | ' | ' | |||
Other [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Other non-utility property | 40 | 40 | 38 | ' | |||
Other [Member] | Minimum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Other | ' | '1 year | ' | ' | |||
Other [Member] | Maximum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Other | ' | '51 years | ' | ' | |||
Other [Member] | Consumers Energy Company [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Other non-utility property | 15 | 15 | 15 | ' | |||
Other [Member] | Consumers Energy Company [Member] | Minimum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Other | ' | '8 years | ' | ' | |||
Other [Member] | Consumers Energy Company [Member] | Maximum [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Estimated Depreciable Life in Years, Other | ' | '51 years | ' | ' | |||
Base Natural Gas [Member] | Gas Underground Storage Facilities [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Public Utilities, Property, Plant and Equipment, Other Property, Plant and Equipment | 26 | 26 | 26 | ' | |||
Base Natural Gas [Member] | Gas Underground Storage Facilities [Member] | Consumers Energy Company [Member] | ' | ' | ' | ' | |||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | |||
Public Utilities, Property, Plant and Equipment, Other Property, Plant and Equipment | $26 | $26 | $26 | ' | |||
[1] | For the year ended December 31, 2013, utility plant additions were $1.3 billion and utility plant retirements were $156 million. Subject to a successful Securitization transaction, Consumers plans to retire seven smaller coal-fueled electric generating units and three smaller gas-fueled electric generating units by April 2016. Accordingly, Consumers removed the net book value of the ten units from plant, property, and equipment and recorded this amount as a regulatory asset at December 31, 2013. As a result, net plant, property, and equipment decreased by $362 million. For additional details, see Note 2, Regulatory Matters.For the year ended December 31, 2012, utility plant additions were $999 million and utility plant retirements were $168 million. | ||||||
[2] | Underground storage includes base natural gas of $26 million at December 31, 2013 and 2012. Base natural gas is not subject to depreciation. |
Plant_Property_and_Equipment_S
Plant, Property, and Equipment (Schedule of Capital Leased Asssets) (Details) (Consumers Energy Company [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Consumers Energy Company [Member] | ' | ' |
Balance at beginning of period | $285 | $280 |
Capital Leased Assets, Gross, Additions | 12 | 9 |
Capital Leased Assets, Gross, Disposals and Transfers | -6 | -4 |
Balance at end of period | 291 | 285 |
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | $124 | $108 |
Plant_Property_and_Equipment_P1
Plant, Property, and Equipment (Public Utilities Property Plant and Equipment Schedule of Accumulated Depreciation and Amortization) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' |
Accumulated Depreciation, Depletion and Amortization | $5,087 | $5,121 |
Consumers Energy Company [Member] | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' |
Accumulated Depreciation, Depletion and Amortization | 5,022 | 5,061 |
Utility Plant Assets [Member] | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' |
Accumulated Depreciation, Depletion and Amortization | 5,021 | 5,060 |
Utility Plant Assets [Member] | Consumers Energy Company [Member] | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' |
Accumulated Depreciation, Depletion and Amortization | 5,021 | 5,060 |
Non-Utility Plant Assets [Member] | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' |
Accumulated Depreciation, Depletion and Amortization | 66 | 61 |
Non-Utility Plant Assets [Member] | Consumers Energy Company [Member] | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' |
Accumulated Depreciation, Depletion and Amortization | $1 | $1 |
Plant_Property_and_Equipment_P2
Plant, Property, and Equipment (Public Utilities Property Plant and Equipment Schedule of Composite Depreciation Rate Table) (Details) (Consumers Energy Company [Member]) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Electric Utility Property [Member] | ' | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' |
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 3.50% | 3.20% | 3.00% |
Gas Utility Property [Member] | ' | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' |
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 2.80% | 2.90% | 2.90% |
Other property [Member] | ' | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' |
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 7.00% | 7.20% | 7.40% |
Plant_Property_and_Equipment_P3
Plant, Property, and Equipment (Public Utilities, Allowance for Funds Used During Construction, Schedule of Composite Rate Table) (Details) (Consumers Energy Company [Member]) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Consumers Energy Company [Member] | ' | ' | ' |
Public Utilities Allowance For Funds Used During Construction Composite Rate | 7.30% | 7.30% | 7.60% |
Plant_Property_and_Equipment_S1
Plant, Property, and Equipment (Schedule of Finite-Lived Intangible Assets by Major Class Table) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Finite-Lived Intangible Assets, Gross | $909 | [1] | $855 | [1] |
Finite-Lived Intangible Assets, Accumulated Amortization | 280 | 269 | ||
Public Utilities, Property Plant and Equipment Additions | 1,300 | 999 | ||
Consumers Energy Company [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Finite-Lived Intangible Assets, Gross | 906 | [1] | 853 | [1] |
Finite-Lived Intangible Assets, Accumulated Amortization | 279 | 269 | ||
Public Utilities, Property Plant and Equipment Additions | 1,300 | 999 | ||
Software and Software Development Costs [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Finite-Lived Computer Software, Gross | 508 | [1] | 466 | [1] |
Finite-Lived Intangible Assets, Accumulated Amortization | 174 | 172 | ||
Software and Software Development Costs [Member] | Consumers Energy Company [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Finite-Lived Computer Software, Gross | 506 | [1] | 464 | [1] |
Finite-Lived Intangible Assets, Accumulated Amortization | 173 | 172 | ||
Plant Acquisition Adjustments [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Public Utilities, Property, Plant and Equipment, Plant Adjustments for Intangible Utility Plants | 216 | [1] | 214 | [1] |
Finite-Lived Intangible Assets, Accumulated Amortization | 32 | 27 | ||
Plant Acquisition Adjustments [Member] | Consumers Energy Company [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Public Utilities, Property, Plant and Equipment, Plant Adjustments for Intangible Utility Plants | 216 | [1] | 214 | [1] |
Finite-Lived Intangible Assets, Accumulated Amortization | 32 | 27 | ||
Leasehold Improvements [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Leasehold Improvements, Gross | 14 | [1] | 13 | [1] |
Finite-Lived Intangible Assets, Accumulated Amortization | 11 | 10 | ||
Leasehold Improvements [Member] | Consumers Energy Company [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Leasehold Improvements, Gross | 14 | [1] | 13 | [1] |
Finite-Lived Intangible Assets, Accumulated Amortization | 11 | 10 | ||
Intangible Plant [Member] | Consumers Energy Company [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Public Utilities, Property Plant and Equipment Additions | 53 | 108 | ||
Rights of Way [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Finite-Lived Contractual Rights, Gross | 135 | [1] | 130 | [1] |
Finite-Lived Intangible Assets, Accumulated Amortization | 42 | 40 | ||
Rights of Way [Member] | Consumers Energy Company [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Finite-Lived Contractual Rights, Gross | 135 | [1] | 130 | [1] |
Finite-Lived Intangible Assets, Accumulated Amortization | 42 | 40 | ||
Franchises and Consents [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Finite-Lived Intangible Assets, Gross | 15 | [1] | 14 | [1] |
Finite-Lived Intangible Assets, Accumulated Amortization | 7 | 6 | ||
Franchises and Consents [Member] | Consumers Energy Company [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Finite-Lived Intangible Assets, Gross | 15 | [1] | 14 | [1] |
Finite-Lived Intangible Assets, Accumulated Amortization | 7 | 6 | ||
Other Intangibles [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Other Finite-Lived Intangible Assets, Gross | 21 | [1] | 18 | [1] |
Finite-Lived Intangible Assets, Accumulated Amortization | 14 | 14 | ||
Other Intangibles [Member] | Consumers Energy Company [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Other Finite-Lived Intangible Assets, Gross | 20 | [1] | 18 | [1] |
Finite-Lived Intangible Assets, Accumulated Amortization | $14 | $14 | ||
Minimum [Member] | Software and Software Development Costs [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Finite-Lived Intangible Asset, Useful Life | '3 years | ' | ||
Minimum [Member] | Software and Software Development Costs [Member] | Consumers Energy Company [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Finite-Lived Intangible Asset, Useful Life | '3 years | ' | ||
Minimum [Member] | Plant Acquisition Adjustments [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Finite-Lived Intangible Asset, Useful Life | '40 years | ' | ||
Minimum [Member] | Plant Acquisition Adjustments [Member] | Consumers Energy Company [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Finite-Lived Intangible Asset, Useful Life | '40 years | ' | ||
Minimum [Member] | Rights of Way [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Finite-Lived Intangible Asset, Useful Life | '50 years | ' | ||
Minimum [Member] | Rights of Way [Member] | Consumers Energy Company [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Finite-Lived Intangible Asset, Useful Life | '50 years | ' | ||
Minimum [Member] | Franchises and Consents [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Finite-Lived Intangible Asset, Useful Life | '5 years | ' | ||
Minimum [Member] | Franchises and Consents [Member] | Consumers Energy Company [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Finite-Lived Intangible Asset, Useful Life | '5 years | ' | ||
Maximum [Member] | Software and Software Development Costs [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Finite-Lived Intangible Asset, Useful Life | '15 years | ' | ||
Maximum [Member] | Software and Software Development Costs [Member] | Consumers Energy Company [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Finite-Lived Intangible Asset, Useful Life | '15 years | ' | ||
Maximum [Member] | Plant Acquisition Adjustments [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Finite-Lived Intangible Asset, Useful Life | '46 years | ' | ||
Maximum [Member] | Plant Acquisition Adjustments [Member] | Consumers Energy Company [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Finite-Lived Intangible Asset, Useful Life | '46 years | ' | ||
Maximum [Member] | Rights of Way [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Finite-Lived Intangible Asset, Useful Life | '75 years | ' | ||
Maximum [Member] | Rights of Way [Member] | Consumers Energy Company [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Finite-Lived Intangible Asset, Useful Life | '75 years | ' | ||
Maximum [Member] | Franchises and Consents [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Finite-Lived Intangible Asset, Useful Life | '30 years | ' | ||
Maximum [Member] | Franchises and Consents [Member] | Consumers Energy Company [Member] | ' | ' | ||
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ||
Finite-Lived Intangible Asset, Useful Life | '30 years | ' | ||
[1] | Net intangible asset additions for Consumers’ utility plant were $53 million during 2013 and $108 million during 2012 and primarily represented software development costs. |
Plant_Property_and_Equipment_S2
Plant, Property, and Equipment (Schedule of Finite Lived Intangible Assets Amortization Expense) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' |
Amortization of Intangible Assets | $48 | $39 | $32 |
Consumers Energy Company [Member] | ' | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' |
Amortization of Intangible Assets | 47 | 38 | 32 |
Software and Software Development Costs [Member] | ' | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' |
Amortization of Intangible Assets | 39 | 31 | 24 |
Software and Software Development Costs [Member] | Consumers Energy Company [Member] | ' | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' |
Amortization of Intangible Assets | 39 | 30 | 24 |
Minimum [Member] | ' | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' |
Expected future amortization expense of intangible assets, per year | 54 | ' | ' |
Minimum [Member] | Consumers Energy Company [Member] | ' | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' |
