Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 11, 2016 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,016 | |
Trading Symbol | cms | |
Entity Registrant Name | CMS Energy Corporation | |
Entity Central Index Key | 811,156 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
CMS Energy [Member] | ||
Entity Common Stock, Shares Outstanding | 279,961,710 | |
Consumers Energy Company [Member] | ||
Entity Registrant Name | Consumers Energy Company | |
Entity Central Index Key | 201,533 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 84,108,789 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Revenue | $ 1,801 | $ 2,111 |
Operating Expenses | ||
Fuel for electric generation | 125 | 167 |
Purchased and interchange power | 346 | 349 |
Purchased power - related parties | 22 | 23 |
Cost of gas sold | 354 | 589 |
Maintenance and other operating expenses | 293 | 283 |
Depreciation and amortization | 238 | 222 |
General taxes | 87 | 81 |
Total operating expenses | 1,465 | 1,714 |
Operating Income | 336 | 397 |
Other Income (Expense) | ||
Interest income | 1 | 1 |
Allowance for equity funds used during construction | 3 | 2 |
Income from equity method investees | 4 | 4 |
Other income | 3 | 3 |
Other expense | (3) | (4) |
Total other income (expense) | 8 | 6 |
Interest Charges | ||
Interest on long-term debt | 100 | 96 |
Other interest expense | 7 | 6 |
Allowance for borrowed funds used during construction | (1) | (1) |
Total interest charges | 106 | 101 |
Income Before Income Taxes | 238 | 302 |
Income Tax Expense | 74 | 100 |
Net Income | $ 164 | $ 202 |
Basic Earnings Per Average Common Share | $ 0.59 | $ 0.73 |
Diluted Earnings Per Average Common Share | 0.59 | 0.73 |
Dividends declared per common share | $ 0.31 | $ 0.29 |
Consumers Energy Company [Member] | ||
Operating Revenue | $ 1,723 | $ 2,028 |
Operating Expenses | ||
Fuel for electric generation | 99 | 133 |
Purchased and interchange power | 343 | 346 |
Purchased power - related parties | 22 | 23 |
Cost of gas sold | 351 | 583 |
Maintenance and other operating expenses | 269 | 265 |
Depreciation and amortization | 237 | 220 |
General taxes | 85 | 79 |
Total operating expenses | 1,406 | 1,649 |
Operating Income | 317 | 379 |
Other Income (Expense) | ||
Interest income | 1 | 1 |
Allowance for equity funds used during construction | 3 | 2 |
Other income | 3 | 12 |
Other expense | (3) | (4) |
Total other income (expense) | 4 | 11 |
Interest Charges | ||
Interest on long-term debt | 65 | 63 |
Other interest expense | 3 | 3 |
Allowance for borrowed funds used during construction | (1) | (1) |
Total interest charges | 67 | 65 |
Income Before Income Taxes | 254 | 325 |
Income Tax Expense | 82 | 110 |
Net Income | $ 172 | $ 215 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net income | $ 164 | $ 202 |
Retirement Benefits Liability | ||
Amortization of net actuarial loss, net of tax | 1 | |
Investments | ||
Other Comprehensive Income (Loss) | 1 | |
Comprehensive Income Attributable to CMS Energy | 164 | 203 |
Consumers Energy Company [Member] | ||
Net income | 172 | 215 |
Retirement Benefits Liability | ||
Amortization of net actuarial loss, net of tax | 1 | |
Investments | ||
Unrealized gain on investments, net of tax | 3 | |
Reclassification adjustments included in net income, net of tax | (5) | |
Other Comprehensive Income (Loss) | 3 | (4) |
Comprehensive Income Attributable to CMS Energy | $ 175 | $ 211 |
Consolidated Statements Of Com4
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Amortization of net actuarial loss, tax | $ 1 | |
Consumers Energy Company [Member] | ||
Amortization of net actuarial loss, tax | ||
Unrealized gain (loss) on investments, tax expense (tax benefit) | $ 2 | |
Reclassification adjustments included in net income, tax | $ (3) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash Flows from Operating Activities | ||
Net income | $ 164 | $ 202 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 238 | 222 |
Deferred income taxes and investment tax credit | 68 | 99 |
Other non-cash operating activities | 21 | 42 |
Cash provided by (used in) changes in assets and liabilities | ||
Decrease (increase) in accounts receivable, notes receivable, and accrued revenue | 16 | (48) |
Decrease (increase) in inventories | 274 | 378 |
Increase (decrease) in accounts payable and accrued refunds | (48) | (36) |
Other current and non-current assets and liabilities | (101) | (99) |
Net cash provided by operating activities | 632 | 760 |
Cash Flows from Investing Activities | ||
Capital expenditures (excludes assets placed under capital lease) | (407) | (348) |
Increase in EnerBank notes receivable | (16) | (29) |
Other investing activities | (28) | (45) |
Net cash used in investing activities | (451) | (422) |
Cash Flows from Financing Activities | ||
Proceeds from issuance of debt | 30 | 100 |
Proceeds from EnerBank certificates of deposit, net | 14 | 40 |
Issuance of common stock | 63 | 4 |
Retirement of long-term debt | (30) | (11) |
Payment of dividends on common stock | (86) | (80) |
Decrease in notes payable | (249) | (60) |
Payment of capital lease obligations and other financing costs | (12) | (16) |
Net cash used in financing activities | (270) | (23) |
Net Increase (Decrease) in Cash and Cash Equivalents | (89) | 315 |
Cash and Cash Equivalents, Beginning of Period | 266 | 207 |
Cash and Cash Equivalents, End of Period | 177 | 522 |
Non-Cash Transactions | ||
Capital expenditures not paid | 173 | 117 |
Consumers Energy Company [Member] | ||
Cash Flows from Operating Activities | ||
Net income | 172 | 215 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 237 | 220 |
Deferred income taxes and investment tax credit | 62 | 39 |
Other non-cash operating activities | 17 | 40 |
Cash provided by (used in) changes in assets and liabilities | ||
Decrease (increase) in accounts receivable, notes receivable, and accrued revenue | 33 | (43) |
Decrease (increase) in inventories | 270 | 374 |
Increase (decrease) in accounts payable and accrued refunds | (42) | (32) |
Other current and non-current assets and liabilities | (84) | (27) |
Net cash provided by operating activities | 665 | 786 |
Cash Flows from Investing Activities | ||
Capital expenditures (excludes assets placed under capital lease) | (406) | (345) |
Other investing activities | (27) | (38) |
Net cash used in investing activities | (433) | (383) |
Cash Flows from Financing Activities | ||
Retirement of long-term debt | (11) | |
Payment of dividends on common stock | (155) | (122) |
Stockholder contribution | 150 | 150 |
Decrease in notes payable | (249) | (60) |
Payment of capital lease obligations and other financing costs | (1) | (6) |
Net cash used in financing activities | (255) | (49) |
Net Increase (Decrease) in Cash and Cash Equivalents | (23) | 354 |
Cash and Cash Equivalents, Beginning of Period | 50 | 71 |
Cash and Cash Equivalents, End of Period | 27 | 425 |
Non-Cash Transactions | ||
Capital expenditures not paid | $ 154 | $ 117 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Current Assets | |||
Cash and cash equivalents | $ 177 | $ 266 | |
Restricted cash and cash equivalents | 28 | 19 | |
Accounts receivable and accrued revenue, less allowances | 730 | 774 | |
Notes receivable, less allowances | 135 | 128 | |
Notes receivable held for sale | 16 | 16 | |
Accounts receivable - related parties | 11 | 11 | |
Inventories at average cost | |||
Gas in underground storage | 314 | 568 | |
Materials and supplies | 120 | 126 | |
Generating plant fuel stock | 64 | 84 | |
Deferred property taxes | 193 | 235 | |
Regulatory assets | 11 | 16 | |
Prepayments and other current assets | 91 | 77 | |
Total current assets | 1,890 | 2,320 | |
Plant, Property, and Equipment | |||
Plant, property, and equipment, gross | 19,334 | 18,943 | |
Less accumulated depreciation and amortization | 5,878 | 5,747 | |
Plant, property, and equipment, net | 13,456 | 13,196 | |
Construction work in progress | 1,451 | 1,509 | |
Total plant, property, and equipment | 14,907 | 14,705 | |
Other Non-current Assets | |||
Regulatory assets | 1,827 | 1,840 | |
Accounts and notes receivable | 1,034 | 1,027 | |
Investments | 64 | 64 | |
Other | 315 | 343 | |
Total other non-current assets | 3,240 | 3,274 | |
Total Assets | [1] | 20,037 | 20,299 |
Current Liabilities | |||
Current portion of long-term debt, capital leases, and financing obligation | 950 | 706 | |
Notes payable | 249 | ||
Accounts payable | 534 | 633 | |
Accounts payable - related parties | 9 | 9 | |
Accrued rate refunds | 34 | 26 | |
Accrued interest | 72 | 106 | |
Accrued taxes | 254 | 349 | |
Regulatory liabilities | 76 | 82 | |
Other current liabilities | 118 | 142 | |
Total current liabilities | 2,047 | 2,302 | |
Non-current Liabilities | |||
Long-term debt | 8,170 | 8,400 | |
Non-current portion of capital leases and financing obligation | 114 | 118 | |
Regulatory liabilities | 2,092 | 2,088 | |
Postretirement benefits | 581 | 591 | |
Asset retirement obligations | 440 | 439 | |
Deferred investment tax credit | 55 | 56 | |
Deferred income taxes | 2,078 | 2,017 | |
Other non-current liabilities | 314 | 313 | |
Total non-current liabilities | $ 13,844 | $ 14,022 | |
Commitments and Contingencies (Notes 2 and 3) | |||
Common stockholder's equity | |||
Common stock | $ 3 | $ 3 | |
Other paid-in capital | 4,897 | 4,837 | |
Accumulated other comprehensive loss | (47) | (47) | |
Retained earnings (Accumulated deficit) | (744) | (855) | |
Total common stockholders' equity | 4,109 | 3,938 | |
Noncontrolling interests | 37 | 37 | |
Total equity | 4,146 | 3,975 | |
Total Liabilities and Equity | 20,037 | 20,299 | |
Consumers Energy Company [Member] | |||
Current Assets | |||
Cash and cash equivalents | 27 | 50 | |
Restricted cash and cash equivalents | 28 | 19 | |
Accounts receivable and accrued revenue, less allowances | 713 | 758 | |
Accounts receivable - related parties | 1 | 17 | |
Inventories at average cost | |||
Gas in underground storage | 314 | 568 | |
Materials and supplies | 115 | 120 | |
Generating plant fuel stock | 63 | 80 | |
Deferred property taxes | 193 | 235 | |
Regulatory assets | 11 | 16 | |
Prepayments and other current assets | 84 | 66 | |
Total current assets | 1,549 | 1,929 | |
Plant, Property, and Equipment | |||
Plant, property, and equipment, gross | 19,165 | 18,797 | |
Less accumulated depreciation and amortization | 5,821 | 5,676 | |
Plant, property, and equipment, net | 13,344 | 13,121 | |
Construction work in progress | 1,449 | 1,467 | |
Total plant, property, and equipment | 14,793 | 14,588 | |
Other Non-current Assets | |||
Regulatory assets | 1,827 | 1,840 | |
Accounts and notes receivable | 10 | 10 | |
Investments | 34 | 29 | |
Other | 209 | 239 | |
Total other non-current assets | 2,080 | 2,118 | |
Total Assets | [1] | 18,422 | 18,635 |
Current Liabilities | |||
Current portion of long-term debt, capital leases, and financing obligation | 469 | 220 | |
Notes payable | 249 | ||
Accounts payable | 521 | 613 | |
Accounts payable - related parties | 15 | 15 | |
Accrued rate refunds | 34 | 26 | |
Accrued interest | 47 | 65 | |
Accrued taxes | 262 | 352 | |
Regulatory liabilities | 76 | 82 | |
Other current liabilities | 87 | 109 | |
Total current liabilities | 1,511 | 1,731 | |
Non-current Liabilities | |||
Long-term debt | 4,934 | 5,183 | |
Non-current portion of capital leases and financing obligation | 114 | 118 | |
Regulatory liabilities | 2,092 | 2,088 | |
Postretirement benefits | 519 | 529 | |
Asset retirement obligations | 439 | 438 | |
Deferred investment tax credit | 55 | 56 | |
Deferred income taxes | 2,799 | 2,710 | |
Other non-current liabilities | 243 | 236 | |
Total non-current liabilities | $ 11,195 | $ 11,358 | |
Commitments and Contingencies (Notes 2 and 3) | |||
Common stockholder's equity | |||
Common stock | $ 841 | $ 841 | |
Other paid-in capital | 3,874 | 3,724 | |
Accumulated other comprehensive loss | (3) | (6) | |
Retained earnings (Accumulated deficit) | 967 | 950 | |
Total common stockholders' equity | 5,679 | 5,509 | |
Preferred stock | 37 | 37 | |
Total equity | 5,716 | 5,546 | |
Total Liabilities and Equity | $ 18,422 | $ 18,635 | |
[1] | CMS Energy and Consumers changed the reporting of debt issuance costs on their consolidated balance sheets in accordance with ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, as of January 1, 2016, and retrospectively adjusted prior-period amounts for comparability. For further details on the implementation of this standard, see Note 1, New Accounting Standards. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Allowances for doubtful accounts receivable | $ 29 | $ 28 |
Allowances for doubtful notes receivable | $ 10 | $ 9 |
Common stock, shares authorized | 350,000,000 | 350,000,000 |
Common stock, shares outstanding | 279,200,000 | 277,200,000 |
Consumers Energy Company [Member] | ||
Allowances for doubtful accounts receivable | $ 29 | $ 28 |
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares outstanding | 84,100,000 | 84,100,000 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Equity - USD ($) $ in Millions | Consumers Energy Company [Member]CMS Energy Common Stock [Member] | Consumers Energy Company [Member]Other Paid-in Capital [Member] | Consumers Energy Company [Member]Accumulated Other Comprehensive Income (Loss) [Member] | Consumers Energy Company [Member]Retirement Benefits Liability [Member] | Consumers Energy Company [Member]Investments [Member] | Consumers Energy Company [Member]Retained Earnings (Accumulated Deficit) [Member] | Consumers Energy Company [Member]Preferred Stock [Member] | Consumers Energy Company [Member] | CMS Energy Common Stock [Member] | Other Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retirement Benefits Liability [Member] | Investments [Member] | Retained Earnings (Accumulated Deficit) [Member] | Noncontrolling Interest [Member] | Total |
Total Equity, beginning at Dec. 31, 2014 | $ 841 | $ 3,574 | $ (7) | $ (26) | $ 19 | $ 832 | $ 37 | $ 5,277 | $ 3 | $ 4,774 | $ (49) | $ (48) | $ (1) | $ (1,058) | $ 37 | $ 3,707 |
Common stock issued | 10 | |||||||||||||||
Common stock repurchased | (11) | |||||||||||||||
Common stock reissued | 10 | |||||||||||||||
Stockholder contribution | 150 | |||||||||||||||
Amortization of net actuarial loss | 1 | 1 | 1 | 1 | ||||||||||||
Reclassification adjustments included in net income, net of tax | (5) | 5 | ||||||||||||||
Net income | 215 | 215 | 202 | 202 | ||||||||||||
Dividends declared on common stock | (122) | (80) | ||||||||||||||
Total Equity, end at Mar. 31, 2015 | 841 | 3,724 | (11) | (25) | 14 | 925 | 37 | $ 5,516 | 3 | 4,783 | (48) | (47) | (1) | (936) | 37 | 3,839 |
Common stock issued | $ 90 | |||||||||||||||
Number of Shares Issued | 2,337,781 | |||||||||||||||
End of period, shares at Mar. 31, 2016 | 84,100,000 | 279,200,000 | ||||||||||||||
Total Equity, end at Mar. 31, 2016 | 841 | 3,874 | (3) | (19) | 16 | 967 | 37 | $ 5,716 | 3 | 4,897 | (47) | (43) | (4) | (744) | 37 | $ 4,146 |
Total Equity, beginning at Dec. 31, 2015 | 841 | 3,724 | (6) | $ (19) | 13 | 950 | 37 | $ 5,546 | 3 | 4,837 | (47) | (43) | (4) | (855) | 37 | $ 3,975 |
Beginning of period, shares at Dec. 31, 2015 | 84,100,000 | 277,200,000 | ||||||||||||||
Common stock issued | 70 | |||||||||||||||
Common stock repurchased | (10) | |||||||||||||||
Stockholder contribution | 150 | |||||||||||||||
Amortization of net actuarial loss | ||||||||||||||||
Unrealized gain on investments, net of tax | $ 3 | $ 3 | ||||||||||||||
Reclassification adjustments included in net income, net of tax | ||||||||||||||||
Net income | 172 | $ 172 | 164 | $ 164 | ||||||||||||
Dividends declared on common stock | (155) | (86) | ||||||||||||||
End of period, shares at Mar. 31, 2016 | 84,100,000 | 279,200,000 | ||||||||||||||
Total Equity, end at Mar. 31, 2016 | $ 841 | $ 3,874 | $ (3) | $ (19) | $ 16 | $ 967 | $ 37 | $ 5,716 | $ 3 | $ 4,897 | $ (47) | $ (43) | $ (4) | (744) | $ 37 | $ 4,146 |
Cumulative effect of change in accounting principle | $ 33 |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2016 | |
