Cover page
Cover page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 10, 2020 | Jun. 30, 2019 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-9513 | ||
Entity Registrant Name | CMS ENERGY CORPORATION | ||
Entity Tax Identification Number | 38-2726431 | ||
Entity Incorporation, State or Country Code | MI | ||
Entity Address, Address Line One | One Energy Plaza | ||
Entity Address, City or Town | Jackson | ||
Entity Address, State or Province | MI | ||
Entity Address, Postal Zip Code | 49201 | ||
City Area Code | 517 | ||
Local Phone Number | 788‑0550 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 16,352 | ||
Entity Common Stock, Shares Outstanding | 283,882,207 | ||
Documents Incorporated by Reference | CMS Energy’s and Consumers’ proxy statement relating to their 2020 Annual Meetings of Shareholders to be held May 1, 2020 . | ||
Entity Central Index Key | 0000811156 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Consumers Energy Company | |||
Document Information [Line Items] | |||
Entity File Number | 1-5611 | ||
Entity Registrant Name | CONSUMERS ENERGY COMPANY | ||
Entity Tax Identification Number | 38-0442310 | ||
Entity Incorporation, State or Country Code | MI | ||
Entity Address, Address Line One | One Energy Plaza | ||
Entity Address, City or Town | Jackson | ||
Entity Address, State or Province | MI | ||
Entity Address, Postal Zip Code | 49201 | ||
City Area Code | 517 | ||
Local Phone Number | 788‑0550 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 84,108,789 | ||
Documents Incorporated by Reference | CMS Energy’s and Consumers’ proxy statement relating to their 2020 Annual Meetings of Shareholders to be held May 1, 2020 . | ||
Entity Central Index Key | 0000201533 | ||
CMS Energy Corporation Common Stock, $0.01 par value | |||
Document Information [Line Items] | |||
Title of 12(b) Security | CMS Energy Corporation Common Stock, $0.01 par value | ||
Trading Symbol | CMS | ||
Security Exchange Name | NYSE | ||
CMS Energy Corporation 5.625% Junior Subordinated Notes due 2078 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | CMS Energy Corporation 5.625% Junior Subordinated Notes due 2078 | ||
Trading Symbol | CMSA | ||
Security Exchange Name | NYSE | ||
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2078 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | CMS Energy Corporation 5.875% Junior Subordinated Notes due 2078 | ||
Trading Symbol | CMSC | ||
Security Exchange Name | NYSE | ||
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 | ||
Trading Symbol | CMSD | ||
Security Exchange Name | NYSE | ||
Consumers Energy Company Cumulative Preferred Stock, $100 par value: $4.50 Series | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Consumers Energy Company Cumulative Preferred Stock, $100 par value: $4.50 Series | ||
Trading Symbol | CMS-PB | ||
Security Exchange Name | NYSE |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Revenue | $ 6,845 | $ 6,873 | $ 6,583 |
Operating Expenses | |||
Fuel for electric generation | 493 | 528 | 505 |
Purchased power – related parties | 75 | 81 | 86 |
Maintenance and other operating expenses | 1,448 | 1,417 | 1,236 |
Depreciation and amortization | 992 | 933 | 881 |
General taxes | 333 | 303 | 284 |
Total operating expenses | 5,606 | 5,711 | 5,245 |
Operating Income | 1,239 | 1,162 | 1,338 |
Other Income (Expense) | |||
Interest income | 7 | 11 | 12 |
Allowance for equity funds used during construction | 10 | 6 | 5 |
Income from equity method investees | 10 | 9 | 15 |
Nonoperating retirement benefits, net | 91 | 90 | 24 |
Other income | 4 | 2 | 6 |
Other expense | (13) | (48) | (76) |
Total other income (expense) | 109 | 70 | (14) |
Interest Charges | |||
Interest on long-term debt | 439 | 412 | 406 |
Interest expense – related parties | 9 | 0 | 0 |
Other interest expense | 75 | 49 | 34 |
Allowance for borrowed funds used during construction | (4) | (3) | (2) |
Total interest charges | 519 | 458 | 438 |
Income Before Income Taxes | 829 | 774 | 886 |
Income Tax Expense | 147 | 115 | 424 |
Net Income | 682 | 659 | 462 |
Income Attributable to Noncontrolling Interests | 2 | 2 | 2 |
Net Income Available to Common Stockholders | $ 680 | $ 657 | $ 460 |
Basic earnings per average common share (in dollars per share) | $ 2.40 | $ 2.33 | $ 1.64 |
Diluted earnings per average common share (in dollars per share) | $ 2.39 | $ 2.32 | $ 1.64 |
Consumers Energy Company | |||
Operating Revenue | $ 6,376 | $ 6,464 | $ 6,222 |
Operating Expenses | |||
Fuel for electric generation | 375 | 407 | 398 |
Purchased and interchange power | 1,470 | 1,587 | 1,491 |
Purchased power – related parties | 75 | 83 | 90 |
Cost of gas sold | 754 | 819 | 730 |
Maintenance and other operating expenses | 1,275 | 1,287 | 1,113 |
Depreciation and amortization | 975 | 921 | 872 |
General taxes | 322 | 295 | 276 |
Total operating expenses | 5,246 | 5,399 | 4,970 |
Operating Income | 1,130 | 1,065 | 1,252 |
Other Income (Expense) | |||
Interest income | 5 | 8 | 9 |
Interest and dividend income – related parties | 5 | 2 | 1 |
Allowance for equity funds used during construction | 10 | 6 | 5 |
Nonoperating retirement benefits, net | 85 | 83 | 21 |
Other income | 3 | 2 | 17 |
Other expense | (13) | (30) | (58) |
Total other income (expense) | 95 | 71 | (5) |
Interest Charges | |||
Interest on long-term debt | 277 | 276 | 263 |
Interest expense – related parties | 9 | 0 | 0 |
Other interest expense | 15 | 16 | 15 |
Allowance for borrowed funds used during construction | (4) | (3) | (2) |
Total interest charges | 297 | 289 | 276 |
Income Before Income Taxes | 928 | 847 | 971 |
Income Tax Expense | 185 | 142 | 339 |
Net Income | 743 | 705 | 632 |
Preferred Stock Dividends | 2 | 2 | 2 |
Net Income Available to Common Stockholders | 741 | 703 | 630 |
Purchased and interchange power | |||
Operating Expenses | |||
Cost of goods and services sold | 1,496 | 1,613 | 1,503 |
Cost of gas sold | |||
Operating Expenses | |||
Cost of goods and services sold | $ 769 | $ 836 | $ 750 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Income | $ 682 | $ 659 | $ 462 |
Retirement Benefits Liability | |||
Net loss arising during the period, net of tax | (7) | (4) | (5) |
Prior service credit adjustment, net of tax | 0 | (1) | 4 |
Amortization of net actuarial loss | 3 | 4 | 2 |
Amortization of prior service credit, net of tax | (2) | (1) | (1) |
Derivatives | |||
Unrealized loss on derivative instruments, net of tax of $(1), $-, and $- | (3) | (2) | |
Unrealized loss on derivative instruments, net of tax of $(1), $-, and $- | 0 | ||
Reclassification adjustments included in net income, net of tax of $- for all periods | 1 | 0 | |
Reclassification adjustments included in net income, net of tax of $- for all periods | 0 | ||
Other Comprehensive Loss | (8) | (4) | 0 |
Comprehensive Income | 674 | 655 | 462 |
Comprehensive Income Attributable to Noncontrolling Interests | 2 | 2 | 2 |
Comprehensive Income Attributable to CMS Energy | 672 | 653 | 460 |
Consumers Energy Company | |||
Net Income | 743 | 705 | 632 |
Retirement Benefits Liability | |||
Net loss arising during the period, net of tax | (8) | 6 | (4) |
Amortization of net actuarial loss | 1 | 2 | 1 |
Investments | |||
Unrealized gain on investments | 0 | (1) | 3 |
Reclassification adjustments included in net income | 0 | 1 | (9) |
Derivatives | |||
Other Comprehensive Loss | (7) | 8 | (9) |
Comprehensive Income | $ 736 | $ 713 | $ 623 |
Consolidated Statements Of Co_2
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net loss arising during the period TAX | $ (3) | $ (1) | $ (4) |
Prior service credit adjustment TAX | 0 | 0 | 3 |
Amortization of net actuarial loss TAX | (1) | (1) | (1) |
Amortization of prior service credit TAX | 0 | (1) | 0 |
Unrealized loss on derivative instruments TAX | 1 | 0 | |
Unrealized loss on derivative instruments TAX | 0 | ||
Reclassification adjustments included in net income TAX | 0 | ||
Reclassification adjustments included in net income TAX | 0 | 0 | |
Consumers Energy Company | |||
Net loss arising during the period TAX | (3) | 2 | (1) |
Amortization of net actuarial loss TAX | 0 | 0 | 0 |
Unrealized gain on investments TAX | 0 | 0 | 1 |
Reclassification adjustments included in net income TAX | $ 0 | $ 0 | $ (6) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | |||
Net Income | $ 682 | $ 659 | $ 462 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 992 | 933 | 881 |
Deferred income taxes and investment tax credits | 150 | 182 | 417 |
Bad debt expense | 67 | 54 | 49 |
Other non‑cash operating activities and reconciling adjustments | (58) | 22 | 82 |
Postretirement benefits contributions | (10) | (252) | (12) |
Cash provided by (used in) changes in assets and liabilities | |||
Accounts and notes receivable and accrued revenue | 45 | 15 | (66) |
Inventories | 44 | 14 | (46) |
Accounts payable and accrued rate refunds | (69) | 22 | 49 |
Other current and non‑current assets and liabilities | (53) | 54 | (111) |
Net cash provided by operating activities | 1,790 | 1,703 | 1,705 |
Cash Flows from Investing Activities | |||
Capital expenditures (excludes assets placed under finance lease) | (2,104) | (2,074) | (1,665) |
Proceeds from DB SERP investments | 0 | 146 | 0 |
Increase in EnerBank notes receivable | (401) | (307) | (138) |
Purchase of notes receivable by EnerBank | (343) | (225) | 0 |
Proceeds from sale of EnerBank notes receivable | 67 | 0 | 50 |
Proceeds from sale of transmission equipment | 97 | 0 | 0 |
Cost to retire property and other investing activities | (132) | (146) | (115) |
Net cash used in investing activities | (2,816) | (2,606) | (1,868) |
Cash Flows from Financing Activities | |||
Proceeds from issuance of debt | 2,151 | 2,767 | 1,633 |
Retirement of debt | (1,285) | (1,870) | (980) |
Increase in EnerBank certificates of deposit | 631 | 513 | 47 |
Decrease in notes payable | (7) | (73) | (228) |
Issuance of common stock | 12 | 41 | 83 |
Payment of dividends on common and preferred stock | (436) | (407) | (377) |
Debt prepayment costs | (8) | (36) | (22) |
Other financing costs | (50) | (61) | (46) |
Net cash provided by financing activities | 1,008 | 874 | 110 |
Net Decrease in Cash and Cash Equivalents, Including Restricted Amounts | (18) | (29) | (53) |
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period | 175 | 204 | 257 |
Cash and Cash Equivalents, Including Restricted Amounts, End of Period | 157 | 175 | 204 |
Cash transactions | |||
Interest paid (net of amounts capitalized) | 498 | 458 | 418 |
Income taxes paid (refunds received), net | (58) | (123) | 5 |
Non‑cash transactions | |||
Capital expenditures not paid | 170 | 158 | 172 |
Other assets placed under finance lease | 0 | 0 | 3 |
Consumers Energy Company | |||
Cash Flows from Operating Activities | |||
Net Income | 743 | 705 | 632 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 975 | 921 | 872 |
Deferred income taxes and investment tax credits | 37 | 123 | 163 |
Bad debt expense | 29 | ||
Other non‑cash operating activities and reconciling adjustments | (32) | 13 | 59 |
Postretirement benefits contributions | (7) | (242) | (8) |
Cash provided by (used in) changes in assets and liabilities | |||
Accounts and notes receivable and accrued revenue | 8 | (26) | (63) |
Inventories | 40 | 15 | (45) |
Accounts payable and accrued rate refunds | (63) | 12 | 43 |
Other current and non‑current assets and liabilities | (129) | (101) | 33 |
Net cash provided by operating activities | 1,601 | 1,449 | 1,715 |
Cash Flows from Investing Activities | |||
Capital expenditures (excludes assets placed under finance lease) | (2,085) | (1,822) | (1,632) |
Proceeds from DB SERP investments | 0 | 106 | 0 |
DB SERP investment in note receivable – related party | 0 | (106) | 0 |
Proceeds from sale of transmission equipment | 77 | 0 | 0 |
Cost to retire property and other investing activities | (129) | (149) | (119) |
Net cash used in investing activities | (2,137) | (1,971) | (1,751) |
Cash Flows from Financing Activities | |||
Proceeds from issuance of debt | 993 | 2,106 | 834 |
Retirement of debt | (541) | (1,193) | (555) |
Decrease in notes payable | (7) | (73) | (228) |
Stockholder contribution | 675 | 250 | 450 |
Payment of dividends on common and preferred stock | (594) | (533) | (524) |
Debt prepayment costs | (8) | (20) | (4) |
Other financing costs | (10) | (24) | (24) |
Net cash provided by financing activities | 508 | 513 | (51) |
Net Decrease in Cash and Cash Equivalents, Including Restricted Amounts | (28) | (9) | (87) |
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period | 56 | 65 | 152 |
Cash and Cash Equivalents, Including Restricted Amounts, End of Period | 28 | 56 | 65 |
Cash transactions | |||
Interest paid (net of amounts capitalized) | 279 | 287 | 266 |
Income taxes paid (refunds received), net | 132 | 156 | (1) |
Non‑cash transactions | |||
Capital expenditures not paid | 160 | 143 | 160 |
Other assets placed under finance lease | $ 0 | $ 0 | $ 3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 140 | $ 153 |
Restricted cash and cash equivalents | 17 | 21 |
Accounts receivable and accrued revenue, less allowances of $20 in both periods | 886 | 964 |
Notes receivable, less allowances of $33 in 2019 and $24 in 2018 | 223 | 233 |
Notes receivable held for sale | 19 | 0 |
Accounts receivable – related parties | 17 | 14 |
Accrued gas revenue | 0 | 16 |
Inventories at average cost | ||
Gas in underground storage | 399 | 450 |
Materials and supplies | 140 | 143 |
Generating plant fuel stock | 66 | 57 |
Deferred property taxes | 305 | 279 |
Regulatory assets | 33 | 37 |
Prepayments and other current assets | 86 | 101 |
Total current assets | 2,331 | 2,468 |
Plant, Property, and Equipment | ||
Plant, property, and equipment, gross | 25,390 | 24,400 |
Less accumulated depreciation and amortization | 7,360 | 7,037 |
Plant, property, and equipment, net | 18,030 | 17,363 |
Construction work in progress | 896 | 763 |
Total plant, property, and equipment | 18,926 | 18,126 |
Other Non‑current Assets | ||
Regulatory assets | 2,489 | 1,743 |
Accounts and notes receivable | 2,281 | 1,645 |
Investments | 71 | 69 |
Other | 739 | 478 |
Total other non‑current assets | 5,580 | 3,935 |
Total Assets | 26,837 | 24,529 |
Current Liabilities | ||
Current portion of long-term debt, finance leases, and other financing | 1,130 | 996 |
Notes payable | 90 | 97 |
Accounts payable | 622 | 723 |
Accounts payable – related parties | 13 | 10 |
Accrued rate refunds | 35 | 4 |
Accrued interest | 104 | 94 |
Accrued taxes | 437 | 398 |
Regulatory liabilities | 87 | 155 |
Other current liabilities | 186 | 147 |
Total current liabilities | 2,704 | 2,624 |
Non‑current Liabilities | ||
Long-term debt | 11,951 | 10,615 |
Non-current portion of finance leases and other financing | 76 | 69 |
Regulatory liabilities | 3,742 | 3,681 |
Postretirement benefits | 674 | 436 |
Asset retirement obligations | 477 | 432 |
Deferred investment tax credit | 120 | 99 |
Deferred income taxes | 1,655 | 1,487 |
Other non‑current liabilities | 383 | 294 |
Total non‑current liabilities | 19,078 | 17,113 |
Commitments and Contingencies | ||
Common stockholders’ equity | ||
Common stock, authorized 350.0 shares; outstanding 283.9 shares in 2019 and 283.4 shares in 2018 | 3 | 3 |
Other paid-in capital | 5,113 | 5,088 |
Accumulated other comprehensive loss | (73) | (65) |
Accumulated deficit | (25) | (271) |
Total common stockholders’ equity | 5,018 | 4,755 |
Noncontrolling interests | 37 | 37 |
Total equity | 5,055 | 4,792 |
Total Liabilities and Equity | 26,837 | 24,529 |
Consumers Energy Company | ||
Current Assets | ||
Cash and cash equivalents | 11 | 39 |
Restricted cash and cash equivalents | 17 | 17 |
Accounts receivable and accrued revenue, less allowances of $20 in both periods | 827 | 855 |
Accounts receivable – related parties | 9 | 15 |
Accrued gas revenue | 0 | 16 |
Inventories at average cost | ||
Gas in underground storage | 399 | 450 |
Materials and supplies | 135 | 137 |
Generating plant fuel stock | 63 | 52 |
Deferred property taxes | 305 | 279 |
Regulatory assets | 33 | 37 |
Prepayments and other current assets | 73 | 83 |
Total current assets | 1,872 | 1,980 |
Plant, property, and equipment, gross | 24,963 | 23,963 |
Accumulated depreciation and amortization | 7,272 | 6,958 |
Plant, Property, and Equipment | ||
Plant, property, and equipment, net | 17,691 | 17,005 |
Construction work in progress | 879 | 756 |
Total plant, property, and equipment | 18,570 | 17,761 |
Other Non‑current Assets | ||
Regulatory assets | 2,489 | 1,743 |
Accounts and notes receivable | 29 | 27 |
Accounts and notes receivable – related parties | 102 | 104 |
Other | 637 | 410 |
Total other non‑current assets | 3,257 | 2,284 |
Total Assets | 23,699 | 22,025 |
Current Liabilities | ||
Current portion of long-term debt, finance leases, and other financing | 221 | 48 |
Notes payable | 90 | 97 |
Accounts payable | 593 | 685 |
Accounts payable – related parties | 20 | 14 |
Accrued rate refunds | 35 | 4 |
Accrued interest | 67 | 59 |
Accrued taxes | 481 | 436 |
Regulatory liabilities | 87 | 155 |
Other current liabilities | 118 | 120 |
Total current liabilities | 1,712 | 1,618 |
Non‑current Liabilities | ||
Long-term debt | 7,048 | 6,779 |
Non-current portion of finance leases and other financing | 76 | 69 |
Regulatory liabilities | 3,742 | 3,681 |
Postretirement benefits | 622 | 392 |
Asset retirement obligations | 474 | 428 |
Deferred investment tax credit | 120 | 99 |
Deferred income taxes | 1,864 | 1,809 |
Other non‑current liabilities | 304 | 230 |
Total non‑current liabilities | 14,250 | 13,487 |
Commitments and Contingencies | ||
Common stockholders’ equity | ||
Common stock, authorized 350.0 shares; outstanding 283.9 shares in 2019 and 283.4 shares in 2018 | 841 | 841 |
Other paid-in capital | 5,374 | 4,699 |
Accumulated other comprehensive loss | (28) | (21) |
Accumulated deficit | 1,513 | 1,364 |
Total common stockholders’ equity | 7,700 | 6,883 |
Cumulative preferred stock, $4.50 series | 37 | 37 |
Total equity | 7,737 | 6,920 |
Total Liabilities and Equity | $ 23,699 | $ 22,025 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Allowance for doubtful accounts receivable | $ 20 | $ 20 |
Allowances for doubtful notes receivable | $ 33 | $ 24 |
Common stock authorized (in shares) | 350,000,000 | 350,000,000 |
Common stock outstanding (in shares) | 283,900,000 | 283,400,000 |
Par value of preferred stock (in dollars per share) | $ 0.01 | |
Consumers Energy Company | ||
Allowance for doubtful accounts receivable | $ 20 | $ 20 |
Common stock authorized (in shares) | 125,000,000 | 125,000,000 |
Common stock outstanding (in shares) | 84,100,000 | 84,100,000 |
Par value of preferred stock (in dollars per share) | $ 4.50 | $ 4.50 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Equity - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Other Paid-in Capital | Accumulated Other Comprehensive Loss | Retirement benefits liability | Derivative instruments | Derivative instruments | Accumulated Deficit | Noncontrolling Interests | Consumers Energy Company | Consumers Energy CompanyCommon Stock | Consumers Energy CompanyOther Paid-in Capital | Consumers Energy CompanyAccumulated Other Comprehensive Loss | Consumers Energy CompanyRetirement benefits liability | Consumers Energy CompanyInvestments | Consumers Energy CompanyAccumulated Deficit | Consumers Energy CompanyCumulative Preferred Stock |
Total Equity at Beginning of Period at Dec. 31, 2016 | $ 4,290 | $ 3 | $ 4,916 | $ (50) | $ (50) | $ 0 | $ (616) | $ 37 | $ 5,939 | $ 841 | $ 3,999 | $ (3) | $ (21) | $ 18 | $ 1,065 | $ 37 | |
Beginning of period (in shares) at Dec. 31, 2016 | 279,206 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Common stock issued (in shares) | 2,492 | ||||||||||||||||
Common stock issued | 102 | ||||||||||||||||
Common stock repurchased (in shares) | (317) | ||||||||||||||||
Common stock repurchased | (14) | ||||||||||||||||
Common stock reissued (in shares) | 360 | ||||||||||||||||
Common stock reissued | 15 | ||||||||||||||||
Common stock reacquired (in shares) | (94) | ||||||||||||||||
Common stock reacquired | 0 | ||||||||||||||||
Stockholder contribution | 450 | ||||||||||||||||
Net loss arising during the period | (5) | (5) | (4) | (4) | |||||||||||||
Prior service credit adjustment | 4 | 4 | |||||||||||||||
Amortization of net actuarial loss | 2 | 2 | 1 | 1 | |||||||||||||
Amortization of prior service credit | (1) | (1) | |||||||||||||||
Reclassification adjustments included in net income | (9) | (9) | |||||||||||||||
Unrealized gain on investments | 3 | 3 | |||||||||||||||
Unrealized loss on derivative instruments | 0 | 0 | |||||||||||||||
Reclassification adjustments included in net income | 0 | 0 | |||||||||||||||
Net income attributable to CMS Energy | 460 | 460 | |||||||||||||||
Net Income | 462 | 632 | 632 | ||||||||||||||
Dividends declared on common stock | (375) | (522) | |||||||||||||||
Dividends declared on preferred stock | (2) | ||||||||||||||||
Income attributable to noncontrolling interests | 2 | 2 | |||||||||||||||
Distributions and other changes in noncontrolling interests | (2) | ||||||||||||||||
End of period (in shares) at Dec. 31, 2017 | 281,647 | ||||||||||||||||
Total Equity at End of Period at Dec. 31, 2017 | $ 4,478 | $ 3 | 5,019 | (50) | (50) | 0 | (531) | 37 | 6,488 | 841 | 4,449 | (12) | (24) | 12 | 1,173 | 37 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Dividends declared per common share (in dollars per share) | $ 1.33 | ||||||||||||||||
Common stock issued (in shares) | 1,554 | ||||||||||||||||
Common stock issued | 59 | ||||||||||||||||
Common stock repurchased (in shares) | (224) | ||||||||||||||||
Common stock repurchased | (10) | ||||||||||||||||
Common stock reissued (in shares) | 423 | ||||||||||||||||
Common stock reissued | 20 | ||||||||||||||||
Common stock reacquired (in shares) | (26) | ||||||||||||||||
Common stock reacquired | 0 | ||||||||||||||||
Stockholder contribution | 250 | ||||||||||||||||
Net loss arising during the period | $ (4) | (4) | 6 | 6 | |||||||||||||
Prior service credit adjustment | (1) | (1) | |||||||||||||||
Amortization of net actuarial loss | 4 | 4 | 2 | 2 | |||||||||||||
Amortization of prior service credit | (1) | (1) | |||||||||||||||
Reclassification adjustments included in net income | 1 | 1 | |||||||||||||||
Unrealized gain on investments | (1) | (1) | |||||||||||||||
Unrealized loss on derivative instruments | (2) | $ (2) | |||||||||||||||
Reclassification adjustments included in net income | 0 | 0 | |||||||||||||||
Net income attributable to CMS Energy | 657 | 657 | |||||||||||||||
Net Income | 659 | $ 705 | 705 | ||||||||||||||
Dividends declared on common stock | (405) | (531) | |||||||||||||||
Dividends declared on preferred stock | (2) | ||||||||||||||||
Income attributable to noncontrolling interests | $ 2 | 2 | |||||||||||||||
Distributions and other changes in noncontrolling interests | (2) | ||||||||||||||||
End of period (in shares) at Dec. 31, 2018 | 283,400 | 283,374 | 84,100 | ||||||||||||||
Total Equity at End of Period at Dec. 31, 2018 | $ 4,792 | $ 3 | 5,088 | (65) | (63) | (2) | $ (2) | (271) | 37 | $ 6,920 | 841 | 4,699 | (21) | (21) | 0 | 1,364 | 37 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Dividends declared per common share (in dollars per share) | $ 1.43 | ||||||||||||||||
Common stock issued (in shares) | 710 | ||||||||||||||||
Common stock issued | 35 | ||||||||||||||||
Common stock repurchased (in shares) | (181) | ||||||||||||||||
Common stock repurchased | (10) | ||||||||||||||||
Common stock reissued (in shares) | 8 | ||||||||||||||||
Common stock reissued | 0 | ||||||||||||||||
Common stock reacquired (in shares) | (47) | ||||||||||||||||
Common stock reacquired | 0 | ||||||||||||||||
Stockholder contribution | 675 | ||||||||||||||||
Net loss arising during the period | $ (7) | (7) | (8) | (8) | |||||||||||||
Prior service credit adjustment | 0 | 0 | |||||||||||||||
Amortization of net actuarial loss | 3 | 3 | 1 | 1 | |||||||||||||
Amortization of prior service credit | (2) | (2) | |||||||||||||||
Reclassification adjustments included in net income | 0 | 0 | |||||||||||||||
Unrealized gain on investments | 0 | 0 | |||||||||||||||
Unrealized loss on derivative instruments | (3) | (3) | |||||||||||||||
Reclassification adjustments included in net income | 1 | 1 | |||||||||||||||
Net income attributable to CMS Energy | 680 | 680 | |||||||||||||||
Net Income | 682 | $ 743 | 743 | ||||||||||||||
Dividends declared on common stock | (434) | (592) | |||||||||||||||
Dividends declared on preferred stock | (2) | ||||||||||||||||
Income attributable to noncontrolling interests | $ 2 | 2 | |||||||||||||||
Distributions and other changes in noncontrolling interests | (2) | ||||||||||||||||
End of period (in shares) at Dec. 31, 2019 | 283,900 | 283,864 | 84,100 | ||||||||||||||