Expected future amortization expense of intangible assets, per year | 54 | ' | ' |
Maximum [Member] | ' | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' |
Expected future amortization expense of intangible assets, per year | 73 | ' | ' |
Maximum [Member] | Consumers Energy Company [Member] | ' | ' | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' | ' | ' |
Expected future amortization expense of intangible assets, per year | $73 | ' | ' |
Plant_Property_and_Equipment_J
Plant, Property, and Equipment (Jointly Owned Regulated Utility Facilities) (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Campbell Unit 3 [Member] | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' |
Ownership share | 93.30% |
Utility plant in service | $1,073 |
Accumulated depreciation | -456 |
Construction work-in-progress | 81 |
Net investment | 698 |
Ludington [Member] | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' |
Ownership share | 51.00% |
Utility plant in service | 193 |
Accumulated depreciation | -152 |
Construction work-in-progress | 71 |
Net investment | 112 |
Distribution [Member] | ' |
Public Utility, Property, Plant and Equipment [Line Items] | ' |
Utility plant in service | 190 |
Accumulated depreciation | -59 |
Construction work-in-progress | 2 |
Net investment | $133 |
Leases_Narrative_Details
Leases (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Leases [Line Items] | ' | ' | ' |
Finance Leases Lessee Balance Sheet Assets Amortization And Interest Charges | $20 | $20 | $21 |
Consumers Energy Company [Member] | ' | ' | ' |
Leases [Line Items] | ' | ' | ' |
Finance Lease Term | '15 years | ' | ' |
Finance Leases Lessee Balance Sheet Assets Amortization And Interest Charges | $20 | $20 | $21 |
Coal-Carrying Railcars [Member] | Consumers Energy Company [Member] | ' | ' | ' |
Leases [Line Items] | ' | ' | ' |
Operating leases without extension provisions, remaining term | '10 years | ' | ' |
Operating leases with extension provisions, remaining term | '13 years | ' | ' |
Gas Transportation Pipeline into Karn [Member] | Consumers Energy Company [Member] | ' | ' | ' |
Leases [Line Items] | ' | ' | ' |
Capital Lease Term | '15 years | ' | ' |
Capital Lease Remaining Term | '8 years | ' | ' |
Gas Transportation Pipeline into Zeeland [Member] | Consumers Energy Company [Member] | ' | ' | ' |
Leases [Line Items] | ' | ' | ' |
Capital Lease Remaining Term | '4 years | ' | ' |
Capital lease renewal term | '5 years | ' | ' |
Minimum [Member] | Coal-Carrying Railcars [Member] | Consumers Energy Company [Member] | ' | ' | ' |
Leases [Line Items] | ' | ' | ' |
Operating leases, term | '3 years | ' | ' |
Minimum [Member] | Long-term PPAs [Member] | Consumers Energy Company [Member] | ' | ' | ' |
Leases [Line Items] | ' | ' | ' |
Lease term | '2 years | ' | ' |
Maximum [Member] | Coal-Carrying Railcars [Member] | Consumers Energy Company [Member] | ' | ' | ' |
Leases [Line Items] | ' | ' | ' |
Operating leases, term | '15 years | ' | ' |
Maximum [Member] | Vehicle Fleet Operations [Member] | Consumers Energy Company [Member] | ' | ' | ' |
Leases [Line Items] | ' | ' | ' |
Capital Lease Term | '120 months | ' | ' |
Maximum [Member] | Long-term PPAs [Member] | Consumers Energy Company [Member] | ' | ' | ' |
Leases [Line Items] | ' | ' | ' |
Lease term | '19 years | ' | ' |
Leases_Schedule_of_Rent_Expens
Leases (Schedule of Rent Expense) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Leases [Line Items] | ' | ' | ' | |||
Contingent rental expense | $77 | $33 | $11 | |||
Consumers Energy Company [Member] | ' | ' | ' | |||
Leases [Line Items] | ' | ' | ' | |||
Contingent rental expense | 77 | [1] | 33 | [1] | 11 | [1] |
PPAs [Member] | ' | ' | ' | |||
Leases [Line Items] | ' | ' | ' | |||
Minimum operating lease expense | 6 | 6 | 10 | |||
PPAs [Member] | Consumers Energy Company [Member] | ' | ' | ' | |||
Leases [Line Items] | ' | ' | ' | |||
Minimum operating lease expense | 6 | 6 | 10 | |||
Non-PPAs [Member] | ' | ' | ' | |||
Leases [Line Items] | ' | ' | ' | |||
Minimum operating lease expense | 21 | 23 | 22 | |||
Non-PPAs [Member] | Consumers Energy Company [Member] | ' | ' | ' | |||
Leases [Line Items] | ' | ' | ' | |||
Minimum operating lease expense | $21 | $23 | $22 | |||
[1] | Contingent rental expense is related to capital and operating lease PPAs and is based on delivery of energy and capacity in excess of minimum lease payments. |
Leases_Schedule_of_Future_Mini
Leases (Schedule of Future Minimum Lease Payments for Leases) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Leases [Line Items] | ' | ' |
Capital and Financing Leases, Non-current portion | $138 | $153 |
Operating Leases, 2014 | 26 | ' |
Operating Leases, 2015 | 25 | ' |
Operating Leases, 2016 | 20 | ' |
Operating Leases, 2017 | 20 | ' |
Operating Leases, 2018 | 17 | ' |
Operating Leases, 2019 and thereafter | 56 | ' |
Operating Leases, Total minimum lease payments | 164 | ' |
Capital Leases [Member] | ' | ' |
Leases [Line Items] | ' | ' |
Capital and Financing Leases, 2014 | 14 | ' |
Capital and Financing Leases, 2015 | 14 | ' |
Capital and Financing Leases, 2016 | 11 | ' |
Capital and Financing Leases, 2017 | 10 | ' |
Capital and Financing Leases, 2018 | 10 | ' |
Capital and Financing Leases, 2019 and thereafter | 31 | ' |
Capital and Financing Leases, Total minimum lease payments | 90 | ' |
Capital and Financing Leases, Less imputed interest | 39 | ' |
Capital and Financing Leases, Present value of net minimum lease payments | 51 | ' |
Capital and Financing Leases, Less current portion | 8 | ' |
Capital and Financing Leases, Non-current portion | 43 | ' |
Financing Leases [Member] | ' | ' |
Leases [Line Items] | ' | ' |
Capital and Financing Leases, 2014 | 19 | ' |
Capital and Financing Leases, 2015 | 18 | ' |
Capital and Financing Leases, 2016 | 17 | ' |
Capital and Financing Leases, 2017 | 17 | ' |
Capital and Financing Leases, 2018 | 16 | ' |
Capital and Financing Leases, 2019 and thereafter | 46 | ' |
Capital and Financing Leases, Total minimum lease payments | 133 | ' |
Capital and Financing Leases, Less imputed interest | 25 | ' |
Capital and Financing Leases, Present value of net minimum lease payments | 108 | ' |
Capital and Financing Leases, Less current portion | 13 | ' |
Capital and Financing Leases, Non-current portion | 95 | ' |
Consumers Energy Company [Member] | ' | ' |
Leases [Line Items] | ' | ' |
Capital and Financing Leases, Non-current portion | 138 | 153 |
Operating Leases, 2014 | 26 | ' |
Operating Leases, 2015 | 25 | ' |
Operating Leases, 2016 | 20 | ' |
Operating Leases, 2017 | 20 | ' |
Operating Leases, 2018 | 17 | ' |
Operating Leases, 2019 and thereafter | 56 | ' |
Operating Leases, Total minimum lease payments | 164 | ' |
Consumers Energy Company [Member] | Capital Leases [Member] | ' | ' |
Leases [Line Items] | ' | ' |
Capital and Financing Leases, 2014 | 14 | ' |
Capital and Financing Leases, 2015 | 14 | ' |
Capital and Financing Leases, 2016 | 11 | ' |
Capital and Financing Leases, 2017 | 10 | ' |
Capital and Financing Leases, 2018 | 10 | ' |
Capital and Financing Leases, 2019 and thereafter | 31 | ' |
Capital and Financing Leases, Total minimum lease payments | 90 | ' |
Capital and Financing Leases, Less imputed interest | 39 | ' |
Capital and Financing Leases, Present value of net minimum lease payments | 51 | ' |
Capital and Financing Leases, Less current portion | 8 | ' |
Capital and Financing Leases, Non-current portion | 43 | ' |
Consumers Energy Company [Member] | Financing Leases [Member] | ' | ' |
Leases [Line Items] | ' | ' |
Capital and Financing Leases, 2014 | 19 | ' |
Capital and Financing Leases, 2015 | 18 | ' |
Capital and Financing Leases, 2016 | 17 | ' |
Capital and Financing Leases, 2017 | 17 | ' |
Capital and Financing Leases, 2018 | 16 | ' |
Capital and Financing Leases, 2019 and thereafter | 46 | ' |
Capital and Financing Leases, Total minimum lease payments | 133 | ' |
Capital and Financing Leases, Less imputed interest | 25 | ' |
Capital and Financing Leases, Present value of net minimum lease payments | 108 | ' |
Capital and Financing Leases, Less current portion | 13 | ' |
Capital and Financing Leases, Non-current portion | $95 | ' |
Asset_Retirement_Obligations_D
Asset Retirement Obligations (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Asset Retirement Obligations [Line Items] | ' | ' |
Asset Retirement Obligations Assumed Market Risk Premium | 5.00% | 5.00% |
Hypothetical Asset Retirement Obligations Liability Increase | $16 | $16 |
ARO Liability, at beginning of period | 312 | 254 |
Incurred | -3 | 7 |
Settled | -6 | -8 |
Accretion | 18 | 19 |
Cash flow Revisions | 4 | 40 |
ARO Liability, end of period | 325 | 312 |
Consumers Energy Company [Member] | ' | ' |
Asset Retirement Obligations [Line Items] | ' | ' |
Asset Retirement Obligations Assumed Market Risk Premium | 5.00% | 5.00% |
Hypothetical Asset Retirement Obligations Liability Increase | 16 | 16 |
ARO Liability, at beginning of period | 311 | 253 |
Incurred | -3 | 7 |
Settled | -6 | -8 |
Accretion | 18 | 19 |
Cash flow Revisions | 4 | 40 |
ARO Liability, end of period | 324 | 311 |
Close Gas Treating Plant and Gas Wells [Member] | ' | ' |
Asset Retirement Obligations [Line Items] | ' | ' |
ARO Liability, at beginning of period | 1 | 1 |
Incurred | ' | ' |
Settled | ' | ' |
Accretion | ' | ' |
Cash flow Revisions | ' | ' |
ARO Liability, end of period | 1 | 1 |
Coal Ash Disposal Areas [Member] | Consumers Energy Company [Member] | ' | ' |
Asset Retirement Obligations [Line Items] | ' | ' |
ARO Liability, at beginning of period | 114 | 70 |
Settled | -1 | -3 |
Accretion | 5 | 7 |
Cash flow Revisions | ' | 40 |
ARO Liability, end of period | 118 | 114 |
Wells at Gas Storage Fields [Member] | Consumers Energy Company [Member] | ' | ' |
Asset Retirement Obligations [Line Items] | ' | ' |
ARO Liability, at beginning of period | ' | 1 |
Settled | ' | -1 |
Cash flow Revisions | ' | ' |
Asbestos Abatement [Member] | Consumers Energy Company [Member] | ' | ' |
Asset Retirement Obligations [Line Items] | ' | ' |
ARO Liability, at beginning of period | 43 | 42 |
Settled | -1 | -1 |
Accretion | 3 | 2 |
Cash flow Revisions | 4 | ' |
ARO Liability, end of period | 49 | 43 |
Gas Distribution Cut, Purge, Cap [Member] | Consumers Energy Company [Member] | ' | ' |
Asset Retirement Obligations [Line Items] | ' | ' |
ARO Liability, at beginning of period | 151 | 140 |
Incurred | -3 | 4 |
Settled | -4 | -3 |
Accretion | 10 | 10 |
Cash flow Revisions | ' | ' |
ARO Liability, end of period | 154 | 151 |
Wind Park [Member] | Consumers Energy Company [Member] | ' | ' |
Asset Retirement Obligations [Line Items] | ' | ' |
ARO Liability, at beginning of period | 3 | ' |
Incurred | ' | 3 |
Settled | ' | ' |
Accretion | ' | ' |
Cash flow Revisions | ' | ' |
ARO Liability, end of period | $3 | $3 |
Retirement_Benefits_Narrative_
Retirement Benefits (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Reduced regulatory income tax liabilities | $86 | $131 | ' |
Increased income tax expense | 302 | 245 | 191 |
Union employees percentage | 43.00% | ' | ' |
CMS Energy [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Increased income tax expense | -50 | -62 | -61 |
Consumers Energy Company [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Reduced regulatory income tax liabilities | 86 | 131 | ' |
Increased income tax expense | 346 | 297 | 267 |
Union employees percentage | 45.00% | ' | ' |
Pension [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Trust assets | 1,964 | 1,727 | 1,626 |
Amortization of net actuarial loss from regulatory asset | 57 | ' | ' |
Amortization of net actuarial loss, net of tax | 2 | ' | ' |
Estimated time of amortization of gains losses | '10 years | '11 years | '11 years |
Investment grade bonds included in the corporate debt investments category of the plan trust assets | ' | 68.00% | ' |
High-yield bonds included in the corporate debt investments category of the Plan trust assets | ' | 32.00% | ' |
U.S. equity securities included in the Pooled funds category of the Plan trust assets | 61.00% | 51.00% | ' |
Foreign equity securities included in the Pooled funds category of the Plan trust assets | 28.00% | 26.00% | ' |
Foreign fixed-income securities included in the Pooled funds category of the Plan trust assets | 3.00% | 14.00% | ' |
U.S. fixed-income securities included in the Pooled funds category of the Plan trust assets | 4.00% | 4.00% | ' |
Alternative investments included in the Pooled funds category of the Plan trust assets | 4.00% | 5.00% | ' |
Pension [Member] | Consumers Energy Company [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Amortization of net actuarial loss from regulatory asset | 57 | ' | ' |
Estimated time of amortization of gains losses | '10 years | '11 years | '11 years |
401 (K) Plan [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Employer match of eligible contributions | 60.00% | 60.00% | 60.00% |
Employer match of eligible wages | 6.00% | 6.00% | 6.00% |
Savings plan, cost recognized | 17 | 16 | 16 |