New Accounting Standards | 1: New Accounting Standards Implementation of New Accounting Standards ASU 2014 ‑12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period: This standard, which was effective on January 1, 2016 for CMS Energy and Consu mers, addresses stock awards with performance targets that can be met after an employee has completed the required service period. The standard was issued to resolve diversity in practice regarding the accounting treatment for this type of award. Under the new guidance, the probability of the performance target being met should be factored into compensation expense each period. This guidance is consistent with the accounting that CMS Energy and Consumers already applied to awards of this type. Therefore, the standard had no impact on CMS Energy’s or Consumers’ consolidated financial statements. ASU 2015 ‑02, Amendments to the Consolidation Analysis: This standard, which was effective on January 1, 2016 for CMS Energy and Consumers, provides amended guidance on whether reporting entities should consolidate certain legal entities, including limited partnerships. CMS Energy and Consumers determined that the standard does not change any of their consolidation conclusions or have any impact on their consolidated income, cash flows, or financial position. ASU 2015 ‑03, Simplifying the Presentation of Debt Issuance Costs: This standard, which was effective on January 1, 2016 for CMS Energy and Consumers, requires that debt issuance costs be presented as a direct deduction from the carrying amount of long-term debt on the balance sheet . Previously , debt issuance costs were reported as an asset . The new guidance aligns the presentation of debt issuance costs with debt discounts and premiums . In accordance with the standard, CMS Energy included $40 million and Consumers included $22 million of unamortized debt issuance costs in long-term debt on their consolidated balance sheets at March 31, 2016. In addition, this standard requires that companies apply the new guidance retrospectively to all prior periods presented . Accordingly, CMS Energy reclassified $41 million and Consumers reclassified $23 million of unamortized debt issuance costs from other non ‑current assets to long-term debt on their consolidated balance sheets at December 31, 2015. ASU 2016 ‑09, Improvements to Employee Share-Based Payment Accounting: This standard was issued to simplify and improve the accounting for employee share-based payment awards. The standard will be effective on January 1, 2017 for CMS Energy and Consumers, but early adoption is permitted. CMS Energy and Consumers elected to adopt the standard as of January 1, 2016. The standard requires all excess tax benefits and deficiencies that occur upon vesting of employee stock awards to be recognized in net income. Previously, CMS Energy and Consumers did not record excess tax benefits on restricted stock awards in net income but, under this standard, CMS Energy and Consumers recorded $6 million of excess tax benefits in net income for the three months ended March 31, 2016. Also, in accordance with the standard, CMS Energy recorded a $33 million cumulative adjustment to its accumulated deficit at January 1, 2016. This amount represented excess federal tax benefits that CMS Energy had not recognized in prior periods due to the use of tax loss carryforwards. The implementation of this standard had no other material impacts on CMS Energy’s or Consumers’ consolidated financial statements. New Accounting Standards Not Yet Effective ASU 2014 ‑09, Revenue from Contracts with Customers: This standard, which will become effective January 1, 2018 for CMS Energy and Consumers, provides new guidance for recognizing revenue from contracts with customers. A primary objective of the standard is to provide a single, comprehensive revenue recognition model that will be applied across entities, industries, and capital markets. The new guidance will replace most of the existing revenue recognition requirements in GAAP, although certain guidance specific to rate-regulated utilities will be retained. Entities will have the option to apply the standard retrospectively to all prior periods presented, or to apply it retrospectively only to contracts existing at the effective date, with the cumulative effect of the standard recorded as an adjustment to beginning retained earnings. CMS Energy and Consumers are evaluating the impact of the standard on their consolidated financial statements. ASU 2016 ‑01, Recognition and Measurement of Financial Assets and Financial Liabilities: This standard, which will be effective January 1, 2018 for CMS Energy and Consumers, is intended to improve the accounting for financial instruments. The standard will require investments in equity securities to be measured at fair value, with changes in fair value recognized in net income, except for certain investments such as those that qualify for equity-method accounting. The standard will no longer permit unrealized gains and losses for certain equity investments to be recorded in AOCI. CMS Energy and Consumers presently record unrealized gains and losses on certain equity investments, including the mutual funds in the DB SERP and Consumers’ investment in CMS Energy common stock, in AOCI. For further details on these investments, see Note 6, Financial Instruments. Entities will apply the standard using a modified retrospective approach, with a cumulative-effect adjustment recorded to beginning retained earnings on the effective date. CMS Energy and Consumers are evaluating whether there may be further impacts of the standard on their consolidated financial statements. ASU 2016 ‑02, Leases: This standard, which will be effective January 1, 2019 for CMS Energy and Consumers, establishes a new accounting model for leases. The standard will require companies to recognize lease assets and liabilities on the balance sheet for all leases with a term of more than one year, including operating leases, which are not recorded on the balance sheet under existing standards. The new guidance will also amend the definition of a lease to require that a lessee control the use of a specified asset, and not simply control or take the output of the asset. On the income statement, leases that meet existing capital lease criteria will generally be accounted for under a financing model, while operating leases will generally be accounted for under a straight-line expense model. CMS Energy and Consumers are evaluating the impact of the standard on their consolidated financial statements. |
Consumers Energy Company [Member] | |
New Accounting Standards | 1: New Accounting Standards Implementation of New Accounting Standards ASU 2014 ‑12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period: This standard, which was effective on January 1, 2016 for CMS Energy and Consu mers, addresses stock awards with performance targets that can be met after an employee has completed the required service period. The standard was issued to resolve diversity in practice regarding the accounting treatment for this type of award. Under the new guidance, the probability of the performance target being met should be factored into compensation expense each period. This guidance is consistent with the accounting that CMS Energy and Consumers already applied to awards of this type. Therefore, the standard had no impact on CMS Energy’s or Consumers’ consolidated financial statements. ASU 2015 ‑02, Amendments to the Consolidation Analysis: This standard, which was effective on January 1, 2016 for CMS Energy and Consumers, provides amended guidance on whether reporting entities should consolidate certain legal entities, including limited partnerships. CMS Energy and Consumers determined that the standard does not change any of their consolidation conclusions or have any impact on their consolidated income, cash flows, or financial position. ASU 2015 ‑03, Simplifying the Presentation of Debt Issuance Costs: This standard, which was effective on January 1, 2016 for CMS Energy and Consumers, requires that debt issuance costs be presented as a direct deduction from the carrying amount of long-term debt on the balance sheet . Previously , debt issuance costs were reported as an asset . The new guidance aligns the presentation of debt issuance costs with debt discounts and premiums . In accordance with the standard, CMS Energy included $40 million and Consumers included $22 million of unamortized debt issuance costs in long-term debt on their consolidated balance sheets at March 31, 2016. In addition, this standard requires that companies apply the new guidance retrospectively to all prior periods presented . Accordingly, CMS Energy reclassified $41 million and Consumers reclassified $23 million of unamortized debt issuance costs from other non ‑current assets to long-term debt on their consolidated balance sheets at December 31, 2015. ASU 2016 ‑09, Improvements to Employee Share-Based Payment Accounting: This standard was issued to simplify and improve the accounting for employee share-based payment awards. The standard will be effective on January 1, 2017 for CMS Energy and Consumers, but early adoption is permitted. CMS Energy and Consumers elected to adopt the standard as of January 1, 2016. The standard requires all excess tax benefits and deficiencies that occur upon vesting of employee stock awards to be recognized in net income. Previously, CMS Energy and Consumers did not record excess tax benefits on restricted stock awards in net income but, under this standard, CMS Energy and Consumers recorded $6 million of excess tax benefits in net income for the three months ended March 31, 2016. Also, in accordance with the standard, CMS Energy recorded a $33 million cumulative adjustment to its accumulated deficit at January 1, 2016. This amount represented excess federal tax benefits that CMS Energy had not recognized in prior periods due to the use of tax loss carryforwards. The implementation of this standard had no other material impacts on CMS Energy’s or Consumers’ consolidated financial statements. New Accounting Standards Not Yet Effective ASU 2014 ‑09, Revenue from Contracts with Customers: This standard, which will become effective January 1, 2018 for CMS Energy and Consumers, provides new guidance for recognizing revenue from contracts with customers. A primary objective of the standard is to provide a single, comprehensive revenue recognition model that will be applied across entities, industries, and capital markets. The new guidance will replace most of the existing revenue recognition requirements in GAAP, although certain guidance specific to rate-regulated utilities will be retained. Entities will have the option to apply the standard retrospectively to all prior periods presented, or to apply it retrospectively only to contracts existing at the effective date, with the cumulative effect of the standard recorded as an adjustment to beginning retained earnings. CMS Energy and Consumers are evaluating the impact of the standard on their consolidated financial statements. ASU 2016 ‑01, Recognition and Measurement of Financial Assets and Financial Liabilities: This standard, which will be effective January 1, 2018 for CMS Energy and Consumers, is intended to improve the accounting for financial instruments. The standard will require investments in equity securities to be measured at fair value, with changes in fair value recognized in net income, except for certain investments such as those that qualify for equity-method accounting. The standard will no longer permit unrealized gains and losses for certain equity investments to be recorded in AOCI. CMS Energy and Consumers presently record unrealized gains and losses on certain equity investments, including the mutual funds in the DB SERP and Consumers’ investment in CMS Energy common stock, in AOCI. For further details on these investments, see Note 6, Financial Instruments. Entities will apply the standard using a modified retrospective approach, with a cumulative-effect adjustment recorded to beginning retained earnings on the effective date. CMS Energy and Consumers are evaluating whether there may be further impacts of the standard on their consolidated financial statements. ASU 2016 ‑02, Leases: This standard, which will be effective January 1, 2019 for CMS Energy and Consumers, establishes a new accounting model for leases. The standard will require companies to recognize lease assets and liabilities on the balance sheet for all leases with a term of more than one year, including operating leases, which are not recorded on the balance sheet under existing standards. The new guidance will also amend the definition of a lease to require that a lessee control the use of a specified asset, and not simply control or take the output of the asset. On the income statement, leases that meet existing capital lease criteria will generally be accounted for under a financing model, while operating leases will generally be accounted for under a straight-line expense model. CMS Energy and Consumers are evaluating the impact of the standard on their consolidated financial statements. |
Regulatory Matters
Regulatory Matters | 3 Months Ended |
Mar. 31, 2016 | |
Regulatory Matters | 2: Regulatory Matters Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC orders or other actions, could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings. There are multiple appeals pending that involve various issues concerning cost allocation among customers, the adequacy of the record evidence supporting the recovery of Smart Energy investments, and other matters. Consumers is unable to predict the outcome of these appeals. Electric Rate Case: In December 2014, Consumers filed an application with the MPSC seeking an annual rate increase of $163 million, based on a 10.7 percent authorized return on equity. In June 2015, Consumers self-implemented an annual rate increase of $110 million, subject to refund with interest. The MPSC issued an order in November 2015, authorizing an annual rate increase of $165 million, based on a 10.3 percent authorized rate of return on equity. In April 2016, upon the retirement of seven coal-fueled electric generating units, the annual rate increase was reduced to $126 million. In February 2016, Consumers filed a reconciliation of total revenues collected during self-implementation to those that would have collected under final rates. Consumers’ reconciliation indicated that no refund would be required. Gas Rate Case: In July 2015, Consumers filed an application with the MPSC seeking an annual rate increase of $85 million, based on a 10.7 percent authorized return on equity. In January 2016, Consumers self-implemented an annual rate increase of $60 million, subject to refund with interest. In April 2016, the MPSC approved a settlement agreement authorizing a $40 million annual rate increase. Consumers had a recorded reserve for customer refunds at March 31, 2016 that it believes is adequate. Energy Optimization Plan Incentive: Consumers will file its 2015 energy optimization reconciliation in 2016, requesting the MPSC’s approval to collect the maximum performance incentive of $18 million from customers for exceeding its statutory savings targets in 2015 and for achieving certain other goals. |
Consumers Energy Company [Member] | |
Regulatory Matters | 2: Regulatory Matters Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC orders or other actions, could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings. There are multiple appeals pending that involve various issues concerning cost allocation among customers, the adequacy of the record evidence supporting the recovery of Smart Energy investments, and other matters. Consumers is unable to predict the outcome of these appeals. Electric Rate Case: In December 2014, Consumers filed an application with the MPSC seeking an annual rate increase of $163 million, based on a 10.7 percent authorized return on equity. In June 2015, Consumers self-implemented an annual rate increase of $110 million, subject to refund with interest. The MPSC issued an order in November 2015, authorizing an annual rate increase of $165 million, based on a 10.3 percent authorized rate of return on equity. In April 2016, upon the retirement of seven coal-fueled electric generating units, the annual rate increase was reduced to $126 million. In February 2016, Consumers filed a reconciliation of total revenues collected during self-implementation to those that would have collected under final rates. Consumers’ reconciliation indicated that no refund would be required. Gas Rate Case: In July 2015, Consumers filed an application with the MPSC seeking an annual rate increase of $85 million, based on a 10.7 percent authorized return on equity. In January 2016, Consumers self-implemented an annual rate increase of $60 million, subject to refund with interest. In April 2016, the MPSC approved a settlement agreement authorizing a $40 million annual rate increase. Consumers had a recorded reserve for customer refunds at March 31, 2016 that it believes is adequate. Energy Optimization Plan Incentive: Consumers will file its 2015 energy optimization reconciliation in 2016, requesting the MPSC’s approval to collect the maximum performance incentive of $18 million from customers for exceeding its statutory savings targets in 2015 and for achieving certain other goals. |
Contingencies And Commitments
Contingencies And Commitments | 3 Months Ended |
Mar. 31, 2016 | |