Total Equity at End of Period at Dec. 31, 2019 | $ 5,055 | $ 3 | $ 5,113 | $ (73) | $ (69) | $ (4) | $ (25) | $ 37 | $ 7,737 | $ 841 | $ 5,374 | $ (28) | $ (28) | $ 0 | $ 1,513 | $ 37 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Dividends declared per common share (in dollars per share) | $ 1.53 |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Standards | New Accounting Standards Implementation of New Accounting Standards ASU 2016 ‑ 02, Leases: This standard, which was effective on January 1, 2019 for CMS Energy and Consumers, establishes a new accounting model for leases. The standard requires lessees 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 were not recorded on the balance sheet under previous standards. The new guidance also amends the definition of a lease to require that a lessee have the right to control the use of a specified asset, and not simply control or take the output of the asset. On the statement of income, operating leases are generally accounted for under a straight-line expense model, while finance leases, which were previously referred to as capital leases, are generally accounted for under a financing model. Consistent with the previous lease guidance, however, the standard allows rate-regulated utilities to recognize expense consistent with the timing of recovery in rates. CMS Energy and Consumers elected to use certain practical expedients permitted by the standard, under which they were not required to perform lease assessments or reassessments for agreements existing on the effective date. They also elected a transition method under which they initially applied the standard on January 1, 2019, without adjusting amounts presented for prior periods. Under the standard, CMS Energy and Consumers recognized additional lease assets and liabilities on their consolidated balance sheets as of January 1, 2019 for their operating leases. In addition, in accordance with the standard, they have provided additional disclosures about their leases in Note 10, Leases and Palisades Financing . The standard did not have any impact on CMS Energy’s and Consumers’ consolidated net income or cash flows, and there was no cumulative-effect adjustment recorded to beginning retained earnings. New Accounting Standards Not Yet Effective ASU 2016 ‑ 13, Measurement of Credit Losses on Financial Instruments: This standard, effective January 1, 2020 for CMS Energy and Consumers, provides new guidance for measuring and recognizing credit losses on financial instruments. The standard applies to financial assets that are not measured at fair value through net income as well as to certain off-balance sheet credit exposures. Entities will apply the standard using a modified retrospective approach, with a cumulative‑effect adjustment recorded to beginning retained earnings on the effective date. The standard will require an increase to the allowance for loan losses at EnerBank. At December 31, 2019, the allowance reflected expected credit losses over a 12‑month period, but the new standard will require the allowance to reflect expected credit losses over the entire life of the loans. EnerBank expects to record a $65 million increase to its expected credit loss reserves on January 1, 2020, with the offsetting adjustment recorded to retained earnings, net of taxes. The standard will also require an increase in the initial provision for loan losses recognized in net income for new loans originated in 2020 and beyond. At Consumers, the new guidance will apply to the allowance for uncollectible accounts; however, Consumers does not expect material impacts from the standard. |
Consumers Energy Company | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Standards | New Accounting Standards Implementation of New Accounting Standards ASU 2016 ‑ 02, Leases: This standard, which was effective on January 1, 2019 for CMS Energy and Consumers, establishes a new accounting model for leases. The standard requires lessees 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 were not recorded on the balance sheet under previous standards. The new guidance also amends the definition of a lease to require that a lessee have the right to control the use of a specified asset, and not simply control or take the output of the asset. On the statement of income, operating leases are generally accounted for under a straight-line expense model, while finance leases, which were previously referred to as capital leases, are generally accounted for under a financing model. Consistent with the previous lease guidance, however, the standard allows rate-regulated utilities to recognize expense consistent with the timing of recovery in rates. CMS Energy and Consumers elected to use certain practical expedients permitted by the standard, under which they were not required to perform lease assessments or reassessments for agreements existing on the effective date. They also elected a transition method under which they initially applied the standard on January 1, 2019, without adjusting amounts presented for prior periods. Under the standard, CMS Energy and Consumers recognized additional lease assets and liabilities on their consolidated balance sheets as of January 1, 2019 for their operating leases. In addition, in accordance with the standard, they have provided additional disclosures about their leases in Note 10, Leases and Palisades Financing . The standard did not have any impact on CMS Energy’s and Consumers’ consolidated net income or cash flows, and there was no cumulative-effect adjustment recorded to beginning retained earnings. New Accounting Standards Not Yet Effective ASU 2016 ‑ 13, Measurement of Credit Losses on Financial Instruments: This standard, effective January 1, 2020 for CMS Energy and Consumers, provides new guidance for measuring and recognizing credit losses on financial instruments. The standard applies to financial assets that are not measured at fair value through net income as well as to certain off-balance sheet credit exposures. Entities will apply the standard using a modified retrospective approach, with a cumulative‑effect adjustment recorded to beginning retained earnings on the effective date. The standard will require an increase to the allowance for loan losses at EnerBank. At December 31, 2019, the allowance reflected expected credit losses over a 12‑month period, but the new standard will require the allowance to reflect expected credit losses over the entire life of the loans. EnerBank expects to record a $65 million increase to its expected credit loss reserves on January 1, 2020, with the offsetting adjustment recorded to retained earnings, net of taxes. The standard will also require an increase in the initial provision for loan losses recognized in net income for new loans originated in 2020 and beyond. At Consumers, the new guidance will apply to the allowance for uncollectible accounts; however, Consumers does not expect material impacts from the standard. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2019 | |
Public Utilities, General Disclosures [Line Items] | |
Regulatory Matters | 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 recovery from customers, the adequacy of the record of evidence supporting the recovery of Smart Energy investments, and other matters. Consumers is unable to predict the outcome of these appeals. Regulatory Assets and Liabilities Consumers is subject to the actions of the MPSC and FERC and therefore prepares its consolidated financial statements in accordance with the provisions of regulatory accounting. A utility must apply regulatory accounting when its rates are designed to recover specific costs of providing regulated services. Under regulatory accounting, Consumers records regulatory assets or liabilities for certain transactions that would have been treated as expense or revenue by non‑regulated businesses. Presented in the following table are the regulatory assets and liabilities on Consumers’ consolidated balance sheets: In Millions December 31 End of Recovery or Refund Period 2019 2018 Regulatory assets Current Energy waste reduction plan incentive 1 2020 $ 33 $ 32 Other 2019 — 5 Total current regulatory assets $ 33 $ 37 Non-current Postretirement benefits 2 various $ 1,130 $ 1,028 Costs of coal-fueled electric generating units to be retired 3 various 667 — Securitized costs 3 2029 247 273 ARO 4 various 191 175 MGP sites 4 various 130 133 Unamortized loss on reacquired debt 4 various 70 68 Energy waste reduction plan incentive 1 2021 34 34 Energy waste reduction plan 4 various 10 26 Deferred capital spending 4 various 3 — Gas storage inventory adjustments 4 various 3 4 Other various 4 2 Total non - current regulatory assets $ 2,489 $ 1,743 Total regulatory assets $ 2,522 $ 1,780 Regulatory liabilities Current Income taxes, net 2020 $ 65 $ 18 Gain to be shared with customers 2020 17 — Reserve for customer refunds 2019 2 36 TCJA reserve for refund 2019 — 98 Other 2020 3 3 Total current regulatory liabilities $ 87 $ 155 Non-current Cost of removal various $ 2,126 $ 1,966 Income taxes, net various 1,510 1,537 Renewable energy grant 2043 52 54 ARO various 26 38 Renewable energy plan 2028 17 42 TCJA reserve for refund various — 35 Other various 11 9 Total non-current regulatory liabilities $ 3,742 $ 3,681 Total regulatory liabilities $ 3,829 $ 3,836 1 These regulatory assets have arisen from an alternative revenue program and are not associated with incurred costs or capital investments. Therefore, the MPSC has provided for recovery without a return. 2 This regulatory asset is included in rate base, thereby providing a return. 3 The MPSC has historically authorized and Consumers expects the MPSC to authorize a specific return on these regulatory assets. 4 These regulatory assets represent incurred costs for which the MPSC has provided, or Consumers expects, recovery without a return on investment. Regulatory Assets Energy Waste Reduction Plan Incentive: In December 2019, the MPSC approved a settlement agreement authorizing Consumers to collect $34 million during 2020 as an incentive for exceeding its statutory savings targets in 2018 . Consumers recognized incentive revenue under this program of $34 million in 2018 . Consumers also exceeded its statutory savings targets in 2019 , achieved certain other goals, and will request the MPSC’s approval to collect $34 million , the maximum performance incentive, in the energy waste reduction reconciliation to be filed in 2020 . Consumers recognized incentive revenue under this program of $34 million in 2019 . Postretirement Benefits: As part of the ratemaking process, the MPSC allows Consumers to recover the costs of postretirement benefits. Accordingly, Consumers defers the net impact of actuarial losses and gains as well as prior service costs and credits associated with postretirement benefits as a regulatory asset or liability. The asset or liability will decrease as the deferred items are amortized and recognized as components of net periodic benefit cost. For details about the amortization periods, see Note 12, Retirement Benefits . Costs of Coal-fueled Electric Generating Units to be Retired: In June 2019, the MPSC approved the settlement agreement reached in Consumers’ IRP, under which Consumers plans to retire the D.E. Karn 1 & 2 coal-fueled electric generating units in 2023. Under Michigan law, electric utilities have been permitted to use highly rated, low-cost securitization bonds to finance the recovery of qualified costs. Consumers will file for securitization financing by May 2023, requesting the MPSC’s approval to securitize the remaining book value of the two coal-fueled electric generating units upon their retirement. In 2019, Consumers removed from total plant, property, and equipment an amount representing the remaining book value of the two coal-fueled electric generating units upon their retirement, and recorded it as a regulatory asset. Until securitization, the book value of the generating units will remain in rate base and receive full regulatory returns in general rate cases. Securitized Costs: In 2013, the MPSC issued a securitization financing order authorizing Consumers to issue securitization bonds in order to finance the recovery of the remaining book value of seven smaller coal-fueled electric generating units that Consumers retired in 2016 and three smaller natural gas-fueled electric generating units that Consumers retired in 2015. Upon receipt of the MPSC’s order, Consumers removed the book value of the ten units from plant, property, and equipment and recorded this amount as a regulatory asset. Consumers is amortizing the regulatory asset over the life of the related securitization bonds, which it issued through a subsidiary in 2014. For additional details regarding the securitization bonds, see Note 5, Financings and Capitalization . ARO: The recovery of the underlying asset investments and related removal and monitoring costs of recorded AROs is approved by the MPSC in depreciation rate cases. Consumers records a regulatory asset and a regulatory liability for timing differences between the recognition of AROs for financial reporting purposes and the recovery of these costs from customers. The recovery period approximates the useful life of the assets to be removed. MGP Sites: Consumers is incurring environmental remediation and other response activity costs at 23 former MGP facilities. The MPSC allows Consumers to recover from its natural gas customers over a ten -year period the costs incurred to remediate the MGP sites. Unamortized Loss on Reacquired Debt: Under regulatory accounting, any unamortized discount, premium, or expense related to debt redeemed with the proceeds of new debt is capitalized and amortized over the life of the new debt. Energy Waste Reduction Plan: The MPSC allows Consumers to collect surcharges from customers to fund its energy waste reduction plan. The amount of spending incurred in excess of surcharges collected is recorded as a regulatory asset and amortized as surcharges are collected from customers over the plan period. The amount of surcharges collected in excess of spending incurred is recorded as a regulatory liability and amortized as costs are incurred. Deferred Capital Spending: In January 2019, the MPSC approved a settlement agreement in Consumers’ 2018 electric rate case, which provided deferred accounting treatment for distribution-related capital investments exceeding certain threshold amounts. Thus, for actual capital spending above the threshold amounts detailed in the settlement agreement, Consumers has deferred as a regulatory asset the associated depreciation and property tax expense as well as the debt component of the overall rate of return on such spending. Gas Storage Inventory Adjustments: Consumers incurs inventory expenses related to the loss of gas from its natural gas storage fields. The MPSC allows Consumers to recover these costs from its natural gas customers over a five -year period. Regulatory Liabilities Income Taxes, Net: Consumers records regulatory assets and liabilities to reflect the difference between deferred income taxes recognized for financial reporting purposes and amounts previously reflected in Consumers’ rates. This net balance will decrease over the remaining life of the related temporary differences and flow through current income tax benefit. For additional details on deferred income taxes, see the Consumers Electric Utility and Gas Utility—Tax Cuts and Jobs Act section below and Note 14, Income Taxes . Gain to be Shared with Customers: In December 2019, Consumers filed an application with the MPSC requesting approval to share voluntarily with electric utility customers half of the gain recognized on a sale of a portion of its substation transmission equipment to METC. Consumers proposed the gain sharing take place through an offset to additional spending in 2020 or through a bill credit to customers in 2021. Reserve for Customer Refunds: At December 31, 2018, Consumers had recorded a provision for revenue subject to refund associated with electric rates it self-implemented in 2017. In August 2019, the MPSC approved Consumers’ reconciliation of total revenues collected from rates it self-implemented to those that would have been collected under the final rates approved in June 2018 and Consumers refunded the resulting amount in September 2019. The 2016 Energy Law eliminated utilities’ self-implementation of rates under general rate cases, but provided for more timely processing of general rate cases. TCJA Reserve for Refund: In early 2018, the MPSC ordered Consumers to file various proceedings to determine the reduction in its electric and gas revenue requirements as a result of the TCJA. For further information on the various TCJA proceedings, see the Consumers Electric Utility and Gas Utility—Tax Cuts and Jobs Act section below. Cost of Removal: The MPSC allows Consumers to collect amounts from customers to fund future asset removal activities. This regulatory liability is reduced as costs of removal are incurred. The refund period of this regulatory liability approximates the useful life of the assets to be removed. Renewable Energy Grant: In 2013, Consumers received a $69 million renewable energy grant for Lake Winds ® Energy Park, which began operations in 2012. This grant reduces Consumers’ cost of complying with Michigan’s renewable portfolio standard and, accordingly, reduces the overall renewable energy surcharge to be collected from customers. The regulatory liability recorded for the grant will be amortized over the life of Lake Winds ® Energy Park. Renewable Energy Plan: Consumers has collected surcharges to fund its renewable energy plan. Amounts not yet spent under the plan are recorded as a regulatory liability, which is amortized as incremental costs are incurred to operate and depreciate Consumers’ renewable generation facilities and to purchase RECs under renewable energy purchase agreements. Incremental costs represent costs incurred in excess of amounts recovered through the PSCR process. Consumers Electric Utility and Gas Utility Tax Cuts and Jobs Act: The TCJA, which changed existing federal tax law and included numerous provisions that affect businesses, was signed into law in December 2017. In early 2018, the MPSC ordered Consumers to file various proceedings to determine the reduction in its electric and gas revenue requirements as a result of the reduction in the corporate income tax rate, and to implement bill credits to reflect that reduction until customer rates could be adjusted through Consumers’ general rate cases. Consumers filed, and the MPSC approved, such proceedings throughout 2018, resulting in credits to customer bills during 2018 to reflect reductions in Consumers’ electric and gas revenue requirements. Consumers filed additional proceedings to address amounts collected from customers during 2018 prior to the implementation of bill credits. In late 2018, the MPSC approved the refund of $31 million to gas customers over six months beginning in December 2018 and the refund of $70 million to electric customers over six months beginning in January 2019. In October 2018, Consumers filed an application to address the December 31, 2017 remeasurement of its deferred income taxes and other base rate impacts of the TCJA on customers. In September 2019, the MPSC authorized Consumers to begin returning net regulatory tax liabilities of $0.4 billion to gas customers through rates approved in the 2018 gas rate case and $1.2 billion to electric customers through rates to be determined in Consumers’ next electric rate case. Until then, the MPSC authorized Consumers to refund $32 million to electric customers through a temporary bill credit. Consumers’ total $1.6 billion of net regulatory tax liabilities comprises: • A regulatory tax liability of $1.7 billion associated with plant assets that are subject to normalization, which is governed by the Internal Revenue Code; this regulatory tax liability will be returned over the remaining book life of the related plant assets, the average of which is 44 years for gas plant assets and 27 years for electric plant assets. • A regulatory tax asset of $0.3 billion associated with plant assets that are not subject to normalization; this regulatory tax asset will be collected over 44 years from gas customers and over 27 years from electric customers. • A regulatory tax liability of $0.2 billion , which is primarily related to employee benefits; this regulatory tax liability will be refunded to customers over ten years . In January 2018, Consumers began to reduce the regulatory liability subject to normalization by crediting income tax expense. Consumers fully reserved for the eventual refund of these excess deferred taxes that it credited to income tax expense in a separate non‑current regulatory liability established by reducing revenue. As a result of an order received in September 2019, Consumers began refunding these excess deferred taxes to customers and will no longer reserve for their refund. At the date of the order, this reserve for refund of these excess deferred taxes totaled $62 million . For additional details on the remeasurement, see Note 14, Income Taxes . Consumers Electric Utility 2018 Electric Rate Case: In May 2018, Consumers filed an application with the MPSC seeking an annual rate increase of $58 million , based on a 10.75 percent authorized return on equity. In October 2018, Consumers reduced its requested annual rate increase to $44 million . In January 2019, the MPSC approved a settlement agreement authorizing an annual rate decrease of $24 million , based on a 10.0 percent authorized return on equity. With the elimination of the $113 million TCJA credit to customer bills, the approved settlement agreement resulted in an $89 million net increase in annual rates. The settlement agreement also provided for deferred accounting treatment for distribution-related capital investments exceeding certain amounts. Consumers also agreed to not file a new electric rate case prior to January 2020. Consumers Gas Utility 2018 Gas Rate Case: In November 2018, Consumers filed an application with the MPSC seeking an annual rate increase of $229 million , based on a 10.75 percent authorized return on equity. In April 2019, Consumers reduced its requested annual rate increase to $204 million . In September 2019, the MPSC approved an annual rate increase of $144 million , based on a 9.90 percent authorized return on equity. This increase includes a $13 million adjustment to begin returning net regulatory tax liabilities associated with the TCJA to customers. The MPSC also approved the continuation of a revenue decoupling mechanism, which annually reconciles Consumers’ actual weather-normalized, non‑fuel revenues with the revenues approved by the MPSC. Power Supply Cost Recovery and Gas Cost Recovery The PSCR and GCR ratemaking processes are designed to allow Consumers to recover all of its power supply and purchased natural gas costs if incurred under reasonable and prudent policies and practices. The MPSC reviews these costs, policies, and practices in annual plan and reconciliation proceedings. Consumers adjusts its PSCR and GCR billing charges monthly in order to minimize the underrecovery or overrecovery amount in the annual reconciliations. Underrecoveries represent probable future revenues that will be recovered from customers; overrecoveries represent previously collected revenues that will be refunded to customers. Presented in the following table are the assets and liabilities for PSCR and GCR underrecoveries and overrecoveries reflected on Consumers’ consolidated balance sheets: In Millions December 31 2019 2018 Assets GCR underrecoveries $ — $ 16 Accrued gas revenue $ — $ 16 Liabilities PSCR overrecoveries $ 33 $ 4 GCR overrecoveries 2 — Accrued rate refunds $ 35 $ 4 PSCR Plans and Reconciliations: In October 2019, the MPSC issued an order in Consumers’ 2017 PSCR reconciliation, authorizing recovery of $1.9 billion of power costs and authorizing Consumers to reflect in its 2018 PSCR reconciliation the overrecovery of $32 million . In November 2019, the MPSC issued an order in Consumers’ 2018 PSCR plan authorizing the 2018 PSCR charge that Consumers self-implemented beginning in January 2018. In March 2019, Consumers filed its 2018 PSCR reconciliation, requesting full recovery of $2.0 billion of power costs and authorization to reflect in its 2019 PSCR reconciliation the underrecovery of $31 million . Consumers submitted its 2019 PSCR plan to the MPSC in September 2018 and, in accordance with its proposed plan, self-implemented the 2019 PSCR charge beginning in January 2019. GCR Plans and Reconciliations: In September 2019, the MPSC issued an order in Consumers’ 2017-2018 GCR reconciliation, authorizing full recovery of $0.6 billion of gas costs and authorizing Consumers to reflect in its 2018-2019 GCR reconciliation the overrecovery of $1 million . In June 2019, Consumers filed its 2018-2019 GCR reconciliation, requesting full recovery of $0.6 billion of gas costs and authorization to reflect in its 2019-2020 GCR reconciliation the underrecovery of $18 million . In January 2020, the MPSC issued an order in Consumers’ 2019-2020 GCR plan authorizing the 2019-2020 GCR charge that Consumers self-implemented beginning in April 2019. |