401 (K) Plan [Member] | Consumers Energy Company [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Employer match of eligible contributions | 60.00% | 60.00% | 60.00% |
Employer match of eligible wages | 6.00% | 6.00% | 6.00% |
Savings plan, cost recognized | 17 | 16 | 16 |
OPEB [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Trust assets | 1,218 | 1,047 | 924 |
Retirement age requirement | 55 | 55 | 55 |
Retirement years of service | '10 years | '10 years | '10 years |
Retirement years of service with disability | '15 years | '15 years | '15 years |
Ultimate health care cost trend rate | 4.75% | ' | ' |
Year that rate reaches ultimate trend rate | '2024 | ' | ' |
Amortization of net prior service cost (credit) from regulatory liability | 37 | ' | ' |
Amortization of net prior service cost (credit) from AOCI | -1 | ' | ' |
Estimated time of amortization of gains losses | '13 years | '13 years | '13 years |
Estimated time of prior service cost | '10 years | ' | ' |
Investment grade bonds included in the corporate debt investments category of the plan trust assets | ' | 68.00% | ' |
High-yield bonds included in the corporate debt investments category of the Plan trust assets | ' | 32.00% | ' |
U.S. equity securities included in the Pooled funds category of the Plan trust assets | 60.00% | 65.00% | ' |
Foreign equity securities included in the Pooled funds category of the Plan trust assets | 20.00% | 21.00% | ' |
Foreign fixed-income securities included in the Pooled funds category of the Plan trust assets | 4.00% | 9.00% | ' |
U.S. fixed-income securities included in the Pooled funds category of the Plan trust assets | 14.00% | 3.00% | ' |
Alternative investments included in the Pooled funds category of the Plan trust assets | 2.00% | 2.00% | ' |
OPEB [Member] | Consumers Energy Company [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Trust assets | 1,141 | 978 | 861 |
Retirement age requirement | 55 | 55 | 55 |
Retirement years of service | '10 years | '10 years | '10 years |
Retirement years of service with disability | '15 years | '15 years | '15 years |
Ultimate health care cost trend rate | 4.75% | ' | ' |
Year that rate reaches ultimate trend rate | '2024 | ' | ' |
Amortization of net prior service cost (credit) from regulatory liability | 37 | ' | ' |
Estimated time of amortization of gains losses | '13 years | '13 years | '13 years |
Estimated time of prior service cost | '10 years | ' | ' |
Investment grade bonds included in the corporate debt investments category of the plan trust assets | ' | 68.00% | ' |
High-yield bonds included in the corporate debt investments category of the Plan trust assets | ' | 32.00% | ' |
U.S. equity securities included in the Pooled funds category of the Plan trust assets | 60.00% | 65.00% | ' |
Foreign equity securities included in the Pooled funds category of the Plan trust assets | 20.00% | 21.00% | ' |
Foreign fixed-income securities included in the Pooled funds category of the Plan trust assets | 4.00% | 9.00% | ' |
U.S. fixed-income securities included in the Pooled funds category of the Plan trust assets | 14.00% | 3.00% | ' |
Alternative investments included in the Pooled funds category of the Plan trust assets | 2.00% | 2.00% | ' |
Pension And OPEB [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Amortized net gains and losses in excess of PBO or MRV | 10.00% | 10.00% | 10.00% |
Pension And OPEB [Member] | Consumers Energy Company [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Amortized net gains and losses in excess of PBO or MRV | 10.00% | 10.00% | 10.00% |
Defined Company Contribution Plan [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Employer contribution, percentage of base pay | 6.00% | 6.00% | 6.00% |
Plan cost, defined contribution plan | 10 | 8 | 7 |
Defined Company Contribution Plan [Member] | Consumers Energy Company [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Employer contribution, percentage of base pay | 6.00% | 6.00% | 6.00% |
Plan cost, defined contribution plan | 10 | 8 | 7 |
DC SERP [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Minimum years of participation before vesting | '5 years | ' | ' |
Trust assets | 1 | 1 | ' |
DC SERP [Member] | Consumers Energy Company [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Minimum years of participation before vesting | '5 years | ' | ' |
Trust assets | 1 | 1 | ' |
Minimum [Member] | DC SERP [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan contribution percentage | 5.00% | ' | ' |
Minimum [Member] | DC SERP [Member] | Consumers Energy Company [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan contribution percentage | 5.00% | ' | ' |
Maximum [Member] | DC SERP [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan cost, defined contribution plan | 1 | 1 | 1 |
Plan contribution percentage | 15.00% | ' | ' |
Maximum [Member] | DC SERP [Member] | Consumers Energy Company [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Plan cost, defined contribution plan | 1 | 1 | 1 |
Plan contribution percentage | 15.00% | ' | ' |
Under Age 65 [Member] | OPEB [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Health care cost trend rate assumed for next fiscal year | 6.50% | 8.00% | ' |
Under Age 65 [Member] | OPEB [Member] | Consumers Energy Company [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Health care cost trend rate assumed for next fiscal year | 6.50% | 8.00% | ' |
Over Age 65 [Member] | OPEB [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Health care cost trend rate assumed for next fiscal year | 6.50% | 7.50% | ' |
Over Age 65 [Member] | OPEB [Member] | Consumers Energy Company [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Health care cost trend rate assumed for next fiscal year | 6.50% | 7.50% | ' |
Remeasurement As Of July 1, 2013 [Member] | OPEB [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Deacrease in liability | 638 | ' | ' |
Regulatory asset decrease | 580 | ' | ' |
Increase in regulatory liabilities | 34 | ' | ' |
Decrease in AOCL | 24 | ' | ' |
Decrease deferred tax assets | 148 | ' | ' |
Reduced regulatory income tax liabilities | 144 | ' | ' |
Increased income tax expense | 4 | ' | ' |
Remeasurement As Of July 1, 2013 [Member] | OPEB [Member] | Consumers Energy Company [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Deacrease in liability | 614 | ' | ' |
Regulatory asset decrease | 580 | ' | ' |
Increase in regulatory liabilities | 34 | ' | ' |
Decrease deferred tax assets | 144 | ' | ' |
Reduced regulatory income tax liabilities | $144 | ' | ' |
Retirement_Benefits_Schedule_O
Retirement Benefits (Schedule Of SERP Trust Assets, ABO And Contributions) (Details) (DB SERP [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
ABO | $122 | $130 |
Contributions | 16 | 13 |
Consumers Energy Company [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
ABO | 82 | 86 |
Contributions | 13 | 9 |
DB SERP Trust Assets [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Trust assets | 136 | 128 |
DB SERP Trust Assets [Member] | Consumers Energy Company [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Trust assets | $96 | $87 |
Retirement_Benefits_Schedule_O1
Retirement Benefits (Schedule Of Effect Of One-Percentage-Point Change In Assumed Health Care Cost Trend Rates) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' |
Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components | $16 |
Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation | 151 |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Service and Interest Cost Components | -14 |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation | -133 |
Consumers Energy Company [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components | 16 |
Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation | 147 |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Service and Interest Cost Components | -13 |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation | ($130) |
Retirement_Benefits_Schedule_O2
Retirement Benefits (Schedule Of Assumptions Used) (Details) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Pension And DB SERP [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.90% | [1] | 4.10% | [1] | 4.90% | [1] |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Mortality table | '2000 | [2] | '2000 | [2] | '2000 | [2] |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.10% | [1] | 4.90% | [1] | 5.40% | [1] |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 7.75% | [3] | 7.75% | [3] | 8.00% | [3] |
Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Mortality Table | '2000 | [2] | '2000 | [2] | '2000 | [2] |
Pension And DB SERP [Member] | Consumers Energy Company [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.90% | [1] | 4.10% | [1] | 4.90% | [1] |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Mortality table | '2000 | [2] | '2000 | [2] | '2000 | [2] |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.10% | [1] | 4.90% | [1] | 5.40% | [1] |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 7.75% | [3] | 7.75% | [3] | 8.00% | [3] |
Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Mortality Table | '2000 | [2] | '2000 | [2] | '2000 | [2] |
OPEB [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 5.10% | [1] | 4.40% | [1] | 5.10% | [1] |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Mortality table | '2000 | [2] | '2000 | [2] | '2000 | [2] |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.40% | [1] | 5.10% | [1] | 5.60% | [1] |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 7.25% | [3] | 7.25% | [3] | 7.50% | [3] |
Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Mortality Table | '2000 | [2] | '2000 | [2] | '2000 | [2] |
OPEB [Member] | Consumers Energy Company [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 5.10% | [1] | 4.40% | [1] | 5.10% | [1] |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Mortality table | '2000 | [2] | '2000 | [2] | '2000 | [2] |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.40% | [1] | 5.10% | [1] | 5.60% | [1] |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 7.25% | [3] | 7.25% | [3] | 7.50% | [3] |
Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Mortality Table | '2000 | [2] | '2000 | [2] | '2000 | [2] |
Pension [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 3.00% | 3.00% | 3.50% | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 3.00% | 3.50% | 4.00% | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected long-term rate of return on plan assets | 7.75% | ' | ' | |||
Actual rate of return on plan assets | 12.50% | 14.10% | 4.00% | |||
Pension [Member] | Consumers Energy Company [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 3.00% | 3.00% | 3.50% | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 3.00% | 3.50% | 4.00% | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected long-term rate of return on plan assets | 7.75% | ' | ' | |||
Actual rate of return on plan assets | 12.50% | 14.10% | 4.00% | |||
DB SERP [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 5.50% | 5.50% | 5.50% | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 5.50% | 5.50% | 5.50% | |||
DB SERP [Member] | Consumers Energy Company [Member] | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 5.50% | 5.50% | 5.50% | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 5.50% | 5.50% | 5.50% | |||
[1] | The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ Pension Plan and OPEB Plan and the yields on high quality corporate bonds rated Aa or better. | |||||
[2] | The mortality assumption was based on the RP-2000 mortality tables with projection of future mortality improvements using Scale AA, which aligned with the IRS prescriptions for cash funding valuations under the Pension Protection Act of 2006. | |||||
[3] | CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on Pension Plan assets was 7.75 percent in 2013. The actual return on Pension Plan assets was 12.5 percent in 2013, 14.1 percent in 2012, and 4.0 percent in 2011. |
Retirement_Benefits_Schedule_O3
Retirement Benefits (Schedule Of Net Benefit Costs) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension And DB SERP [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | $54 | $49 | $49 |
Interest expense | 100 | 105 | 106 |
Expected return on plan assets | -127 | -125 | -112 |
Amortization of Net loss | 101 | 79 | 65 |
Amortization of Prior service cost (credit) | 3 | 5 | 5 |
Net periodic cost (credit) | 131 | 113 | 113 |
Pension And DB SERP [Member] | Consumers Energy Company [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | 52 | 48 | 48 |
Interest expense | 96 | 100 | 101 |
Expected return on plan assets | -124 | -122 | -109 |
Amortization of Net loss | 98 | 77 | 63 |
Amortization of Prior service cost (credit) | 3 | 5 | 5 |
Net periodic cost (credit) | 125 | 108 | 108 |
OPEB [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | 29 | 32 | 27 |
Interest expense | 65 | 82 | 77 |
Expected return on plan assets | -77 | -66 | -66 |