Contingencies And Commitments | 3: Contingencies and Commitments CMS Energy and Consumers are involved in various matters that give rise to contingent liabilities . Depending on the specific issues, the resolution of these contingencies could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations . In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made . Disclosures that state that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter. CMS Energy Contingencies Gas Index Price Reporting Litigation: CMS Energy, along with CMS MST, CMS Field Services, Cantera Natural Gas, Inc., and Cantera Gas Company, have been named as defendants in f our class action lawsuits and one individual lawsuit arising as a result of alleged inaccurate natural gas price reporting to publications that report trade information . Allegations include price-fixing conspiracies, restraint of trade, and artificial inflation of natural gas retail prices in Kansas, Missouri, and Wisconsin . Plaintiffs are making claims for the following: treble damages, full consideration damages, exemplary damages, costs, interest, and/or attorneys’ fees. After removal to federal court, all of the cases were transferred to a single federal district court pursuant to the multidistrict litigation process . In 2010 and 2011, all claims against CMS Energy defendants were dismissed by the district court based on FERC preemption . Plaintiffs filed appeals in all of the cases . The issues on appeal were whether the district court erred in dismissing the cases based on FERC preemption and denying the plaintiffs’ motions for leave to amend their complaints to add a federal Sherman Act antitrust claim . The plaintiffs did not appeal the dismissal of CMS Energy as a defendant in these cases, but other CMS Energy entities remain as defendants. In 2013, the U.S. Court of Appeals for the Ninth Circuit reversed the district court decision. The appellate court found that FERC preemption does not apply under the facts of these cases . The appellate court affirmed the district court’s denial of leave to amend to add federal antitrust claims . The matter was appealed to the U.S. Supreme Court , which in 2015 upheld the Ninth Circuit’s decision. The cases have been remanded back to the federal district court. These cases involve complex facts, a large number of similarly situated defendants with different factual positions, and multiple jurisdictions . Presently, any estimate of liability would be highly speculative; the amount of CMS Energy’s reasonably possible loss would be based on widely varying models previously untested in this context . If the outcome after appeals is unfavorable, these cases could negatively affect CMS Energy’s liquidity, financial condition, and results of operations. Bay Harbor: CMS Land retained environmental remediation obligations for the collection and treatment of leachate, a liquid consisting of water and other substances, at Bay Harbor after selling its interests in the development in 2002 . Leachate is produced when water enters into cement kiln dust piles left over from former cement plant operations at the site . In 2012, CMS Land and the MDEQ finalized an agreement that established the final remedies and the future water quality criteria at the site . CMS Land completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit issued in 2010 . CMS Land is presently working with the MDEQ to renew this permit, which requires renewal every five years. Until a new permit is issued, CMS Land is authorized to continue operating under the existing permit. Various claims have been brought against CMS Land or its affiliates, including CMS Energy, alleging environmental damage to property, loss of property value, insufficient disclosure of environmental matters, breach of agreement relating to access, or other matters . CMS Land and other parties have received a demand for payment from the EPA in the amount of $ 8 million, plus interest . The EPA is seeking recovery under CERCLA of response costs allegedly incurred at Bay Harbor . These costs exceed what was agreed to in a 2005 order between CMS Land and the EPA, and CMS Land has communicated to the EPA that it does not believe that this is a valid claim . The EPA has filed a lawsuit to collect these costs. At March 31, 2016 , CMS Energy had a recorded liability of $54 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 $69 million . CMS Energy expects to pay the following amounts for long-term liquid disposal and operati ng and maintenance costs in 2016 and in each of the next four years: In Millions 2016 2017 2018 2019 2020 CMS Energy Long-term liquid disposal and operating and maintenance costs $ 6 $ 5 $ 4 $ 4 $ 4 CMS Energy’s estimate of response activity costs and the timing of expenditures could change if there are changes in circumstances or assumptions used in calculating the liability . Although a liability for its present estimate of remaining response activity costs has been recorded, CMS Energy cannot predict the ultimate financial impact or outcome of this matter. Equatorial Guinea Tax Claim: In 2002, CMS Energy sold its oil, gas, and methanol investments in Equatorial Guinea . The government of Equatorial Guinea claims that CMS Energy owes $ 152 million in taxes, plus significant penalties and interest, in connection with the sale . The matter is proceed ing to formal arbitration . CMS Energy has concluded that the government’s tax claim is without merit and is contesting the claim , but cannot predict the financial impact or outcome of th e matter . An unfavorable outcome could have a material adverse effect on CMS Energy’s liquidity, financial condition, and results of operations. Consumers Electric Utility Contingencies Electric Environmental Matters: Consumers’ operations are subject to environmental laws and regulations . Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations. Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under the NREPA . Consumers believes that these costs should be recoverable in rates, but cannot guarantee that outcome . Consumers estimates that its liability for NREPA sites for which it can estimate a range of loss will be between $ 3 million and $ 5 million . At March 31, 2016 , Consumers had a recorded liability of $ 3 million, the minimum amount in the range of its estimated probable NREPA liability. Consumers is a potentially responsible party at a number of contaminated sites administered under CERCLA . CERCLA liability is joint and several . In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site . The notification claimed that the EPA has reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB-containing materials at portions of the site . In 2011, Consumers received a follow ‑up letter from the EPA requesting that Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River . All parties, including Consumers, that were asked to participate in the removal action plan declined to accept liability . Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river. Based on its experience, Consumers estimates that its share of the total liability for known CERCLA sites will be between $ 3 million and $ 8 million . Various factors, including the number of potentially responsible parties involved with each site, affect Consumers’ share of the total liability . At March 31, 2016 , 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 . A change in the underlying assumptions, such as an increase in the number of sites, different remediation techniques, the nature and extent of contamination, and legal and regulatory requirements, could affect its estimates of NREPA and CERCLA liability. Ludington PCB: In 1998, during routine maintenance activities, Consumers identified PCB as a component in certain paint, grout, and sealant materials at Ludington . Consumers removed part of the PCB material and replaced it with non ‑PCB material . Consumers has had several communications with the EPA regarding this matter . Consumers cannot predict the 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 March 31, 2016 , Consumers had a recorded liability of $ 114 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 $ 130 million . Consumers expects to pay the following amounts for remediation and other respons e activity costs in 2016 and in each of the next four years: In Millions 2016 2017 2018 2019 2020 Consumers Remediation and other response activity costs $ 15 $ 20 $ 11 $ 14 $ 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. At one of the MGP sites, Consumers is evaluating the timing and approach of its remediation strategy, which could result in a change to its cost estimates in 2016. Pursuant to orders issued by the MPSC, Consumers defers its MGP-related remediation costs and recovers them from its customers over a ten -year period . At March 31, 2016 , Consumers had a regulatory asset of $ 145 million related to the MGP sites. Consumers estimates that its liability to perform remediation and other response activities at NREPA sites other than the MGP sites could reach $3 million . At March 31, 2016 , Consumers had a recorded liability of less than $1 million, the minimum amount in the range of its estimated probable liability. Guarantees Presented in the following table are CMS Energy’s and Consumers’ guarantees at March 31, 2016 : In Millions Maximum Carrying Guarantee Description Issue Date Expiration Date Obligation Amount CMS Energy, including Consumers Indemnity obligations from asset sales and other agreements 1 Various Indefinite $ 153 $ 7 Guarantees 2 Various Indefinite 49 - Consumers Gurarantee 2 July 2011 Indefinite $ 30 $ - 1 These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, primarily claims related to taxes. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities. 2 At Consumers, this obligation comprises a guarantee provided to the DOE in connection with a settlement agreement regarding damages resulting from the DOE’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers. At CMS Energy, the guarantee obligations comprise Consumers’ guarantee to the DOE and CMS Energy’s 1994 guarantee of non-recourse revenue bonds issued by Genesee. Additionally, in the normal course of business, CMS Energy, Consumers, and certain other subsidiaries of CMS Energy have entered into various agreements containing tax and other indemnity provisions for which they are unable to estimate the maximum potential obligation. The current carrying value of these indemnity obligations is less than $1 million . CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities to be remote. Other Contingencies Michigan Sales and Use Tax Litigation: In 2010, the Michigan Department of Treasury finalized a sales and use tax audit of Consumers for the period from October 1997 to December 2004. It determined that Consumers’ electric and natural gas distribution equipment was not eligible for an industrial-processing exemption and therefore was subject to the use tax. Consumers paid the tax for the period from 1997 through 2004 and filed a claim in the Michigan Court of Claims disputing the tax determination. Consumers has continued to apply the industrial-processing exemption for the years subsequent to 2004. In December 2015, Consumers and the Michigan Department of Treasury reached a settlement agreement under which the Michigan Department of Treasury will refund to Consumers the majority of use tax that Consumers paid on electric distribution equipment for the period from October 1997 through December 2004. Accordingly, Consumers will receive $37 million, which comprises a $19 million refund of taxes paid, a $12 million refund of interest paid, and $6 million of interest owed to Consumers. Consumers recognized the effects of this settlement agreement in its consolidated financial statements in December 2015. The parties continue to meet to reach agreement on a reasonable method of apportionment relating to Consumers’ natural gas system for the period from October 1997 to December 2004 and to Consumers’ electric and natural gas distribution equipment for the period from January 2005 to December 2014. Other: In addition to the matters disclosed in this Note and Note 2, Regulatory Matters, there are certain other lawsuits and administrative proceedings before various courts and governmental agencies arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties . These other lawsuits and proceedings may involve personal injury, property damage, contracts, environmental matters, federal and state taxes, rates, licensing, employment, and other matters . Further, CMS Energy and Consumers occasionally self-report certain regulatory non ‑compliance matters that may or may not eventually result in administrative proceedings . CMS Energy and Consumers believe that the outcome of any one of these proceedings will not have a material negative effect on their consolidated results of operations, financial condition, or liquidity. |
Consumers Energy Company [Member] | |
Contingencies And Commitments | 3: Contingencies and Commitments CMS Energy and Consumers are involved in various matters that give rise to contingent liabilities . Depending on the specific issues, the resolution of these contingencies could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations . In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made . Disclosures that state that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter. CMS Energy Contingencies Gas Index Price Reporting Litigation: CMS Energy, along with CMS MST, CMS Field Services, Cantera Natural Gas, Inc., and Cantera Gas Company, have been named as defendants in f our class action lawsuits and one individual lawsuit arising as a result of alleged inaccurate natural gas price reporting to publications that report trade information . Allegations include price-fixing conspiracies, restraint of trade, and artificial inflation of natural gas retail prices in Kansas, Missouri, and Wisconsin . Plaintiffs are making claims for the following: treble damages, full consideration damages, exemplary damages, costs, interest, and/or attorneys’ fees. After removal to federal court, all of the cases were transferred to a single federal district court pursuant to the multidistrict litigation process . In 2010 and 2011, all claims against CMS Energy defendants were dismissed by the district court based on FERC preemption . Plaintiffs filed appeals in all of the cases . The issues on appeal were whether the district court erred in dismissing the cases based on FERC preemption and denying the plaintiffs’ motions for leave to amend their complaints to add a federal Sherman Act antitrust claim . The plaintiffs did not appeal the dismissal of CMS Energy as a defendant in these cases, but other CMS Energy entities remain as defendants. In 2013, the U.S. Court of Appeals for the Ninth Circuit reversed the district court decision. The appellate court found that FERC preemption does not apply under the facts of these cases . The appellate court affirmed the district court’s denial of leave to amend to add federal antitrust claims . The matter was appealed to the U.S. Supreme Court , which in 2015 upheld the Ninth Circuit’s decision. The cases have been remanded back to the federal district court. These cases involve complex facts, a large number of similarly situated defendants with different factual positions, and multiple jurisdictions . Presently, any estimate of liability would be highly speculative; the amount of CMS Energy’s reasonably possible loss would be based on widely varying models previously untested in this context . If the outcome after appeals is unfavorable, these cases could negatively affect CMS Energy’s liquidity, financial condition, and results of operations. Bay Harbor: CMS Land retained environmental remediation obligations for the collection and treatment of leachate, a liquid consisting of water and other substances, at Bay Harbor after selling its interests in the development in 2002 . Leachate is produced when water enters into cement kiln dust piles left over from former cement plant operations at the site . In 2012, CMS Land and the MDEQ finalized an agreement that established the final remedies and the future water quality criteria at the site . CMS Land completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit issued in 2010 . CMS Land is presently working with the MDEQ to renew this permit, which requires renewal every five years. Until a new permit is issued, CMS Land is authorized to continue operating under the existing permit. Various claims have been brought against CMS Land or its affiliates, including CMS Energy, alleging environmental damage to property, loss of property value, insufficient disclosure of environmental matters, breach of agreement relating to access, or other matters . CMS Land and other parties have received a demand for payment from the EPA in the amount of $ 8 million, plus interest . The EPA is seeking recovery under CERCLA of response costs allegedly incurred at Bay Harbor . These costs exceed what was agreed to in a 2005 order between CMS Land and the EPA, and CMS Land has communicated to the EPA that it does not believe that this is a valid claim . The EPA has filed a lawsuit to collect these costs. At March 31, 2016 , CMS Energy had a recorded liability of $54 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 $69 million . CMS Energy expects to pay the following amounts for long-term liquid disposal and operati ng and maintenance costs in 2016 and in each of the next four years: In Millions 2016 2017 2018 2019 2020 CMS Energy Long-term liquid disposal and operating and maintenance costs $ 6 $ 5 $ 4 $ 4 $ 4 CMS Energy’s estimate of response activity costs and the timing of expenditures could change if there are changes in circumstances or assumptions used in calculating the liability . Although a liability for its present estimate of remaining response activity costs has been recorded, CMS Energy cannot predict the ultimate financial impact or outcome of this matter. Equatorial Guinea Tax Claim: In 2002, CMS Energy sold its oil, gas, and methanol investments in Equatorial Guinea . The government of Equatorial Guinea claims that CMS Energy owes $ 152 million in taxes, plus significant penalties and interest, in connection with the sale . The matter is proceed ing to formal arbitration . CMS Energy has concluded that the government’s tax claim is without merit and is contesting the claim , but cannot predict the financial impact or outcome of th e matter . An unfavorable outcome could have a material adverse effect on CMS Energy’s liquidity, financial condition, and results of operations. Consumers Electric Utility Contingencies Electric Environmental Matters: Consumers’ operations are subject to environmental laws and regulations . Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations. Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under the NREPA . Consumers believes that these costs should be recoverable in rates, but cannot guarantee that outcome . Consumers estimates that its liability for NREPA sites for which it can estimate a range of loss will be between $ 3 million and $ 5 million . At March 31, 2016 , Consumers had a recorded liability of $ 3 million, the minimum amount in the range of its estimated probable NREPA liability. Consumers is a potentially responsible party at a number of contaminated sites administered under CERCLA . CERCLA liability is joint and several . In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site . The notification claimed that the EPA has reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB-containing materials at portions of the site . In 2011, Consumers received a follow ‑up letter from the EPA requesting that Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River . All parties, including Consumers, that were asked to participate in the removal action plan declined to accept liability . Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river. Based on its experience, Consumers estimates that its share of the total liability for known CERCLA sites will be between $ 3 million and $ 8 million . Various factors, including the number of potentially responsible parties involved with each site, affect Consumers’ share of the total liability . At March 31, 2016 , 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 . A change in the underlying assumptions, such as an increase in the number of sites, different remediation techniques, the nature and extent of contamination, and legal and regulatory requirements, could affect its estimates of NREPA and CERCLA liability. Ludington PCB: In 1998, during routine maintenance activities, Consumers identified PCB as a component in certain paint, grout, and sealant materials at Ludington . Consumers removed part of the PCB material and replaced it with non ‑PCB material . Consumers has had several communications with the EPA regarding this matter . Consumers cannot predict the 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 March 31, 2016 , Consumers had a recorded liability of $ 114 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 $ 130 million . Consumers expects to pay the following amounts for remediation and other respons e activity costs in 2016 and in each of the next four years: In Millions 2016 2017 2018 2019 2020 Consumers Remediation and other response activity costs $ 15 $ 20 $ 11 $ 14 $ 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. At one of the MGP sites, Consumers is evaluating the timing and approach of its remediation strategy, which could result in a change to its cost estimates in 2016. Pursuant to orders issued by the MPSC, Consumers defers its MGP-related remediation costs and recovers them from its customers over a ten -year period . At March 31, 2016 , Consumers had a regulatory asset of $ 145 million related to the MGP sites. Consumers estimates that its liability to perform remediation and other response activities at NREPA sites other than the MGP sites could reach $3 million . At March 31, 2016 , Consumers had a recorded liability of less than $1 million, the minimum amount in the range of its estimated probable liability. Guarantees Presented in the following table are CMS Energy’s and Consumers’ guarantees at March 31, 2016 : In Millions Maximum Carrying Guarantee Description Issue Date Expiration Date Obligation Amount CMS Energy, including Consumers Indemnity obligations from asset sales and other agreements 1 Various Indefinite $ 153 $ 7 Guarantees 2 Various Indefinite 49 - Consumers Gurarantee 2 July 2011 Indefinite $ 30 $ - 1 These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, primarily claims related to taxes. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities. 2 At Consumers, this obligation comprises a guarantee provided to the DOE in connection with a settlement agreement regarding damages resulting from the DOE’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers. At CMS Energy, the guarantee obligations comprise Consumers’ guarantee to the DOE and CMS Energy’s 1994 guarantee of non-recourse revenue bonds issued by Genesee. Additionally, in the normal course of business, CMS Energy, Consumers, and certain other subsidiaries of CMS Energy have entered into various agreements containing tax and other indemnity provisions for which they are unable to estimate the maximum potential obligation. The current carrying value of these indemnity obligations is less than $1 million . CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities to be remote. Other Contingencies Michigan Sales and Use Tax Litigation: In 2010, the Michigan Department of Treasury finalized a sales and use tax audit of Consumers for the period from October 1997 to December 2004. It determined that Consumers’ electric and natural gas distribution equipment was not eligible for an industrial-processing exemption and therefore was subject to the use tax. Consumers paid the tax for the period from 1997 through 2004 and filed a claim in the Michigan Court of Claims disputing the tax determination. Consumers has continued to apply the industrial-processing exemption for the years subsequent to 2004. In December 2015, Consumers and the Michigan Department of Treasury reached a settlement agreement under which the Michigan Department of Treasury will refund to Consumers the majority of use tax that Consumers paid on electric distribution equipment for the period from October 1997 through December 2004. Accordingly, Consumers will receive $37 million, which comprises a $19 million refund of taxes paid, a $12 million refund of interest paid, and $6 million of interest owed to Consumers. Consumers recognized the effects of this settlement agreement in its consolidated financial statements in December 2015. The parties continue to meet to reach agreement on a reasonable method of apportionment relating to Consumers’ natural gas system for the period from October 1997 to December 2004 and to Consumers’ electric and natural gas distribution equipment for the period from January 2005 to December 2014. Other: In addition to the matters disclosed in this Note and Note 2, Regulatory Matters, there are certain other lawsuits and administrative proceedings before various courts and governmental agencies arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties . These other lawsuits and proceedings may involve personal injury, property damage, contracts, environmental matters, federal and state taxes, rates, licensing, employment, and other matters . Further, CMS Energy and Consumers occasionally self-report certain regulatory non ‑compliance matters that may or may not eventually result in administrative proceedings . CMS Energy and Consumers believe that the outcome of any one of these proceedings will not have a material negative effect on their consolidated results of operations, financial condition, or liquidity. |
Financings And Capitalization
Financings And Capitalization | 3 Months Ended |
Mar. 31, 2016 | |
Financings And Capitalization | 4: Financings and Capitalization Term Loan : In April 2016, CMS Energy reached an agreement to extend the maturity date of its $180 million term loan by one year, through April 2018. Revolving Credit Facilities: The following secured revolving credit facilities with banks were available at March 31, 2016 : In Millions Letters of Credit Expiration Date Amount of Facility Amount Borrowed Outstanding Amount Available CMS Energy parent May 27, 2020 1 $ 550 $ - $ 1 $ 549 Consumers May 27, 2020 2 $ 650 $ - $ 7 $ 643 November 23, 2017 2 250 - - 250 May 9, 2018 2 30 - 30 - 1 During the three months ended March 31, 2016 , CMS Energy’s average borrowings totaled $10 million with a weighted-average interest rate of 1.68 percent . Obligations under this facility are secured by Consumers common stock. 2 Obligations under this facility are secured by first mortgage bonds of Consumers. Short-term Borrowings: Under Consumers ’ commercial paper program , Consumers may issue, in one or more placements, commercial paper notes with maturities of up to 365 days and that bear interest at fixed or floating rates . These issuances are supported by Consumers’ $650 million revolving credit facility and may have an aggregate principal amount outstanding of up to $500 million . While the amount of outstanding commercial paper does not reduce the revolver’s available capacity, Consumers would not issue commercial paper in an amount exceeding the available revolver capacity . At March 31, 2016 , no commercial paper notes were outstanding under this program. Dividend Restrictions: At March 31, 2016 , payment of dividends by CMS Energy on its common stock was limited to $ 4.1 billion under provisions of the Michigan Business Corporation Act of 1972. Under the provisions of its articles of incorporation, at March 31, 2016 , Consumers had $902 million of unrestricted retained earnings available to pay dividends on its common stock to CMS Energy . Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings . Several decisions from FERC suggest that under a variety of circumstances dividends from Consumers on its common stock would not be limited to amounts in Consumers’ retained earnings . Any decision by Consumers to pay dividends on its common stock in excess of retained earnings would be based on specific facts and circumstances and would be subject to a formal regulatory filing process. For the three months ended March 31, 2016 , Consumers paid $ 155 million in dividends on its common stock to CMS Energy. Issuance of Common Stock: In April 2015, CMS Energy entered into an updated continuous equity offering program permitting it to sell, from time to time in “at the market” offerings, common stock having an aggregate sales price of up to $100 million. Presented in the following table are the transactions that CMS Energy entered into under the program: Number of Average Proceeds Shares Issued Price per Share (In Millions) April – July 2015 888,610 $ 33.76 $ 30 March 2016 1,449,171 41.40 60 Total 2,337,781 $ 38.50 $ 90 |
Consumers Energy Company [Member] | |
Financings And Capitalization | 4: Financings and Capitalization Term Loan : In April 2016, CMS Energy reached an agreement to extend the maturity date of its $180 million term loan by one year, through April 2018. Revolving Credit Facilities: The following secured revolving credit facilities with banks were available at March 31, 2016 : In Millions Letters of Credit Expiration Date Amount of Facility Amount Borrowed Outstanding Amount Available CMS Energy parent May 27, 2020 1 $ 550 $ - $ 1 $ 549 Consumers May 27, 2020 2 $ 650 $ - $ 7 $ 643 November 23, 2017 2 250 - - 250 May 9, 2018 2 30 - 30 - 1 During the three months ended March 31, 2016 , CMS Energy’s average borrowings totaled $10 million with a weighted-average interest rate of 1.68 percent . Obligations under this facility are secured by Consumers common stock. 2 Obligations under this facility are secured by first mortgage bonds of Consumers. Short-term Borrowings: Under Consumers ’ commercial paper program , Consumers may issue, in one or more placements, commercial paper notes with maturities of up to 365 days and that bear interest at fixed or floating rates . These issuances are supported by Consumers’ $650 million revolving credit facility and may have an aggregate principal amount outstanding of up to $500 million . While the amount of outstanding commercial paper does not reduce the revolver’s available capacity, Consumers would not issue commercial paper in an amount exceeding the available revolver capacity . At March 31, 2016 , no commercial paper notes were outstanding under this program. Dividend Restrictions: At March 31, 2016 , payment of dividends by CMS Energy on its common stock was limited to $ 4.1 billion under provisions of the Michigan Business Corporation Act of 1972. Under the provisions of its articles of incorporation, at March 31, 2016 , Consumers had $902 million of unrestricted retained earnings available to pay dividends on its common stock to CMS Energy . Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings . Several decisions from FERC suggest that under a variety of circumstances dividends from Consumers on its common stock would not be limited to amounts in Consumers’ retained earnings . Any decision by Consumers to pay dividends on its common stock in excess of retained earnings would be based on specific facts and circumstances and would be subject to a formal regulatory filing process. For the three months ended March 31, 2016 , Consumers paid $ 155 million in dividends on its common stock to CMS Energy. Issuance of Common Stock: In April 2015, CMS Energy entered into an updated continuous equity offering program permitting it to sell, from time to time in “at the market” offerings, common stock having an aggregate sales price of up to $100 million. Presented in the following table are the transactions that CMS Energy entered into under the program: Number of Average Proceeds Shares Issued Price per Share (In Millions) April – July 2015 888,610 $ 33.76 $ 30 March 2016 1,449,171 41.40 60 Total 2,337,781 $ 38.50 $ 90 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
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. CMS Energy and Consumers classify fair value measurements within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement in its entirety. Assets and Liabilities Measured at Fair Value on a Recurring Basis Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis: In Millions CMS Energy, including Consumers Consumers March 31 December 31 March 31 December 31 2016 2015 2016 2015 Assets 1 Cash equivalents $ 85 $ 158 $ - $ - Restricted cash equivalents 28 19 28 19 CMS Energy common stock - - 34 29 Nonqualified deferred compensation plan assets 10 10 7 7 DB SERP Cash equivalents 1 2 1 2 Mutual funds 145 146 104 104 Derivative instruments Commodity contracts 1 1 1 1 Total $ 270 $ 336 $ 175 $ 162 Liabilities 1 Nonqualified deferred compensation plan liabilities $ 10 $ 10 $ 7 $ 7 Total $ 10 $ 10 $ 7 $ 7 1 All assets and liabilities were classified as Level 1 with the exception of commodity contracts, whic h were classified as Level 3 and which were insignificant at March 31, 2016 and December 31, 2015 . Cash Equivalents: Cash equivalents and restricted cash equivalents consist of money mark et funds with daily liquidity. Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual fu nds, which are valued using daily quoted NAVs . 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: 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 Consum ers value these funds using daily quoted NAVs . 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 ’s and Consumers ’ derivatives are classified as Level 3 . The majority of these derivatives are FTRs held by Consumers . Consumers uses FTRs to manage price risk related to electricity transmission congestion . An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion-related transmission charges . Under regulatory accounting, all changes in fair value associated with FTRs are deferred as regulatory assets and liabilities until the instruments are settled . Due to the lack of quoted pricing information, Consumers determines the fair value of its FTRs based on Consumers’ average historical settlements. |