Consumers Energy Company | |
Public Utilities, General Disclosures [Line Items] | |
Regulatory Matters | Regulatory Matters Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, and certain other parties typically participate in MPSC proceedings concerning Consumers , such as Consumers’ rate cases and PSCR and GCR processes. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC orders or other actions, could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings. There are multiple appeals pending that involve various issues concerning cost recovery from customers, the adequacy of the record of evidence supporting the recovery of Smart Energy investments, and other matters. Consumers is unable to predict the outcome of these appeals. Regulatory Assets and Liabilities Consumers is subject to the actions of the MPSC and FERC and therefore prepares its consolidated financial statements in accordance with the provisions of regulatory accounting. A utility must apply regulatory accounting when its rates are designed to recover specific costs of providing regulated services. Under regulatory accounting, Consumers records regulatory assets or liabilities for certain transactions that would have been treated as expense or revenue by non‑regulated businesses. Presented in the following table are the regulatory assets and liabilities on Consumers’ consolidated balance sheets: In Millions December 31 End of Recovery or Refund Period 2019 2018 Regulatory assets Current Energy waste reduction plan incentive 1 2020 $ 33 $ 32 Other 2019 — 5 Total current regulatory assets $ 33 $ 37 Non-current Postretirement benefits 2 various $ 1,130 $ 1,028 Costs of coal-fueled electric generating units to be retired 3 various 667 — Securitized costs 3 2029 247 273 ARO 4 various 191 175 MGP sites 4 various 130 133 Unamortized loss on reacquired debt 4 various 70 68 Energy waste reduction plan incentive 1 2021 34 34 Energy waste reduction plan 4 various 10 26 Deferred capital spending 4 various 3 — Gas storage inventory adjustments 4 various 3 4 Other various 4 2 Total non - current regulatory assets $ 2,489 $ 1,743 Total regulatory assets $ 2,522 $ 1,780 Regulatory liabilities Current Income taxes, net 2020 $ 65 $ 18 Gain to be shared with customers 2020 17 — Reserve for customer refunds 2019 2 36 TCJA reserve for refund 2019 — 98 Other 2020 3 3 Total current regulatory liabilities $ 87 $ 155 Non-current Cost of removal various $ 2,126 $ 1,966 Income taxes, net various 1,510 1,537 Renewable energy grant 2043 52 54 ARO various 26 38 Renewable energy plan 2028 17 42 TCJA reserve for refund various — 35 Other various 11 9 Total non-current regulatory liabilities $ 3,742 $ 3,681 Total regulatory liabilities $ 3,829 $ 3,836 1 These regulatory assets have arisen from an alternative revenue program and are not associated with incurred costs or capital investments. Therefore, the MPSC has provided for recovery without a return. 2 This regulatory asset is included in rate base, thereby providing a return. 3 The MPSC has historically authorized and Consumers expects the MPSC to authorize a specific return on these regulatory assets. 4 These regulatory assets represent incurred costs for which the MPSC has provided, or Consumers expects, recovery without a return on investment. Regulatory Assets Energy Waste Reduction Plan Incentive: In December 2019, the MPSC approved a settlement agreement authorizing Consumers to collect $34 million during 2020 as an incentive for exceeding its statutory savings targets in 2018 . Consumers recognized incentive revenue under this program of $34 million in 2018 . Consumers also exceeded its statutory savings targets in 2019 , achieved certain other goals, and will request the MPSC’s approval to collect $34 million , the maximum performance incentive, in the energy waste reduction reconciliation to be filed in 2020 . Consumers recognized incentive revenue under this program of $34 million in 2019 . Postretirement Benefits: As part of the ratemaking process, the MPSC allows Consumers to recover the costs of postretirement benefits. Accordingly, Consumers defers the net impact of actuarial losses and gains as well as prior service costs and credits associated with postretirement benefits as a regulatory asset or liability. The asset or liability will decrease as the deferred items are amortized and recognized as components of net periodic benefit cost. For details about the amortization periods, see Note 12, Retirement Benefits . Costs of Coal-fueled Electric Generating Units to be Retired: In June 2019, the MPSC approved the settlement agreement reached in Consumers’ IRP, under which Consumers plans to retire the D.E. Karn 1 & 2 coal-fueled electric generating units in 2023. Under Michigan law, electric utilities have been permitted to use highly rated, low-cost securitization bonds to finance the recovery of qualified costs. Consumers will file for securitization financing by May 2023, requesting the MPSC’s approval to securitize the remaining book value of the two coal-fueled electric generating units upon their retirement. In 2019, Consumers removed from total plant, property, and equipment an amount representing the remaining book value of the two coal-fueled electric generating units upon their retirement, and recorded it as a regulatory asset. Until securitization, the book value of the generating units will remain in rate base and receive full regulatory returns in general rate cases. Securitized Costs: In 2013, the MPSC issued a securitization financing order authorizing Consumers to issue securitization bonds in order to finance the recovery of the remaining book value of seven smaller coal-fueled electric generating units that Consumers retired in 2016 and three smaller natural gas-fueled electric generating units that Consumers retired in 2015. Upon receipt of the MPSC’s order, Consumers removed the book value of the ten units from plant, property, and equipment and recorded this amount as a regulatory asset. Consumers is amortizing the regulatory asset over the life of the related securitization bonds, which it issued through a subsidiary in 2014. For additional details regarding the securitization bonds, see Note 5, Financings and Capitalization . ARO: The recovery of the underlying asset investments and related removal and monitoring costs of recorded AROs is approved by the MPSC in depreciation rate cases. Consumers records a regulatory asset and a regulatory liability for timing differences between the recognition of AROs for financial reporting purposes and the recovery of these costs from customers. The recovery period approximates the useful life of the assets to be removed. MGP Sites: Consumers is incurring environmental remediation and other response activity costs at 23 former MGP facilities. The MPSC allows Consumers to recover from its natural gas customers over a ten -year period the costs incurred to remediate the MGP sites. Unamortized Loss on Reacquired Debt: Under regulatory accounting, any unamortized discount, premium, or expense related to debt redeemed with the proceeds of new debt is capitalized and amortized over the life of the new debt. Energy Waste Reduction Plan: The MPSC allows Consumers to collect surcharges from customers to fund its energy waste reduction plan. The amount of spending incurred in excess of surcharges collected is recorded as a regulatory asset and amortized as surcharges are collected from customers over the plan period. The amount of surcharges collected in excess of spending incurred is recorded as a regulatory liability and amortized as costs are incurred. Deferred Capital Spending: In January 2019, the MPSC approved a settlement agreement in Consumers’ 2018 electric rate case, which provided deferred accounting treatment for distribution-related capital investments exceeding certain threshold amounts. Thus, for actual capital spending above the threshold amounts detailed in the settlement agreement, Consumers has deferred as a regulatory asset the associated depreciation and property tax expense as well as the debt component of the overall rate of return on such spending. Gas Storage Inventory Adjustments: Consumers incurs inventory expenses related to the loss of gas from its natural gas storage fields. The MPSC allows Consumers to recover these costs from its natural gas customers over a five -year period. Regulatory Liabilities Income Taxes, Net: Consumers records regulatory assets and liabilities to reflect the difference between deferred income taxes recognized for financial reporting purposes and amounts previously reflected in Consumers’ rates. This net balance will decrease over the remaining life of the related temporary differences and flow through current income tax benefit. For additional details on deferred income taxes, see the Consumers Electric Utility and Gas Utility—Tax Cuts and Jobs Act section below and Note 14, Income Taxes . Gain to be Shared with Customers: In December 2019, Consumers filed an application with the MPSC requesting approval to share voluntarily with electric utility customers half of the gain recognized on a sale of a portion of its substation transmission equipment to METC. Consumers proposed the gain sharing take place through an offset to additional spending in 2020 or through a bill credit to customers in 2021. Reserve for Customer Refunds: At December 31, 2018, Consumers had recorded a provision for revenue subject to refund associated with electric rates it self-implemented in 2017. In August 2019, the MPSC approved Consumers’ reconciliation of total revenues collected from rates it self-implemented to those that would have been collected under the final rates approved in June 2018 and Consumers refunded the resulting amount in September 2019. The 2016 Energy Law eliminated utilities’ self-implementation of rates under general rate cases, but provided for more timely processing of general rate cases. TCJA Reserve for Refund: In early 2018, the MPSC ordered Consumers to file various proceedings to determine the reduction in its electric and gas revenue requirements as a result of the TCJA. For further information on the various TCJA proceedings, see the Consumers Electric Utility and Gas Utility—Tax Cuts and Jobs Act section below. Cost of Removal: The MPSC allows Consumers to collect amounts from customers to fund future asset removal activities. This regulatory liability is reduced as costs of removal are incurred. The refund period of this regulatory liability approximates the useful life of the assets to be removed. Renewable Energy Grant: In 2013, Consumers received a $69 million renewable energy grant for Lake Winds ® Energy Park, which began operations in 2012. This grant reduces Consumers’ cost of complying with Michigan’s renewable portfolio standard and, accordingly, reduces the overall renewable energy surcharge to be collected from customers. The regulatory liability recorded for the grant will be amortized over the life of Lake Winds ® Energy Park. Renewable Energy Plan: Consumers has collected surcharges to fund its renewable energy plan. Amounts not yet spent under the plan are recorded as a regulatory liability, which is amortized as incremental costs are incurred to operate and depreciate Consumers’ renewable generation facilities and to purchase RECs under renewable energy purchase agreements. Incremental costs represent costs incurred in excess of amounts recovered through the PSCR process. Consumers Electric Utility and Gas Utility Tax Cuts and Jobs Act: The TCJA, which changed existing federal tax law and included numerous provisions that affect businesses, was signed into law in December 2017. In early 2018, the MPSC ordered Consumers to file various proceedings to determine the reduction in its electric and gas revenue requirements as a result of the reduction in the corporate income tax rate, and to implement bill credits to reflect that reduction until customer rates could be adjusted through Consumers’ general rate cases. Consumers filed, and the MPSC approved, such proceedings throughout 2018, resulting in credits to customer bills during 2018 to reflect reductions in Consumers’ electric and gas revenue requirements. Consumers filed additional proceedings to address amounts collected from customers during 2018 prior to the implementation of bill credits. In late 2018, the MPSC approved the refund of $31 million to gas customers over six months beginning in December 2018 and the refund of $70 million to electric customers over six months beginning in January 2019. In October 2018, Consumers filed an application to address the December 31, 2017 remeasurement of its deferred income taxes and other base rate impacts of the TCJA on customers. In September 2019, the MPSC authorized Consumers to begin returning net regulatory tax liabilities of $0.4 billion to gas customers through rates approved in the 2018 gas rate case and $1.2 billion to electric customers through rates to be determined in Consumers’ next electric rate case. Until then, the MPSC authorized Consumers to refund $32 million to electric customers through a temporary bill credit. Consumers’ total $1.6 billion of net regulatory tax liabilities comprises: • A regulatory tax liability of $1.7 billion associated with plant assets that are subject to normalization, which is governed by the Internal Revenue Code; this regulatory tax liability will be returned over the remaining book life of the related plant assets, the average of which is 44 years for gas plant assets and 27 years for electric plant assets. • A regulatory tax asset of $0.3 billion associated with plant assets that are not subject to normalization; this regulatory tax asset will be collected over 44 years from gas customers and over 27 years from electric customers. • A regulatory tax liability of $0.2 billion , which is primarily related to employee benefits; this regulatory tax liability will be refunded to customers over ten years . In January 2018, Consumers began to reduce the regulatory liability subject to normalization by crediting income tax expense. Consumers fully reserved for the eventual refund of these excess deferred taxes that it credited to income tax expense in a separate non‑current regulatory liability established by reducing revenue. As a result of an order received in September 2019, Consumers began refunding these excess deferred taxes to customers and will no longer reserve for their refund. At the date of the order, this reserve for refund of these excess deferred taxes totaled $62 million . For additional details on the remeasurement, see Note 14, Income Taxes . Consumers Electric Utility 2018 Electric Rate Case: In May 2018, Consumers filed an application with the MPSC seeking an annual rate increase of $58 million , based on a 10.75 percent authorized return on equity. In October 2018, Consumers reduced its requested annual rate increase to $44 million . In January 2019, the MPSC approved a settlement agreement authorizing an annual rate decrease of $24 million , based on a 10.0 percent authorized return on equity. With the elimination of the $113 million TCJA credit to customer bills, the approved settlement agreement resulted in an $89 million net increase in annual rates. The settlement agreement also provided for deferred accounting treatment for distribution-related capital investments exceeding certain amounts. Consumers also agreed to not file a new electric rate case prior to January 2020. Consumers Gas Utility 2018 Gas Rate Case: In November 2018, Consumers filed an application with the MPSC seeking an annual rate increase of $229 million , based on a 10.75 percent authorized return on equity. In April 2019, Consumers reduced its requested annual rate increase to $204 million . In September 2019, the MPSC approved an annual rate increase of $144 million , based on a 9.90 percent authorized return on equity. This increase includes a $13 million adjustment to begin returning net regulatory tax liabilities associated with the TCJA to customers. The MPSC also approved the continuation of a revenue decoupling mechanism, which annually reconciles Consumers’ actual weather-normalized, non‑fuel revenues with the revenues approved by the MPSC. Power Supply Cost Recovery and Gas Cost Recovery The PSCR and GCR ratemaking processes are designed to allow Consumers to recover all of its power supply and purchased natural gas costs if incurred under reasonable and prudent policies and practices. The MPSC reviews these costs, policies, and practices in annual plan and reconciliation proceedings. Consumers adjusts its PSCR and GCR billing charges monthly in order to minimize the underrecovery or overrecovery amount in the annual reconciliations. Underrecoveries represent probable future revenues that will be recovered from customers; overrecoveries represent previously collected revenues that will be refunded to customers. Presented in the following table are the assets and liabilities for PSCR and GCR underrecoveries and overrecoveries reflected on Consumers’ consolidated balance sheets: In Millions December 31 2019 2018 Assets GCR underrecoveries $ — $ 16 Accrued gas revenue $ — $ 16 Liabilities PSCR overrecoveries $ 33 $ 4 GCR overrecoveries 2 — Accrued rate refunds $ 35 $ 4 PSCR Plans and Reconciliations: In October 2019, the MPSC issued an order in Consumers’ 2017 PSCR reconciliation, authorizing recovery of $1.9 billion of power costs and authorizing Consumers to reflect in its 2018 PSCR reconciliation the overrecovery of $32 million . In November 2019, the MPSC issued an order in Consumers’ 2018 PSCR plan authorizing the 2018 PSCR charge that Consumers self-implemented beginning in January 2018. In March 2019, Consumers filed its 2018 PSCR reconciliation, requesting full recovery of $2.0 billion of power costs and authorization to reflect in its 2019 PSCR reconciliation the underrecovery of $31 million . Consumers submitted its 2019 PSCR plan to the MPSC in September 2018 and, in accordance with its proposed plan, self-implemented the 2019 PSCR charge beginning in January 2019. GCR Plans and Reconciliations: In September 2019, the MPSC issued an order in Consumers’ 2017-2018 GCR reconciliation, authorizing full recovery of $0.6 billion of gas costs and authorizing Consumers to reflect in its 2018-2019 GCR reconciliation the overrecovery of $1 million . In June 2019, Consumers filed its 2018-2019 GCR reconciliation, requesting full recovery of $0.6 billion of gas costs and authorization to reflect in its 2019-2020 GCR reconciliation the underrecovery of $18 million . In January 2020, the MPSC issued an order in Consumers’ 2019-2020 GCR plan authorizing the 2019-2020 GCR charge that Consumers self-implemented beginning in April 2019. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Significant Accounting Policies [Line Items] | |
Significant Accounting Policies | Significant Accounting Policies Principles of Consolidation: CMS Energy and Consumers prepare their consolidated financial statements in conformity with GAAP. CMS Energy’s consolidated financial statements comprise CMS Energy, Consumers, CMS Enterprises, EnerBank, and all other entities in which CMS Energy has a controlling financial interest or is the primary beneficiary. Consumers’ consolidated financial statements comprise Consumers and all other entities in which it has a controlling financial interest or is the primary beneficiary. CMS Energy uses the equity method of accounting for investments in companies and partnerships that are not consolidated, where they have significant influence over operations and financial policies but are not the primary beneficiary. CMS Energy and Consumers eliminate intercompany transactions and balances. Use of Estimates: CMS Energy and Consumers are required to make estimates using assumptions that may affect reported amounts and disclosures. Actual results could differ from those estimates. Contingencies: CMS Energy and Consumers record estimated liabilities for contingencies on their consolidated financial statements when it is probable that a liability has been incurred and when the amount of loss can be reasonably estimated. For environmental remediation projects in which the timing of estimated expenditures is considered reliably determinable, CMS Energy and Consumers record the liability at its net present value, using a discount rate equal to the interest rate on monetary assets that are essentially risk-free and have maturities comparable to that of the environmental liability. CMS Energy and Consumers expense legal fees as incurred; fees incurred but not yet billed are accrued based on estimates of work performed. Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs: Upon the issuance of long-term debt, CMS Energy and Consumers defer issuance costs, discounts, and premiums and amortize those amounts over the terms of the associated debt. Debt issuance costs are presented as a direct deduction from the carrying amount of long-term debt on the balance sheet. Upon the refinancing of long-term debt, Consumers, as a regulated entity, defers any remaining unamortized issuance costs, discounts, and premiums associated with the refinanced debt and amortizes those amounts over the term of the newly issued debt. For the non‑regulated portions of CMS Energy’s business, any remaining unamortized issuance costs, discounts, and premiums associated with extinguished debt are charged to earnings. Derivative Instruments: In order to support ongoing operations, CMS Energy and Consumers enter into contracts for the future purchase and sale of various commodities, such as electricity, natural gas, and coal. These forward contracts are generally long-term in nature and result in physical delivery of the commodity at a contracted price. Most of these contracts are not subject to derivative accounting for one or more of the following reasons: • they do not have a notional amount (that is, a number of units specified in a derivative instrument, such as MWh of electricity or bcf of natural gas) • they qualify for the normal purchases and sales exception • they cannot be net settled due in part to the absence of an active market for the commodity Consumers also uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion-related transmission charges. Consumers accounts for FTRs as derivatives. Additionally, CMS Energy uses interest rate swaps to manage its interest rate risk on certain long-term debt and notes receivable transactions. CMS Energy and Consumers record derivative contracts that do not qualify for the normal purchases and sales exception at fair value on their consolidated balance sheets. At CMS Energy, if the derivative is accounted for as a cash flow hedge, unrealized gains and losses from changes in the fair value of the derivative are recognized in AOCI and subsequently recognized in earnings when the hedged transactions impact earnings. If the derivative is accounted for as a fair value hedge, changes in the fair value of the derivative and changes in the fair value of the hedged item due to the hedged risk are recognized in earnings. For the FTRs at Consumers, changes in fair value are deferred as regulatory assets or liabilities. For details regarding CMS Energy’s and Consumers’ derivative instruments recorded at fair value, see Note 6, Fair Value Measurements . EPS: CMS Energy calculates basic and diluted EPS using the weighted-average number of shares of common stock and dilutive potential common stock outstanding during the period. Potential common stock, for purposes of determining diluted EPS, includes the effects of nonvested stock awards and forward equity sales. CMS Energy computes the effect on potential common stock using the treasury stock method. Diluted EPS excludes the impact of antidilutive securities, which are those securities resulting in an increase in EPS or a decrease in loss per share. For EPS computations, see Note 15, Earnings Per Share—CMS Energy . Impairment of Long-Lived Assets and Equity Method Investments: CMS Energy and Consumers perform tests of impairment if certain triggering events occur or if there has been a decline in value that may be other than temporary. CMS Energy and Consumers evaluate long-lived assets held in use for impairment by calculating the undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. If the undiscounted future cash flows are less than the carrying amount, CMS Energy and Consumers recognize an impairment loss equal to the amount by which the carrying amount exceeds the fair value. CMS Energy and Consumers estimate the fair value of the asset using quoted market prices, market prices of similar assets, or discounted future cash flow analyses. CMS Energy also assesses equity method investments for impairment whenever there has been a decline in value that is other than temporary. This assessment requires CMS Energy to determine the fair value