Amortization of Net loss | 26 | 46 | 30 |
Amortization of Prior service cost (credit) | -31 | -20 | -20 |
Net periodic cost (credit) | 12 | 74 | 48 |
OPEB [Member] | Consumers Energy Company [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | 28 | 31 | 26 |
Interest expense | 63 | 79 | 74 |
Expected return on plan assets | -72 | -61 | -61 |
Amortization of Net loss | 27 | 47 | 31 |
Amortization of Prior service cost (credit) | -30 | -20 | -20 |
Net periodic cost (credit) | $16 | $76 | $50 |
Retirement_Benefits_Schedule_O4
Retirement Benefits (Schedule Of Benefit Obligations In Excess Of Fair Value Of Plan Assets) (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Pension [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Benefit obligation at beginning of period | $2,354 | $2,072 | ' | ||
Service cost | 53 | 48 | ' | ||
Interest cost | 94 | 99 | ' | ||
Actuarial (gain) loss | -308 | 249 | ' | ||
Benefits paid | -120 | -114 | ' | ||
Benefit obligation at end of period | 2,073 | 2,354 | ' | ||
Plan assets at fair value at beginning of period | 1,727 | 1,626 | ' | ||
Actual return on plan assets | 206 | 215 | ' | ||
Company contributions | 150 | ' | ' | ||
Actual benefits paid | -119 | -114 | ' | ||
Plan assets at fair value at end of period | 1,964 | 1,727 | ' | ||
Funded status | -109 | [1] | -627 | [1] | ' |
Pension [Member] | Consumers Energy Company [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Funded status | -86 | -590 | ' | ||
DB SERP [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Benefit obligation at beginning of period | 144 | 127 | ' | ||
Service cost | 1 | 1 | ' | ||
Interest cost | 6 | 6 | ' | ||
Actuarial (gain) loss | -12 | 16 | ' | ||
Benefits paid | -7 | -6 | ' | ||
Benefit obligation at end of period | 132 | 144 | ' | ||
Company contributions | 7 | 6 | ' | ||
Actual benefits paid | -7 | -6 | ' | ||
Funded status | -132 | -144 | ' | ||
DB SERP [Member] | Consumers Energy Company [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Benefit obligation at beginning of period | 100 | 85 | ' | ||
Service cost | 1 | 1 | ' | ||
Interest cost | 4 | 4 | ' | ||
Actuarial (gain) loss | -8 | 13 | ' | ||
Benefits paid | -4 | -3 | ' | ||
Benefit obligation at end of period | 93 | 100 | ' | ||
Company contributions | 4 | 3 | ' | ||
Actual benefits paid | -4 | -3 | ' | ||
Funded status | -93 | -100 | ' | ||
OPEB [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Benefit obligation at beginning of period | 1,729 | [2] | 1,641 | ' | |
Service cost | 29 | 32 | 27 | ||
Interest cost | 65 | 82 | 77 | ||
Plan amendments | -208 | [3] | ' | ' | |
Actuarial (gain) loss | -440 | 25 | ' | ||
Benefits paid | -52 | [4] | -51 | [4] | ' |
Benefit obligation at end of period | 1,123 | [2] | 1,729 | [2] | 1,641 |
Plan assets at fair value at beginning of period | 1,047 | 924 | ' | ||
Actual return on plan assets | 150 | 108 | ' | ||
Company contributions | 72 | 65 | ' | ||
Actual benefits paid | -51 | [4] | -50 | [4] | ' |
Plan assets at fair value at end of period | 1,218 | 1,047 | 924 | ||
Funded status | 95 | -682 | ' | ||
Prescription Drug Benefit, Effect of Subsidy on Net Periodic Postretirement Benefit Cost | ' | 20 | 26 | ||
Capitalization Prescription Drug Benefit, Effect of Subsidy on Net Periodic Postretirement Benefit Cost | ' | 7 | 9 | ||
Defined Benefit Plan, Gross Prescription Drug Subsidy Receipts Received | 5 | 5 | 5 | ||
OPEB [Member] | Consumers Energy Company [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Benefit obligation at beginning of period | 1,670 | [2] | 1,585 | ' | |
Service cost | 28 | 31 | 26 | ||
Interest cost | 63 | 79 | 74 | ||
Plan amendments | -200 | ' | ' | ||
Actuarial (gain) loss | -424 | 24 | ' | ||
Benefits paid | -49 | [4] | -49 | [4] | ' |
Benefit obligation at end of period | 1,088 | [2] | 1,670 | [2] | 1,585 |
Plan assets at fair value at beginning of period | 978 | 861 | ' | ||
Actual return on plan assets | 141 | 101 | ' | ||
Company contributions | 71 | 64 | ' | ||
Actual benefits paid | -49 | [4] | -48 | [4] | ' |
Plan assets at fair value at end of period | 1,141 | 978 | 861 | ||
Funded status | 53 | -692 | ' | ||
Prescription Drug Benefit, Effect of Subsidy on Net Periodic Postretirement Benefit Cost | ' | 19 | 25 | ||
Capitalization Prescription Drug Benefit, Effect of Subsidy on Net Periodic Postretirement Benefit Cost | ' | 7 | 9 | ||
Defined Benefit Plan, Gross Prescription Drug Subsidy Receipts Received | $4 | $5 | $5 | ||
[1] | At December 31, 2013, $86 million of the total funded status of the Pension Plan was attributable to Consumers based on an allocation of expenses. At December 31, 2012, $590 million of the total funded status of the Pension Plan was attributable to Consumers based on an allocation of expenses. | ||||
[2] | The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 established a prescription drug benefit under Medicare (Medicare Part D) and a federal subsidy, which is tax-exempt, to sponsors of retiree health care benefit plans that provide a benefit that is actuarially equivalent to Medicare Part D. In 2010, the Health Care Acts repealed these tax-exempt deductions for years beginning after December 31, 2012. The Medicare Part D subsidy annualized reduction in net OPEB cost for CMS Energy was $20 million for 2012 and $26 million for 2011. Consumers’ Medicare Part D subsidy annualized reduction in net OPEB costs was $19 million for 2012 and $25 million for 2011. The reduction for CMS Energy and Consumers included $7 million for 2012 and $9 million for 2011 in capitalized OPEB costs. | ||||
[3] | Plan amendments resulted from changing the Medicare drug program provided through the OPEB Plan from an employer-sponsored prescription drug plan with a retiree drug subsidy to an EGWP to begin on January 1, 2015, and from certain benefit changes to the OPEB Plan, to begin on January 1, 2016. | ||||
[4] | CMS Energy received payments of $5 million in each of 2013, 2012, and 2011 for the Medicare Part D subsidies. Consumers received payments of $4 million in 2013 and $5 million in each of 2012 and 2011 for the Medicare Part D subsidies. The Medicare Part D subsidy payments are used to pay OPEB Plan benefits. |
Retirement_Benefits_Schedule_O5
Retirement Benefits (Schedule Of Retirement Benefit Plan Assets (Liabilities)) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Non-current assets (liabilities) | ($239) | ($1,451) |
CMS Energy [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Non-current assets (liabilities) | -19 | -24 |
Consumers Energy Company [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Non-current assets (liabilities) | -179 | -1,385 |
DB SERP [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Current assets (liabilities) | -8 | -7 |
Non-current assets (liabilities) | -124 | -137 |
DB SERP [Member] | Consumers Energy Company [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Current assets (liabilities) | -5 | -4 |
Non-current assets (liabilities) | -88 | -96 |
OPEB [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Non-current assets (liabilities) | 95 | -682 |
OPEB [Member] | Consumers Energy Company [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Non-current assets (liabilities) | 53 | -692 |
Pension [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Non-current assets (liabilities) | -109 | -627 |
Pension [Member] | Consumers Energy Company [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Non-current assets (liabilities) | ($86) | ($590) |
Retirement_Benefits_Schedule_O6
Retirement Benefits (Schedule Of Accumulated And Projected Benefit Obligations) (Details) (Pension [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Pension [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Pension PBO | $2,073 | $2,354 | $2,072 |
Pension ABO | 1,843 | 2,054 | ' |
Fair value of Pension Plan assets | $1,964 | $1,727 | $1,626 |
Retirement_Benefits_Schedule_O7
Retirement Benefits (Schedule Of Net Periodic Benefit Cost Not yet Recognized) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Pension And DB SERP [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Regulatory assets (liabilities), Net loss | $625 | $1,095 |
Regulatory assets (liabilities), Prior service cost (credit) | 9 | 13 |
Regulatory assets (liabilities | 634 | 1,108 |
AOCI, Net loss (gain) | 69 | 98 |
Total amounts not yet recognized as component of net periodic benefit cost | 703 | 1,206 |
Pension And DB SERP [Member] | Consumers Energy Company [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Regulatory assets (liabilities), Net loss | 625 | 1,095 |
Regulatory assets (liabilities), Prior service cost (credit) | 9 | 13 |
Regulatory assets (liabilities | 634 | 1,108 |
AOCI, Net loss (gain) | 25 | 38 |
Total amounts not yet recognized as component of net periodic benefit cost | 659 | 1,146 |
OPEB [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Regulatory assets (liabilities), Net loss | 184 | 704 |
Regulatory assets (liabilities), Prior service cost (credit) | -282 | -112 |
Regulatory assets (liabilities | -98 | 592 |
AOCI, Net loss (gain) | -26 | -7 |
AOCI, Prior service cost (credit) | -10 | -3 |
Total amounts not yet recognized as component of net periodic benefit cost | -134 | 582 |
OPEB [Member] | Consumers Energy Company [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Regulatory assets (liabilities), Net loss | 184 | 704 |
Regulatory assets (liabilities), Prior service cost (credit) | -282 | -112 |
Regulatory assets (liabilities | -98 | 592 |
Total amounts not yet recognized as component of net periodic benefit cost | ($98) | $592 |
Retirement_Benefits_Schedule_O8
Retirement Benefits (Schedule Of Allocation Of Plan Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Pension [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | $1,964 | $1,727 |
Pension [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 558 | 352 |
Pension [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 1,406 | 1,375 |
Pension [Member] | Cash and Short-Term Investments [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 109 | 33 |
Pension [Member] | Cash and Short-Term Investments [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 109 | 33 |
Pension [Member] | U.S. Government and Agencies Securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 25 | 26 |
Pension [Member] | U.S. Government and Agencies Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 25 | 26 |
Pension [Member] | Corporate Debt [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 188 | 277 |
Pension [Member] | Corporate Debt [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 188 | 277 |
Pension [Member] | State and Municipal Bonds [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 5 | 8 |
Pension [Member] | State and Municipal Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 5 | 8 |
Pension [Member] | Foreign Corporate Debt [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 20 | 27 |
Pension [Member] | Foreign Corporate Debt [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 20 | 27 |
Pension [Member] | Mutual Funds [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 449 | 319 |
Pension [Member] | Mutual Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 449 | 319 |
Pension [Member] | Pooled Funds [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 1,168 | 1,037 |
Pension [Member] | Pooled Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 1,168 | 1,037 |
OPEB [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 1,218 | 1,047 |
OPEB [Member] | Consumers Energy Company [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 1,141 | 978 |
OPEB [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 458 | 493 |
OPEB [Member] | Fair Value, Inputs, Level 1 [Member] | Consumers Energy Company [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 428 | 462 |
OPEB [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 760 | 554 |
OPEB [Member] | Fair Value, Inputs, Level 2 [Member] | Consumers Energy Company [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 713 | 516 |
OPEB [Member] | Cash and Short-Term Investments [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 44 | 118 |
OPEB [Member] | Cash and Short-Term Investments [Member] | Consumers Energy Company [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 41 | 111 |
OPEB [Member] | Cash and Short-Term Investments [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 44 | 118 |
OPEB [Member] | Cash and Short-Term Investments [Member] | Fair Value, Inputs, Level 1 [Member] | Consumers Energy Company [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 41 | 111 |
OPEB [Member] | U.S. Government and Agencies Securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 3 | 4 |
OPEB [Member] | U.S. Government and Agencies Securities [Member] | Consumers Energy Company [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 3 | 3 |
OPEB [Member] | U.S. Government and Agencies Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 3 | 4 |