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. CMS Energy and Consumers classify fair value measurements within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement in its entirety. Assets and Liabilities Measured at Fair Value on a Recurring Basis Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis: In Millions CMS Energy, including Consumers Consumers March 31 December 31 March 31 December 31 2016 2015 2016 2015 Assets 1 Cash equivalents $ 85 $ 158 $ - $ - Restricted cash equivalents 28 19 28 19 CMS Energy common stock - - 34 29 Nonqualified deferred compensation plan assets 10 10 7 7 DB SERP Cash equivalents 1 2 1 2 Mutual funds 145 146 104 104 Derivative instruments Commodity contracts 1 1 1 1 Total $ 270 $ 336 $ 175 $ 162 Liabilities 1 Nonqualified deferred compensation plan liabilities $ 10 $ 10 $ 7 $ 7 Total $ 10 $ 10 $ 7 $ 7 1 All assets and liabilities were classified as Level 1 with the exception of commodity contracts, whic h were classified as Level 3 and which were insignificant at March 31, 2016 and December 31, 2015 . Cash Equivalents: Cash equivalents and restricted cash equivalents consist of money mark et funds with daily liquidity. Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual fu nds, which are valued using daily quoted NAVs . 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: 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 Consum ers value these funds using daily quoted NAVs . 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 ’s and Consumers ’ derivatives are classified as Level 3 . The majority of these derivatives are FTRs held by Consumers . Consumers uses FTRs to manage price risk related to electricity transmission congestion . An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion-related transmission charges . Under regulatory accounting, all changes in fair value associated with FTRs are deferred as regulatory assets and liabilities until the instruments are settled . Due to the lack of quoted pricing information, Consumers determines the fair value of its FTRs based on Consumers’ average historical settlements. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 December 31, 2015 Fair Value Fair Value Carrying Level Carrying Level Amount Total 1 2 3 Amount Total 1 2 3 CMS Energy, including Consumers Securities held to maturity $ 13 $ 13 $ - $ 13 $ - $ 11 $ 11 $ - $ 11 $ - Long-term payable 1 14 15 - - 15 14 14 - - 14 Notes receivable 2 1,175 1,256 - - 1,256 1,161 1,228 - - 1,228 Long-term debt 3 9,099 9,841 - 8,856 985 9,084 9,599 - 8,648 951 Consumers Long-term debt 4 $ 5,382 $ 5,853 $ - $ 4,868 $ 985 $ 5,381 $ 5,684 $ - $ 4,733 $ 951 1 Includes current portion of long-term payable of $1 million at March 31, 2016 and December 31, 2015. 2 Includes current portion of notes receivable of $ 151 million at March 31, 2016 and $ 144 million at December 31, 2015 . 3 Includes current portion of long-term debt of $ 929 million at March 31, 2016 and $ 684 million at December 31, 2015 . 4 Includes current portion of long-term debt of $448 million at March 31, 2016 and $ 198 million at December 31, 2015 . Notes receivable consist of EnerBank’s fixed-rate installment loans . EnerBank estimates the fair value of these loans using a discounted cash flows technique that incorporates market interest rates as well as assumptions about the remaining life of the loans and credit risk. CMS Energy and Consumers estimate the fair value of their long-term debt using quoted prices from market trades of the debt, if available . In the absence of quoted prices, CMS Energy and Consumers calculate market yields and prices for the debt using a matrix method that incorporates market data for similarly rated debt . Depending on the information available, other valuation techniques and models may be used that rely on assumptions that cannot be observed or confirmed through market transactions. The effects of third-party credit enhancements are excluded from the fair value measurements of long-term debt . At March 31, 2016 and December 31, 2015 , 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 March 31, 2016 December 31, 2015 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 $ 152 $ - $ 7 $ 145 $ 152 $ - $ 6 $ 146 Held to maturity Debt securities 13 - - 13 11 - - 11 Consumers Available for sale DB SERP Mutual funds $ 109 $ - $ 5 $ 104 $ 108 $ - $ 4 $ 104 CMS Energy common stock 4 30 - 34 4 25 - 29 The mutual funds classified as available for sale hold primarily fixed-income instruments of varying maturities . Debt securities classified as held to maturity consist primarily of mortgage-backed securities and Utah Housing Corporation bonds held by EnerBank. |
Consumers 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 March 31, 2016 December 31, 2015 Fair Value Fair Value Carrying Level Carrying Level Amount Total 1 2 3 Amount Total 1 2 3 CMS Energy, including Consumers Securities held to maturity $ 13 $ 13 $ - $ 13 $ - $ 11 $ 11 $ - $ 11 $ - Long-term payable 1 14 15 - - 15 14 14 - - 14 Notes receivable 2 1,175 1,256 - - 1,256 1,161 1,228 - - 1,228 Long-term debt 3 9,099 9,841 - 8,856 985 9,084 9,599 - 8,648 951 Consumers Long-term debt 4 $ 5,382 $ 5,853 $ - $ 4,868 $ 985 $ 5,381 $ 5,684 $ - $ 4,733 $ 951 1 Includes current portion of long-term payable of $1 million at March 31, 2016 and December 31, 2015. 2 Includes current portion of notes receivable of $ 151 million at March 31, 2016 and $ 144 million at December 31, 2015 . 3 Includes current portion of long-term debt of $ 929 million at March 31, 2016 and $ 684 million at December 31, 2015 . 4 Includes current portion of long-term debt of $448 million at March 31, 2016 and $ 198 million at December 31, 2015 . Notes receivable consist of EnerBank’s fixed-rate installment loans . EnerBank estimates the fair value of these loans using a discounted cash flows technique that incorporates market interest rates as well as assumptions about the remaining life of the loans and credit risk. CMS Energy and Consumers estimate the fair value of their long-term debt using quoted prices from market trades of the debt, if available . In the absence of quoted prices, CMS Energy and Consumers calculate market yields and prices for the debt using a matrix method that incorporates market data for similarly rated debt . Depending on the information available, other valuation techniques and models may be used that rely on assumptions that cannot be observed or confirmed through market transactions. The effects of third-party credit enhancements are excluded from the fair value measurements of long-term debt . At March 31, 2016 and December 31, 2015 , 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 March 31, 2016 December 31, 2015 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 $ 152 $ - $ 7 $ 145 $ 152 $ - $ 6 $ 146 Held to maturity Debt securities 13 - - 13 11 - - 11 Consumers Available for sale DB SERP Mutual funds $ 109 $ - $ 5 $ 104 $ 108 $ - $ 4 $ 104 CMS Energy common stock 4 30 - 34 4 25 - 29 The mutual funds classified as available for sale hold primarily fixed-income instruments of varying maturities . Debt securities classified as held to maturity consist primarily of mortgage-backed securities and Utah Housing Corporation bonds held by EnerBank. |
Notes Receivable
Notes Receivable | 3 Months Ended |
Mar. 31, 2016 | |
Notes Receivable [Abstract] | |
Notes Receivable | 7: Notes Receivable Presented in the following table are details of CMS Energy’s current and non ‑current notes receivable: In Millions March 31, 2016 December 31, 2015 CMS Energy, including Consumers Current EnerBank notes receivable, net of allowance for loan losses $ 135 $ 128 EnerBank notes receivable held for sale 16 16 Non-current EnerBank notes receivable 1,024 1,017 Total notes receivable $ 1,175 $ 1,161 EnerBank notes receivable are unsecured consumer installment loans for financing home improvements . EnerBank records its notes receivable at cost, less allowance for loan losses . At March 31 , 201 6 , $16 million of notes receivable were classified as held for sale; the fair value of notes receivable held for sale exceed ed their carrying value. These notes are expected to be sold in 2016. Authorized contractors pay fees to EnerBank to provide borrowers with same-as-cash, zero interest, or reduced interest loans. Unearned income associated with the loan fees, which is recorded as a reduction to notes receivable on CMS Energy’s consolidated balance sheets, was $83 million at March 31, 20 16 and $82 million at December 31, 20 15. The allowance for loan losses is a valuation allowance to reflect estimated credit losses . The allowance is increased by the provision for loan losses and decreased by loan charge-offs net of recoveries . Management estimates the allowance balance required by taking into consideration historical loan loss experience, the nature and volume of the portfolio, economic conditions, and other factors . Loan losses are charged against the allowance when the loss is confirmed, but no later than the point at which a loan becomes 120 days past due. Loans that are 30 days or more past due are considered delinquent . The balance of EnerBank’s delinquent consumer loans was $8 million at March 31, 2016 and at December 31, 2015 . At March 31, 2016 and December 31, 2015 , $ 1 million of EnerBank’s loans had been modified as troubled debt restructurings. |
Retirement Benefits
Retirement Benefits | 3 Months Ended |
Mar. 31, 2016 | |
Retirement Benefits | 8 : Retirement Benefits CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans. In January 2016, CMS Energy and Consumers changed the method they use to determine the discount rate used to calculate the service cost and interest expense components of net periodic benefit costs for the DB Pension and OPEB Plans. Historically, the discount rate used for this purpose represented a single weighted-average rate derived from the yield curve used to determine the benefit obligation. CMS Energy and Consumers have elected to use instead a full-yield-curve approach in the estimation of service cost and interest expense; this approach is more accurate in that it applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment. For the three months ended March 31, 2016, the service cost and interest expense components of net periodic benefit costs were reduced by $6 million for the DB Pension Plan and by $3 million for the OPEB Plan for both CMS Energy and Consumers as a result of changing to the full-yield-curve approach to determine the discount rate . Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefits plans: In Millions DB Pension Plan OPEB Plan Three Months Ended March 31 2016 2015 2016 2015 CMS Energy, including Consumers Net periodic cost (credit) Service cost $ 11 $ 12 $ 5 $ 6 Interest expense 21 25 12 15 Expected return on plan assets (37) (34) (22) (23) Amortization of: Net loss 17 23 5 5 Prior service cost (credit) 1 - (10) (10) Net periodic cost (credit) $ 13 $ 26 $ (10) $ (7) Consumers Net periodic cost (credit) Service cost $ 10 $ 12 $ 4 $ 6 Interest expense 21 25 11 14 Expected return on plan assets (36) (33) (20) (22) Amortization of: Net loss 17 22 6 6 Prior service cost (credit) 1 - (10) (10) Net periodic cost (credit) $ 13 $ 26 $ (9) $ (6) |
Consumers Energy Company [Member] | |
Retirement Benefits | 8 : Retirement Benefits CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans. In January 2016, CMS Energy and Consumers changed the method they use to determine the discount rate used to calculate the service cost and interest expense components of net periodic benefit costs for the DB Pension and OPEB Plans. Historically, the discount rate used for this purpose represented a single weighted-average rate derived from the yield curve used to determine the benefit obligation. CMS Energy and Consumers have elected to use instead a full-yield-curve approach in the estimation of service cost and interest expense; this approach is more accurate in that it applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment. For the three months ended March 31, 2016, the service cost and interest expense components of net periodic benefit costs were reduced by $6 million for the DB Pension Plan and by $3 million for the OPEB Plan for both CMS Energy and Consumers as a result of changing to the full-yield-curve approach to determine the discount rate . Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefits plans: In Millions DB Pension Plan OPEB Plan Three Months Ended March 31 2016 2015 2016 2015 CMS Energy, including Consumers Net periodic cost (credit) Service cost $ 11 $ 12 $ 5 $ 6 Interest expense 21 25 12 15 Expected return on plan assets (37) (34) (22) (23) Amortization of: Net loss 17 23 5 5 Prior service cost (credit) 1 - (10) (10) Net periodic cost (credit) $ 13 $ 26 $ (10) $ (7) Consumers Net periodic cost (credit) Service cost $ 10 $ 12 $ 4 $ 6 Interest expense 21 25 11 14 Expected return on plan assets (36) (33) (20) (22) Amortization of: Net loss 17 22 6 6 Prior service cost (credit) 1 - (10) (10) Net periodic cost (credit) $ 13 $ 26 $ (9) $ (6) |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Taxes | 9: Income Taxes Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations: Three Months Ended March 31 2016 2015 CMS Energy, including Consumers U.S. federal income tax rate 35.0 % 35.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 4.1 4.8 Accelerated flow-through of regulatory tax benefits (4.7) (4.9) Employee share-based awards 1 (2.2) - Other, net (1.1) (1.8) Effective tax rate 31.1 % 33.1 % Consumers U.S. federal income tax rate 35.0 % 35.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 4.4 4.7 Accelerated flow-through of regulatory tax benefits (4.2) (4.4) Employee share-based awards 1 (2.0) - Other, net (0.9) (1.5) Effective tax rate 32.3 % 33.8 % 1 CMS Energy and Consumers elected to adopt ASU 2016 - 09, Improvements to Employee Share-Based Payment Accounting , as of January 1, 2016. For further details on the implementation of this standard, see Note 1, New Accounting Standards. |
Consumers Energy Company [Member] | |
Income Taxes | 9: Income Taxes Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations: Three Months Ended March 31 2016 2015 CMS Energy, including Consumers U.S. federal income tax rate 35.0 % 35.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 4.1 4.8 Accelerated flow-through of regulatory tax benefits (4.7) (4.9) Employee share-based awards 1 (2.2) - Other, net (1.1) (1.8) Effective tax rate 31.1 % 33.1 % Consumers U.S. federal income tax rate 35.0 % 35.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 4.4 4.7 Accelerated flow-through of regulatory tax benefits (4.2) (4.4) Employee share-based awards 1 (2.0) - Other, net (0.9) (1.5) Effective tax rate 32.3 % 33.8 % 1 CMS Energy and Consumers elected to adopt ASU 2016 - 09, Improvements to Employee Share-Based Payment Accounting , as of January 1, 2016. For further details on the implementation of this standard, see Note 1, New Accounting Standards. |
Earnings Per Share - CMS Energy
Earnings Per Share - CMS Energy | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share - CMS Energy [Abstract] | |
Earnings Per Share - CMS Energy | 10 : Earnings Per Share—CMS Energy Presented in the following table are CMS Energy’s basic and diluted EPS computations based on net income: In Millions, Except Per Share Amounts Three Months Ended March 31 2016 2015 Income available to common stockholders Net income available to common stockholders – basic and diluted $ 164 $ 202 Average common shares outstanding Weighted-average shares – basic 276.7 274.8 Add dilutive nonvested stock awards 1.2 0.9 Weighted-average shares – diluted 277.9 275.7 Net income per average common share available to common stockholders Basic $ 0.59 $ 0.73 Diluted 0.59 0.73 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 nonvested stock awards are considered participating securities . As such, the participating non vested stock awards were included in the computation of basic EPS . The non ‑participating securities accrue stock dividends that vest concurrently with the stock award . If the recipient forfeits the award, the stock dividends accrued on the non ‑participating securities are also forfeited . Accordingly, the non ‑participating awards and stock dividends were included in the computation of diluted EPS, but not basic EPS. |