of the equity method investment. CMS Energy determines fair value using valuation methodologies, including discounted cash flows, and assesses the ability of the investee to sustain an earnings capacity that justifies the carrying amount of the investment. CMS Energy records an impairment if the fair value is less than the carrying amount and the decline in value is considered to be other than temporary. Investment Tax Credits: Consumers amortizes its investment tax credits over the life of the related property in accordance with regulatory treatment. CMS Energy’s non‑regulated businesses use the deferral method of accounting for investment tax credits. Under the deferral method, the book basis of the associated assets is reduced by the amount of the credit, resulting in lower depreciation expense over the life of the assets. Furthermore, the tax basis of the assets is reduced by 50 percent of the related credit, resulting in a net deferred tax asset. CMS Energy recognizes the tax benefit of this basis difference as a reduction to income tax expense in the year in which the plant reaches commercial operation. Inventory: CMS Energy and Consumers use the weighted-average cost method for valuing working gas, recoverable base gas in underground storage facilities, and materials and supplies inventory. CMS Energy and Consumers also use this method for valuing coal inventory, and they classify these amounts as generating plant fuel stock on their consolidated balance sheets. CMS Energy and Consumers account for RECs and emission allowances as inventory and use the weighted-average cost method to remove amounts from inventory. RECs and emission allowances are used to satisfy compliance obligations related to the generation of power. CMS Energy and Consumers classify these amounts within other assets on their consolidated balance sheets. CMS Energy and Consumers evaluate inventory for impairment as required to ensure that its carrying value does not exceed the lower of cost or net realizable value. MISO Transactions: MISO requires the submission of hourly day-ahead and real-time bids and offers for energy at locations across the MISO region. CMS Energy and Consumers account for MISO transactions on a net hourly basis in each of the real-time and day-ahead markets, netted across all MISO energy market locations. CMS Energy and Consumers record net hourly purchases in purchased and interchange power and net hourly sales in operating revenue on their consolidated statements of income. They record net billing adjustments upon receipt of settlement statements, record accruals for future net purchases and sales adjustments based on historical experience, and reconcile accruals to actual expenses and sales upon receipt of settlement statements. Property Taxes: Property taxes are based on the taxable value of Consumers’ real and personal property assessed by local taxing authorities. Consumers records property tax expense over the fiscal year of the taxing authority for which the taxes are levied. The deferred property tax balance represents the amount of Consumers’ accrued property tax that will be recognized over future governmental fiscal periods. Renewable Energy Grant: In 2013, Consumers received a renewable energy cash grant for Lake Winds ® Energy Park under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009. Upon receipt of the grant, Consumers recorded a regulatory liability, which Consumers is amortizing over the life of Lake Winds ® Energy Park. Consumers presents the amortization as a reduction to maintenance and other operating expenses on its consolidated statements of income. Consumers recorded the deferred income taxes related to the grant as a reduction of the book basis of Lake Winds ® Energy Park. Other: For additional accounting policies, see: • Note 8, Notes Receivable • Note 9, Plant, Property, and Equipment • Note 11, Asset Retirement Obligations • Note 12, Retirement Benefits • Note 14, Income Taxes • Note 15, Earnings Per Share—CMS Energy • Note 16, Revenue • Note 18, Cash and Cash Equivalents |
Consumers Energy Company | |
Significant Accounting Policies [Line Items] | |
Significant Accounting Policies | Significant Accounting Policies Principles of Consolidation: CMS Energy and Consumers prepare their consolidated financial statements in conformity with GAAP. CMS Energy’s consolidated financial statements comprise CMS Energy, Consumers, CMS Enterprises, EnerBank, and all other entities in which CMS Energy has a controlling financial interest or is the primary beneficiary. Consumers’ consolidated financial statements comprise Consumers and all other entities in which it has a controlling financial interest or is the primary beneficiary. CMS Energy uses the equity method of accounting for investments in companies and partnerships that are not consolidated, where they have significant influence over operations and financial policies but are not the primary beneficiary. CMS Energy and Consumers eliminate intercompany transactions and balances. Use of Estimates: CMS Energy and Consumers are required to make estimates using assumptions that may affect reported amounts and disclosures. Actual results could differ from those estimates. Contingencies: CMS Energy and Consumers record estimated liabilities for contingencies on their consolidated financial statements when it is probable that a liability has been incurred and when the amount of loss can be reasonably estimated. For environmental remediation projects in which the timing of estimated expenditures is considered reliably determinable, CMS Energy and Consumers record the liability at its net present value, using a discount rate equal to the interest rate on monetary assets that are essentially risk-free and have maturities comparable to that of the environmental liability. CMS Energy and Consumers expense legal fees as incurred; fees incurred but not yet billed are accrued based on estimates of work performed. Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs: Upon the issuance of long-term debt, CMS Energy and Consumers defer issuance costs, discounts, and premiums and amortize those amounts over the terms of the associated debt. Debt issuance costs are presented as a direct deduction from the carrying amount of long-term debt on the balance sheet. Upon the refinancing of long-term debt, Consumers, as a regulated entity, defers any remaining unamortized issuance costs, discounts, and premiums associated with the refinanced debt and amortizes those amounts over the term of the newly issued debt. For the non‑regulated portions of CMS Energy’s business, any remaining unamortized issuance costs, discounts, and premiums associated with extinguished debt are charged to earnings. Derivative Instruments: In order to support ongoing operations, CMS Energy and Consumers enter into contracts for the future purchase and sale of various commodities, such as electricity, natural gas, and coal. These forward contracts are generally long-term in nature and result in physical delivery of the commodity at a contracted price. Most of these contracts are not subject to derivative accounting for one or more of the following reasons: • they do not have a notional amount (that is, a number of units specified in a derivative instrument, such as MWh of electricity or bcf of natural gas) • they qualify for the normal purchases and sales exception • they cannot be net settled due in part to the absence of an active market for the commodity Consumers also uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion-related transmission charges. Consumers accounts for FTRs as derivatives. Additionally, CMS Energy uses interest rate swaps to manage its interest rate risk on certain long-term debt and notes receivable transactions. CMS Energy and Consumers record derivative contracts that do not qualify for the normal purchases and sales exception at fair value on their consolidated balance sheets. At CMS Energy, if the derivative is accounted for as a cash flow hedge, unrealized gains and losses from changes in the fair value of the derivative are recognized in AOCI and subsequently recognized in earnings when the hedged transactions impact earnings. If the derivative is accounted for as a fair value hedge, changes in the fair value of the derivative and changes in the fair value of the hedged item due to the hedged risk are recognized in earnings. For the FTRs at Consumers, changes in fair value are deferred as regulatory assets or liabilities. For details regarding CMS Energy’s and Consumers’ derivative instruments recorded at fair value, see Note 6, Fair Value Measurements . EPS: CMS Energy calculates basic and diluted EPS using the weighted-average number of shares of common stock and dilutive potential common stock outstanding during the period. Potential common stock, for purposes of determining diluted EPS, includes the effects of nonvested stock awards and forward equity sales. CMS Energy computes the effect on potential common stock using the treasury stock method. Diluted EPS excludes the impact of antidilutive securities, which are those securities resulting in an increase in EPS or a decrease in loss per share. For EPS computations, see Note 15, Earnings Per Share—CMS Energy . Impairment of Long-Lived Assets and Equity Method Investments: CMS Energy and Consumers perform tests of impairment if certain triggering events occur or if there has been a decline in value that may be other than temporary. CMS Energy and Consumers evaluate long-lived assets held in use for impairment by calculating the undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. If the undiscounted future cash flows are less than the carrying amount, CMS Energy and Consumers recognize an impairment loss equal to the amount by which the carrying amount exceeds the fair value. CMS Energy and Consumers estimate the fair value of the asset using quoted market prices, market prices of similar assets, or discounted future cash flow analyses. CMS Energy also assesses equity method investments for impairment whenever there has been a decline in value that is other than temporary. This assessment requires CMS Energy to determine the fair value of the equity method investment. CMS Energy determines fair value using valuation methodologies, including discounted cash flows, and assesses the ability of the investee to sustain an earnings capacity that justifies the carrying amount of the investment. CMS Energy records an impairment if the fair value is less than the carrying amount and the decline in value is considered to be other than temporary. Investment Tax Credits: Consumers amortizes its investment tax credits over the life of the related property in accordance with regulatory treatment. CMS Energy’s non‑regulated businesses use the deferral method of accounting for investment tax credits. Under the deferral method, the book basis of the associated assets is reduced by the amount of the credit, resulting in lower depreciation expense over the life of the assets. Furthermore, the tax basis of the assets is reduced by 50 percent of the related credit, resulting in a net deferred tax asset. CMS Energy recognizes the tax benefit of this basis difference as a reduction to income tax expense in the year in which the plant reaches commercial operation. Inventory: CMS Energy and Consumers use the weighted-average cost method for valuing working gas, recoverable base gas in underground storage facilities, and materials and supplies inventory. CMS Energy and Consumers also use this method for valuing coal inventory, and they classify these amounts as generating plant fuel stock on their consolidated balance sheets. CMS Energy and Consumers account for RECs and emission allowances as inventory and use the weighted-average cost method to remove amounts from inventory. RECs and emission allowances are used to satisfy compliance obligations related to the generation of power. CMS Energy and Consumers classify these amounts within other assets on their consolidated balance sheets. CMS Energy and Consumers evaluate inventory for impairment as required to ensure that its carrying value does not exceed the lower of cost or net realizable value. MISO Transactions: MISO requires the submission of hourly day-ahead and real-time bids and offers for energy at locations across the MISO region. CMS Energy and Consumers account for MISO transactions on a net hourly basis in each of the real-time and day-ahead markets, netted across all MISO energy market locations. CMS Energy and Consumers record net hourly purchases in purchased and interchange power and net hourly sales in operating revenue on their consolidated statements of income. They record net billing adjustments upon receipt of settlement statements, record accruals for future net purchases and sales adjustments based on historical experience, and reconcile accruals to actual expenses and sales upon receipt of settlement statements. Property Taxes: Property taxes are based on the taxable value of Consumers’ real and personal property assessed by local taxing authorities. Consumers records property tax expense over the fiscal year of the taxing authority for which the taxes are levied. The deferred property tax balance represents the amount of Consumers’ accrued property tax that will be recognized over future governmental fiscal periods. Renewable Energy Grant: In 2013, Consumers received a renewable energy cash grant for Lake Winds ® Energy Park under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009. Upon receipt of the grant, Consumers recorded a regulatory liability, which Consumers is amortizing over the life of Lake Winds ® Energy Park. Consumers presents the amortization as a reduction to maintenance and other operating expenses on its consolidated statements of income. Consumers recorded the deferred income taxes related to the grant as a reduction of the book basis of Lake Winds ® Energy Park. Other: For additional accounting policies, see: • Note 8, Notes Receivable • Note 9, Plant, Property, and Equipment • Note 11, Asset Retirement Obligations • Note 12, Retirement Benefits • Note 14, Income Taxes • Note 15, Earnings Per Share—CMS Energy • Note 16, Revenue • Note 18, Cash and Cash Equivalents |
Contingencies And Commitments
Contingencies And Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Other Commitments [Line Items] | |
Contingencies And Commitments | Contingencies and Commitments CMS Energy and Consumers are involved in various matters that give rise to contingent liabilities. Depending on the specific issues, the resolution of these contingencies could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made. Disclosures that state that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter. CMS Energy Contingencies Gas Index Price Reporting Litigation : CMS Energy, along with CMS MST, CMS Field Services, Cantera Natural Gas, Inc., and Cantera Gas Company, were named as defendants in four 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. In 2016, CMS Energy entities reached a settlement with the plaintiffs in the Kansas and Missouri class action cases for an amount that was not material to CMS Energy. In 2017, the federal district court approved the settlement. The following provides more detail on the remaining cases in which CMS Energy or its affiliates were named as parties: • In 2006, a class action complaint, Arandell Corp., et al. v. XCEL Energy Inc., et al., was filed in Wisconsin state court on behalf of Wisconsin commercial entities that purchased natural gas between January 2000 and October 2002. The defendants, including CMS Energy, CMS ERM, and Cantera Gas Company, are alleged to have violated Wisconsin’s antitrust statute. The plaintiffs are seeking full consideration damages, treble damages, costs, interest, and attorneys’ fees. • In 2009, a class action complaint, Newpage Wisconsin System v. CMS ERM, et al., was filed in circuit court in Wood County, Wisconsin, against CMS Energy, CMS ERM, Cantera Gas Company, and others. The plaintiff is seeking full consideration damages, treble damages, costs, interest, and attorneys’ fees. • In 2005, J.P. Morgan Trust Company, N.A., in its capacity as trustee of the FLI Liquidating Trust, filed an action in Kansas state court against CMS Energy, CMS MST, CMS Field Services, and others. The complaint alleges various claims under the Kansas Restraint of Trade Act. The plaintiff is seeking statutory full consideration damages for its purchases of natural gas in 2000 and 2001, costs, and 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. 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 were remanded back to the federal district court. In 2016, the federal district court granted the defendants’ motion for summary judgment in the individual lawsuit filed in Kansas based on a release in a prior settlement involving similar allegations; the order of summary judgment was subsequently appealed. In March 2018, the U.S. Court of Appeals for the Ninth Circuit reversed the lower court’s ruling and remanded the case back to the federal district court. In 2017, the federal district court denied plaintiffs’ motion for class certification in the two pending class action cases in Wisconsin. The plaintiffs appealed that decision to the U.S. Court of Appeals for the Ninth Circuit and in August 2018, the Ninth Circuit Court of Appeals reversed and remanded the matter back to the federal district court for further consideration. In January 2019, the judge in the multidistrict litigation granted motions filed by plaintiffs for Suggestion of Remand of the actions back to the respective transferor courts in Wisconsin and Kansas for further handling. In the Kansas action, the Judicial Panel on Multidistrict Litigation ordered the remand and the case has been transferred. In the Wisconsin actions, oppositions to the remand were filed, but the Judicial Panel on Multidistrict Litigation granted the remand in June 2019. CMS Energy and the plaintiffs in each of the Kansas and the Wisconsin actions engaged in settlement discussions and CMS Energy has recorded a $30 million liability at December 31, 2019 as a probable estimate to settle these two cases. CMS Energy can give no assurances that it can reach a final settlement with the plaintiffs in these two cases, of the actual amount CMS Energy would have to pay in any settlement, or, in the Wisconsin case, that the Wisconsin court would approve any such settlement. If settlement does not occur and the outcome after appeals is unfavorable to CMS Energy, 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 at Bay Harbor after selling its interests in the development in 2002. Leachate is produced when water enters into cement kiln dust piles left over from former cement plant operations at the site. In 2012, CMS Land and EGLE finalized an agreement that established the final remedies and the future water quality criteria at the site. CMS Land completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit issued in 2010 and renewed in 2016. The renewed NPDES permit is valid through September 2020. At December 31, 2019 , CMS Energy had a recorded liability of $46 million for its remaining obligations for environmental remediation. CMS Energy calculated this liability based on discounted projected costs, using a discount rate of 4.34 percent and an inflation rate of one percent on annual operating and maintenance costs. The undiscounted amount of the remaining obligation is $58 million . CMS Energy expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs in each of the next five years: In Millions 2020 2021 2022 2023 2024 CMS Energy Long-term leachate disposal and operating and maintenance costs $ 5 $ 4 $ 4 $ 4 $ 4 CMS Energy’s estimate of response activity costs and the timing of expenditures could change if there are changes in circumstances or assumptions used in calculating the liability. Although a liability for its present estimate of remaining response activity costs has been recorded, CMS Energy cannot predict the ultimate financial impact or outcome of this matter. 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, in connection with the sale, CMS Energy owes $152 million in taxes, plus substantial penalties and interest that could be up to or exceed the amount of the taxes claimed. In 2015, the matter was proceeding to formal arbitration; however, since then, the government of Equatorial Guinea has stopped communicating. CMS Energy has concluded that the government’s tax claim is without merit and will continue to contest the claim, but cannot predict the financial impact or outcome of the 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 $4 million . At December 31, 2019 , Consumers had a recorded liability of $3 million , the minimum amount in the range of its estimated probable NREPA liability, as no amount in the range was considered a better estimate than any other amount. Consumers is a potentially responsible party at a number of contaminated sites administered under CERCLA. CERCLA liability is joint and several. In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site. The notification claimed that the EPA has reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB-containing materials at portions of the site. In 2011, Consumers received a follow-up letter from the EPA requesting that Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River. All parties, including Consumers, that were asked to participate in the removal action plan declined to accept liability. Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river. Based on its experience, Consumers estimates that its share of the total liability for known CERCLA sites will be between $3 million and $8 million . Various factors, including the number and creditworthiness of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At December 31, 2019 , Consumers had a recorded liability of $3 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable CERCLA liability, as no amount in the range was considered a better estimate than any other amount. The timing of payments related to Consumers’ remediation and other response activities at its CERCLA and NREPA sites is uncertain. Consumers periodically reviews these cost estimates. A change in the underlying assumptions, such as an increase in the number of sites, different remediation techniques, the nature and extent of contamination, and legal and regulatory requirements, could affect its estimates of NREPA and CERCLA liability. Ludington PCB: In 1998, during routine maintenance activities, Consumers identified PCB as a component in certain paint, grout, and sealant materials at Ludington. Consumers removed part of the PCB material and replaced it with non‑PCB material. Consumers has had several communications with the EPA regarding this matter, but cannot predict the financial impact or outcome. MCV PPA: In 2017, the MCV Partnership initiated arbitration against Consumers, asserting a breach of contract associated with the MCV PPA. Under this PPA, Consumers pays the MCV Partnership a fixed energy charge based on Consumers’ annual average baseload coal generating plant operating and maintenance cost, fuel inventory, and administrative and general expenses . The MCV Partnership asserts that, under the Clean Air Act, Consumers should have installed pollution control equipment on coal-fueled electric generating units years before they were retired. The MCV Partnership also asserts that Consumers should have installed pollution control equipment earlier on its remaining coal-fueled electric generating units. Additionally, the MCV Partnership claims that Consumers improperly characterized certain costs included in the calculation of the fixed energy charge. In January 2019, an arbitration panel issued an order concluding that the MCV Partnership is not entitled to any damages associated with its claim against Consumers related to the Clean Air Act; the majority of the MCV Partnership’s claim, which estimated damages and interest in excess of $270 million , was related to this dismissed claim. Consumers believes that the MCV Partnership’s remaining claims are without merit, but cannot predict the financial impact or outcome of the matter. Underwater Cables in Straits of Mackinac: Consumers owns certain underwater electric cables in the Straits of Mackinac, which were de-energized and retired in 1990. Consumers was notified that some of these cables were damaged as a result of vessel activity in April 2018. Following the notification, Consumers located, inspected, sampled, capped, and returned the damaged retired cables to their original location on the lake bottom, and did not find any substantive evidence of environmental contamination. After collaborating with the State of Michigan, local Native American tribes, and other stakeholders, Consumers submitted a permit application and removal work plan with EGLE and the U.S. Army Corps of Engineers in December 2019 for partial removal of all Consumers-owned cables. Upon EGLE’s issuance of a permit or certificate of coverage, which is expected in early 2020, Consumers will record an ARO for the cost to remove partially its cables, estimated to be up to $5 million . If Consumers were required to remove all the cables, it could incur costs of up to $10 million . Consumers filed suit against the companies that own the vessels that allegedly caused the damage and settled that matter. Consumers will seek recovery from customers of any costs incurred. Consumers Gas Utility Contingencies Gas Environmental Matters : Consumers expects to incur remediation and other response activity costs at a number of sites under the NREPA. These sites include 23 former MGP facilities. Consumers operated the facilities on these sites for some part of their operating lives. For some of these sites, Consumers has no present ownership interest or may own only a portion of the original site. At December 31, 2019 , Consumers had a recorded liability of $68 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 $73 million . Consumers expects to pay the following amounts for remediation and other response activity costs in each of the next five years: In Millions 2020 2021 2022 2023 2024 Consumers Remediation and other response activity costs $ 12 $ 8 $ 20 $ 11 $ 2 Consumers periodically reviews these cost estimates. Any significant change in the underlying assumptions, such as an increase in the number of sites, changes in remediation techniques, or legal and regulatory requirements, could affect Consumers’ estimates of annual response activity costs and the MGP liability. Pursuant to orders issued by the MPSC, Consumers defers its MGP-related remediation costs and recovers them from its customers over a ten -year period. At December 31, 2019 , Consumers had a regulatory asset of $130 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 December 31, 2019 , Consumers had a recorded liability of less than $1 million , the minimum amount in the range of its estimated probable liability, as no amount in the range was considered a better estimate than any other amount. Ray Compressor Station: On January 30, 2019, Consumers experienced a fire at the Ray Compressor Station, which resulted in the Ray Storage Field being off‑line or operating at significantly reduced capacity, which negatively affected Consumers’ natural gas supply and delivery capacity. This incident, which occurred during the extreme polar vortex weather condition, required Consumers to request voluntary reductions in customer load, to implement contingency gas supply purchases, and to implement a curtailment of natural gas deliveries for industrial and large commercial customers pursuant to Consumers’ MPSC curtailment tariff. The curtailment and request for voluntary reductions of customer loads were canceled as of midnight, February 1, 2019. Consumers investigated the cause of the incident, and filed a report on the incident with the MPSC in April 2019. In response, the MPSC issued an order in July 2019, directing Consumers to file additional reports regarding the incident and to include detail of the resulting costs in a future rate proceeding. The compressor station is presently operating at full capacity. As a result of the fire and the resulting curtailment, Consumers could be subject to disallowances of gas purchased and costs associated with the repairs to the Ray Compressor Station. Consumers’ incremental cost of gas purchased during the incident was $7 million . Additionally, at December 31, 2019 , Consumers had incurred capital expenditures of $12 million to restore the compressor station. Consumers may also be subject to various claims from impacted customers, claims for damages, or regulatory penalties. At this time, Consumers cannot predict the outcome of these matters or other gas-related incidents and a reasonable estimate of a total loss cannot be made, but they could have a material adverse effect on Consumers’ results of operations, financial condition, or liquidity, and could subject Consumers’ gas utility to increased regulatory scrutiny. Consumers Electric and Gas Utility Contingencies Electric and Gas Staking: In June 2019, the MPSC ordered Consumers to show cause as to why it should not be found in violation of the MISS DIG Act. The MPSC alleges that Consumers violated the law by failing to respond in a timely manner to over 20,000 requests to mark the location of underground facilities in April and May 2019 and only partially responding to others. The law provides the MPSC with discretion in setting fines for violations, if any; however, the fines cannot exceed $5,000 per violation. Consumers resolved the backlog of staking requests, and Consumers, the MPSC Staff, and the Michigan Attorney General filed an agreement with the MPSC settling this matter for an amount of less than $1 million . The MPSC approved the settlement agreement in January 2020. Guarantees Presented in the following table are CMS Energy’s and Consumers’ guarantees at December 31, 2019 : In Millions Guarantee Description Issue Date Expiration Date Maximum Obligation Carrying Amount CMS Energy, including Consumers Indemnity obligations from stock and asset sale agreements 1 various indefinite $ 153 $ 2 Guarantees 2 various indefinite 36 — Consumers Guarantee 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. The maximum obligation amount is mostly related to the Equatorial Guinea tax claim discussed in the CMS Energy Contingencies section of this Note. 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 U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers. At CMS Energy, the guarantee obligations comprise Consumers’ guarantee to the U.S. Department of Energy and CMS Energy’s 1994 guarantee of non ‑ recourse revenue bonds issued by Genesee. For additional details on this guarantee, see Note 21, Variable Interest Entities . 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 carrying value of these indemnity obligations is $1 million . CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities to be remote. Other Contingencies In addition to the matters disclosed in this Note and Note 3, Regulatory Matters , there are certain other lawsuits and administrative proceedings before various courts and governmental agencies, as well as unasserted claims that may result in such proceedings, arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties. These other lawsuits, proceedings, and unasserted claims may involve personal injury, property damage, contracts, environmental matters, federal and state taxes, rates, licensing, employment, and other matters. Further, CMS Energy and Consumers occasionally self-report certain regulatory non‑compliance matters that may or may not eventually result in administrative proceedings. CMS Energy and Consumers believe that the outcome of any one of these proceedings and potential claims will not have a material negative effect on their consolidated results of operations, financial condition, or liquidity. Contractual Commitments Purchase Obligations: Purchase obligations arise from long-term contracts for the purchase of commodities and related services, and construction and service agreements. The commodities and related services include long-term PPAs, natural gas and associated transportation, and coal and associated transportation. Related-party PPAs are between Consumers and certain affiliates of CMS Enterprises. Presented in the following table are CMS Energy’s and Consumers’ contractual purchase obligations at December 31, 2019 for each of the periods shown: In Millions Payments Due Total 2020 2021 2022 2023 2024 Beyond 2024 CMS Energy, including Consumers Total PPAs $ 9,336 $ 1,030 $ 1,035 $ 750 $ 608 $ 605 $ 5,308 Other 3,244 1,685 520 451 210 199 179 Consumers PPAs MCV PPA $ 3,295 $ 313 $ 287 $ 272 $ 225 $ 201 $ 1,997 Palisades PPA 899 388 398 113 — — — Related-party PPAs 472 71 72 74 74 75 106 Other PPAs 4,670 258 278 291 309 329 3,205 Total PPAs $ 9,336 $ 1,030 $ 1,035 $ 750 $ 608 $ 605 $ 5,308 Other 2,865 1,638 477 413 174 162 1 MCV PPA: Consumers has a 35 -year PPA that began in 1990 with the MCV Partnership to purchase 1,240 MW of electricity. The MCV PPA, as amended and restated, provides for: • a capacity charge of $10.14 per MWh of available capacity • a fixed energy charge based on Consumers’ annual average baseload coal generating plant operating and maintenance cost, fuel inventory, and administrative and general expenses • a variable energy charge based on the MCV Partnership’s cost of production when the plant is dispatched • a $5 million annual contribution by the MCV Partnership to a renewable resources program • an option for Consumers to extend the MCV PPA for five years or purchase the MCV Facility at the conclusion of the MCV PPA’s term in March 2025; although Consumers is not obligated to exercise either of these options, the table above presents the impact on future cash flows of extending the MCV PPA through 2030 Capacity and energy charges under the MCV PPA were $318 million in 2019 , $353 million in 2018 , and $321 million in 2017 . Palisades PPA: Consumers has a PPA expiring in 2022 with Entergy to purchase virtually all of the capacity and energy produced by Palisades, up to the annual average capacity of 798 MW . For all delivered energy, the Palisades PPA has escalating capacity and variable energy charges. Total capacity and energy charges under the Palisades PPA were $395 million in 2019 , $375 million in 2018 , and $366 million in 2017 . For further details about Palisades, see Note 10, Leases and Palisades Financing . Other PPAs: Consumers has PPAs expiring through 2040 with various counterparties. The majority of the PPAs have capacity and energy charges for delivered energy. In addition, CMS Energy and Consumers account for several of their PPAs as leases. Capacity and energy charges under these PPAs were $336 million in 2019 , $350 million in 2018 , and $349 million in 2017 . See Note 10, Leases and Palisades Financing for more information about CMS Energy’s and Consumers’ lease obligations. |
Consumers Energy Company | |
Other Commitments [Line Items] | |
Contingencies And Commitments | Contingencies and Commitments CMS Energy and Consumers are involved in various matters that give rise to contingent liabilities. Depending on the specific issues, the resolution of these contingencies could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made. Disclosures that state that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter. CMS Energy Contingencies Gas Index Price Reporting Litigation : CMS Energy, along with CMS MST, CMS Field Services, Cantera Natural Gas, Inc., and Cantera Gas Company, were named as defendants in four 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. In 2016, CMS Energy entities reached a settlement with the plaintiffs in the Kansas and Missouri class action cases for an amount that was not material to CMS Energy. In 2017, the federal district court approved the settlement. The following provides more detail on the remaining cases in which CMS Energy or its affiliates were named as parties: • In 2006, a class action complaint, Arandell Corp., et al. v. XCEL Energy Inc., et al., was filed in Wisconsin state court on behalf of Wisconsin commercial entities that purchased natural gas between January 2000 and October 2002. The defendants, including CMS Energy, CMS ERM, and Cantera Gas Company, are alleged to have violated Wisconsin’s antitrust statute. The plaintiffs are seeking full consideration damages, treble damages, costs, interest, and attorneys’ fees. • In 2009, a class action complaint, Newpage Wisconsin System v. CMS ERM, et al., was filed in circuit court in Wood County, Wisconsin, against CMS Energy, CMS ERM, Cantera Gas Company, and others. The plaintiff is seeking full consideration damages, treble damages, costs, interest, and attorneys’ fees. • In 2005, J.P. Morgan Trust Company, N.A., in its capacity as trustee of the FLI Liquidating Trust, filed an action in Kansas state court against CMS Energy, CMS MST, CMS Field Services, and others. The complaint alleges various claims under the Kansas Restraint of Trade Act. The plaintiff is seeking statutory full consideration damages for its purchases of natural gas in 2000 and 2001, costs, and 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. 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 were remanded back to the federal district court. In 2016, the federal district court granted the defendants’ motion for summary judgment in the individual lawsuit filed in Kansas based on a release in a prior settlement involving similar allegations; the order of summary judgment was subsequently appealed. In March 2018, the U.S. Court of Appeals for the Ninth Circuit reversed the lower court’s ruling and remanded the case back to the federal district court. In 2017, the federal district court denied plaintiffs’ motion for class certification in the two pending class action cases in Wisconsin. The plaintiffs appealed that decision to the U.S. Court of Appeals for the Ninth Circuit and in August 2018, the Ninth Circuit Court of Appeals reversed and remanded the matter back to the federal district court for further consideration. In January 2019, the judge in the multidistrict litigation granted motions filed by plaintiffs for Suggestion of Remand of the actions back to the respective transferor courts in Wisconsin and Kansas for further handling. In the Kansas action, the Judicial Panel on Multidistrict Litigation ordered the remand and the case has been transferred. In the Wisconsin actions, oppositions to the remand were filed, but the Judicial Panel on Multidistrict Litigation granted the remand in June 2019. CMS Energy and the plaintiffs in each of the Kansas and the Wisconsin actions engaged in settlement discussions and CMS Energy has recorded a $30 million liability at December 31, 2019 as a probable estimate to settle these two cases. CMS Energy can give no assurances that it can reach a final settlement with the plaintiffs in these two cases, of the actual amount CMS Energy would have to pay in any settlement, or, in the Wisconsin case, that the Wisconsin court would approve any such settlement. If settlement does not occur and the outcome after appeals is unfavorable to CMS Energy, 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 at Bay Harbor after selling its interests in the development in 2002. Leachate is produced when water enters into cement kiln dust piles left over from former cement plant operations at the site. In 2012, CMS Land and EGLE finalized an agreement that established the final remedies and the future water quality criteria at the site. CMS Land completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit issued in 2010 and renewed in 2016. The renewed NPDES permit is valid through September 2020. At December 31, 2019 , CMS Energy had a recorded liability of $46 million for its remaining obligations for environmental remediation. CMS Energy calculated this liability based on discounted projected costs, using a discount rate of 4.34 percent and an inflation rate of one percent on annual operating and maintenance costs. The undiscounted amount of the remaining obligation is $58 million . CMS Energy expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs in each of the next five years: In Millions 2020 2021 2022 2023 2024 CMS Energy Long-term leachate disposal and operating and maintenance costs $ 5 $ 4 $ 4 $ 4 $ 4 CMS Energy’s estimate of response activity costs and the timing of expenditures could change if there are changes in circumstances or assumptions used in calculating the liability. Although a liability for its present estimate of remaining response activity costs has been recorded, CMS Energy cannot predict the ultimate financial impact or outcome of this matter. 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, in connection with the sale, CMS Energy owes $152 million in taxes, plus substantial penalties and interest that could be up to or exceed the amount of the taxes claimed. In 2015, the matter was proceeding to formal arbitration; however, since then, the government of Equatorial Guinea has stopped communicating. CMS Energy has concluded that the government’s tax claim is without merit and will continue to contest the claim, but cannot predict the financial impact or outcome of the 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 $4 million . At December 31, 2019 , Consumers had a recorded liability of $3 million , the minimum amount in the range of its estimated probable NREPA liability, as no amount in the range was considered a better estimate than any other amount. Consumers is a potentially responsible party at a number of contaminated sites administered under CERCLA. CERCLA liability is joint and several. In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site. The notification claimed that the EPA has reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB-containing materials at portions of the site. In 2011, Consumers received a follow-up letter from the EPA requesting that Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River. All parties, including Consumers, that were asked to participate in the removal action plan declined to accept liability. Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river. Based on its experience, Consumers estimates that its share of the total liability for known CERCLA sites will be between $3 million and $8 million . Various factors, including the number and creditworthiness of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At December 31, 2019 , Consumers had a recorded liability of $3 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable CERCLA liability, as no amount in the range was considered a better estimate than any other amount. The timing of payments related to Consumers’ remediation and other response activities at its CERCLA and NREPA sites is uncertain. Consumers periodically reviews these cost estimates. A change in the underlying assumptions, such as an increase in the number of sites, different remediation techniques, the nature and extent of contamination, and legal and regulatory requirements, could affect its estimates of NREPA and CERCLA liability. Ludington PCB: In 1998, during routine maintenance activities, Consumers identified PCB as a component in certain paint, grout, and sealant materials at Ludington. Consumers removed part of the PCB material and replaced it with non‑PCB material. Consumers has had several communications with the EPA regarding this matter, but cannot predict the financial impact or outcome. MCV PPA: In 2017, the MCV Partnership initiated arbitration against Consumers, asserting a breach of contract associated with the MCV PPA. Under this PPA, Consumers pays the MCV Partnership a fixed energy charge based on Consumers’ annual average baseload coal generating plant operating and maintenance cost, fuel inventory, and administrative and general expenses . The MCV Partnership asserts that, under the Clean Air Act, Consumers should have installed pollution control equipment on coal-fueled electric generating units years before they were retired. The MCV Partnership also asserts that Consumers should have installed pollution control equipment earlier on its remaining coal-fueled electric generating units. Additionally, the MCV Partnership claims that Consumers improperly characterized certain costs included in the calculation of the fixed energy charge. In January 2019, an arbitration panel issued an order concluding that the MCV Partnership is not entitled to any damages associated with its claim against Consumers related to the Clean Air Act; the majority of the MCV Partnership’s claim, which estimated damages and interest in excess of $270 million , was related to this dismissed claim. Consumers believes that the MCV Partnership’s remaining claims are without merit, but cannot predict the financial impact or outcome of the matter. Underwater Cables in Straits of Mackinac: Consumers owns certain underwater electric cables in the Straits of Mackinac, which were de-energized and retired in 1990. Consumers was notified that some of these cables were damaged as a result of vessel activity in April 2018. Following the notification, Consumers located, inspected, sampled, capped, and returned the damaged retired cables to their original location on the lake bottom, and did not find any substantive evidence of environmental contamination. After collaborating with the State of Michigan, local Native American tribes, and other stakeholders, Consumers submitted a permit application and removal work plan with EGLE and the U.S. Army Corps of Engineers in December 2019 for partial removal of all Consumers-owned cables. Upon EGLE’s issuance of a permit or certificate of coverage, which is expected in early 2020, Consumers will record an ARO for the cost to remove partially its cables, estimated to be up to $5 million . If Consumers were required to remove all the cables, it could incur costs of up to $10 million . Consumers filed suit against the companies that own the vessels that allegedly caused the damage and settled that matter. Consumers will seek recovery from customers of any costs incurred. Consumers Gas Utility Contingencies Gas Environmental Matters : Consumers expects to incur remediation and other response activity costs at a number of sites under the NREPA. These sites include 23 former MGP facilities. Consumers operated the facilities on these sites for some part of their operating lives. For some of these sites, Consumers has no present ownership interest or may own only a portion of the original site. At December 31, 2019 , Consumers had a recorded liability of $68 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 $73 million . Consumers expects to pay the following amounts for remediation and other response activity costs in each of the next five years: In Millions 2020 2021 2022 2023 2024 Consumers Remediation and other response activity costs $ 12 $ 8 $ 20 $ 11 $ 2 Consumers periodically reviews these cost estimates. Any significant change in the underlying assumptions, such as an increase in the number of sites, changes in remediation techniques, or legal and regulatory requirements, could affect Consumers’ estimates of annual response activity costs and the MGP liability. Pursuant to orders issued by the MPSC, Consumers defers its MGP-related remediation costs and recovers them from its customers over a ten -year period. At December 31, 2019 , Consumers had a regulatory asset of $130 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 December 31, 2019 , Consumers had a recorded liability of less than $1 million , the minimum amount in the range of its estimated probable liability, as no amount in the range was considered a better estimate than any other amount. Ray Compressor Station: On January 30, 2019, Consumers experienced a fire at the Ray Compressor Station, which resulted in the Ray Storage Field being off‑line or operating at significantly reduced capacity, which negatively affected Consumers’ natural gas supply and delivery capacity. This incident, which occurred during the extreme polar vortex weather condition, required Consumers to request voluntary reductions in customer load, to implement contingency gas supply purchases, and to implement a curtailment of natural gas deliveries for industrial and large commercial customers pursuant to Consumers’ MPSC curtailment tariff. The curtailment and request for voluntary reductions of customer loads were canceled as of midnight, February 1, 2019. Consumers investigated the cause of the incident, and filed a report on the incident with the MPSC in April 2019. In response, the MPSC issued an order in July 2019, directing Consumers to file additional reports regarding the incident and to include detail of the resulting costs in a future rate proceeding. The compressor station is presently operating at full capacity. As a result of the fire and the resulting curtailment, Consumers could be subject to disallowances of gas purchased and costs associated with the repairs to the Ray Compressor Station. Consumers’ incremental cost of gas purchased during the incident was $7 million . Additionally, at December 31, 2019 , Consumers had incurred capital expenditures of $12 million to restore the compressor station. Consumers may also be subject to various claims from impacted customers, claims for damages, or regulatory penalties. At this time, Consumers cannot predict the outcome of these matters or other gas-related incidents and a reasonable estimate of a total loss cannot be made, but they could have a material adverse effect on Consumers’ results of operations, financial condition, or liquidity, and could subject Consumers’ gas utility to increased regulatory scrutiny. Consumers Electric and Gas Utility Contingencies Electric and Gas Staking: In June 2019, the MPSC ordered Consumers to show cause as to why it should not be found in violation of the MISS DIG Act. The MPSC alleges that Consumers violated the law by failing to respond in a timely manner to over 20,000 requests to mark the location of underground facilities in April and May 2019 and only partially responding to others. The law provides the MPSC with discretion in setting fines for violations, if any; however, the fines cannot exceed $5,000 per violation. Consumers resolved the backlog of staking requests, and Consumers, the MPSC Staff, and the Michigan Attorney General filed an agreement with the MPSC settling this matter for an amount of less than $1 million . The MPSC approved the settlement agreement in January 2020. Guarantees Presented in the following table are CMS Energy’s and Consumers’ guarantees at December 31, 2019 : In Millions Guarantee Description Issue Date Expiration Date Maximum Obligation Carrying Amount CMS Energy, including Consumers Indemnity obligations from stock and asset sale agreements 1 various indefinite $ 153 $ 2 Guarantees 2 various indefinite 36 — Consumers Guarantee 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. The maximum obligation amount is mostly related to the Equatorial Guinea tax claim discussed in the CMS Energy Contingencies section of this Note. 