OPEB [Member] | U.S. Government and Agencies Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Consumers Energy Company [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 3 | 3 |
OPEB [Member] | Corporate Debt [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 26 | 38 |
OPEB [Member] | Corporate Debt [Member] | Consumers Energy Company [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 25 | 35 |
OPEB [Member] | Corporate Debt [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 26 | 38 |
OPEB [Member] | Corporate Debt [Member] | Fair Value, Inputs, Level 2 [Member] | Consumers Energy Company [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 25 | 35 |
OPEB [Member] | State and Municipal Bonds [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 1 | 1 |
OPEB [Member] | State and Municipal Bonds [Member] | Consumers Energy Company [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 1 | 1 |
OPEB [Member] | State and Municipal Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 1 | 1 |
OPEB [Member] | State and Municipal Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | Consumers Energy Company [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 1 | 1 |
OPEB [Member] | Foreign Corporate Debt [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 3 | 4 |
OPEB [Member] | Foreign Corporate Debt [Member] | Consumers Energy Company [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 3 | 3 |
OPEB [Member] | Foreign Corporate Debt [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 3 | 4 |
OPEB [Member] | Foreign Corporate Debt [Member] | Fair Value, Inputs, Level 2 [Member] | Consumers Energy Company [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 3 | 3 |
OPEB [Member] | Common Stocks [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 71 | 75 |
OPEB [Member] | Common Stocks [Member] | Consumers Energy Company [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 66 | 70 |
OPEB [Member] | Common Stocks [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 71 | 75 |
OPEB [Member] | Common Stocks [Member] | Fair Value, Inputs, Level 1 [Member] | Consumers Energy Company [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 66 | 70 |
OPEB [Member] | Mutual Funds [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 343 | 300 |
OPEB [Member] | Mutual Funds [Member] | Consumers Energy Company [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 321 | 281 |
OPEB [Member] | Mutual Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 343 | 300 |
OPEB [Member] | Mutual Funds [Member] | Fair Value, Inputs, Level 1 [Member] | Consumers Energy Company [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 321 | 281 |
OPEB [Member] | Pooled Funds [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 727 | 507 |
OPEB [Member] | Pooled Funds [Member] | Consumers Energy Company [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 681 | 474 |
OPEB [Member] | Pooled Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | 727 | 507 |
OPEB [Member] | Pooled Funds [Member] | Fair Value, Inputs, Level 2 [Member] | Consumers Energy Company [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Defined Benefit Plan, Assets for Plan Benefits | $681 | $474 |
Retirement_Benefits_Schedule_O9
Retirement Benefits (Schedule Of Plan Contributions) (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Postretirement benefits contributions | $229 | $72 | $323 | ||
Consumers Energy Company [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Postretirement benefits contributions | 222 | 68 | 315 | ||
OPEB [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Postretirement benefits contributions | 72 | [1] | 65 | [1] | ' |
Estimated future employer contributions | 75 | ' | ' | ||
OPEB [Member] | Consumers Energy Company [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Postretirement benefits contributions | 71 | [1] | 64 | [1] | ' |
Estimated future employer contributions | 74 | ' | ' | ||
Pension [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Postretirement benefits contributions | 150 | [2] | ' | ' | |
Pension [Member] | Consumers Energy Company [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Postretirement benefits contributions | 147 | [2] | ' | ' | |
VEBA Trust [Member] | OPEB [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Postretirement benefits contributions | 55 | [1] | 45 | [1] | ' |
VEBA Trust [Member] | OPEB [Member] | Consumers Energy Company [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Postretirement benefits contributions | 55 | [1] | 45 | [1] | ' |
401 (h) Component [Member] | OPEB [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Postretirement benefits contributions | 17 | [1] | 20 | [1] | ' |
401 (h) Component [Member] | OPEB [Member] | Consumers Energy Company [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Postretirement benefits contributions | $16 | [1] | $19 | [1] | ' |
Equity Securities [Member] | OPEB [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Defined Benefit Plan, Target Plan Asset Allocations | 50.00% | 50.00% | ' | ||
Equity Securities [Member] | OPEB [Member] | Consumers Energy Company [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Defined Benefit Plan, Target Plan Asset Allocations | 50.00% | 50.00% | ' | ||
Equity Securities [Member] | Pension [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Defined Benefit Plan, Target Plan Asset Allocations | 50.00% | 50.00% | 50.00% | ||
Equity Securities [Member] | Pension [Member] | Consumers Energy Company [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Defined Benefit Plan, Target Plan Asset Allocations | 50.00% | 50.00% | 50.00% | ||
Fixed Income Funds [Member] | OPEB [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Defined Benefit Plan, Target Plan Asset Allocations | 20.00% | 20.00% | ' | ||
Fixed Income Funds [Member] | OPEB [Member] | Consumers Energy Company [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Defined Benefit Plan, Target Plan Asset Allocations | 20.00% | 20.00% | ' | ||
Fixed Income Funds [Member] | Pension [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Defined Benefit Plan, Target Plan Asset Allocations | 30.00% | 30.00% | 30.00% | ||
Fixed Income Funds [Member] | Pension [Member] | Consumers Energy Company [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Defined Benefit Plan, Target Plan Asset Allocations | 30.00% | 30.00% | 30.00% | ||
Alternative Strategy Investments [Member] | OPEB [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Defined Benefit Plan, Target Plan Asset Allocations | 30.00% | 30.00% | ' | ||
Alternative Strategy Investments [Member] | OPEB [Member] | Consumers Energy Company [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Defined Benefit Plan, Target Plan Asset Allocations | 30.00% | 30.00% | ' | ||
Alternative Strategy Investments [Member] | Pension [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Defined Benefit Plan, Target Plan Asset Allocations | 20.00% | 20.00% | 20.00% | ||
Alternative Strategy Investments [Member] | Pension [Member] | Consumers Energy Company [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Defined Benefit Plan, Target Plan Asset Allocations | 20.00% | 20.00% | 20.00% | ||
[1] | CMSÂ Energy, including Consumers, plans to contribute $75Â million to the OPEB Plan in 2014, of which Consumers plans to contribute $74Â million. | ||||
[2] | CMSÂ Energy, including Consumers, does not presently plan to contribute to the Pension Plan in 2014. |
Recovered_Sheet6
Retirement Benefits (Schedule Of Expected Benefit Payments) (Details) (USD $) | Dec. 31, 2013 | |
In Millions, unless otherwise specified | ||
Pension [Member] | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | |
Benefit Payments, 2014 | $119 | |
Benefit Payments, 2015 | 127 | |
Benefit Payments, 2016 | 134 | |
Benefit Payments, 2017 | 139 | |
Benefit Payments, 2018 | 144 | |
Benefit Payments, 2019-2023 | 760 | |
Pension [Member] | Consumers Energy Company [Member] | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | |
Benefit Payments, 2014 | 116 | |
Benefit Payments, 2015 | 124 | |
Benefit Payments, 2016 | 131 | |
Benefit Payments, 2017 | 136 | |
Benefit Payments, 2018 | 140 | |
Benefit Payments, 2019-2023 | 740 | |
DB SERP [Member] | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | |
Benefit Payments, 2014 | 8 | |
Benefit Payments, 2015 | 8 | |
Benefit Payments, 2016 | 8 | |
Benefit Payments, 2017 | 8 | |
Benefit Payments, 2018 | 8 | |
Benefit Payments, 2019-2023 | 48 | |
DB SERP [Member] | Consumers Energy Company [Member] | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | |
Benefit Payments, 2014 | 4 | |
Benefit Payments, 2015 | 5 | |
Benefit Payments, 2016 | 5 | |
Benefit Payments, 2017 | 5 | |
Benefit Payments, 2018 | 5 | |
Benefit Payments, 2019-2023 | 27 | |
OPEB [Member] | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | |
Benefit Payments, 2014 | 58 | [1] |
Benefit Payments, 2015 | 59 | [1] |
Benefit Payments, 2016 | 61 | [1] |
Benefit Payments, 2017 | 64 | [1] |
Benefit Payments, 2018 | 66 | [1] |
Benefit Payments, 2019-2023 | 364 | [1] |
Subsidy to be received, 2014 | 6 | |
OPEB [Member] | Consumers Energy Company [Member] | ' | |
Defined Benefit Plan Disclosure [Line Items] | ' | |
Benefit Payments, 2014 | 56 | [1] |
Benefit Payments, 2015 | 57 | [1] |
Benefit Payments, 2016 | 59 | [1] |
Benefit Payments, 2017 | 61 | [1] |
Benefit Payments, 2018 | 64 | [1] |
Benefit Payments, 2019-2023 | 349 | [1] |
Subsidy to be received, 2014 | $5 | |
[1] | CMS Energy’s and Consumers’ OPEB benefit payments are net of employee contributions and expected Medicare Part D subsidy payments for 2014. CMS Energy and Consumers plan to change the Medicare drug program provided through the OPEB Plan from an employer-sponsored drug plan to an EGWP to begin on January 1, 2015; therefore, no Medicare Part D subsidy is expected after 2014. For CMS Energy, subsidies to be received are estimated to be $6 million for 2014. For Consumers, subsidies to be received are estimated to be $5 million for 2014. |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Deferred Compensation Arrangements Plan Term | '5 years | ' |
Number of shares authorized | 6,000,000 | ' |
Maximum shares issuable per employee | 500,000 | ' |
Shares available for grant | 2,068,751 | ' |
Consumers Energy Company [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Deferred Compensation Arrangements Plan Term | '5 years | ' |
Number of shares authorized | 6,000,000 | ' |
Maximum shares issuable per employee | 500,000 | ' |
Shares available for grant | 2,068,751 | ' |
TSR Restricted Stock [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Type of award grant, percentage | 75.00% | 75.00% |
Service period | '3 years | ' |
TSR Restricted Stock [Member] | Consumers Energy Company [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Type of award grant, percentage | 75.00% | 75.00% |
Service period | '3 years | ' |
TSR Restricted Stock [Member] | Minimum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Percent of Initial Grant Issued on Vesting Date | 0.00% | ' |
TSR Restricted Stock [Member] | Minimum [Member] | Consumers Energy Company [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Percent of Initial Grant Issued on Vesting Date | 0.00% | ' |
TSR Restricted Stock [Member] | Maximum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Percent of Initial Grant Issued on Vesting Date | 200.00% | ' |
TSR Restricted Stock [Member] | Maximum [Member] | Consumers Energy Company [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Percent of Initial Grant Issued on Vesting Date | 200.00% | ' |
Time-Lapsed Restricted Stock [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Type of award grant, percentage | 25.00% | 25.00% |
Vesting period | '3 years | ' |
Time-Lapsed Restricted Stock [Member] | Consumers Energy Company [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Type of award grant, percentage | 25.00% | 25.00% |
Vesting period | '3 years | ' |
StockBased_Compensation_Schedu
Stock-Based Compensation (Schedule Of Share-Based Compensation, Restricted Stock Units Award Activity) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Number of Shares, at beginning of period | 1,654,776 | |
Number of Shares, Granted | 920,587 | [1] |
Number of Shares, Vested | -927,164 | |
Number of Shares, Forfeited | -22,343 | |
Number of Shares, at end of period | 1,625,856 | |
Weighted-Average Grant Date Fair Value per Share, at beginning of period | $19.15 | |
Weighted-Average Grant Date Fair Value per Share, Granted | $16.65 | [1] |
Weighted-Average Grant Date Fair Value per Share, Vested | $10.85 | |
Weighted-Average Grant Date Fair Value per Share, Forfeited | $22.33 | |
Weighted-Average Grant Date Fair Value per Share, at end of period | $22.42 | |
Consumers Energy Company [Member] | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Number of Shares, at beginning of period | 1,547,123 | |
Number of Shares, Granted | 879,150 | [1] |