Reportable Segments
Reportable Segments | 3 Months Ended |
Mar. 31, 2016 | |
Reportable Segments | 1 1 : Reportable Segments Reportable segments consist of business units defined by the products and services they offer . CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders. CMS Energy The reportable segments for CMS Energy are: · electric utility, consisting of regulated activities associated with the generation, transmission, and distribution of electricity in Michigan · gas utility, consisting of regulated activities associated with the transportation, storage, and distribution of natural gas in Michigan · enterprises, consisting of various subsidiaries engaging primarily in domestic independent power production CMS Energy presents EnerBank and corporate interest and other expenses within other reconciling items. Consumers The reportable segments for Consumers are: · electric utility, consisting of regulated activities associated with the generation, transmission, and distribution of electricity in Michigan · gas utility, consisting of regulated activities associated with the transportation, storage, and distribution of natural gas in Michigan Consumers’ other consolidated entities are presented within other reconciling items. Presented in the following tables is financial information by reportable segment: In Millions Three Months Ended March 31 2016 2015 CMS Energy, including Consumers Operating revenue Electric utility $ 1,013 $ 1,033 Gas utility 710 995 Enterprises 48 60 Other reconciling items 30 23 Total operating revenue – CMS Energy $ 1,801 $ 2,111 Consumers Operating revenue Electric utility $ 1,013 $ 1,033 Gas utility 710 995 Total operating revenue – Consumers $ 1,723 $ 2,028 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 91 $ 94 Gas utility 81 121 Enterprises 6 7 Other reconciling items (14) (20) Total net income available to common stockholders – CMS Energy $ 164 $ 202 Consumers Net income available to common stockholder Electric utility $ 91 $ 94 Gas utility 81 121 Total net income available to common stockholder – Consumers $ 172 $ 215 In Millions March 31, 2016 December 31, 2015 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 1 $ 13,331 $ 13,059 Gas utility 1 5,819 5,723 Enterprises 159 120 Other reconciling items 25 41 Total plant, property, and equipment, gross – CMS Energy $ 19,334 $ 18,943 Consumers Plant, property, and equipment, gross Electric utility 1 $ 13,331 $ 13,059 Gas utility 1 5,819 5,723 Other reconciling items 15 15 Total plant, property, and equipment, gross – Consumers $ 19,165 $ 18,797 CMS Energy, including Consumers Total assets Electric utility 1 $ 12,743 $ 12,660 Gas utility 1 5,624 5,912 Enterprises 261 270 Other reconciling items 1,409 1,457 Total assets – CMS Energy 2 $ 20,037 $ 20,299 Consumers Total assets Electric utility 1 $ 12,744 $ 12,660 Gas utility 1 5,624 5,912 Other reconciling items 54 63 Total assets – Consumers 2 $ 18,422 $ 18,635 1 Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. 2 CMS Energy and Consumers changed the reporting of debt issuance costs on their consolidated balance sheets in accordance with ASU 2015- 03 , Simplifying the Presentation of Debt Issuance Costs , as of January 1, 2016, and retrospectively adjusted prior-period amounts for comparability. For further details on the implementation of this standard, see Note 1, New Accounting Standards. |
Consumers Energy Company [Member] | |
Reportable Segments | 1 1 : Reportable Segments Reportable segments consist of business units defined by the products and services they offer . CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders. CMS Energy The reportable segments for CMS Energy are: · electric utility, consisting of regulated activities associated with the generation, transmission, and distribution of electricity in Michigan · gas utility, consisting of regulated activities associated with the transportation, storage, and distribution of natural gas in Michigan · enterprises, consisting of various subsidiaries engaging primarily in domestic independent power production CMS Energy presents EnerBank and corporate interest and other expenses within other reconciling items. Consumers The reportable segments for Consumers are: · electric utility, consisting of regulated activities associated with the generation, transmission, and distribution of electricity in Michigan · gas utility, consisting of regulated activities associated with the transportation, storage, and distribution of natural gas in Michigan Consumers’ other consolidated entities are presented within other reconciling items. Presented in the following tables is financial information by reportable segment: In Millions Three Months Ended March 31 2016 2015 CMS Energy, including Consumers Operating revenue Electric utility $ 1,013 $ 1,033 Gas utility 710 995 Enterprises 48 60 Other reconciling items 30 23 Total operating revenue – CMS Energy $ 1,801 $ 2,111 Consumers Operating revenue Electric utility $ 1,013 $ 1,033 Gas utility 710 995 Total operating revenue – Consumers $ 1,723 $ 2,028 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 91 $ 94 Gas utility 81 121 Enterprises 6 7 Other reconciling items (14) (20) Total net income available to common stockholders – CMS Energy $ 164 $ 202 Consumers Net income available to common stockholder Electric utility $ 91 $ 94 Gas utility 81 121 Total net income available to common stockholder – Consumers $ 172 $ 215 In Millions March 31, 2016 December 31, 2015 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 1 $ 13,331 $ 13,059 Gas utility 1 5,819 5,723 Enterprises 159 120 Other reconciling items 25 41 Total plant, property, and equipment, gross – CMS Energy $ 19,334 $ 18,943 Consumers Plant, property, and equipment, gross Electric utility 1 $ 13,331 $ 13,059 Gas utility 1 5,819 5,723 Other reconciling items 15 15 Total plant, property, and equipment, gross – Consumers $ 19,165 $ 18,797 CMS Energy, including Consumers Total assets Electric utility 1 $ 12,743 $ 12,660 Gas utility 1 5,624 5,912 Enterprises 261 270 Other reconciling items 1,409 1,457 Total assets – CMS Energy 2 $ 20,037 $ 20,299 Consumers Total assets Electric utility 1 $ 12,744 $ 12,660 Gas utility 1 5,624 5,912 Other reconciling items 54 63 Total assets – Consumers 2 $ 18,422 $ 18,635 1 Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. 2 CMS Energy and Consumers changed the reporting of debt issuance costs on their consolidated balance sheets in accordance with ASU 2015- 03 , Simplifying the Presentation of Debt Issuance Costs , as of January 1, 2016, and retrospectively adjusted prior-period amounts for comparability. For further details on the implementation of this standard, see Note 1, New Accounting Standards. |
Notes Receivable (Policy)
Notes Receivable (Policy) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Receivable [Abstract] | |
Allowance For Loan Losses Policy | The allowance for loan losses is a valuation allowance to reflect estimated credit losses . The allowance is increased by the provision for loan losses and decreased by loan charge-offs net of recoveries . Management estimates the allowance balance required by taking into consideration historical loan loss experience, the nature and volume of the portfolio, economic conditions, and other factors . Loan losses are charged against the allowance when the loss is confirmed, but no later than the point at which a loan becomes 120 days past due. |
Contingencies And Commitments (
Contingencies And Commitments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Site Contingency [Line Items] | |
Guarantees | In Millions Maximum Carrying Guarantee Description Issue Date Expiration Date Obligation Amount CMS Energy, including Consumers Indemnity obligations from asset sales and other agreements 1 Various Indefinite $ 153 $ 7 Guarantees 2 Various Indefinite 49 - Consumers Gurarantee 2 July 2011 Indefinite $ 30 $ - 1 These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, primarily claims related to taxes. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities. 2 At Consumers, this obligation comprises a guarantee provided to the DOE in connection with a settlement agreement regarding damages resulting from the DOE’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers. At CMS Energy, the guarantee obligations comprise Consumers’ guarantee to the DOE and CMS Energy’s 1994 guarantee of non-recourse revenue bonds issued by Genesee. |
Consumers Energy Company [Member] | |
Site Contingency [Line Items] | |
Expected Remediation Cost By Year | In Millions 2016 2017 2018 2019 2020 Consumers Remediation and other response activity costs $ 15 $ 20 $ 11 $ 14 $ 19 |
Guarantees | In Millions Maximum Carrying Guarantee Description Issue Date Expiration Date Obligation Amount CMS Energy, including Consumers Indemnity obligations from asset sales and other agreements 1 Various Indefinite $ 153 $ 7 Guarantees 2 Various Indefinite 49 - Consumers Gurarantee 2 July 2011 Indefinite $ 30 $ - 1 These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, primarily claims related to taxes. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities. 2 At Consumers, this obligation comprises a guarantee provided to the DOE in connection with a settlement agreement regarding damages resulting from the DOE’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers. At CMS Energy, the guarantee obligations comprise Consumers’ guarantee to the DOE and CMS Energy’s 1994 guarantee of non-recourse revenue bonds issued by Genesee. |
Bay Harbor [Member] | |
Site Contingency [Line Items] | |
Expected Remediation Cost By Year | In Millions 2016 2017 2018 2019 2020 CMS Energy Long-term liquid disposal and operating and maintenance costs $ 6 $ 5 $ 4 $ 4 $ 4 |
Financings And Capitalization (
Financings And Capitalization (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Revolving Credit Facilities | In Millions Letters of Credit Expiration Date Amount of Facility Amount Borrowed Outstanding Amount Available CMS Energy parent May 27, 2020 1 $ 550 $ - $ 1 $ 549 Consumers May 27, 2020 2 $ 650 $ - $ 7 $ 643 November 23, 2017 2 250 - - 250 May 9, 2018 2 30 - 30 - 1 During the three months ended March 31, 2016 , CMS Energy’s average borrowings totaled $10 million with a weighted-average interest rate of 1.68 percent . Obligations under this facility are secured by Consumers common stock. 2 Obligations under this facility are secured by first mortgage bonds of Consumers. |
Issuance Of Stock | Number of Average Proceeds Shares Issued Price per Share (In Millions) April – July 2015 888,610 $ 33.76 $ 30 March 2016 1,449,171 41.40 60 Total 2,337,781 $ 38.50 $ 90 |
Consumers Energy Company [Member] | |
Revolving Credit Facilities | In Millions Letters of Credit Expiration Date Amount of Facility Amount Borrowed Outstanding Amount Available CMS Energy parent May 27, 2020 1 $ 550 $ - $ 1 $ 549 Consumers May 27, 2020 2 $ 650 $ - $ 7 $ 643 November 23, 2017 2 250 - - 250 May 9, 2018 2 30 - 30 - 1 During the three months ended March 31, 2016 , CMS Energy’s average borrowings totaled $10 million with a weighted-average interest rate of 1.68 percent . Obligations under this facility are secured by Consumers common stock. 2 Obligations under this facility are secured by first mortgage bonds of Consumers. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Assets And Liabilities Measured At Fair Value On A Recurring Basis | In Millions CMS Energy, including Consumers Consumers March 31 December 31 March 31 December 31 2016 2015 2016 2015 Assets 1 Cash equivalents $ 85 $ 158 $ - $ - Restricted cash equivalents 28 19 28 19 CMS Energy common stock - - 34 29 Nonqualified deferred compensation plan assets 10 10 7 7 DB SERP Cash equivalents 1 2 1 2 Mutual funds 145 146 104 104 Derivative instruments Commodity contracts 1 1 1 1 Total $ 270 $ 336 $ 175 $ 162 Liabilities 1 Nonqualified deferred compensation plan liabilities $ 10 $ 10 $ 7 $ 7 Total $ 10 $ 10 $ 7 $ 7 1 All assets and liabilities were classified as Level 1 with the exception of commodity contracts, whic h were classified as Level 3 and which were insignificant at March 31, 2016 and December 31, 2015 . |
Consumers Energy Company [Member] | |
Assets And Liabilities Measured At Fair Value On A Recurring Basis | In Millions CMS Energy, including Consumers Consumers March 31 December 31 March 31 December 31 2016 2015 2016 2015 Assets 1 Cash equivalents $ 85 $ 158 $ - $ - Restricted cash equivalents 28 19 28 19 CMS Energy common stock - - 34 29 Nonqualified deferred compensation plan assets 10 10 7 7 DB SERP Cash equivalents 1 2 1 2 Mutual funds 145 146 104 104 Derivative instruments Commodity contracts 1 1 1 1 Total $ 270 $ 336 $ 175 $ 162 Liabilities 1 Nonqualified deferred compensation plan liabilities $ 10 $ 10 $ 7 $ 7 Total $ 10 $ 10 $ 7 $ 7 1 All assets and liabilities were classified as Level 1 with the exception of commodity contracts, whic h were classified as Level 3 and which were insignificant at March 31, 2016 and December 31, 2015 . |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments | In Millions March 31, 2016 December 31, 2015 Fair Value Fair Value Carrying Level Carrying Level Amount Total 1 2 3 Amount Total 1 2 3 CMS Energy, including Consumers Securities held to maturity $ 13 $ 13 $ - $ 13 $ - $ 11 $ 11 $ - $ 11 $ - Long-term payable 1 14 15 - - 15 14 14 - - 14 Notes receivable 2 1,175 1,256 - - 1,256 1,161 1,228 - - 1,228 Long-term debt 3 9,099 9,841 - 8,856 985 9,084 9,599 - 8,648 951 Consumers Long-term debt 4 $ 5,382 $ 5,853 $ - $ 4,868 $ 985 $ 5,381 $ 5,684 $ - $ 4,733 $ 951 1 Includes current portion of long-term payable of $1 million at March 31, 2016 and December 31, 2015. 2 Includes current portion of notes receivable of $ 151 million at March 31, 2016 and $ 144 million at December 31, 2015 . 3 Includes current portion of long-term debt of $ 929 million at March 31, 2016 and $ 684 million at December 31, 2015 . 4 Includes current portion of long-term debt of $448 million at March 31, 2016 and $ 198 million at December 31, 2015 . |
Schedule Of Investment Securities | In Millions March 31, 2016 December 31, 2015 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 $ 152 $ - $ 7 $ 145 $ 152 $ - $ 6 $ 146 Held to maturity Debt securities 13 - - 13 11 - - 11 Consumers Available for sale DB SERP Mutual funds $ 109 $ - $ 5 $ 104 $ 108 $ - $ 4 $ 104 CMS Energy common stock 4 30 - 34 4 25 - 29 |
Consumers Energy Company [Member] | |
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments | In Millions March 31, 2016 December 31, 2015 Fair Value Fair Value Carrying Level Carrying Level Amount Total 1 2 3 Amount Total 1 2 3 CMS Energy, including Consumers Securities held to maturity $ 13 $ 13 $ - $ 13 $ - $ 11 $ 11 $ - $ 11 $ - Long-term payable 1 14 15 - - 15 14 14 - - 14 Notes receivable 2 1,175 1,256 - - 1,256 1,161 1,228 - - 1,228 Long-term debt 3 9,099 9,841 - 8,856 985 9,084 9,599 - 8,648 951 Consumers Long-term debt 4 $ 5,382 $ 5,853 $ - $ 4,868 $ 985 $ 5,381 $ 5,684 $ - $ 4,733 $ 951 1 Includes current portion of long-term payable of $1 million at March 31, 2016 and December 31, 2015. 2 Includes current portion of notes receivable of $ 151 million at March 31, 2016 and $ 144 million at December 31, 2015 . 3 Includes current portion of long-term debt of $ 929 million at March 31, 2016 and $ 684 million at December 31, 2015 . 4 Includes current portion of long-term debt of $448 million at March 31, 2016 and $ 198 million at December 31, 2015 . |
Schedule Of Investment Securities | In Millions March 31, 2016 December 31, 2015 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 $ 152 $ - $ 7 $ 145 $ 152 $ - $ 6 $ 146 Held to maturity Debt securities 13 - - 13 11 - - 11 Consumers Available for sale DB SERP Mutual funds $ 109 $ - $ 5 $ 104 $ 108 $ - $ 4 $ 104 CMS Energy common stock 4 30 - 34 4 25 - 29 |
Notes Receivable (Tables)
Notes Receivable (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Receivable [Abstract] | |
Schedule Of Current And Non-Current Notes Receivable | In Millions March 31, 2016 December 31, 2015 CMS Energy, including Consumers Current EnerBank notes receivable, net of allowance for loan losses $ 135 $ 128 EnerBank notes receivable held for sale 16 16 Non-current EnerBank notes receivable 1,024 1,017 Total notes receivable $ 1,175 $ 1,161 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule Of Net Benefit Costs | In Millions DB Pension Plan OPEB Plan Three Months Ended March 31 2016 2015 2016 2015 CMS Energy, including Consumers Net periodic cost (credit) Service cost $ 11 $ 12 $ 5 $ 6 Interest expense 21 25 12 15 Expected return on plan assets (37) (34) (22) (23) Amortization of: Net loss 17 23 5 5 Prior service cost (credit) 1 - (10) (10) Net periodic cost (credit) $ 13 $ 26 $ (10) $ (7) Consumers Net periodic cost (credit) Service cost $ 10 $ 12 $ 4 $ 6 Interest expense 21 25 11 14 Expected return on plan assets (36) (33) (20) (22) Amortization of: Net loss 17 22 6 6 Prior service cost (credit) 1 - (10) (10) Net periodic cost (credit) $ 13 $ 26 $ (9) $ (6) |