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 U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers. At CMS Energy, the guarantee obligations comprise Consumers’ guarantee to the U.S. Department of Energy and CMS Energy’s 1994 guarantee of non ‑ recourse revenue bonds issued by Genesee. For additional details on this guarantee, see Note 21, Variable Interest Entities . 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 carrying value of these indemnity obligations is $1 million . CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities to be remote. Other Contingencies In addition to the matters disclosed in this Note and Note 3, Regulatory Matters , there are certain other lawsuits and administrative proceedings before various courts and governmental agencies, as well as unasserted claims that may result in such proceedings, arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties. These other lawsuits, proceedings, and unasserted claims may involve personal injury, property damage, contracts, environmental matters, federal and state taxes, rates, licensing, employment, and other matters. Further, CMS Energy and Consumers occasionally self-report certain regulatory non‑compliance matters that may or may not eventually result in administrative proceedings. CMS Energy and Consumers believe that the outcome of any one of these proceedings and potential claims will not have a material negative effect on their consolidated results of operations, financial condition, or liquidity. Contractual Commitments Purchase Obligations: Purchase obligations arise from long-term contracts for the purchase of commodities and related services, and construction and service agreements. The commodities and related services include long-term PPAs, natural gas and associated transportation, and coal and associated transportation. Related-party PPAs are between Consumers and certain affiliates of CMS Enterprises. Presented in the following table are CMS Energy’s and Consumers’ contractual purchase obligations at December 31, 2019 for each of the periods shown: In Millions Payments Due Total 2020 2021 2022 2023 2024 Beyond 2024 CMS Energy, including Consumers Total PPAs $ 9,336 $ 1,030 $ 1,035 $ 750 $ 608 $ 605 $ 5,308 Other 3,244 1,685 520 451 210 199 179 Consumers PPAs MCV PPA $ 3,295 $ 313 $ 287 $ 272 $ 225 $ 201 $ 1,997 Palisades PPA 899 388 398 113 — — — Related-party PPAs 472 71 72 74 74 75 106 Other PPAs 4,670 258 278 291 309 329 3,205 Total PPAs $ 9,336 $ 1,030 $ 1,035 $ 750 $ 608 $ 605 $ 5,308 Other 2,865 1,638 477 413 174 162 1 MCV PPA: Consumers has a 35 -year PPA that began in 1990 with the MCV Partnership to purchase 1,240 MW of electricity. The MCV PPA, as amended and restated, provides for: • a capacity charge of $10.14 per MWh of available capacity • a fixed energy charge based on Consumers’ annual average baseload coal generating plant operating and maintenance cost, fuel inventory, and administrative and general expenses • a variable energy charge based on the MCV Partnership’s cost of production when the plant is dispatched • a $5 million annual contribution by the MCV Partnership to a renewable resources program • an option for Consumers to extend the MCV PPA for five years or purchase the MCV Facility at the conclusion of the MCV PPA’s term in March 2025; although Consumers is not obligated to exercise either of these options, the table above presents the impact on future cash flows of extending the MCV PPA through 2030 Capacity and energy charges under the MCV PPA were $318 million in 2019 , $353 million in 2018 , and $321 million in 2017 . Palisades PPA: Consumers has a PPA expiring in 2022 with Entergy to purchase virtually all of the capacity and energy produced by Palisades, up to the annual average capacity of 798 MW . For all delivered energy, the Palisades PPA has escalating capacity and variable energy charges. Total capacity and energy charges under the Palisades PPA were $395 million in 2019 , $375 million in 2018 , and $366 million in 2017 . For further details about Palisades, see Note 10, Leases and Palisades Financing . Other PPAs: Consumers has PPAs expiring through 2040 with various counterparties. The majority of the PPAs have capacity and energy charges for delivered energy. In addition, CMS Energy and Consumers account for several of their PPAs as leases. Capacity and energy charges under these PPAs were $336 million in 2019 , $350 million in 2018 , and $349 million in 2017 . See Note 10, Leases and Palisades Financing for more information about CMS Energy’s and Consumers’ lease obligations. |
Financings And Capitalization
Financings And Capitalization | 12 Months Ended |
Dec. 31, 2019 | |
Debt Instrument [Line Items] | |
Financings and Capitalization | Financings and Capitalization Presented in the following table is CMS Energy’s long-term debt at December 31: In Millions Interest Rate (%) Maturity 2019 2018 CMS Energy, including Consumers CMS Energy, parent only Senior notes 5.050 2022 $ 300 $ 300 3.875 2024 250 250 3.600 2025 250 250 3.000 2026 300 300 2.950 2027 275 275 3.450 2027 350 350 4.700 2043 250 250 4.875 2044 300 300 Total senior notes $ 2,275 $ 2,275 Term loans and revolving credit agreements variable 2019 — 180 variable 2023 — 30 $ — $ 210 Junior subordinated notes¹ 5.625 2078 200 200 5.875 2078 280 280 5.875 2079 630 — $ 1,110 $ 480 Total CMS Energy, parent only $ 3,385 $ 2,965 CMS Energy subsidiaries CMS Enterprises, including subsidiaries Term loan facility variable 2 2025 $ 92 $ 98 EnerBank Certificates of deposit 2.445 3 2020-2027 2,389 1,758 Consumers 7,322 6,862 Total principal amount outstanding $ 13,188 $ 11,683 Current amounts (1,111 ) (974 ) Unamortized discounts (27 ) (21 ) Unamortized issuance costs (99 ) (73 ) Total long-term debt $ 11,951 $ 10,615 1 These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness. 2 A subsidiary of CMS Enterprises issued non ‑ recourse debt to finance the acquisition of a wind generation project in Northwest Ohio. The debt bears interest at an annual interest rate of LIBOR plus 1.500 percent through October 2022 ( 3.445 percent at December 31, 2019 and 4.303 percent at December 31, 2018 ). Beginning in October 2022, the debt will bear interest at an annual interest rate of LIBOR plus 1.750 percent . The same subsidiary of CMS Enterprises entered into interest rate swaps with the lending banks to fix the interest charges associated with the debt, at a rate of 4.702 percent through October 2022 and 4.952 percent beginning in October 2022. Principal and interest payments are made quarterly. For information about the interest rate swaps, see Note 6, Fair Value Measurements . 3 The weighted-average interest rate for EnerBank’s certificates of deposit was 2.445 percent at December 31, 2019 and 2.440 percent at December 31, 2018 . EnerBank’s primary deposit product consists of brokered certificates of deposit with varying maturities and having a face value of $1,000 . Presented in the following table is Consumers’ long-term debt at December 31: In Millions Interest Rate (%) Maturity 2019 2018 Consumers First mortgage bonds 5.650 2020 $ — $ 300 3.770 2020 100 100 2.850 2022 375 375 5.300 2022 250 250 3.375 2023 325 325 3.125 2024 250 250 3.190 2024 52 52 3.680 2027 100 100 3.390 2027 35 35 3.800 2028 300 300 3.180 2032 100 100 5.800 2035 175 175 3.520 2037 335 335 4.010 2038 215 215 6.170 2040 50 50 4.970 2040 50 50 4.310 2042 263 263 3.950 2043 425 425 4.100 2045 250 250 3.250 2046 450 450 3.950 2047 350 350 4.050 2048 550 550 4.350 2049 550 550 3.750 2050 300 — 3.100 2050 550 — 3.860 2052 50 50 4.280 2057 185 185 4.350 2064 250 250 variable 1 2069 76 — Total first mortgage bonds $ 6,961 $ 6,335 Tax-exempt revenue bonds variable 2 2035 35 35 1.800 3 2049 75 — $ 110 $ 35 Securitization bonds 3.220 4 2025-2029 5 251 277 Revolving credit agreements variable 2020-2023 — 215 Total principal amount outstanding $ 7,322 $ 6,862 Current amounts (202 ) (26 ) Unamortized discounts (23 ) (16 ) Unamortized issuance costs (49 ) (41 ) Total long-term debt $ 7,048 $ 6,779 1 The variable-rate bonds bear interest quarterly at a rate of three-month LIBOR minus 0.300 percent ( 1.594 percent at December 31, 2019 ). 2 The interest rate on these tax‑exempt revenue bonds is reset weekly and was 1.740 percent at December 31, 2019 and 1.780 percent at December 31, 2018 . 3 The interest rate on these tax‑exempt revenue bonds will reset on October 1, 2024. 4 The weighted-average interest rate for Consumers’ securitization bonds issued through its subsidiary, Consumers 2014 Securitization Funding, was 3.220 percent at December 31, 2019 and 3.057 percent at December 31, 2018 . 5 Principal and interest payments are made semiannually. Financings: Presented in the following table is a summary of major long-term debt issuances during the year ended December 31, 2019 : Principal (In Millions) Interest Rate (%) Issuance Date Maturity Date CMS Energy, parent only Term loan facility $ 300 variable January December 2019 Junior subordinated notes 1 630 5.875 February March 2079 Term loan facility 165 variable June June 2020 Total CMS Energy, parent only $ 1,095 Consumers First mortgage bonds $ 300 3.750 May February 2050 First mortgage bonds 550 3.100 September August 2050 First mortgage bonds 76 variable September September 2069 Tax-exempt revenue bonds 75 1.800 October October 2049 Total Consumers $ 1,001 Total CMS Energy $ 2,096 1 These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness. Presented in the following table is a summary of major long-term debt retirements during the year ended December 31, 2019 : Principal (In Millions) Interest Rate (%) Retirement Date Maturity Date CMS Energy, parent only Term loan facility $ 300 variable February December 2019 Term loan facility 180 variable February April 2019 Term loan facility 165 variable August-December June 2020 Total CMS Energy, parent only $ 645 Consumers First mortgage bonds $ 300 5.650 % May April 2020 Total Consumers $ 300 Total CMS Energy $ 945 Term Loan Credit Agreement: In January 2020, Consumers entered into a $300 million unsecured term loan credit agreement. The term loan matures in January 2021. First Mortgage Bonds: Consumers secures its first mortgage bonds by a mortgage and lien on substantially all of its property. Consumers’ ability to issue first mortgage bonds is restricted by certain provisions in the First Mortgage Bond Indenture and the need for regulatory approvals under federal law. Restrictive issuance provisions in the First Mortgage Bond Indenture include achieving a two -times interest coverage ratio and having sufficient unfunded net property additions. Regulatory Authorization for Financings: Consumers is required to maintain FERC authorization for financings. Its current authorization terminates on August 31, 2021. Any long-term issuances during the authorization period are exempt from FERC’s competitive bidding and negotiated placement requirements. Securitization Bonds: Certain regulatory assets held by Consumers’ subsidiary, Consumers 2014 Securitization Funding, collateralize Consumers’ securitization bonds. The bondholders have no recourse to Consumers’ assets except for those held by the subsidiary that issued the bonds. Consumers collects securitization surcharges to cover the principal and interest on the bonds as well as certain other qualified costs. The surcharges collected are remitted to a trustee and are not available to creditors of Consumers or creditors of Consumers’ affiliates other than the subsidiary that issued the bonds. Debt Maturities: At December 31, 2019 , the aggregate annual contractual maturities for long-term debt for the next five years were: In Millions 2020 2021 2022 2023 2024 CMS Energy, including Consumers Long-term debt $ 1,111 $ 538 $ 1,354 $ 669 $ 808 Consumers Long-term debt $ 202 $ 27 $ 653 $ 354 $ 332 Revolving Credit Facilities: The following revolving credit facilities with banks were available at December 31, 2019 : In Millions Expiration Date Amount of Facility Amount Borrowed Letters of Credit Outstanding Amount Available CMS Energy, parent only June 5, 2023 1 $ 550 $ — $ 6 $ 544 CMS Enterprises, including subsidiaries September 30, 2025 2 $ 18 $ — $ 8 $ 10 Consumers 3 June 5, 2023 $ 850 $ — $ 7 $ 843 November 19, 2021 250 — 10 240 April 18, 2022 30 — 30 — 1 During the year ended December 31, 2019 , CMS Energy’s average borrowings totaled $5 million with a weighted-average interest rate of 3.859 percent . 2 Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank. There were no borrowings under this facility during the year ended December 31, 2019 . 3 Obligations under these facilities are secured by first mortgage bonds of Consumers. During the year ended December 31, 2019 , Consumers’ average borrowings totaled $2 million with a weighted-average interest rate of 3.225 percent . Short-term Borrowings: Under Consumers’ commercial paper program , Consumers may issue, in one or more placements , investment-grade commercial paper notes with maturities of up to 365 days at market interest rates. These issuances are supported by Consumers’ revolving credit facilities and may have an aggregate principal amount outstanding of up to $500 million . While the amount of outstanding commercial paper does not reduce the available capacity of the revolving credit facilities, Consumers does not intend to issue commercial paper in an amount exceeding the available capacity of the facilities. At December 31, 2019 , there were $90 million commercial paper notes outstanding under this program at an annual interest rate of 2.050 percent , recorded as current notes payable on the consolidated balance sheets of CMS Energy and Consumers. Dividend Restrictions : At December 31, 2019 , payment of dividends by CMS Energy on its common stock was limited to $5.0 billion under provisions of the Michigan Business Corporation Act of 1972. Under the provisions of its articles of incorporation, at December 31, 2019 , Consumers had $1.4 billion of unrestricted retained earnings available to pay dividends on its common stock to CMS Energy. Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings. Several decisions from FERC suggest that, under a variety of circumstances, dividends from Consumers on its common stock would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay dividends on its common stock in excess of retained earnings would be based on specific facts and circumstances and would be subject to a formal regulatory filing process. For the year ended December 31, 2019 , Consumers paid $592 million in dividends on its common stock to CMS Energy. Capitalization: The authorized capital stock of CMS Energy consists of: • 350 million shares of CMS Energy Common Stock, par value $0.01 per share • 10 million shares of CMS Energy Preferred Stock, par value $0.01 per share Issuance of Common Stock : In 2018, CMS Energy entered into an equity offering program under which it may sell, from time to time, shares of CMS Energy common stock having an aggregate sales price of up to $250 million . Under this program, CMS Energy may sell its common stock in privately negotiated transactions, in “at the market” offerings, through forward sales transactions or otherwise. CMS Energy has entered into forward sales contracts having an aggregate sales price of $250 million . Presented in the following table are details of these contracts: Contract Date Maturity Date Number of Shares Initial Forward Price Per Share November 16, 2018 May 16, 2020 2,017,783 $ 49.06 November 20, 2018 May 20, 2020 777,899 50.91 February 21, 2019 August 21, 2020 2,083,340 52.27 These contracts allow CMS Energy to either physically settle the contracts by issuing shares of its common stock at the then-applicable forward sale price specified by the agreement or net settle the contracts through the delivery or receipt of cash or shares. CMS Energy may settle the contracts at any time through their maturity dates, and presently intends to physically settle the contracts by delivering shares of its common stock. The initial forward price in the forward equity sale contracts includes a deduction for commissions and will be adjusted on a daily basis over the term based on an interest rate factor and decreased on certain dates by certain predetermined amounts to reflect expected dividend payments. No amounts have or will be recorded on CMS Energy’s consolidated balance sheets until settlements of the forward equity sale contracts occur. If CMS Energy had elected to net share settle the contracts as of December 31, 2019 , CMS Energy would have been required to deliver 992,596 shares . Preferred Stock of Subsidiary: Consumers’ preferred stock is traded on the New York Stock Exchange under the symbol CMS-PB. Presented in the following table are details of Consumers’ preferred stock at December 31, 2019 and 2018 : Par Value Optional Redemption Price Number of Shares Authorized Number of Shares Outstanding Cumulative, with no mandatory redemption $ 100 $ 110 7,500,000 373,148 |
Consumers Energy Company | |
Debt Instrument [Line Items] | |
Financings and Capitalization | Financings and Capitalization Presented in the following table is CMS Energy’s long-term debt at December 31: In Millions Interest Rate (%) Maturity 2019 2018 CMS Energy, including Consumers CMS Energy, parent only Senior notes 5.050 2022 $ 300 $ 300 3.875 2024 250 250 3.600 2025 250 250 3.000 2026 300 300 2.950 2027 275 275 3.450 2027 350 350 4.700 2043 250 250 4.875 2044 300 300 Total senior notes $ 2,275 $ 2,275 Term loans and revolving credit agreements variable 2019 — 180 variable 2023 — 30 $ — $ 210 Junior subordinated notes¹ 5.625 2078 200 200 5.875 2078 280 280 5.875 2079 630 — $ 1,110 $ 480 Total CMS Energy, parent only $ 3,385 $ 2,965 CMS Energy subsidiaries CMS Enterprises, including subsidiaries Term loan facility variable 2 2025 $ 92 $ 98 EnerBank Certificates of deposit 2.445 3 2020-2027 2,389 1,758 Consumers 7,322 6,862 Total principal amount outstanding $ 13,188 $ 11,683 Current amounts (1,111 ) (974 ) Unamortized discounts (27 ) (21 ) Unamortized issuance costs (99 ) (73 ) Total long-term debt $ 11,951 $ 10,615 1 These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness. 2 A subsidiary of CMS Enterprises issued non ‑ recourse debt to finance the acquisition of a wind generation project in Northwest Ohio. The debt bears interest at an annual interest rate of LIBOR plus 1.500 percent through October 2022 ( 3.445 percent at December 31, 2019 and 4.303 percent at December 31, 2018 ). Beginning in October 2022, the debt will bear interest at an annual interest rate of LIBOR plus 1.750 percent . The same subsidiary of CMS Enterprises entered into interest rate swaps with the lending banks to fix the interest charges associated with the debt, at a rate of 4.702 percent through October 2022 and 4.952 percent beginning in October 2022. Principal and interest payments are made quarterly. For information about the interest rate swaps, see Note 6, Fair Value Measurements . 3 The weighted-average interest rate for EnerBank’s certificates of deposit was 2.445 percent at December 31, 2019 and 2.440 percent at December 31, 2018 . EnerBank’s primary deposit product consists of brokered certificates of deposit with varying maturities and having a face value of $1,000 . Presented in the following table is Consumers’ long-term debt at December 31: In Millions Interest Rate (%) Maturity 2019 2018 Consumers First mortgage bonds 5.650 2020 $ — $ 300 3.770 2020 100 100 2.850 2022 375 375 5.300 2022 250 250 3.375 2023 325 325 3.125 2024 250 250 3.190 2024 52 52 3.680 2027 100 100 3.390 2027 35 35 3.800 2028 300 300 3.180 2032 100 100 5.800 2035 175 175 3.520 2037 335 335 4.010 2038 215 215 6.170 2040 50 50 4.970 2040 50 50 4.310 2042 263 263 3.950 2043 425 425 4.100 2045 250 250 3.250 2046 450 450 3.950 2047 350 350 4.050 2048 550 550 4.350 2049 550 550 3.750 2050 300 — 3.100 2050 550 — 3.860 2052 50 50 4.280 2057 185 185 4.350 2064 250 250 variable 1 2069 76 — Total first mortgage bonds $ 6,961 $ 6,335 Tax-exempt revenue bonds variable 2 2035 35 35 1.800 3 2049 75 — $ 110 $ 35 Securitization bonds 3.220 4 2025-2029 5 251 277 Revolving credit agreements variable 2020-2023 — 215 Total principal amount outstanding $ 7,322 $ 6,862 Current amounts (202 ) (26 ) Unamortized discounts (23 ) (16 ) Unamortized issuance costs (49 ) (41 ) Total long-term debt $ 7,048 $ 6,779 1 The variable-rate bonds bear interest quarterly at a rate of three-month LIBOR minus 0.300 percent ( 1.594 percent at December 31, 2019 ). 2 The interest rate on these tax‑exempt revenue bonds is reset weekly and was 1.740 percent at December 31, 2019 and 1.780 percent at December 31, 2018 . 3 The interest rate on these tax‑exempt revenue bonds will reset on October 1, 2024. 4 The weighted-average interest rate for Consumers’ securitization bonds issued through its subsidiary, Consumers 2014 Securitization Funding, was 3.220 percent at December 31, 2019 and 3.057 percent at December 31, 2018 . 5 Principal and interest payments are made semiannually. Financings: Presented in the following table is a summary of major long-term debt issuances during the year ended December 31, 2019 : Principal (In Millions) Interest Rate (%) Issuance Date Maturity Date CMS Energy, parent only Term loan facility $ 300 variable January December 2019 Junior subordinated notes 1 630 5.875 February March 2079 Term loan facility 165 variable June June 2020 Total CMS Energy, parent only $ 1,095 Consumers First mortgage bonds $ 300 3.750 May February 2050 First mortgage bonds 550 3.100 September August 2050 First mortgage bonds 76 variable September September 2069 Tax-exempt revenue bonds 75 1.800 October October 2049 Total Consumers $ 1,001 Total CMS Energy $ 2,096 1 These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness. Presented in the following table is a summary of major long-term debt retirements during the year ended December 31, 2019 : Principal (In Millions) Interest Rate (%) Retirement Date Maturity Date CMS Energy, parent only Term loan facility $ 300 variable February December 2019 Term loan facility 180 variable February April 2019 Term loan facility 165 variable August-December June 2020 Total CMS Energy, parent only $ 645 Consumers First mortgage bonds $ 300 5.650 % May April 2020 Total Consumers $ 300 Total CMS Energy $ 945 Term Loan Credit Agreement: In January 2020, Consumers entered into a $300 million unsecured term loan credit agreement. The term loan matures in January 2021. First Mortgage Bonds: Consumers secures its first mortgage bonds by a mortgage and lien on substantially all of its property. Consumers’ ability to issue first mortgage bonds is restricted by certain provisions in the First Mortgage Bond Indenture and the need for regulatory approvals under federal law. Restrictive issuance provisions in the First Mortgage Bond Indenture include achieving a two -times interest coverage ratio and having sufficient unfunded net property additions. Regulatory Authorization for Financings: Consumers is required to maintain FERC authorization for financings. Its current authorization terminates on August 31, 2021. Any long-term issuances during the authorization period are exempt from FERC’s competitive bidding and negotiated placement requirements. Securitization Bonds: Certain regulatory assets held by Consumers’ subsidiary, Consumers 2014 Securitization Funding, collateralize Consumers’ securitization bonds. The bondholders have no recourse to Consumers’ assets except for those held by the subsidiary that issued the bonds. Consumers collects securitization surcharges to cover the principal and interest on the bonds as well as certain other qualified costs. The surcharges collected are remitted to a trustee and are not available to creditors of Consumers or creditors of Consumers’ affiliates other than the subsidiary that issued the bonds. Debt Maturities: At December 31, 2019 , the aggregate annual contractual maturities for long-term debt for the next five years were: In Millions 2020 2021 2022 2023 2024 CMS Energy, including Consumers Long-term debt $ 1,111 $ 538 $ 1,354 $ 669 $ 808 Consumers Long-term debt $ 202 $ 27 $ 653 $ 354 $ 332 Revolving Credit Facilities: The following revolving credit facilities with banks were available at December 31, 2019 : In Millions Expiration Date Amount of Facility Amount Borrowed Letters of Credit Outstanding Amount Available CMS Energy, parent only June 5, 2023 1 $ 550 $ — $ 6 $ 544 CMS Enterprises, including subsidiaries September 30, 2025 2 $ 18 $ — $ 8 $ 10 Consumers 3 June 5, 2023 $ 850 $ — $ 7 $ 843 November 19, 2021 250 — 10 240 April 18, 2022 30 — 30 — 1 During the year ended December 31, 2019 , CMS Energy’s average borrowings totaled $5 million with a weighted-average interest rate of 3.859 percent . 