Number of Shares, Vested | -841,728 | |
Number of Shares, Forfeited | -22,343 | |
Number of Shares, at end of period | 1,562,202 | |
Weighted-Average Grant Date Fair Value per Share, at beginning of period | $19.22 | |
Weighted-Average Grant Date Fair Value per Share, Granted | $16.76 | [1] |
Weighted-Average Grant Date Fair Value per Share, Vested | $10.84 | |
Weighted-Average Grant Date Fair Value per Share, Forfeited | $22.33 | |
Weighted-Average Grant Date Fair Value per Share, at end of period | $22.31 | |
TSR Restricted Stock [Member] | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Number of Shares, Granted | 326,518 | |
TSR Restricted Stock [Member] | Consumers Energy Company [Member] | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Number of Shares, Granted | 310,454 | |
Time-Lapsed Restricted Stock [Member] | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Number of Shares, Granted | 271,250 | |
Time-Lapsed Restricted Stock [Member] | Consumers Energy Company [Member] | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Number of Shares, Granted | 264,283 | |
Share Dividend Restricted Stock [Member] | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Number of Shares, Granted | 45,486 | |
Share Dividend Restricted Stock [Member] | Consumers Energy Company [Member] | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Number of Shares, Granted | 43,450 | |
Market Add-On Restricted Stock [Member] | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Number of Shares, Granted | 277,333 | |
Market Add-On Restricted Stock [Member] | Consumers Energy Company [Member] | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Number of Shares, Granted | 260,963 | |
[1] | During 2013, CMS Energy granted 326,518 TSR shares, 271,250 time-lapse shares, 45,486 shares from dividends paid on TSR shares, and 277,333 shares granted as a result of the outcome of the TSR awards’ market condition. During 2013, Consumers granted 310,454 TSR shares, 264,283 time-lapse shares, 43,450 shares from dividends paid on TSR shares, and 260,963 shares granted as a result of the outcome of the TSR awards’ market condition. |
StockBased_Compensation_Schedu1
Stock-Based Compensation (Schedule Of Share-Based Payment Award, Restricted Stock, Valuation Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 17.40% | 20.30% | 29.60% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 3.90% | 4.10% | 4.60% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.40% | 0.30% | 1.00% |
Consumers Energy Company [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 17.40% | 20.30% | 29.60% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 3.90% | 4.10% | 4.60% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.40% | 0.30% | 1.00% |
StockBased_Compensation_ShareB
Stock-Based Compensation (Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Weighted Average Grant Date Fair Value) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |
Weighted-Average Grant Date Fair Value per Share, Granted | $16.65 | [1] | ' | ' |
Consumers Energy Company [Member] | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |
Weighted-Average Grant Date Fair Value per Share, Granted | $16.76 | [1] | ' | ' |
Restricted Stock [Member] | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |
Weighted-Average Grant Date Fair Value per Share, Granted | $16.65 | $12.32 | $13.89 | |
Restricted Stock [Member] | Consumers Energy Company [Member] | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |
Weighted-Average Grant Date Fair Value per Share, Granted | $16.76 | $12.28 | $14.17 | |
[1] | During 2013, CMS Energy granted 326,518 TSR shares, 271,250 time-lapse shares, 45,486 shares from dividends paid on TSR shares, and 277,333 shares granted as a result of the outcome of the TSR awards’ market condition. During 2013, Consumers granted 310,454 TSR shares, 264,283 time-lapse shares, 43,450 shares from dividends paid on TSR shares, and 260,963 shares granted as a result of the outcome of the TSR awards’ market condition. |
StockBased_Compensation_Schedu2
Stock-Based Compensation (Schedule Of Compensation Cost For Share-Based Payment Arrangements, Allocation Of Share-Based Compensation Costs By Plan) (Details) (Restricted Stock [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value | $10 | $10 | $7 |
Allocated Share-based Compensation Expense | 14 | 12 | 10 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 5 | 5 | 4 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | 10 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | '1 year 9 months 18 days | ' | ' |
Consumers Energy Company [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value | 9 | 8 | 7 |
Allocated Share-based Compensation Expense | 14 | 11 | 10 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 5 | 4 | 4 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $10 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | '1 year 9 months 18 days | ' | ' |
StockBased_Compensation_Schedu3
Stock-Based Compensation (Schedule Of Share-Based Compensation, Stock Options, Activity) (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Stock-Based Compensation [Abstract] | ' |
Unrealized Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | $58 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | 31-May-12 |
Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Internal Revenue Service (IRS) [Member] | Internal Revenue Service (IRS) [Member] | ||||||||||||
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Uncertain tax benefits | $4 | ' | ' | ' | $1 | ' | ' | ' | $4 | $1 | $4 | $4 | ' | ' | ' | $1 | ' | ' | ' | $4 | $1 | $4 | ' | ' |
Net operating loss carryforward | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45 |
Net income | $102 | $127 | $81 | $144 | $67 | $149 | $101 | $67 | $454 | $384 | $417 | $119 | $153 | $100 | $162 | $78 | $163 | $122 | $76 | $534 | $439 | $467 | ($1) | ' |
Income_Taxes_Schedule_Of_Effec
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Taxes [Line Items] | ' | ' | ' | |
Income from continuing operataions before income taxes | $756 | $622 | $606 | |
Income from continuing operations before income taxes | 754 | 620 | 604 | |
Income tax expense at statutory rate | 264 | 217 | 211 | |
MCIT law change, net of federal effect | ' | ' | -32 | [1] |
State and local income taxes, net of federal effect | 37 | 27 | 21 | |
Other, net | 1 | 1 | -9 | |
Income Tax Expense | 302 | 245 | 191 | |
Effective income tax rate | 40.10% | 39.50% | 31.60% | |
Deferred Income Tax Expense (Benefit) | 271 | 226 | 169 | |
Consumers Energy Company [Member] | ' | ' | ' | |
Income Taxes [Line Items] | ' | ' | ' | |
Income from continuing operataions before income taxes | 880 | 736 | 734 | |
Income tax expense at statutory rate | 308 | 258 | 257 | |
State and local income taxes, net of federal effect | 43 | 36 | 24 | |
Other, net | -5 | 3 | -14 | |
Income Tax Expense | 346 | 297 | 267 | |
Effective income tax rate | 39.30% | 40.40% | 36.40% | |
Recognition of regulatory asset related to law change | 1,570 | 2,322 | ' | |
Deferred Income Tax Expense (Benefit) | 167 | 153 | 165 | |
State Jurisdiction [Member] | ' | ' | ' | |
Income Taxes [Line Items] | ' | ' | ' | |
MCIT rate | ' | ' | 6.00% | |
Tax Law Change [Member] | ' | ' | ' | |
Income Taxes [Line Items] | ' | ' | ' | |
Deferred Income Tax Expense (Benefit) | ' | ' | -32 | |
Tax Law Change [Member] | Consumers Energy Company [Member] | ' | ' | ' | |
Income Taxes [Line Items] | ' | ' | ' | |
Recognition of regulatory asset related to law change | ' | ' | $128 | |
[1] | For the year ended December 31, 2011, CMS Energy and Consumers remeasured their Michigan deferred income tax assets and liabilities due to the enactment in May 2011 of the MCIT, which became effective January 1, 2012. The MCIT, a simplified six percent corporate income tax, replaced the MBT, a complex multi-part tax. CMS Energy recognized a one-time non-cash deferred tax benefit of $32 million as a result of this remeasurement. Consumers recognized a $128 million regulatory asset (not including the effects of income tax gross-ups) related to this change in tax law. |
Income_Taxes_Significant_Compo
Income Taxes (Significant Components Of Income Tax Expense) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Federal | ' | $1 | $2 |
State and Local | 34 | 21 | 24 |
Total Current Income Tax Expense | 34 | 22 | 26 |
Federal, deferred income taxes | 248 | 205 | 207 |
State and Local, deferred income taxes | 23 | 21 | 11 |
MCIT law change, deferred income taxes | ' | ' | -49 |
Total Deferred Income Tax Expense | 271 | 226 | 169 |
Deferred income tax credit | -3 | -3 | -4 |
Tax Expense | 302 | 245 | 191 |
Consumers Energy Company [Member] | ' | ' | ' |
Federal | 137 | 110 | 74 |
State and Local | 45 | 37 | 32 |
Total Current Income Tax Expense | 182 | 147 | 106 |
Federal, deferred income taxes | 147 | 134 | 159 |
State and Local, deferred income taxes | 20 | 19 | 6 |
Total Deferred Income Tax Expense | 167 | 153 | 165 |
Deferred income tax credit | -3 | -3 | -4 |
Tax Expense | $346 | $297 | $267 |
Income_Taxes_Principal_Compone
Income Taxes (Principal Components Of Deferred Income Tax Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Employee benefits | ($99) | $3 |
Gas inventory | -130 | -147 |
Property, plant and equipment | -1,856 | -1,783 |
Net regulatory tax liability | 86 | 131 |
Reserves and accruals | 57 | 71 |
Securitized costs | -190 | -73 |
Tax loss and credit carryforwards | 629 | 733 |
Other | 15 | -15 |
Gross Deferred Tax Liabilities | -1,488 | -1,080 |
Less: valuation allowance | -2 | -3 |
Total net deferred income tax liabilities | -1,490 | -1,083 |
Deferred tax assets, net of valuation reserves | 785 | 935 |
Deferred tax liabilities | -2,275 | -2,018 |
Consumers Energy Company [Member] | ' | ' |
Employee benefits | -119 | -36 |
Gas inventory | -130 | -147 |
Property, plant and equipment | -1,911 | -1,848 |
Net regulatory tax liability | 86 | 131 |
Reserves and accruals | 31 | 41 |
Securitized costs | -190 | -73 |
Tax loss and credit carryforwards | 48 | 61 |
Other | 16 | -13 |
Gross Deferred Tax Liabilities | -2,169 | -1,884 |
Less: valuation allowance | -1 | -1 |
Total net deferred income tax liabilities | -2,170 | -1,885 |
Deferred tax assets, net of valuation reserves | 180 | 232 |
Deferred tax liabilities | ($2,350) | ($2,117) |
Income_Taxes_Loss_And_Credit_C
Income Taxes (Loss And Credit Carryforwards) (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Operating Loss Carryforwards [Line Items] | ' |
Total tax attributes | $629 |
Consumers Energy Company [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Total tax attributes | 48 |
Internal Revenue Service (IRS) [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Operating loss carryforward, Gross Amount | 900 |
Federal net operating loss carryforward, Tax Attribute | 315 |
Internal Revenue Service (IRS) [Member] | Consumers Energy Company [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Operating loss carryforward, Gross Amount | 129 |
Federal net operating loss carryforward, Tax Attribute | 45 |
Local Jurisdiction [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Operating loss carryforward, Gross Amount | 420 |
Local net operating loss carryforwards, Tax Attribute | 4 |
Valuation Allowance - Loss carryforward | 1 |
State Jurisdiction [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Capital loss carryforwards, Gross Amount | 18 |
State capital loss carryforward, Tax Attribute | 1 |
Valuation Allowance - Loss carryforward | 1 |
State Jurisdiction [Member] | Consumers Energy Company [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Capital loss carryforwards, Gross Amount | 10 |
State capital loss carryforward, Tax Attribute | 1 |
Valuation Allowance - Loss carryforward | 1 |
Alternative Minimum Tax [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Tax credits, Gross Amount | 270 |
Alternative minimum tax credits, Tax Attribute | 270 |
Charitable Contribution Carryover [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Charitable contribution carryforwards | 5 |
Charitable contribution carryover, Tax Attribute | 2 |
Charitable Contribution Carryover [Member] | Consumers Energy Company [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Charitable contribution carryforwards | 5 |
Charitable contribution carryover, Tax Attribute | 2 |
General Business Tax Credit Carryforward [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Tax credits, Gross Amount | 37 |
General business credits, Tax Attribute | $37 |
Income_Taxes_Reconciliation_Of
Income Taxes (Reconciliation Of Beginning And Ending Uncertain Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Balance at beginning of period | $1 | $4 | $4 |
Reductions for prior year tax positions | ' | -4 | -1 |
Additions for prior year tax positions | 3 | 1 | 1 |
Balance at end of period | 4 | 1 | 4 |
Consumers Energy Company [Member] | ' | ' | ' |
Balance at beginning of period | 1 | 4 | 3 |
Reductions for prior year tax positions | ' | -4 | ' |