Consumers Energy Company [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule Of Net Benefit Costs | In Millions DB Pension Plan OPEB Plan Three Months Ended March 31 2016 2015 2016 2015 CMS Energy, including Consumers Net periodic cost (credit) Service cost $ 11 $ 12 $ 5 $ 6 Interest expense 21 25 12 15 Expected return on plan assets (37) (34) (22) (23) Amortization of: Net loss 17 23 5 5 Prior service cost (credit) 1 - (10) (10) Net periodic cost (credit) $ 13 $ 26 $ (10) $ (7) Consumers Net periodic cost (credit) Service cost $ 10 $ 12 $ 4 $ 6 Interest expense 21 25 11 14 Expected return on plan assets (36) (33) (20) (22) Amortization of: Net loss 17 22 6 6 Prior service cost (credit) 1 - (10) (10) Net periodic cost (credit) $ 13 $ 26 $ (9) $ (6) |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Schedule Of Effective Income Tax Rate Reconciliation | Three Months Ended March 31 2016 2015 CMS Energy, including Consumers U.S. federal income tax rate 35.0 % 35.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 4.1 4.8 Accelerated flow-through of regulatory tax benefits (4.7) (4.9) Employee share-based awards 1 (2.2) - Other, net (1.1) (1.8) Effective tax rate 31.1 % 33.1 % Consumers U.S. federal income tax rate 35.0 % 35.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 4.4 4.7 Accelerated flow-through of regulatory tax benefits (4.2) (4.4) Employee share-based awards 1 (2.0) - Other, net (0.9) (1.5) Effective tax rate 32.3 % 33.8 % 1 CMS Energy and Consumers elected to adopt ASU 2016 - 09, Improvements to Employee Share-Based Payment Accounting , as of January 1, 2016. For further details on the implementation of this standard, see Note 1, New Accounting Standards. |
Consumers Energy Company [Member] | |
Schedule Of Effective Income Tax Rate Reconciliation | Three Months Ended March 31 2016 2015 CMS Energy, including Consumers U.S. federal income tax rate 35.0 % 35.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 4.1 4.8 Accelerated flow-through of regulatory tax benefits (4.7) (4.9) Employee share-based awards 1 (2.2) - Other, net (1.1) (1.8) Effective tax rate 31.1 % 33.1 % Consumers U.S. federal income tax rate 35.0 % 35.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 4.4 4.7 Accelerated flow-through of regulatory tax benefits (4.2) (4.4) Employee share-based awards 1 (2.0) - Other, net (0.9) (1.5) Effective tax rate 32.3 % 33.8 % 1 CMS Energy and Consumers elected to adopt ASU 2016 - 09, Improvements to Employee Share-Based Payment Accounting , as of January 1, 2016. For further details on the implementation of this standard, see Note 1, New Accounting Standards. |
Earnings Per Share - CMS Ener28
Earnings Per Share - CMS Energy (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share - CMS Energy [Abstract] | |
Basic And Diluted EPS Computations | In Millions, Except Per Share Amounts Three Months Ended March 31 2016 2015 Income available to common stockholders Net income available to common stockholders – basic and diluted $ 164 $ 202 Average common shares outstanding Weighted-average shares – basic 276.7 274.8 Add dilutive nonvested stock awards 1.2 0.9 Weighted-average shares – diluted 277.9 275.7 Net income per average common share available to common stockholders Basic $ 0.59 $ 0.73 Diluted 0.59 0.73 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Schedule Of Financial Information By Reportable Segments | In Millions Three Months Ended March 31 2016 2015 CMS Energy, including Consumers Operating revenue Electric utility $ 1,013 $ 1,033 Gas utility 710 995 Enterprises 48 60 Other reconciling items 30 23 Total operating revenue – CMS Energy $ 1,801 $ 2,111 Consumers Operating revenue Electric utility $ 1,013 $ 1,033 Gas utility 710 995 Total operating revenue – Consumers $ 1,723 $ 2,028 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 91 $ 94 Gas utility 81 121 Enterprises 6 7 Other reconciling items (14) (20) Total net income available to common stockholders – CMS Energy $ 164 $ 202 Consumers Net income available to common stockholder Electric utility $ 91 $ 94 Gas utility 81 121 Total net income available to common stockholder – Consumers $ 172 $ 215 In Millions March 31, 2016 December 31, 2015 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 1 $ 13,331 $ 13,059 Gas utility 1 5,819 5,723 Enterprises 159 120 Other reconciling items 25 41 Total plant, property, and equipment, gross – CMS Energy $ 19,334 $ 18,943 Consumers Plant, property, and equipment, gross Electric utility 1 $ 13,331 $ 13,059 Gas utility 1 5,819 5,723 Other reconciling items 15 15 Total plant, property, and equipment, gross – Consumers $ 19,165 $ 18,797 CMS Energy, including Consumers Total assets Electric utility 1 $ 12,743 $ 12,660 Gas utility 1 5,624 5,912 Enterprises 261 270 Other reconciling items 1,409 1,457 Total assets – CMS Energy 2 $ 20,037 $ 20,299 Consumers Total assets Electric utility 1 $ 12,744 $ 12,660 Gas utility 1 5,624 5,912 Other reconciling items 54 63 Total assets – Consumers 2 $ 18,422 $ 18,635 1 Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. 2 CMS Energy and Consumers changed the reporting of debt issuance costs on their consolidated balance sheets in accordance with ASU 2015- 03 , Simplifying the Presentation of Debt Issuance Costs , as of January 1, 2016, and retrospectively adjusted prior-period amounts for comparability. For further details on the implementation of this standard, see Note 1, New Accounting Standards. |
Consumers Energy Company [Member] | |
Schedule Of Financial Information By Reportable Segments | In Millions Three Months Ended March 31 2016 2015 CMS Energy, including Consumers Operating revenue Electric utility $ 1,013 $ 1,033 Gas utility 710 995 Enterprises 48 60 Other reconciling items 30 23 Total operating revenue – CMS Energy $ 1,801 $ 2,111 Consumers Operating revenue Electric utility $ 1,013 $ 1,033 Gas utility 710 995 Total operating revenue – Consumers $ 1,723 $ 2,028 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 91 $ 94 Gas utility 81 121 Enterprises 6 7 Other reconciling items (14) (20) Total net income available to common stockholders – CMS Energy $ 164 $ 202 Consumers Net income available to common stockholder Electric utility $ 91 $ 94 Gas utility 81 121 Total net income available to common stockholder – Consumers $ 172 $ 215 In Millions March 31, 2016 December 31, 2015 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 1 $ 13,331 $ 13,059 Gas utility 1 5,819 5,723 Enterprises 159 120 Other reconciling items 25 41 Total plant, property, and equipment, gross – CMS Energy $ 19,334 $ 18,943 Consumers Plant, property, and equipment, gross Electric utility 1 $ 13,331 $ 13,059 Gas utility 1 5,819 5,723 Other reconciling items 15 15 Total plant, property, and equipment, gross – Consumers $ 19,165 $ 18,797 CMS Energy, including Consumers Total assets Electric utility 1 $ 12,743 $ 12,660 Gas utility 1 5,624 5,912 Enterprises 261 270 Other reconciling items 1,409 1,457 Total assets – CMS Energy 2 $ 20,037 $ 20,299 Consumers Total assets Electric utility 1 $ 12,744 $ 12,660 Gas utility 1 5,624 5,912 Other reconciling items 54 63 Total assets – Consumers 2 $ 18,422 $ 18,635 1 Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. 2 CMS Energy and Consumers changed the reporting of debt issuance costs on their consolidated balance sheets in accordance with ASU 2015- 03 , Simplifying the Presentation of Debt Issuance Costs , as of January 1, 2016, and retrospectively adjusted prior-period amounts for comparability. For further details on the implementation of this standard, see Note 1, New Accounting Standards. |
New Accounting Standards (Detai
New Accounting Standards (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Unamortized debt issuance costs | $ 40 | $ 41 | |
Income Tax Benefit | 74 | $ 100 | |
New Accounting Pronouncement, Early Adoption, Effect [Member] | |||
Income Tax Benefit | 6 | ||
Retained Earnings (Accumulated Deficit) [Member] | |||
Cumulative effect of change in accounting principle | 33 | ||
Consumers Energy Company [Member] | |||
Unamortized debt issuance costs | 22 | $ 23 | |
Income Tax Benefit | 82 | $ 110 | |
Consumers Energy Company [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | |||
Income Tax Benefit | $ 6 |
Regulatory Matters (Narrative)
Regulatory Matters (Narrative) (Details) | 1 Months Ended | ||||||||
Apr. 30, 2016USD ($)item | Jan. 31, 2016USD ($) | Nov. 30, 2015USD ($) | Jul. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Mar. 31, 2016USD ($) | Feb. 29, 2016USD ($) | Dec. 31, 2015USD ($) | |
Public Utilities, General Disclosures [Line Items] | |||||||||
Regulatory liability current | $ 76,000,000 | $ 82,000,000 | |||||||
Consumers Energy Company [Member] | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Regulatory liability current | $ 76,000,000 | 82,000,000 | |||||||
Electric Rate Case [Member] | Consumers Energy Company [Member] | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Annual rate increase requested | $ 163,000,000 | ||||||||
Rate of return on equity requested | 10.70% | ||||||||
Annual rate increase self-implemented | $ 110,000,000 | ||||||||
Rate of return on equity authorized | 10.30% | ||||||||
Temporary rate increase | $ 165,000,000 | ||||||||
Electric Rate Case [Member] | Consumers Energy Company [Member] | Subsequent Event [Member] | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Annual rate increase authorized | $ 126,000,000 | ||||||||
Number of units retired | item | 7 | ||||||||
Electric Rate Case [Member] | Self-Implemented Rate Refunds [Member] | Consumers Energy Company [Member] | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Regulatory liability current | $ 0 | ||||||||
Gas Rate Case [Member] | Consumers Energy Company [Member] | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Annual rate increase requested | $ 85,000,000 | ||||||||
Rate of return on equity requested | 10.70% | ||||||||
Annual rate increase self-implemented | $ 60,000,000 | ||||||||
Gas Rate Case [Member] | Consumers Energy Company [Member] | Subsequent Event [Member] | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Annual rate increase authorized | $ 40,000,000 | ||||||||
Energy Optimization Plan Incentive [Member] | Consumers Energy Company [Member] | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Requested recovery/collection | $ 18,000,000 |
Contingencies And Commitments32
Contingencies And Commitments (Contingencies And Commitments) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2016USD ($)itemlawsuit | Dec. 31, 2015USD ($) | |
Loss Contingencies [Line Items] | ||
Regulatory assets | $ 1,827 | $ 1,840 |
Consumers Energy Company [Member] | ||
Loss Contingencies [Line Items] | ||
Regulatory assets | $ 1,827 | $ 1,840 |
Bay Harbor [Member] | ||
Loss Contingencies [Line Items] | ||
Environmental remediation permit renewal term | 5 years | |
Demand for payment by USEPA | $ 8 | |
Accrual for environmental loss contingencies | $ 54 | |
Discounted projected costs rate | 4.34% | |
Remaining undiscounted obligation amount | $ 69 | |
Accrual for environmental loss contingencies, inflation rate | 1.00% | |
CERCLA Liability [Member] | Consumers Energy Company [Member] | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies | $ 3 | |
Remediation and other response activity costs, minimum | 3 | |
Remediation and other response activity costs, maximum | 8 | |
Manufactured Gas Plant [Member] | Consumers Energy Company [Member] | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies | $ 114 | |
Discounted projected costs rate | 2.57% | |
Remaining undiscounted obligation amount | $ 130 | |
Number of former MGPs | item | 23 | |
Regulatory assets | $ 145 | |
Authorized recovery, collection period | 10 years | |
Accrual for environmental loss contingencies, inflation rate | 2.50% | |
Electric Utility [Member] | NREPA [Member] | Consumers Energy Company [Member] | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies | $ 3 | |
Remediation and other response activity costs, minimum | 3 | |
Remediation and other response activity costs, maximum | 5 | |
Gas Utility [Member] | NREPA [Member] | Consumers Energy Company [Member] | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies | 1 | |
Remediation and other response activity costs, maximum | 3 | |
Equatorial Guinea Tax Claim [Member] | ||
Loss Contingencies [Line Items] | ||
Foreign government tax claim on sale | $ 152 | |
Class Action Lawsuits [Member] | ||
Loss Contingencies [Line Items] | ||
Number of lawsuits | lawsuit | 4 | |
Individual Lawsuits [Member] | ||
Loss Contingencies [Line Items] | ||
Number of lawsuits | lawsuit | 1 |
Contingencies And Commitments33
Contingencies And Commitments (Expected Remediation Cost By Year) (Details) $ in Millions | Mar. 31, 2016USD ($) |
Manufactured Gas Plant [Member] | Consumers Energy Company [Member] | |
Site Contingency [Line Items] | |
Undiscounted amount due within one year | $ 15 |
Undiscounted amount due within two year | 20 |
Undiscounted amount due within third year | 11 |
Undiscounted amount due within fourth year | 14 |
Undiscounted amount due within five year | 19 |
Bay Harbor [Member] | |
Site Contingency [Line Items] | |
Undiscounted amount due within one year | 6 |
Undiscounted amount due within two year | 5 |
Undiscounted amount due within third year | 4 |
Undiscounted amount due within fourth year | 4 |
Undiscounted amount due within five year | $ 4 |
Contingencies And Commitments34
Contingencies And Commitments (Guarantees) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | ||
Guarantor Obligations [Line Items] | ||||
Interest expense reduction | $ (7) | $ (6) | ||
Interest income | 1 | 1 | ||
Consumers Energy Company [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Interest expense reduction | (3) | (3) | ||
Interest income | $ 1 | $ 1 | ||
Consumers Energy Company [Member] | Settlement with Taxing Authority [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Tax examination refund | $ 37 | |||
PPE reduction resulting from tax refund | 19 | |||
Interest expense reduction | 12 | |||
Interest income | $ 6 | |||
Guarantees [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Guarantee Description | [1] | Guarantees2 | ||
Expiration Date | [1] | Indefinite | ||
Maximum obligation | [1] | $ 49 | ||
Guarantees [Member] | Consumers Energy Company [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Guarantee Description | [1] | Gurarantee2 | ||
Expiration Date | [1] | Indefinite | ||
Maximum obligation | [1] | $ 30 | ||
Indemnity Obligations From Asset Sales And Other Agreements [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Guarantee Description | [2] | Indemnity obligations from asset sales and other agreements1 | ||
Expiration Date | [2] | Indefinite | ||
Maximum obligation | [2] | $ 153 | ||
Carrying Amount | [2] | 7 | ||
Tax And Other Indemnity Obligations [Member] | Consumers Energy Company [Member] | Maximum [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Carrying Amount | $ 1 | |||
[1] | At Consumers, this obligation comprises a guarantee provided to the DOE in connection with a settlement agreement regarding damages resulting from the DOE's failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers. At CMS Energy, the guarantee obligations comprise Consumers' guarantee to the DOE and CMS Energy's 1994 guarantee of non-recourse revenue bonds issued by Genesee. | |||
[2] | These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, primarily claims related to taxes. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities. |
Financings And Capitalization35
Financings And Capitalization (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2016 | Mar. 31, 2016 | ||
Financing And Capitalization [Line Items] | |||
Limitation on payment of stock dividends | $ 4,100,000,000 | ||
Common stock dividends from Consumers | 155,000,000 | ||
Aggregate sales price of an equity offering program | 100,000,000 | ||
Term Loan [Member] | Subsequent Event [Member] | |||
Financing And Capitalization [Line Items] | |||
Debt issuance | $ 180,000,000 | ||
Debt instrument, extension term | 1 year | ||
Consumers Energy Company [Member] | |||
Financing And Capitalization [Line Items] | |||
Unrestricted retained earnings | 902,000,000 | ||
Consumers Energy Company [Member] | Commercial Paper [Member] | |||
Financing And Capitalization [Line Items] | |||
Short-term debt, authorized borrowings | 500,000,000 | ||