Additions for prior year tax positions | 3 | 1 | 1 |
Balance at end of period | $4 | $1 | $4 |
Earnings_Per_Share_CMS_Energy_1
Earnings Per Share - CMS Energy (Basic And Diluted EPS Computations) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||
Earnings Per Share - CMS Energy [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Income From continuing operations | $102 | $127 | $81 | $144 | $67 | $149 | $101 | $60 | $454 | $377 | $415 | ||||||||
Less income attributable to noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 2 | 2 | ||||||||
Income from continuing operations available to common stockholders - basic and diluted | ' | ' | ' | ' | ' | ' | ' | ' | $452 | $375 | $413 | ||||||||
Weighted average shares - basic | ' | ' | ' | ' | ' | ' | ' | ' | 264.5 | 260.7 | 250.8 | ||||||||
Add dilutive contingently convertible securities | ' | ' | ' | ' | ' | ' | ' | ' | 6.4 | 6.8 | 12.2 | ||||||||
Add dilutive non-vested stock awards and options | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1.1 | 0.4 | ||||||||
Weighted average shares - diluted | ' | ' | ' | ' | ' | ' | ' | ' | 271.9 | 268.6 | 263.4 | ||||||||
Basic | $0.38 | [1] | $0.48 | [1] | $0.30 | [1] | $0.55 | [1] | $0.26 | [1] | $0.56 | [1] | $0.38 | [1] | $0.23 | [1] | $1.71 | $1.43 | $1.65 |
Diluted | $0.37 | [1] | $0.46 | [1] | $0.29 | [1] | $0.53 | [1] | $0.25 | [1] | $0.55 | [1] | $0.37 | [1] | $0.22 | [1] | $1.66 | $1.39 | $1.57 |
[1] | The sum of the quarters may not equal annual EPS due to changes in the number of shares outstanding. |
Other_Income_and_Other_Expense2
Other Income and Other Expense (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Regulatory return on capital expenditures | ' | $1 | ' |
Return on stranded costs | ' | 1 | 3 |
Fee income | 7 | 7 | 8 |
All other | 3 | 2 | 5 |
Total other income | 10 | 11 | 16 |
Loss on reacquired and extinguished debt | -4 | ' | -1 |
Donations | -4 | -11 | -11 |
Civic and political expenditures | -5 | -17 | -3 |
All other | -7 | -5 | -7 |
Total other expense | -20 | -33 | -22 |
Consumers Energy Company [Member] | ' | ' | ' |
Regulatory return on capital expenditures | ' | 1 | ' |
Gain on investment | 4 | 5 | 4 |
Return on stranded costs | ' | 1 | 3 |
Fee income | 7 | 7 | 8 |
All other | 3 | 2 | 4 |
Total other income | 14 | 16 | 19 |
Donations | -4 | -11 | -11 |
Civic and political expenditures | -5 | -17 | -3 |
All other | -7 | -5 | -6 |
Total other expense | ($16) | ($33) | ($20) |
Reportable_Segments_Details
Reportable Segments (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Operating Revenue | $1,736 | $1,445 | $1,406 | $1,979 | $1,670 | $1,507 | $1,333 | $1,743 | $6,566 | $6,253 | $6,503 | |||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 628 | 598 | 546 | |||||
Income (loss) from equity method investees | ' | ' | ' | ' | ' | ' | ' | ' | 13 | [1] | 17 | [1] | 9 | [1] | ||
Interest charges | ' | ' | ' | ' | ' | ' | ' | ' | 398 | 389 | 415 | |||||
Income Tax Expense | ' | ' | ' | ' | ' | ' | ' | ' | 302 | 245 | 191 | |||||
Total Net Income Available to Common Stockholders | 102 | 126 | 80 | 144 | 67 | 148 | 100 | 67 | 452 | 382 | 415 | |||||
Plant, property, and equipment, gross | 16,184 | ' | ' | ' | 15,592 | ' | ' | ' | 16,184 | 15,592 | 14,751 | |||||
Investments in equity method investees | 59 | [1] | ' | ' | ' | 57 | [1] | ' | ' | ' | 59 | [1] | 57 | [1] | 50 | [1] |
Total Assets | 17,416 | ' | ' | ' | 17,131 | ' | ' | ' | 17,416 | 17,131 | 16,452 | |||||
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 1,408 | [2] | 1,266 | [2] | 928 | [2] | ||
Consumers Energy Company [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Operating Revenue | 1,674 | 1,386 | 1,342 | 1,919 | 1,608 | 1,448 | 1,282 | 1,675 | 6,321 | 6,013 | 6,253 | |||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 622 | 592 | 542 | |||||
Interest charges | ' | ' | ' | ' | ' | ' | ' | ' | 245 | 244 | 265 | |||||
Income Tax Expense | ' | ' | ' | ' | ' | ' | ' | ' | 346 | 297 | 267 | |||||
Total Net Income Available to Common Stockholders | 119 | 152 | 99 | 162 | 78 | 162 | 121 | 76 | 532 | 437 | 465 | |||||
Plant, property, and equipment, gross | 16,044 | ' | ' | ' | 15,456 | ' | ' | ' | 16,044 | 15,456 | 14,621 | |||||
Total Assets | 16,179 | ' | ' | ' | 16,275 | ' | ' | ' | 16,179 | 16,275 | 15,662 | |||||
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 1,403 | [2] | 1,261 | [2] | 922 | [2] | ||
Electric Utility [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Operating Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 4,173 | 4,031 | 3,913 | |||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 484 | 459 | 412 | |||||
Interest charges | ' | ' | ' | ' | ' | ' | ' | ' | 179 | 179 | 192 | |||||
Income Tax Expense | ' | ' | ' | ' | ' | ' | ' | ' | 242 | 227 | 190 | |||||
Total Net Income Available to Common Stockholders | ' | ' | ' | ' | ' | ' | ' | ' | 363 | 325 | 333 | |||||
Plant, property, and equipment, gross | 11,186 | ' | ' | ' | 11,041 | ' | ' | ' | 11,186 | 11,041 | 10,400 | |||||
Total Assets | 10,487 | [3] | ' | ' | ' | 10,423 | [3] | ' | ' | ' | 10,487 | [3] | 10,423 | [3] | 9,938 | [3] |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 996 | [2] | 921 | [2] | 661 | [2] | ||
Electric Utility [Member] | Consumers Energy Company [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Operating Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 4,173 | 4,031 | 3,913 | |||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 484 | 459 | 412 | |||||
Interest charges | ' | ' | ' | ' | ' | ' | ' | ' | 179 | 179 | 192 | |||||
Income Tax Expense | ' | ' | ' | ' | ' | ' | ' | ' | 242 | 227 | 190 | |||||
Total Net Income Available to Common Stockholders | ' | ' | ' | ' | ' | ' | ' | ' | 363 | 325 | 333 | |||||
Plant, property, and equipment, gross | 11,186 | ' | ' | ' | 11,041 | ' | ' | ' | 11,186 | 11,041 | 10,400 | |||||
Total Assets | 10,487 | [3] | ' | ' | ' | 10,423 | [3] | ' | ' | ' | 10,487 | [3] | 10,423 | [3] | 9,938 | [3] |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 996 | [2] | 921 | [2] | 661 | [2] | ||
Gas Utility [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Operating Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 2,148 | 1,982 | 2,340 | |||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 138 | 133 | 130 | |||||
Interest charges | ' | ' | ' | ' | ' | ' | ' | ' | 64 | 63 | 71 | |||||
Income Tax Expense | ' | ' | ' | ' | ' | ' | ' | ' | 104 | 70 | 77 | |||||
Total Net Income Available to Common Stockholders | ' | ' | ' | ' | ' | ' | ' | ' | 168 | 110 | 130 | |||||
Plant, property, and equipment, gross | 4,843 | ' | ' | ' | 4,400 | ' | ' | ' | 4,843 | 4,400 | 4,206 | |||||
Total Assets | 4,784 | [3] | ' | ' | ' | 5,016 | [3] | ' | ' | ' | 4,784 | [3] | 5,016 | [3] | 4,956 | [3] |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 407 | [2] | 340 | [2] | 261 | [2] | ||
Gas Utility [Member] | Consumers Energy Company [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Operating Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 2,148 | 1,982 | 2,340 | |||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 138 | 133 | 130 | |||||
Interest charges | ' | ' | ' | ' | ' | ' | ' | ' | 64 | 63 | 71 | |||||
Income Tax Expense | ' | ' | ' | ' | ' | ' | ' | ' | 104 | 70 | 77 | |||||
Total Net Income Available to Common Stockholders | ' | ' | ' | ' | ' | ' | ' | ' | 168 | 110 | 130 | |||||
Plant, property, and equipment, gross | 4,843 | ' | ' | ' | 4,400 | ' | ' | ' | 4,843 | 4,400 | 4,206 | |||||
Total Assets | 4,784 | [3] | ' | ' | ' | 5,016 | [3] | ' | ' | ' | 4,784 | [3] | 5,016 | [3] | 4,956 | [3] |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 407 | [2] | 340 | [2] | 261 | [2] | ||
Enterprises [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Operating Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 181 | 183 | 204 | |||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 4 | 3 | |||||
Income (loss) from equity method investees | ' | ' | ' | ' | ' | ' | ' | ' | 13 | [1] | 17 | [1] | 9 | [1] | ||
Income Tax Expense | ' | ' | ' | ' | ' | ' | ' | ' | -4 | -1 | -24 | |||||
Total Net Income Available to Common Stockholders | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 16 | 32 | |||||
Plant, property, and equipment, gross | 115 | ' | ' | ' | 113 | ' | ' | ' | 115 | 113 | 109 | |||||
Investments in equity method investees | 57 | [1] | ' | ' | ' | 55 | [1] | ' | ' | ' | 57 | [1] | 55 | [1] | 49 | [1] |
Total Assets | 332 | ' | ' | ' | 181 | ' | ' | ' | 332 | 181 | 242 | |||||
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 1 | [2] | 1 | [2] | 5 | [2] | ||
Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Operating Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 64 | 57 | 46 | |||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 2 | 1 | |||||
Interest charges | ' | ' | ' | ' | ' | ' | ' | ' | 155 | 147 | 152 | |||||
Income Tax Expense | ' | ' | ' | ' | ' | ' | ' | ' | -40 | -51 | -52 | |||||
Total Net Income Available to Common Stockholders | ' | ' | ' | ' | ' | ' | ' | ' | -81 | -69 | -80 | |||||
Plant, property, and equipment, gross | 40 | ' | ' | ' | 38 | ' | ' | ' | 40 | 38 | 36 | |||||
Investments in equity method investees | 2 | [1] | ' | ' | ' | 2 | [1] | ' | ' | ' | 2 | [1] | 2 | [1] | 1 | [1] |
Total Assets | 1,813 | ' | ' | ' | 1,511 | ' | ' | ' | 1,813 | 1,511 | 1,316 | |||||
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 4 | [2] | 4 | [2] | 1 | [2] | ||
Other [Member] | Consumers Energy Company [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Interest charges | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 2 | 2 | |||||
Total Net Income Available to Common Stockholders | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 2 | 2 | |||||
Plant, property, and equipment, gross | 15 | ' | ' | ' | 15 | ' | ' | ' | 15 | 15 | 15 | |||||
Total Assets | $908 | ' | ' | ' | $836 | ' | ' | ' | $908 | $836 | $768 | |||||
[1] | Consumers had no significant equity method investments. | |||||||||||||||
[2] | Amounts include purchase of capital lease additions. Amounts also include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses. | |||||||||||||||
[3] | Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. |
Related_Party_Transactions_Con2
Related Party Transactions - Consumers (Details) (USD $) | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 31, 2014 |
Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | Consumers Energy Company [Member] | ||||
Credit Agreement [Member] | |||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Purchased power - related parties | $90 | $87 | $82 | $89 | $86 | $81 | ' |
Accounts payable - related parties | 10 | 9 | ' | 13 | 11 | ' | ' |
Investment Owned, Balance, Shares | ' | ' | ' | 1.1 | ' | ' | ' |
Investments | ' | ' | ' | 29 | 32 | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | $300 |
Variable_Interest_Entities_Det
Variable Interest Entities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Millions, unless otherwise specified | T.E.S. Filer City [Member] | Grayling [Member] | Genesee [Member] | Guarantee to Creditors [Member] | Deferred Receivables [Member] | ||
Genesee [Member] | |||||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | $56 | $56 | ' | ' | ' | ' | ' |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | ' | ' | 50.00% | 50.00% | 50.00% | ' | ' |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | ' | ' | ' | ' | ' | $3 | $7 |
Asset_Sales_And_Discontinued_O2
Asset Sales And Discontinued Operations (Asset Sales) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Proceeds from sale of assets | $0 | $0 | ' |
Allocated interest expense | 0 | 0 | 1 |
Consumers Energy Company [Member] | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Proceeds from sale of assets | $0 | $0 | $0 |
Asset_Sales_And_Discontinued_O3
Asset Sales And Discontinued Operations (Discontinued Operations) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ||
Pretax income from discontinued operations | ' | ' | $11 | $2 | ||
Income tax expense | ' | ' | 4 | ' | ||
Income from discontinued operations, net of tax expense | 7 | ' | 7 | [1] | 2 | [2] |
Panhandle [Member] | ' | ' | ' | ' | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ||
Operating gain, before tax | ' | ' | 11 | ' | ||
Operating gain | ' | ' | 7 | ' | ||
CMS Viron [Member] | ' | ' | ' | ' | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ||
Operating gain | ' | ' | $3 | ' | ||
[1] | Includes an $11Â million ($7Â million net of tax) reversal of a loss on disposal due to the elimination of a liability associated with the 2003 sale of Panhandle. | |||||
[2] | Includes an operating gain of $3Â million related to a litigation settlement at CMSÂ Viron. |
Quarterly_Financial_And_Common2
Quarterly Financial And Common Stock Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||||||||
Operating Revenue | $1,736 | $1,445 | $1,406 | $1,979 | $1,670 | $1,507 | $1,333 | $1,743 | $6,566 | $6,253 | $6,503 | |||||||||||