Revolving Credit Facilities May 27, 2020 [Member] | CMS Energy [Member] | |||
Financing And Capitalization [Line Items] | |||
Amount of Facility | [1] | 550,000,000 | |
Revolving Credit Facilities May 27, 2020 [Member] | Consumers Energy Company [Member] | |||
Financing And Capitalization [Line Items] | |||
Amount of Facility | [2] | $ 650,000,000 | |
[1] | During the three months ended March 31, 2016, CMS Energy's average borrowings totaled $10 million with a weighted-average interest rate of 1.68 percent. Obligations under this facility are secured by Consumers common stock. | ||
[2] | Obligations under this facility are secured by first mortgage bonds of Consumers. |
Financings And Capitalization36
Financings And Capitalization (Revolving Credit Facilities) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2016USD ($) | ||
Revolving Credit Facilities May 27, 2020 [Member] | CMS Energy [Member] | ||
Line of Credit Facility [Line Items] | ||
Expiration Date | May 27, 2020 | [1] |
Amount of Facility | $ 550 | [1] |
Amount Borrowed | [1] | |
Letters of Credit Outstanding | $ 1 | [1] |
Amount Available | 549 | [1] |
Average borrowings | $ 10 | |
Weighted average interest rate | 1.68% | |
Revolving Credit Facilities May 27, 2020 [Member] | Consumers Energy Company [Member] | ||
Line of Credit Facility [Line Items] | ||
Expiration Date | May 27, 2020 | [2] |
Amount of Facility | $ 650 | [2] |
Amount Borrowed | [2] | |
Letters of Credit Outstanding | $ 7 | [2] |
Amount Available | $ 643 | [2] |
Revolving Credit Facilities November 23, 2017 [Member] | Consumers Energy Company [Member] | ||
Line of Credit Facility [Line Items] | ||
Expiration Date | Nov. 23, 2017 | [2] |
Amount of Facility | $ 250 | [2] |
Amount Borrowed | [2] | |
Letters of Credit Outstanding | [2] | |
Amount Available | $ 250 | [2] |
Revolving Credit Facilities May 9, 2018 [Member] | Consumers Energy Company [Member] | ||
Line of Credit Facility [Line Items] | ||
Expiration Date | May 9, 2018 | [2] |
Amount of Facility | $ 30 | [2] |
Amount Borrowed | [2] | |
Letters of Credit Outstanding | $ 30 | [2] |
Amount Available | [2] | |
[1] | During the three months ended March 31, 2016, CMS Energy's average borrowings totaled $10 million with a weighted-average interest rate of 1.68 percent. Obligations under this facility are secured by Consumers common stock. | |
[2] | Obligations under this facility are secured by first mortgage bonds of Consumers. |
Financings And Capitalization37
Financings And Capitalization (Issuance Of Common Stock) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 4 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Jul. 31, 2015 | Mar. 31, 2016 | |
Financings And Capitalization [Abstract] | |||
Number of Shares Issued | 1,449,171 | 888,610 | 2,337,781 |
Average Price Per Share | $ 41.40 | $ 33.76 | $ 38.50 |
Proceeds | $ 60 | $ 30 | $ 90 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets And Liabilties Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | [1] | $ 85 | $ 158 |
Restricted cash equivalents | [1] | 28 | 19 |
Nonqualified deferred compensation plan assets | [1] | 10 | 10 |
Commodity contracts | [1] | 1 | 1 |
Total | [1] | 270 | 336 |
Nonqualified deferred compensation plan liabilities | [1] | 10 | 10 |
Total | [1] | 10 | 10 |
Consumers Energy Company [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Restricted cash equivalents | [1] | 28 | 19 |
Nonqualified deferred compensation plan assets | [1] | 7 | 7 |
Commodity contracts | [1] | 1 | 1 |
Total | [1] | 175 | 162 |
Nonqualified deferred compensation plan liabilities | [1] | 7 | 7 |
Total | [1] | 7 | 7 |
DB SERP [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | [1] | 1 | 2 |
DB SERP [Member] | Consumers Energy Company [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | [1] | 1 | 2 |
DB SERP [Member] | Mutual Fund [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale - Fair Value | [1] | 145 | 146 |
DB SERP [Member] | Mutual Fund [Member] | Consumers Energy Company [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale - Fair Value | [1] | 104 | 104 |
CMS Energy Common Stock [Member] | Consumers Energy Company [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale - Fair Value | [1] | $ 34 | $ 29 |
[1] | All assets and liabilities were classified as Level 1 with the exception of commodity contracts, which were classified as Level 3 and which were insignificant at March 31, 2016 and December 31, 2015. |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
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 |
Financial Instruments (Schedule
Financial Instruments (Schedule Of Carrying Amounts And Fair Values Of Financial Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Other liabilities current | $ 118 | $ 142 | |
Current portion of long-term debt | 929 | 684 | |
DIG Note Payable [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Other liabilities current | 1 | 1 | |
Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities held to maturity - Fair Value | 13 | 11 | |
Long-term payable, Fair Value | [1] | 14 | 14 |
Long-term debt, Fair Value | [2] | 9,099 | 9,084 |
Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities held to maturity - Fair Value | 13 | 11 | |
Long-term payable, Fair Value | [1] | 15 | 14 |
Long-term debt, Fair Value | [2] | 9,841 | 9,599 |
Consumers Energy Company [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Other liabilities current | 87 | 109 | |
Current portion of long-term debt | 448 | 198 | |
Consumers Energy Company [Member] | Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, Fair Value | [3] | 5,382 | 5,381 |
Consumers Energy Company [Member] | Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, Fair Value | [3] | 5,853 | 5,684 |
EnerBank [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Current notes receivable | 151 | 144 | |
EnerBank [Member] | Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes receivable, Fair Value | [4] | 1,175 | 1,161 |
EnerBank [Member] | Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes receivable, Fair Value | [4] | $ 1,256 | $ 1,228 |
Fair Value, Inputs, Level 1 [Member] | Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities held to maturity - Fair Value | |||
Long-term payable, Fair Value | [1] | ||
Long-term debt, Fair Value | [2] | ||
Fair Value, Inputs, Level 1 [Member] | Consumers Energy Company [Member] | Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, Fair Value | [3] | ||
Fair Value, Inputs, Level 1 [Member] | EnerBank [Member] | Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes receivable, Fair Value | [4] | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities held to maturity - Fair Value | $ 13 | $ 11 | |
Long-term debt, Fair Value | [2] | 8,856 | 8,648 |
Fair Value, Inputs, Level 2 [Member] | Consumers Energy Company [Member] | Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, Fair Value | [3] | 4,868 | 4,733 |
Fair Value, Inputs, Level 3 [Member] | Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term payable, Fair Value | [1] | 15 | 14 |
Long-term debt, Fair Value | [2] | 985 | 951 |
Fair Value, Inputs, Level 3 [Member] | Consumers Energy Company [Member] | Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, Fair Value | [3] | 985 | 951 |
Fair Value, Inputs, Level 3 [Member] | EnerBank [Member] | Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes receivable, Fair Value | [4] | $ 1,256 | $ 1,228 |
[1] | Includes current portion of long-term payable of $1 million at March 31, 2016 and December 31, 2015. | ||
[2] | Includes current portion of long-term debt of $929 million at March 31, 2016 and $684 million at December 31, 2015. | ||
[3] | Includes current portion of long-term debt of $448 million at March 31, 2016 and $198 million at December 31, 2015. | ||
[4] | Includes current portion of notes receivable of $151 million at March 31, 2016 and $144 million at December 31, 2015. |
Financial Instruments (Schedu41
Financial Instruments (Schedule Of Investment Securities) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Securities [Member] | ||
Investment Securities [Line Items] | ||
Held to maturity securities - Cost | $ 13 | $ 11 |
Held to maturity securities - Unrealized Gains | ||
Held to maturity securities - Unrealized Losses | ||
Held to maturity securities - Fair Value | $ 13 | $ 11 |
CMS Energy Common Stock [Member] | Consumers Energy Company [Member] | ||
Investment Securities [Line Items] | ||
Available for sale - Cost | 4 | 4 |
Available for sale - Unrealized Gains | $ 30 | $ 25 |
Available for sale - Unrealized Losses | ||
Available for sale - Fair Value | $ 34 | $ 29 |
DB SERP [Member] | Mutual Fund [Member] | ||
Investment Securities [Line Items] | ||
Available for sale - Cost | $ 152 | $ 152 |
Available for sale - Unrealized Gains | ||
Available for sale - Unrealized Losses | $ 7 | $ 6 |
Available for sale - Fair Value | 145 | 146 |
DB SERP [Member] | Mutual Fund [Member] | Consumers Energy Company [Member] | ||
Investment Securities [Line Items] | ||
Available for sale - Cost | $ 109 | $ 108 |
Available for sale - Unrealized Gains | ||
Available for sale - Unrealized Losses | $ 5 | $ 4 |
Available for sale - Fair Value | $ 104 | $ 104 |
Notes Receivable (Narrative) (D
Notes Receivable (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current notes receivable | $ 135 | $ 128 |
EnerBank notes receivable held for sale | 16 | 16 |
EnerBank [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
EnerBank notes receivable held for sale | 16 | 16 |
Unearned income | 83 | 82 |
Delinquent loans | 8 | 8 |
Loans modified as troubled debt restructurings | $ 1 | $ 1 |
Notes Receivable (Schedule Of C
Notes Receivable (Schedule Of Current And Non-Current Notes Receivable) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current notes receivable | $ 135 | $ 128 |
EnerBank notes receivable held for sale | 16 | 16 |
Total notes receivable | 1,175 | 1,161 |
EnerBank [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
EnerBank notes receivable held for sale | 16 | 16 |
Noncurrent notes receivable | 1,024 | 1,017 |
Receivables, Net Of Allowance For Loan Losses [Member] | EnerBank [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current notes receivable | $ 135 | $ 128 |
Retirement Benefits (Narrative)
Retirement Benefits (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
DB Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Decrease in service cost and interest expense | $ 6 |
OPEB [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Decrease in service cost and interest expense | 3 |
Consumers Energy Company [Member] | DB Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Decrease in service cost and interest expense | 6 |
Consumers Energy Company [Member] | OPEB [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Decrease in service cost and interest expense | $ 3 |
Retirement Benefits (Schedule O
Retirement Benefits (Schedule Of Net Benefit Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
DB Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 11 | $ 12 |
Interest expense | 21 | 25 |
Expected return on plan assets | (37) | (34) |
Amortization of Net loss | 17 | 23 |
Amortization of Prior service cost (credit) | 1 | |
Net periodic cost (credit) | 13 | 26 |
DB Pension Plan [Member] | Consumers Energy Company [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 10 | 12 |
Interest expense | 21 | 25 |
Expected return on plan assets | (36) | (33) |
Amortization of Net loss | 17 | 22 |
Amortization of Prior service cost (credit) | 1 | |
Net periodic cost (credit) | 13 | 26 |
OPEB [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 5 | 6 |
Interest expense | 12 | 15 |
Expected return on plan assets | (22) | (23) |
Amortization of Net loss | 5 | 5 |
Amortization of Prior service cost (credit) | (10) | (10) |
Net periodic cost (credit) | (10) | (7) |
OPEB [Member] | Consumers Energy Company [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 4 | 6 |
Interest expense | 11 | 14 |
Expected return on plan assets | (20) | (22) |
Amortization of Net loss | 6 | 6 |
Amortization of Prior service cost (credit) | (10) | (10) |
Net periodic cost (credit) | $ (9) | $ (6) |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
U.S. federal income tax rate | 35.00% | 35.00% | |
State and local income taxes, net of federal effect | 4.10% | 4.80% | |
Accelerated flow-through of regulatory tax benefits | (4.70%) | (4.90%) | |
Employee share-based awards | [1] | (2.20%) | |
Other, net | (1.10%) | (1.80%) | |
Effective tax rate | 31.10% | 33.10% | |
Consumers Energy Company [Member] | |||
U.S. federal income tax rate | 35.00% | 35.00% | |
State and local income taxes, net of federal effect | 4.40% | 4.70% | |
Accelerated flow-through of regulatory tax benefits | (4.20%) | (4.40%) | |
Employee share-based awards | [1] | (2.00%) | |
Other, net | (0.90%) | (1.50%) | |
Effective tax rate | 32.30% | 33.80% | |
[1] | CMS Energy and Consumers elected to adopt ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, as of January 1, 2016. For further details on the implementation of this standard, see Note 1, New Accounting Standards. |
Earnings Per Share - CMS Ener47
Earnings Per Share - CMS Energy (Basic And Diluted EPS Computations) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share - CMS Energy [Abstract] | ||
Net income available to common stockholders | $ 164 | $ 202 |
Weighted average shares - basic | 276.7 | 274.8 |
Add dilutive non-vested stock awards | 1.2 | 0.9 |
Weighted average shares - diluted | 277.9 | 275.7 |
Basic | $ 0.59 | $ 0.73 |
Diluted | $ 0.59 | $ 0.73 |
Reportable Segments (Details)
Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | ||
Segment Reporting Information [Line Items] | ||||
Operating Revenue | $ 1,801 | $ 2,111 | ||
Depreciation and amortization | 238 | 222 | ||
Income (loss) from equity method investees | 4 | 4 | ||
Interest charges | 106 | 101 | ||
Income tax expense (benefit) | 74 | 100 | ||
Net income available to common stockholders | 164 | 202 | ||
Plant, property, and equipment, gross | 19,334 | $ 18,943 | ||
Investments in equity method investees | 64 | 64 | ||
Total Assets | [1] | 20,037 | 20,299 | |
Consumers Energy Company [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Revenue | 1,723 | 2,028 | ||
Depreciation and amortization | 237 | 220 | ||
Interest charges | 67 | 65 | ||
Income tax expense (benefit) | 82 | 110 | ||
Net income available to common stockholders | 172 | 215 | ||
Plant, property, and equipment, gross | 19,165 | 18,797 | ||
Total Assets | [1] | 18,422 | 18,635 | |
Electric Utility [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Revenue | 1,013 | 1,033 | ||
Net income available to common stockholders | 91 | 94 | ||
Plant, property, and equipment, gross | [2] | 13,331 | 13,059 | |
Total Assets | [2] | 12,743 | 12,660 | |
Electric Utility [Member] | Consumers Energy Company [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Revenue | 1,013 | 1,033 | ||
Net income available to common stockholders | 91 | 94 | ||
Plant, property, and equipment, gross | [2] | 13,331 | 13,059 | |
Total Assets | [2] | 12,744 | 12,660 | |
Gas Utility [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Revenue | 710 | 995 | ||
Net income available to common stockholders | 81 | 121 | ||
Plant, property, and equipment, gross | [2] | 5,819 | 5,723 | |
Total Assets | [2] | 5,624 | 5,912 | |
Gas Utility [Member] | Consumers Energy Company [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Revenue | 710 | 995 | ||
Net income available to common stockholders | 81 | 121 | ||
Plant, property, and equipment, gross | [2] | 5,819 | 5,723 | |
Total Assets | [2] | 5,624 | 5,912 | |
Enterprises [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Revenue | 48 | 60 | ||
Net income available to common stockholders | 6 | 7 | ||
Plant, property, and equipment, gross | 159 | 120 | ||
Total Assets | 261 | 270 | ||
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Revenue | 30 | 23 | ||
Net income available to common stockholders | (14) | $ (20) | ||
Plant, property, and equipment, gross | 25 | 41 | ||
Total Assets | 1,409 | 1,457 | ||
Other [Member] | Consumers Energy Company [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Plant, property, and equipment, gross | 15 | 15 | ||
Total Assets | $ 54 | $ 63 | ||
[1] | CMS Energy and Consumers changed the reporting of debt issuance costs on their consolidated balance sheets in accordance with ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, as of January 1, 2016, and retrospectively adjusted prior-period amounts for comparability. For further details on the implementation of this standard, see Note 1, New Accounting Standards. | |||
[2] | Amounts include a portion of Consumers' other common assets attributable to both the electric and gas utility businesses. |