Operating Income (Loss) | 264 | 317 | 232 | 329 | 212 | 343 | 260 | 188 | 1,142 | 1,003 | 1,003 | |||||||||||
Income From Continuing Operations | 102 | 127 | 81 | 144 | 67 | 149 | 101 | 60 | 454 | 377 | 415 | |||||||||||
Income From Discontinued Operations, Net | ' | ' | ' | ' | ' | ' | ' | 7 | ' | 7 | [1] | 2 | [2] | |||||||||
Net Income | 102 | 127 | 81 | 144 | 67 | 149 | 101 | 67 | 454 | 384 | 417 | |||||||||||
Income Attributable to Noncontrolling Interests | ' | 1 | 1 | ' | ' | 1 | 1 | ' | 2 | 2 | 2 | |||||||||||
Net Income Available to Common Stockholders | 102 | 126 | 80 | 144 | 67 | 148 | 100 | 67 | 452 | 382 | 415 | |||||||||||
Earnings from continuing operations per average common share - basic | $0.38 | [3] | $0.48 | [3] | $0.30 | [3] | $0.55 | [3] | $0.26 | [3] | $0.56 | [3] | $0.38 | [3] | $0.23 | [3] | $1.71 | $1.43 | $1.65 | |||
Earnings from continuing operations per average common share - diluted | $0.37 | [3] | $0.46 | [3] | $0.29 | [3] | $0.53 | [3] | $0.25 | [3] | $0.55 | [3] | $0.37 | [3] | $0.22 | [3] | $1.66 | $1.39 | $1.57 | |||
Basic earnings per average common share | $0.38 | [3] | $0.48 | [3] | $0.30 | [3] | $0.55 | [3] | $0.26 | [3] | $0.56 | [3] | $0.38 | [3] | $0.26 | [3] | $1.71 | $1.46 | $1.66 | |||
Diluted earnings per average common share | $0.37 | [3] | $0.46 | [3] | $0.29 | [3] | $0.53 | [3] | $0.25 | [3] | $0.55 | [3] | $0.37 | [3] | $0.25 | [3] | $1.66 | $1.42 | $1.58 | |||
CMS Energy [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | -6 | -8 | -3 | |||||||||||
Income From Continuing Operations | ' | ' | ' | ' | ' | ' | ' | ' | 452 | 382 | 415 | |||||||||||
Net Income | ' | ' | ' | ' | ' | ' | ' | ' | 452 | 382 | 415 | |||||||||||
Net Income Available to Common Stockholders | ' | ' | ' | ' | ' | ' | ' | ' | 452 | 382 | 415 | |||||||||||
Consumers Energy Company [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Operating Revenue | 1,674 | 1,386 | 1,342 | 1,919 | 1,608 | 1,448 | 1,282 | 1,675 | 6,321 | 6,013 | 6,253 | |||||||||||
Operating Income (Loss) | 258 | 314 | 227 | 319 | 207 | 334 | 260 | 183 | 1,118 | 984 | 985 | |||||||||||
Net Income | 119 | 153 | 100 | 162 | 78 | 163 | 122 | 76 | 534 | 439 | 467 | |||||||||||
Preferred stock dividends and distribution | ' | 1 | 1 | ' | ' | 1 | 1 | ' | 2 | 2 | 2 | |||||||||||
Net Income Available to Common Stockholders | $119 | $152 | $99 | $162 | $78 | $162 | $121 | $76 | $532 | $437 | $465 | |||||||||||
Maximum [Member] | CMS Energy Common Stock [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Share price | $28.05 | [4] | $28.52 | [4] | $29.94 | [4] | $27.94 | [4] | $24.70 | [4] | $24.81 | [4] | $23.87 | [4] | $22.31 | [4] | $28.05 | [4] | $24.70 | [4] | ' | |
Minimum [Member] | CMS Energy Common Stock [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Share price | $25.90 | [4] | $25.86 | [4] | $25.95 | [4] | $24.76 | [4] | $22.79 | [4] | $22.70 | [4] | $21.52 | [4] | $21.33 | [4] | $25.90 | [4] | $22.79 | [4] | ' | |
[1] | Includes an $11Â million ($7Â million net of tax) reversal of a loss on disposal due to the elimination of a liability associated with the 2003 sale of Panhandle. | |||||||||||||||||||||
[2] | Includes an operating gain of $3Â million related to a litigation settlement at CMSÂ Viron. | |||||||||||||||||||||
[3] | The sum of the quarters may not equal annual EPS due to changes in the number of shares outstanding. | |||||||||||||||||||||
[4] | Based on New York Stock Exchange composite transactions. |
Schedule_I_Condensed_Financial1
Schedule I - Condensed Financial Information of Registrant (Condensed Statements of Income) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Other operating expense | ' | ' | ' | ' | ' | ' | ' | ' | ($1,236) | ($1,224) | ($1,237) | ||
General taxes | ' | ' | ' | ' | ' | ' | ' | ' | 234 | 229 | 205 | ||
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | -5,424 | -5,250 | -5,500 | ||
Operating Loss | 264 | 317 | 232 | 329 | 212 | 343 | 260 | 188 | 1,142 | 1,003 | 1,003 | ||
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 5 | 9 | ||
Total other income (expense) | ' | ' | ' | ' | ' | ' | ' | ' | 12 | 8 | 18 | ||
Interest on long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | 385 | 372 | 396 | ||
Intercompany interest expense and other | ' | ' | ' | ' | ' | ' | ' | ' | 16 | 21 | 23 | ||
Total interest charges | ' | ' | ' | ' | ' | ' | ' | ' | 398 | 389 | 415 | ||
Income Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | 756 | 622 | 606 | ||
Income Tax Benefit | ' | ' | ' | ' | ' | ' | ' | ' | 302 | 245 | 191 | ||
Income From Continuing Operations | 102 | 127 | 81 | 144 | 67 | 149 | 101 | 60 | 454 | 377 | 415 | ||
Income From Discontinued Operations, Net | ' | ' | ' | ' | ' | ' | ' | 7 | ' | 7 | [1] | 2 | [2] |
Net Income Available to Common Stockholders | 102 | 126 | 80 | 144 | 67 | 148 | 100 | 67 | 452 | 382 | 415 | ||
CMS Energy [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Other operating expense | ' | ' | ' | ' | ' | ' | ' | ' | -6 | -8 | -9 | ||
General taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ||
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | -6 | -8 | -3 | ||
Operating Loss | ' | ' | ' | ' | ' | ' | ' | ' | -6 | -8 | -3 | ||
Equity earnings of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 566 | 477 | 510 | ||
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 | 1 | ||
Other expense | ' | ' | ' | ' | ' | ' | ' | ' | -8 | -5 | -5 | ||
Total other income (expense) | ' | ' | ' | ' | ' | ' | ' | ' | 559 | 473 | 506 | ||
Interest on long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | 148 | 140 | 143 | ||
Intercompany interest expense and other | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 5 | 6 | ||
Total interest charges | ' | ' | ' | ' | ' | ' | ' | ' | 151 | 145 | 149 | ||
Income Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | 402 | 320 | 354 | ||
Income Tax Benefit | ' | ' | ' | ' | ' | ' | ' | ' | -50 | -62 | -61 | ||
Income From Continuing Operations | ' | ' | ' | ' | ' | ' | ' | ' | 452 | 382 | 415 | ||
Net Income Available to Common Stockholders | ' | ' | ' | ' | ' | ' | ' | ' | $452 | $382 | $415 | ||
[1] | Includes an $11Â million ($7Â million net of tax) reversal of a loss on disposal due to the elimination of a liability associated with the 2003 sale of Panhandle. | ||||||||||||
[2] | Includes an operating gain of $3Â million related to a litigation settlement at CMSÂ Viron. |
Schedule_I_Condensed_Financial2
Schedule I - Condensed Financial Information of Registrant (Statements of Cash Flows) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net Income | $454 | $384 | $417 |
Deferred income taxes | 271 | 226 | 169 |
Accounts and notes receivable | -120 | -147 | 119 |
Accounts payable | 6 | -5 | 30 |
Other current and non-current assets and liabilities | -106 | -70 | -7 |
Net cash provided by operating activities | 1,421 | 1,241 | 1,169 |
Net cash used in investing activities | -1,532 | -1,350 | -1,058 |
Proceeds from issuance of long-term debt | 1,025 | 1,650 | 375 |
Issuance of common stock | 36 | 30 | 29 |
Retirement of long-term debt | -741 | -1,527 | -413 |
Redemption of preferred stock | -7 | ' | ' |
Increase (decrease) in notes payable | 60 | 110 | ' |
Net cash provided by (used in) financing activities | 190 | 41 | -199 |
Net Increase (Decrease) in Cash and Cash Equivalents | 79 | -68 | -86 |
Cash and Cash Equivalents, Beginning of Period | 93 | 161 | 247 |
Cash and Cash Equivalents, End of Period | 172 | 93 | 161 |
CMS Energy [Member] | ' | ' | ' |
Net Income | 452 | 382 | 415 |
Equity earnings of subsidiaries | -566 | -477 | -510 |
Dividends received from subsidiaries | 435 | 401 | 474 |
Deferred income taxes | 48 | -25 | 14 |
Accounts and notes receivable | -3 | 2 | -1 |
Accounts payable | 2 | ' | ' |
Accrued taxes | 48 | 9 | -97 |
Other current and non-current assets and liabilities | 18 | -14 | 12 |
Net cash provided by operating activities | 434 | 278 | 307 |
Investment in subsidiaries | -150 | -151 | -125 |
Net cash used in investing activities | -150 | -151 | -125 |
Proceeds from issuance of long-term debt | 275 | 575 | 375 |
Issuance of common stock | 36 | 30 | 29 |
Retirement of long-term debt | -275 | -463 | -376 |
Payment of common stock dividends | -271 | -252 | -211 |
Debt issuance costs and financing fees | -4 | -4 | -6 |
Increase (decrease) in notes payable | -47 | -11 | 7 |
Net cash provided by (used in) financing activities | -286 | -125 | -182 |
Net Increase (Decrease) in Cash and Cash Equivalents | -2 | 2 | ' |
Cash and Cash Equivalents, Beginning of Period | 2 | ' | ' |
Cash and Cash Equivalents, End of Period | ' | $2 | ' |
Schedule_I_Condensed_Financial3
Schedule I - Condensed Financial Information of Registrant (Condensed Balance Sheets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||
Cash and cash equivalents | $172 | $93 | $161 | $247 |
Notes and accrued interest receivable | 63 | 41 | ' | ' |
Accounts receivable, including intercompany and related parties | 10 | 10 | ' | ' |
Deferred income taxes | 126 | ' | ' | ' |
Total current assets | 2,526 | 2,422 | ' | ' |
Less accumulated depreciation and amortization | 5,087 | 5,121 | ' | ' |
Other | 409 | 293 | ' | ' |
Total other non-current assets | 2,644 | 3,158 | ' | ' |
Total Assets | 17,416 | 17,131 | 16,452 | ' |
Current portion of long-term debt | 562 | 541 | ' | ' |
Accounts and notes payable, including intercompany and related parties | 10 | 9 | ' | ' |
Accrued interest, including intercompany | 96 | 95 | ' | ' |
Accrued taxes | 297 | 279 | ' | ' |
Other liabilities current | 146 | 152 | ' | ' |
Total current liabilities | 1,945 | 1,797 | ' | ' |
Long-term debt | 7,101 | 6,710 | ' | ' |
Unamortized Discount | 12 | 16 | ' | ' |
Postretirement benefits | 239 | 1,451 | ' | ' |
Other non-current liabilities | 306 | 311 | ' | ' |
Total non-current liabilities | 11,980 | 12,096 | ' | ' |
Common stockholders' equity | 3,454 | 3,194 | ' | ' |
Total Liabilities and Equity | 17,416 | 17,131 | ' | ' |
CMS Energy [Member] | ' | ' | ' | ' |
Cash and cash equivalents | ' | 2 | ' | ' |
Notes and accrued interest receivable | 1 | 1 | ' | ' |
Accounts receivable, including intercompany and related parties | 7 | 4 | ' | ' |
Accrued taxes | ' | 7 | ' | ' |
Deferred income taxes | 2 | 3 | ' | ' |
Total current assets | 10 | 17 | ' | ' |
Plant, property, and equipment, gross | 16 | 16 | ' | ' |
Less accumulated depreciation and amortization | 16 | 16 | ' | ' |
Total plant, property and equipment | ' | ' | ' | ' |
Deferred income taxes | 345 | 392 | ' | ' |
Invetment in subsidiaries | 5,626 | 5,312 | ' | ' |
Other investments - DB SERP | 23 | 24 | ' | ' |
Other | 23 | 26 | ' | ' |
Total other non-current assets | 6,017 | 5,754 | ' | ' |
Total Assets | 6,027 | 5,771 | ' | ' |
Current portion of long-term debt | 172 | 172 | ' | ' |
Accounts and notes payable, including intercompany and related parties | 107 | 152 | ' | ' |
Accrued interest, including intercompany | 32 | 30 | ' | ' |
Accrued taxes | 41 | ' | ' | ' |
Other liabilities current | 4 | 5 | ' | ' |
Total current liabilities | 356 | 359 | ' | ' |
Long-term debt | 2,205 | 2,205 | ' | ' |
Unamortized Discount | -9 | -13 | ' | ' |
Postretirement benefits | 19 | 24 | ' | ' |
Other non-current liabilities | 2 | 2 | ' | ' |
Total non-current liabilities | 2,217 | 2,218 | ' | ' |
Common stockholders' equity | 3,454 | 3,194 | ' | ' |
Total Liabilities and Equity | $6,027 | $5,771 | ' | ' |
Schedule_I_Condensed_Financial4
Schedule I - Condensed Financial Information of Registrant (Narrative) (Details) (CMS Energy [Member], USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
CMS Energy [Member] | ' |
Maximum potential obligation | $187 |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for Uncollectible Accounts [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of Period | $32 | $35 | $25 |
Charged to Expense | 63 | 53 | 70 |
Charged to other Accounts | ' | ' | ' |
Deductions | 62 | 56 | 60 |
Balance at End of Period | 33 | 32 | 35 |
Allowance for Uncollectible Accounts [Member] | Consumers Energy Company [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of Period | 30 | 33 | 23 |
Charged to Expense | 63 | 53 | 70 |
Charged to other Accounts | ' | ' | ' |
Deductions | 62 | 56 | 60 |
Balance at End of Period | 31 | 30 | 33 |
Deferred Tax Valuation Allowance [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of Period | 3 | 20 | 19 |
Charged to Expense | ' | ' | 1 |
Charged to other Accounts | ' | -15 | ' |
Deductions | 1 | 2 | ' |
Balance at End of Period | 2 | 3 | 20 |
Deferred Tax Valuation Allowance [Member] | Consumers Energy Company [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of Period | 1 | 1 | ' |
Charged to Expense | ' | ' | 1 |
Charged to other Accounts | ' | ' | ' |
Deductions | ' | ' | ' |
Balance at End of Period | 1 | 1 | 1 |
Allowance For Notes Receivable [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of Period | 5 | 5 | 5 |
Charged to Expense | 4 | 4 | 4 |
Charged to other Accounts | ' | ' | ' |
Deductions | 4 | 4 | 4 |
Balance at End of Period | $5 | $5 | $5 |