2 Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank. There were no borrowings under this facility during the year ended December 31, 2019 . 3 Obligations under these facilities are secured by first mortgage bonds of Consumers. During the year ended December 31, 2019 , Consumers’ average borrowings totaled $2 million with a weighted-average interest rate of 3.225 percent . Short-term Borrowings: Under Consumers’ commercial paper program , Consumers may issue, in one or more placements , investment-grade commercial paper notes with maturities of up to 365 days at market interest rates. These issuances are supported by Consumers’ revolving credit facilities and may have an aggregate principal amount outstanding of up to $500 million . While the amount of outstanding commercial paper does not reduce the available capacity of the revolving credit facilities, Consumers does not intend to issue commercial paper in an amount exceeding the available capacity of the facilities. At December 31, 2019 , there were $90 million commercial paper notes outstanding under this program at an annual interest rate of 2.050 percent , recorded as current notes payable on the consolidated balance sheets of CMS Energy and Consumers. Dividend Restrictions : At December 31, 2019 , payment of dividends by CMS Energy on its common stock was limited to $5.0 billion under provisions of the Michigan Business Corporation Act of 1972. Under the provisions of its articles of incorporation, at December 31, 2019 , Consumers had $1.4 billion of unrestricted retained earnings available to pay dividends on its common stock to CMS Energy. Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings. Several decisions from FERC suggest that, under a variety of circumstances, dividends from Consumers on its common stock would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay dividends on its common stock in excess of retained earnings would be based on specific facts and circumstances and would be subject to a formal regulatory filing process. For the year ended December 31, 2019 , Consumers paid $592 million in dividends on its common stock to CMS Energy. Capitalization: The authorized capital stock of CMS Energy consists of: • 350 million shares of CMS Energy Common Stock, par value $0.01 per share • 10 million shares of CMS Energy Preferred Stock, par value $0.01 per share Issuance of Common Stock : In 2018, CMS Energy entered into an equity offering program under which it may sell, from time to time, shares of CMS Energy common stock having an aggregate sales price of up to $250 million . Under this program, CMS Energy may sell its common stock in privately negotiated transactions, in “at the market” offerings, through forward sales transactions or otherwise. CMS Energy has entered into forward sales contracts having an aggregate sales price of $250 million . Presented in the following table are details of these contracts: Contract Date Maturity Date Number of Shares Initial Forward Price Per Share November 16, 2018 May 16, 2020 2,017,783 $ 49.06 November 20, 2018 May 20, 2020 777,899 50.91 February 21, 2019 August 21, 2020 2,083,340 52.27 These contracts allow CMS Energy to either physically settle the contracts by issuing shares of its common stock at the then-applicable forward sale price specified by the agreement or net settle the contracts through the delivery or receipt of cash or shares. CMS Energy may settle the contracts at any time through their maturity dates, and presently intends to physically settle the contracts by delivering shares of its common stock. The initial forward price in the forward equity sale contracts includes a deduction for commissions and will be adjusted on a daily basis over the term based on an interest rate factor and decreased on certain dates by certain predetermined amounts to reflect expected dividend payments. No amounts have or will be recorded on CMS Energy’s consolidated balance sheets until settlements of the forward equity sale contracts occur. If CMS Energy had elected to net share settle the contracts as of December 31, 2019 , CMS Energy would have been required to deliver 992,596 shares . Preferred Stock of Subsidiary: Consumers’ preferred stock is traded on the New York Stock Exchange under the symbol CMS-PB. Presented in the following table are details of Consumers’ preferred stock at December 31, 2019 and 2018 : Par Value Optional Redemption Price Number of Shares Authorized Number of Shares Outstanding Cumulative, with no mandatory redemption $ 100 $ 110 7,500,000 373,148 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Measurements | Fair Value Measurements Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. When measuring fair value, CMS Energy and Consumers are required to incorporate all assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. A fair value hierarchy prioritizes inputs used to measure fair value according to their observability in the market. The three levels of the fair value hierarchy are as follows: • Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2 inputs are observable, market-based inputs, other than Level 1 prices. Level 2 inputs may include quoted prices for similar assets or liabilities in active markets, quoted prices in inactive markets, and inputs derived from or corroborated by observable market data. • Level 3 inputs are unobservable inputs that reflect CMS Energy’s or Consumers’ own assumptions about how market participants would value their assets and liabilities. CMS Energy and Consumers classify fair value measurements within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement in its entirety. Assets and Liabilities Measured at Fair Value on a Recurring Basis Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis: In Millions CMS Energy, including Consumers Consumers December 31 2019 2018 2019 2018 Assets 1 Cash equivalents $ — $ 27 $ — $ — Restricted cash and cash equivalents 17 21 17 17 CMS Energy common stock — — 1 1 Nonqualified deferred compensation plan assets 18 14 14 10 Other non-current assets — 1 — — Derivative instruments 1 1 1 1 Total $ 36 $ 64 $ 33 $ 29 Liabilities 1 Nonqualified deferred compensation plan liabilities $ 18 $ 14 $ 14 $ 10 Derivative instruments 8 3 — — Total $ 26 $ 17 $ 14 $ 10 1 All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3. Cash Equivalents: Cash equivalents and restricted cash equivalents consist of money market funds with daily liquidity. For further details, see Note 18, Cash and Cash Equivalents . Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are valued using the daily quoted net asset values. CMS Energy and Consumers value their nonqualified deferred compensation plan liabilities based on the fair values of the plan assets, as they reflect the amount owed to the plan participants in accordance with their investment elections. CMS Energy and Consumers report the assets in other non‑current assets and the liabilities in other non‑current liabilities on their consolidated balance sheets. Derivative Instruments: CMS Energy and Consumers value their derivative instruments using either a market approach that incorporates information from market transactions, or an income approach that discounts future expected cash flows to a present value amount. CMS Energy’s and Consumers’ derivatives are classified as Level 2 or Level 3. The derivatives classified as Level 2 are interest rate swaps at CMS Energy, which are valued using market-based inputs. CMS Energy uses interest rate swaps to manage its interest rate risk on certain long‑term debt obligations and certain notes receivable at EnerBank. In 2018, a subsidiary of CMS Enterprises entered into floating-to-fixed interest rate swaps to reduce the impact of interest rate fluctuations associated with future interest payments on certain long‑term variable-rate debt. The interest rate swaps are accounted for as cash flow hedges of the future variability of interest payments on debt with a notional amount of $92 million at December 31, 2019 . Gains or losses on these swaps are initially reported in AOCI and then, as interest payments are made on the hedged debt, are recognized in earnings within other interest expense on CMS Energy’s consolidated statements of income. CMS Energy recorded losses in AOCI of $4 million for the year ended December 31, 2019 and $2 million for the year ended December 31, 2018 . There were no material impacts on other interest expense associated with these swaps during the years presented. The fair value of these swaps recorded in other liabilities on CMS Energy’s consolidated balance sheets totaled $5 million at December 31, 2019 and $2 million at December 31, 2018 . CMS Energy also has other interest rate swaps that economically hedge interest rate risk on debt, but that do not qualify for cash flow hedge accounting; the amounts associated with these swaps were not material for the years presented. In 2019, EnerBank entered into fixed-to-floating interest rate swaps to manage interest rate risk exposure associated with changes in the fair value of certain long‑term fixed‑rate loans. The interest rate swaps qualify as fair value hedges of long‑term, fixed‑rate notes receivable with a notional amount of $134 million at December 31, 2019 . The fair value of these interest rate swaps recorded in other liabilities was $1 million at December 31, 2019 . CMS Energy is adjusting the carrying value of the hedged notes receivable for the change in their fair value due to the hedged risk. Both gains and losses on the swaps and the changes to the carrying value of the hedged notes receivable are recorded within operating revenue on CMS Energy’s consolidated statements of income. There were no material amounts recognized in operating revenue associated with these swaps for the year ended December 31, 2019 . The majority of derivatives classified as Level 3 are FTRs held by Consumers. Due to the lack of quoted pricing information, Consumers determines the fair value of its FTRs based on Consumers’ average historical settlements. There was no material activity within the Level 3 categories of assets and liabilities during the years presented. |
Consumers Energy Company | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Measurements | Fair Value Measurements Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. When measuring fair value, CMS Energy and Consumers are required to incorporate all assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. A fair value hierarchy prioritizes inputs used to measure fair value according to their observability in the market. The three levels of the fair value hierarchy are as follows: • Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2 inputs are observable, market-based inputs, other than Level 1 prices. Level 2 inputs may include quoted prices for similar assets or liabilities in active markets, quoted prices in inactive markets, and inputs derived from or corroborated by observable market data. • Level 3 inputs are unobservable inputs that reflect CMS Energy’s or Consumers’ own assumptions about how market participants would value their assets and liabilities. CMS Energy and Consumers classify fair value measurements within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement in its entirety. Assets and Liabilities Measured at Fair Value on a Recurring Basis Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis: In Millions CMS Energy, including Consumers Consumers December 31 2019 2018 2019 2018 Assets 1 Cash equivalents $ — $ 27 $ — $ — Restricted cash and cash equivalents 17 21 17 17 CMS Energy common stock — — 1 1 Nonqualified deferred compensation plan assets 18 14 14 10 Other non-current assets — 1 — — Derivative instruments 1 1 1 1 Total $ 36 $ 64 $ 33 $ 29 Liabilities 1 Nonqualified deferred compensation plan liabilities $ 18 $ 14 $ 14 $ 10 Derivative instruments 8 3 — — Total $ 26 $ 17 $ 14 $ 10 1 All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3. Cash Equivalents: Cash equivalents and restricted cash equivalents consist of money market funds with daily liquidity. For further details, see Note 18, Cash and Cash Equivalents . Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are valued using the daily quoted net asset values. CMS Energy and Consumers value their nonqualified deferred compensation plan liabilities based on the fair values of the plan assets, as they reflect the amount owed to the plan participants in accordance with their investment elections. CMS Energy and Consumers report the assets in other non‑current assets and the liabilities in other non‑current liabilities on their consolidated balance sheets. Derivative Instruments: CMS Energy and Consumers value their derivative instruments using either a market approach that incorporates information from market transactions, or an income approach that discounts future expected cash flows to a present value amount. CMS Energy’s and Consumers’ derivatives are classified as Level 2 or Level 3. The derivatives classified as Level 2 are interest rate swaps at CMS Energy, which are valued using market-based inputs. CMS Energy uses interest rate swaps to manage its interest rate risk on certain long‑term debt obligations and certain notes receivable at EnerBank. In 2018, a subsidiary of CMS Enterprises entered into floating-to-fixed interest rate swaps to reduce the impact of interest rate fluctuations associated with future interest payments on certain long‑term variable-rate debt. The interest rate swaps are accounted for as cash flow hedges of the future variability of interest payments on debt with a notional amount of $92 million at December 31, 2019 . Gains or losses on these swaps are initially reported in AOCI and then, as interest payments are made on the hedged debt, are recognized in earnings within other interest expense on CMS Energy’s consolidated statements of income. CMS Energy recorded losses in AOCI of $4 million for the year ended December 31, 2019 and $2 million for the year ended December 31, 2018 . There were no material impacts on other interest expense associated with these swaps during the years presented. The fair value of these swaps recorded in other liabilities on CMS Energy’s consolidated balance sheets totaled $5 million at December 31, 2019 and $2 million at December 31, 2018 . CMS Energy also has other interest rate swaps that economically hedge interest rate risk on debt, but that do not qualify for cash flow hedge accounting; the amounts associated with these swaps were not material for the years presented. In 2019, EnerBank entered into fixed-to-floating interest rate swaps to manage interest rate risk exposure associated with changes in the fair value of certain long‑term fixed‑rate loans. The interest rate swaps qualify as fair value hedges of long‑term, fixed‑rate notes receivable with a notional amount of $134 million at December 31, 2019 . The fair value of these interest rate swaps recorded in other liabilities was $1 million at December 31, 2019 . CMS Energy is adjusting the carrying value of the hedged notes receivable for the change in their fair value due to the hedged risk. Both gains and losses on the swaps and the changes to the carrying value of the hedged notes receivable are recorded within operating revenue on CMS Energy’s consolidated statements of income. There were no material amounts recognized in operating revenue associated with these swaps for the year ended December 31, 2019 . The majority of derivatives classified as Level 3 are FTRs held by Consumers. Due to the lack of quoted pricing information, Consumers determines the fair value of its FTRs based on Consumers’ average historical settlements. There was no material activity within the Level 3 categories of assets and liabilities during the years presented. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Line Items] | |
Financial Instruments | Financial Instruments Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short-term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 6, Fair Value Measurements . In Millions December 31, 2019 December 31, 2018 Fair Value Fair Value Carrying Level Carrying Level Amount Total 1 2 3 Amount Total 1 2 3 CMS Energy, including Consumers Assets Long-term receivables 1 $ 20 $ 20 $ — $ — $ 20 $ 22 $ 22 $ — $ — $ 22 Notes receivable 2 2,500 2,652 — — 2,652 1,857 1,967 — — 1,967 Securities held to maturity 26 26 — 26 — 22 21 — 21 — Liabilities Long-term debt 3 13,062 14,185 1,197 11,048 1,940 11,589 11,630 459 9,404 1,767 Long-term payables 4 30 32 — — 32 27 27 — — 27 Consumers Assets Long-term receivables 1 $ 20 $ 20 $ — $ — $ 20 $ 22 $ 22 $ — $ — $ 22 Notes receivable – related party 5 103 103 — — 103 106 106 — — 106 Liabilities Long-term debt 6 7,250 8,010 — 6,070 1,940 6,805 6,833 — 5,066 1,767 1 Includes current portion of long-term accounts receivable of $13 million at December 31, 2019 and $14 million at December 31, 2018 . 2 Includes current portion of notes receivable of $242 million at December 31, 2019 and $233 million at December 31, 2018 . For further details, see Note 8, Notes Receivable . 3 Includes current portion of long-term debt of $1.1 billion at December 31, 2019 and $1.0 billion at December 31, 2018 . 4 Includes current portion of long-term payables of $1 million at December 31, 2019 and December 31, 2018 . 5 Includes current portion of notes receivable – related party of $7 million at December 31, 2019 and December 31, 2018 . For further details on this note receivable, see the DB SERP discussion below. 6 Includes current portion of long-term debt of $202 million at December 31, 2019 and $26 million at December 31, 2018 . The effects of third-party credit enhancements were excluded from the fair value measurements of long-term debt. The principal amount of CMS Energy’s long-term debt supported by third-party credit enhancements was $35 million at December 31, 2019 and December 31, 2018 . The entirety of these amounts was at Consumers. DB SERP Securities: Presented in the following table is a summary of the sales activity for investment securities held within the DB SERP and classified as available for sale: In Millions Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Proceeds from sales of investment securities $ — $ 142 $ 145 Consumers Proceeds from sales of investment securities $ — $ 103 $ 105 In 2018, CMS Energy and Consumers sold the DB SERP debt securities and CMS Energy issued a $146 million demand note payable to the DB SERP rabbi trust . The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028. The demand note payable and associated DB SERP investment were eliminated on CMS Energy’s consolidated balance sheets. The portion of the demand note attributable to Consumers was recorded as a note receivable – related party on Consumers’ consolidated balance sheets . During 2017, CMS Energy and Consumers sold mutual fund securities held within the DB SERP and used the proceeds to purchase the debt securities, which were later sold in 2018. CMS Energy reclassified gains of $2 million ( $1 million , net of tax) from AOCI and included this amount in other income on the consolidated statements of income. This amount included Consumers’ gains of $2 million ( $1 million , net of tax). Debt securities classified as held to maturity consisted primarily of mortgage-backed securities and Utah Housing Corporation bonds held by EnerBank. Presented in the following table are these investment securities: In Millions December 31, 2019 December 31, 2018 Cost Unrealized Gains Unrealized Losses Fair Value Cost Unrealized Gains Unrealized Losses Fair Value CMS Energy Debt securities $ 26 $ — $ — $ 26 $ 22 $ — $ 1 $ 21 |
Consumers Energy Company | |
Financial Instruments [Line Items] | |
Financial Instruments | Financial Instruments Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short-term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 6, Fair Value Measurements . In Millions December 31, 2019 December 31, 2018 Fair Value Fair Value Carrying Level Carrying Level Amount Total 1 2 3 Amount Total 1 2 3 CMS Energy, including Consumers Assets Long-term receivables 1 $ 20 $ 20 $ — $ — $ 20 $ 22 $ 22 $ — $ — $ 22 Notes receivable 2 2,500 2,652 — — 2,652 1,857 1,967 — — 1,967 Securities held to maturity 26 26 — 26 — 22 21 — 21 — Liabilities Long-term debt 3 13,062 14,185 1,197 11,048 1,940 11,589 11,630 459 9,404 1,767 Long-term payables 4 30 32 — — 32 27 27 — — 27 Consumers Assets Long-term receivables 1 $ 20 $ 20 $ — $ — $ 20 $ 22 $ 22 $ — $ — $ 22 Notes receivable – related party 5 103 103 — — 103 106 106 — — 106 Liabilities Long-term debt 6 7,250 8,010 — 6,070 1,940 6,805 6,833 — 5,066 1,767 1 Includes current portion of long-term accounts receivable of $13 million at December 31, 2019 and $14 million at December 31, 2018 . 2 Includes current portion of notes receivable of $242 million at December 31, 2019 and $233 million at December 31, 2018 . For further details, see Note 8, Notes Receivable . 3 Includes current portion of long-term debt of $1.1 billion at December 31, 2019 and $1.0 billion at December 31, 2018 . 4 Includes current portion of long-term payables of $1 million at December 31, 2019 and December 31, 2018 . 5 Includes current portion of notes receivable – related party of $7 million at December 31, 2019 and December 31, 2018 . For further details on this note receivable, see the DB SERP discussion below. 6 Includes current portion of long-term debt of $202 million at December 31, 2019 and $26 million at December 31, 2018 . The effects of third-party credit enhancements were excluded from the fair value measurements of long-term debt. The principal amount of CMS Energy’s long-term debt supported by third-party credit enhancements was $35 million at December 31, 2019 and December 31, 2018 . The entirety of these amounts was at Consumers. DB SERP Securities: Presented in the following table is a summary of the sales activity for investment securities held within the DB SERP and classified as available for sale: In Millions Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Proceeds from sales of investment securities $ — $ 142 $ 145 Consumers Proceeds from sales of investment securities $ — $ 103 $ 105 In 2018, CMS Energy and Consumers sold the DB SERP debt securities and CMS Energy issued a $146 million demand note payable to the DB SERP rabbi trust . The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028. The demand note payable and associated DB SERP investment were eliminated on CMS Energy’s consolidated balance sheets. The portion of the demand note attributable to Consumers was recorded as a note receivable – related party on Consumers’ consolidated balance sheets . During 2017, CMS Energy and Consumers sold mutual fund securities held within the DB SERP and used the proceeds to purchase the debt securities, which were later sold in 2018. CMS Energy reclassified gains of $2 million ( $1 million , net of tax) from AOCI and included this amount in other income on the consolidated statements of income. This amount included Consumers’ gains of $2 million ( $1 million , net of tax). Debt securities classified as held to maturity consisted primarily of mortgage-backed securities and Utah Housing Corporation bonds held by EnerBank. Presented in the following table are these investment securities: In Millions December 31, 2019 December 31, 2018 Cost Unrealized Gains Unrealized Losses Fair Value Cost Unrealized Gains Unrealized Losses Fair Value CMS Energy Debt securities $ 26 $ — $ — $ 26 $ 22 $ — $ 1 $ 21 |
Notes Receivable
Notes Receivable | 12 Months Ended |
Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Notes Receivable | Notes Receivable Presented in the following table are details of CMS Energy’s and Consumers’ current and non‑current notes receivable: In Millions December 31 2019 2018 CMS Energy, including Consumers Current EnerBank notes receivable, net of allowance for loan losses $ 223 $ 233 EnerBank notes receivable held for sale 19 — Non‑current EnerBank notes receivable 2,258 1,624 Total notes receivable $ 2,500 $ 1,857 Consumers Current DB SERP note receivable – related party $ 7 $ 7 Non‑current DB SERP note receivable – related party 96 99 Total notes receivable $ 103 $ 106 EnerBank Notes Receivable EnerBank notes receivable are primarily unsecured consumer installment loans, largely for financing home improvements . EnerBank records its notes receivable at cost, less an allowance for loan losses. During 2019, EnerBank completed sales of notes receivable, receiving proceeds of $67 million and recording immaterial gains. At December 31, 2019 , $19 million of notes receivable were classified as held for sale; the fair value of notes receivable held for sale exceeded their carrying value. These notes are expected to be sold in 2020. During 2019, EnerBank purchased a portfolio of secured and unsecured consumer installment loans with a principal value of $373 million . 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 $134 million at December 31, 2019 and $102 million at December 31, 2018 . Unearned income associated with loan fees for notes receivable held for sale was $2 million at December 31, 2019 . The allowance for loan losses is a valuation allowance to reflect estimated credit losses. The allowance is increased by the provision for loan losses and decreased by loan charge-offs net of recoveries. Management estimates the allowance balance required by taking into consideration historical loan loss experience, the nature and volume of the portfolio, economic conditions, and other factors. Loan losses are charged against the allowance when the loss is confirmed, but no later than the point at which a loan becomes 120 days past due. Presented in the following table are the changes in the allowance for loan losses: In Millions Years Ended December 31 2019 2018 Balance at beginning of period $ 24 $ 20 Charge-offs (35 ) (24 ) Recoveries 6 3 Provision for loan losses 38 25 Balance at end of period $ 33 $ 24 Loans that are 30 days or more past due are considered delinquent. The balance of EnerBank’s delinquent consumer loans was $33 million at December 31, 2019 and $21 million at December 31, 2018 . At December 31, 2019 and December 31, 2018 , EnerBank’s loans that had been modified as troubled debt restructurings were immaterial. EnerBank has entered into interest rate swaps on $134 million of its loans (notes receivable). For information about interest rate swaps, see Note 6, Fair Value Measurements . DB SERP Note Receivable – Related Party The DB SERP note receivable – related party is Consumers’ portion of a demand note payable issued by CMS Energy to the DB SERP rabbi trust. The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028. |
Consumers Energy Company | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Notes Receivable | Notes Receivable Presented in the following table are details of CMS Energy’s and Consumers’ current and non‑current notes receivable: In Millions December 31 2019 2018 CMS Energy, including Consumers Current EnerBank notes receivable, net of allowance for loan losses $ 223 $ 233 EnerBank notes receivable held for sale 19 — Non‑current EnerBank notes receivable 2,258 1,624 Total notes receivable $ 2,500 $ 1,857 Consumers Current DB SERP note receivable – related party $ 7 $ 7 Non‑current DB SERP note receivable – related party 96 99 Total notes receivable $ 103 $ 106 EnerBank Notes Receivable EnerBank notes receivable are primarily unsecured consumer installment loans, largely for financing home improvements . EnerBank records its notes receivable at cost, less an allowance for loan losses. During 2019, EnerBank completed sales of notes receivable, receiving proceeds of $67 million and recording immaterial gains. At December 31, 2019 , $19 million of notes receivable were classified as held for sale; the fair value of notes receivable held for sale exceeded their carrying value. These notes are expected to be sold in 2020. During 2019, EnerBank purchased a portfolio of secured and unsecured consumer installment loans with a principal value of $373 million . 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 $134 million at December 31, 2019 and $102 million at December 31, 2018 . Unearned income associated with loan fees for notes receivable held for sale was $2 million at December 31, 2019 . The allowance for loan losses is a valuation allowance to reflect estimated credit losses. The allowance is increased by the provision for loan losses and decreased by loan charge-offs net of recoveries. Management estimates the allowance balance required by taking into consideration historical loan loss experience, the nature and volume of the portfolio, economic conditions, and other factors. Loan losses are charged against the allowance when the loss is confirmed, but no later than the point at which a loan becomes 120 days past due. Presented in the following table are the changes in the allowance for loan losses: In Millions Years Ended December 31 2019 2018 Balance at beginning of period $ 24 $ 20 Charge-offs (35 ) (24 ) Recoveries 6 3 Provision for loan losses 38 25 Balance at end of period $ 33 $ 24 Loans that are 30 days or more past due are considered delinquent. The balance of EnerBank’s delinquent consumer loans was $33 million at December 31, 2019 and $21 million at December 31, 2018 . At December 31, 2019 and December 31, 2018 , EnerBank’s loans that had been modified as troubled debt restructurings were immaterial. EnerBank has entered into interest rate swaps on $134 million of its loans (notes receivable). For information about interest rate swaps, see Note 6, Fair Value Measurements . DB SERP Note Receivable – Related Party The DB SERP note receivable – related party is Consumers’ portion of a demand note payable issued by CMS Energy to the DB SERP rabbi trust. The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028. |
Plant, Property, and Equipment
Plant, Property, and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Plant, Property, and Equipment | Plant, Property, and Equipment Presented in the following table are details of CMS Energy’s and Consumers’ plant, property, and equipment: In Millions December 31 Estimated Depreciable Life in Years 2019 2018 CMS Energy, including Consumers Plant, property, and equipment, gross Consumers 3 — 125 $ 24,963 $ 23,963 Enterprises Independent power production 1 3 — 40 403 410 Other 3 — 5 2 2 EnerBank 1 — 7 22 25 Plant, property, and equipment, gross $ 25,390 $ 24,400 Construction work in progress 896 763 Accumulated depreciation and amortization (7,360 ) (7,037 ) Total plant, property, and equipment $ 18,926 $ 18,126 Consumers Plant, property, and equipment, gross Electric Generation 22 — 125 $ 5,942 $ 6,305 Distribution 20 — 75 8,519 7,957 Transmission 46 — 75 113 154 Other 5 — 50 1,258 1,316 Assets under finance leases and other financing 2 326 295 Gas Distribution 20 — 85 5,235 4,651 Transmission 17 — 75 1,752 1,521 Underground storage facilities 3 27 — 75 987 910 Other 5 — 50 797 823 Assets under finance leases 2 14 14 Other non‑utility property 3 — 51 20 17 Plant, property, and equipment, gross $ 24,963 $ 23,963 Construction work in progress 879 756 Accumulated depreciation and amortization (7,272 ) (6,958 ) Total plant, property, and equipment 4 $ 18,570 $ 17,761 1 The majority of independent power production assets are leased to others under operating leases. For information regarding CMS Energy’s operating leases of owned assets, see Note 10, Leases and Palisades Financing . 2 For information regarding the amortization terms of Consumers’ assets under finance leases and other financing, see Note 10, Leases and Palisades Financing . 3 Underground storage includes base natural gas of $26 million at December 31, 2019 and 2018 . Base natural gas is not subject to depreciation. 4 For the year ended December 31, 2019 , Consumers’ plant additions were $2.0 billion and plant retirements were $380 million . For the year ended December 31, 2018 , Consumers’ plant additions were $1.8 billion and plant retirements were $190 million . Consumers plans to retire the D.E. Karn 1 & 2 coal-fueled electric generating units in 2023. Accordingly, in 2019, Consumers removed from total plant, property, and equipment $667 million , representing the remaining book value of the two units upon their retirement, and recorded it as a regulatory asset. For additional details, see Note 3, Regulatory Matters . Intangible Assets: Included in net plant, property, and equipment are intangible assets. Presented in the following table are details about CMS Energy’s and Consumers’ intangible assets: In Millions December 31, 2019 December 31, 2018 Description Amortization Life in Years Gross Cost¹ Accumulated Amortization Gross Cost¹ Accumulated Amortization CMS Energy, including Consumers Software development 1 — 15 $ 882 $ 529 $ 1,024 $ 603 Rights of way 50 — 85 180 55 167 52 Franchises and consents 5 — 50 16 9 15 9 Leasehold improvements various² 9 7 9 7 Other intangibles various 27 15 27 15 Total $ 1,114 $ 615 $ 1,242 $ 686 Consumers Software development 3 — 15 $ 869 $ 521 $ 1,009 $ 595 Rights of way 50 — 85 180 55 167 52 Franchises and consents 5 — 50 16 9 15 9 Leasehold improvements various² 9 7 9 7 Other intangibles various 26 15 26 15 Total $ 1,100 $ 607 $ 1,226 $ 678 1 For the year ended December 31, 2019 , Consumers’ intangible asset additions were $67 million and intangible asset retirements were $193 million . For the year ended December 31, 2018 , Consumers’ intangible asset additions were $90 million and intangible asset retirements were $7 million . 2 Leasehold improvements are amortized over the life of the lease, which may change whenever the lease is renewed or extended. Capitalization: CMS Energy and Consumers record plant, property, and equipment at original cost when placed into service. The cost includes labor, material, applicable taxes, overhead such as pension and other benefits, and AFUDC, if applicable. Consumers’ plant, property, and equipment is generally recoverable through its general ratemaking process. With the exception of utility property for which the remaining book value has been securitized, mothballed utility property stays in rate base and continues to be depreciated at the same rate as before the mothball period. When utility property is retired or otherwise disposed of in the ordinary course of business, Consumers records the original cost to accumulated depreciation, along with associated cost of removal, net of salvage. CMS Energy and Consumers recognize gains or losses on the retirement or disposal of non‑regulated assets in income. Consumers records cost of removal collected from customers, but not spent, as a regulatory liability. Software: CMS Energy and Consumers capitalize the costs to purchase and develop internal-use computer software. These costs are expensed evenly over the estimated useful life of the internal-use computer software. If computer software is integral to computer hardware, then its cost is capitalized and depreciated with the hardware. AFUDC: Consumers capitalizes AFUDC on regulated major construction projects, except pollution control facilities on its fossil-fuel-fired power plants. AFUDC represents the estimated cost of debt and authorized return-on-equity funds used to finance construction additions. Consumers records the offsetting credit as a reduction of interest for the amount representing the borrowed funds component and as other income for the equity funds component on the consolidated statements of income. When construction is completed and the property is placed in service, Consumers depreciates and recovers the capitalized AFUDC from customers over the life of the related asset. Presented in the following table are Consumers’ average AFUDC capitalization rates: Years Ended December 31 2019 2018 2017 Electric 6.4 % 6.9 % 6.8 % Gas 5.8 5.9 6.0 Assets Under Finance Leases and Other Financing: Presented in the following table are further details about changes in Consumers’ assets under finance leases and other financing: In Millions Years Ended December 31 2019 2018 Consumers Balance at beginning of period $ 309 $ 312 Additions 26 — Net retirements and other adjustments 5 (3 ) Balance at end of period $ 340 $ 309 Assets under finance leases and other financing are presented as gross amounts. Accumulated amortization of assets under finance leases and other financing was $239 million at December 31, 2019 and $212 million at December 31, 2018 for Consumers. Depreciation and Amortization: Presented in the following table are further details about CMS Energy’s and Consumers’ accumulated depreciation and amortization: In Millions December 31 2019 2018 CMS Energy, including Consumers Utility plant assets $ 7,269 $ 6,956 Non ‑ utility plant assets 91 81 Consumers Utility plant assets $ 7,269 $ 6,956 Non ‑ utility plant assets 3 2 Consumers depreciates utility property on an asset-group basis, in which it applies a single MPSC-approved depreciation rate to the gross investment in a particular class of property within the electric and gas segments. Consumers performs depreciation studies periodically to determine appropriate group lives. Presented in the following table are the composite depreciation rates for Consumers’ segment properties: Years Ended December 31 2019 2018 2017 Electric utility property 3.9 % 3.9 % 3.9 % Gas utility property 2.9 2.9 2.9 Other property 10.0 10.1 10.0 CMS Energy and Consumers record property repairs and minor property replacement as maintenance expense. CMS Energy and Consumers record planned major maintenance activities as operating expense unless the cost represents the acquisition of additional long-lived assets or the replacement of an existing long-lived asset. Presented in the following table are the components of CMS Energy’s and Consumers’ depreciation and amortization expense: In Millions Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Depreciation expense – plant, property, and equipment $ 842 $ 778 $ 739 Amortization expense Software 121 127 114 Other intangible assets 3 3 3 Securitized regulatory assets 26 25 25 Total depreciation and amortization expense $ 992 $ 933 $ 881 Consumers Depreciation expense – plant, property, and equipment $ 827 $ 768 $ 732 Amortization expense Software 119 125 112 Other intangible assets 3 3 3 Securitized regulatory assets 26 25 25 Total depreciation and amortization expense $ 975 $ 921 $ 872 Presented in the following table is CMS Energy’s and Consumers’ estimated amortization expense on intangible assets for each of the next five years: In Millions 2020 2021 2022 2023 2024 CMS Energy, including Consumers Intangible asset amortization expense $ 118 $ 112 $ 107 $ 87 $ 70 Consumers Intangible asset amortization expense $ 116 $ 110 $ 106 $ 87 $ 70 Jointly Owned Regulated Utility Facilities Presented in the following table are Consumers’ investments in jointly owned regulated utility facilities at December 31, 2019 : In Millions, Except Ownership Share J.H. Campbell Unit 3 Ludington Other Ownership share 93.3 % 51.0 % various Utility plant in service $ 1,731 $ 486 $ 233 Accumulated depreciation (753 ) (166 ) (68 ) Construction work in progress 16 64 15 Net investment $ 994 $ 384 $ 180 Consumers includes its share of the direct expenses of the jointly owned plants in operating expenses. Consumers shares operation, maintenance, and other expenses of these jointly owned utility facilities in proportion to each participant’s undivided ownership interest. Consumers is required to provide only its share of financing for the jointly owned utility facilities. |
Consumers Energy Company | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Plant, Property, and Equipment | Plant, Property, and Equipment Presented in the following table are details of CMS Energy’s and Consumers’ plant, property, and equipment: In Millions December 31 Estimated Depreciable Life in Years 2019 2018 CMS Energy, including Consumers Plant, property, and equipment, gross Consumers 3 — 125 $ 24,963 $ 23,963 Enterprises Independent power production 1 3 — 40 403 410 Other 3 — 5 2 2 EnerBank 1 — 7 22 25 Plant, property, and equipment, gross $ 25,390 $ 24,400 Construction work in progress 896 763 Accumulated depreciation and amortization (7,360 ) (7,037 ) Total plant, property, and equipment $ 18,926 $ 18,126 Consumers Plant, property, and equipment, gross Electric Generation 22 — 125 $ 5,942 $ 6,305 Distribution 20 — 75 8,519 7,957 Transmission 46 — 75 113 154 Other 5 — 50 1,258 1,316 Assets under finance leases and other financing 2 326 295 Gas Distribution 20 — 85 5,235 4,651 Transmission 17 — 75 1,752 1,521 Underground storage facilities 3 27 — 75 987 910 Other 5 — 50 797 823 Assets under finance leases 2 14 14 Other non‑utility property 3 — 51 20 17 Plant, property, and equipment, gross $ 24,963 $ 23,963 Construction work in progress 879 756 Accumulated depreciation and amortization (7,272 ) (6,958 ) Total plant, property, and equipment 4 $ 18,570 $ 17,761 1 The majority of independent power production assets are leased to others under operating leases. For information regarding CMS Energy’s operating leases of owned assets, see Note 10, Leases and Palisades Financing . 2 For information regarding the amortization terms of Consumers’ assets under finance leases and other financing, see Note 10, Leases and Palisades Financing . 3 Underground storage includes base natural gas of $26 million at December 31, 2019 and 2018 . Base natural gas is not subject to depreciation. 4 For the year ended December 31, 2019 , Consumers’ plant additions were $2.0 billion and plant retirements were $380 million . For the year ended December 31, 2018 , Consumers’ plant additions were $1.8 billion and plant retirements were $190 million . Consumers plans to retire the D.E. Karn 1 & 2 coal-fueled electric generating units in 2023. Accordingly, in 2019, Consumers removed from total plant, property, and equipment $667 million , representing the remaining book value of the two units upon their retirement, and recorded it as a regulatory asset. For additional details, see Note 3, Regulatory Matters . Intangible Assets: Included in net plant, property, and equipment are intangible assets. Presented in the following table are details about CMS Energy’s and Consumers’ intangible assets: In Millions December 31, 2019 December 31, 2018 Description Amortization Life in Years Gross Cost¹ Accumulated Amortization Gross Cost¹ Accumulated Amortization CMS Energy, including Consumers Software development 1 — 15 $ 882 $ 529 $ 1,024 $ 603 Rights of way 50 — 85 180 55 167 52 Franchises and consents 5 — 50 16 9 15 9 Leasehold improvements various² 9 7 9 7 Other intangibles various 27 15 27 15 Total $ 1,114 $ 615 $ 1,242 $ 686 Consumers Software development 3 — 15 $ 869 $ 521 $ 1,009 $ 595 Rights of way 50 — 85 180 55 167 52 Franchises and consents 5 — 50 16 9 15 9 Leasehold improvements various² 9 7 9 7 Other intangibles various 26 15 26 15 Total $ 1,100 $ 607 $ 1,226 $ 678 1 For the year ended December 31, 2019 , Consumers’ intangible asset additions were $67 million and intangible asset retirements were $193 million . For the year ended December 31, 2018 , Consumers’ intangible asset additions were $90 million and intangible asset retirements were $7 million . 2 Leasehold improvements are amortized over the life of the lease, which may change whenever the lease is renewed or extended. Capitalization: CMS Energy and Consumers record plant, property, and equipment at original cost when placed into service. The cost includes labor, material, applicable taxes, overhead such as pension and other benefits, and AFUDC, if applicable. Consumers’ plant, property, and equipment is generally recoverable through its general ratemaking process. With the exception of utility property for which the remaining book value has been securitized, mothballed utility property stays in rate base and continues to be depreciated at the same rate as before the mothball period. When utility property is retired or otherwise disposed of in the ordinary course of business, Consumers records the original cost to accumulated depreciation, along with associated cost of removal, net of salvage. CMS Energy and Consumers recognize gains or losses on the retirement or disposal of non‑regulated assets in income. Consumers records cost of removal collected from customers, but not spent, as a regulatory liability. Software: CMS Energy and Consumers capitalize the costs to purchase and develop internal-use computer software. These costs are expensed evenly over the estimated useful life of the internal-use computer software. If computer software is integral to computer hardware, then its cost is capitalized and depreciated with the hardware. AFUDC: Consumers capitalizes AFUDC on regulated major construction projects, except pollution control facilities on its fossil-fuel-fired power plants. AFUDC represents the estimated cost of debt and authorized return-on-equity funds used to finance construction additions. Consumers records the offsetting credit as a reduction of interest for the amount representing the borrowed funds component and as other income for the equity funds component on the consolidated statements of income. When construction is completed and the property is placed in service, Consumers depreciates and recovers the capitalized AFUDC from customers over the life of the related asset. Presented in the following table are Consumers’ average AFUDC capitalization rates: Years Ended December 31 2019 2018 2017 Electric 6.4 % 6.9 % 6.8 % Gas 5.8 5.9 6.0 Assets Under Finance Leases and Other Financing: Presented in the following table are further details about changes in Consumers’ assets under finance leases and other financing: In Millions Years Ended December 31 2019 2018 Consumers Balance at beginning of period $ 309 $ 312 Additions 26 — Net retirements and other adjustments 5 (3 ) Balance at end of period $ 340 $ 309 Assets under finance leases and other financing are presented as gross amounts. Accumulated amortization of assets under finance leases and other financing was $239 million at December 31, 2019 and $212 million at December 31, 2018 for Consumers. Depreciation and Amortization: Presented in the following table are further details about CMS Energy’s and Consumers’ accumulated depreciation and amortization: In Millions December 31 2019 2018 CMS Energy, including Consumers Utility plant assets $ 7,269 $ 6,956 Non ‑ utility plant assets 91 81 Consumers Utility plant assets $ 7,269 $ 6,956 Non ‑ utility plant assets 3 2 Consumers depreciates utility property on an asset-group basis, in which it applies a single MPSC-approved depreciation rate to the gross investment in a particular class of property within the electric and gas segments. Consumers performs depreciation studies periodically to determine appropriate group lives. Presented in the following table are the composite depreciation rates for Consumers’ segment properties: Years Ended December 31 2019 2018 2017 Electric utility property 3.9 % 3.9 % 3.9 % Gas utility property 2.9 2.9 2.9 Other property 10.0 10.1 10.0 CMS Energy and Consumers record property repairs and minor property replacement as maintenance expense. CMS Energy and Consumers record planned major maintenance activities as operating expense unless the cost represents the acquisition of additional long-lived assets or the replacement of an existing long-lived asset. Presented in the following table are the components of CMS Energy’s and Consumers’ depreciation and amortization expense: In Millions Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Depreciation expense – plant, property, and equipment $ 842 $ 778 $ 739 Amortization expense Software 121 127 114 Other intangible assets 3 3 3 Securitized regulatory assets 26 25 25 Total depreciation and amortization expense $ 992 $ 933 $ 881 Consumers Depreciation expense – plant, property, and equipment $ 827 $ 768 $ 732 Amortization expense Software 119 125 112 Other intangible assets 3 3 3 Securitized regulatory assets 26 25 25 Total depreciation and amortization expense $ 975 $ 921 $ 872 Presented in the following table is CMS Energy’s and Consumers’ estimated amortization expense on intangible assets for each of the next five years: In Millions 2020 2021 2022 2023 2024 CMS Energy, including Consumers Intangible asset amortization expense $ 118 $ 112 $ 107 $ 87 $ 70 Consumers Intangible asset amortization expense $ 116 $ 110 $ 106 $ 87 $ 70 Jointly Owned Regulated Utility Facilities Presented in the following table are Consumers’ investments in jointly owned regulated utility facilities at December 31, 2019 : In Millions, Except Ownership Share J.H. Campbell Unit 3 Ludington Other Ownership share 93.3 % 51.0 % various Utility plant in service $ 1,731 $ 486 $ 233 Accumulated depreciation (753 ) (166 ) (68 ) Construction work in progress 16 64 15 Net investment $ 994 $ 384 $ 180 Consumers includes its share of the direct expenses of the jointly owned plants in operating expenses. Consumers shares operation, maintenance, and other expenses of these jointly owned utility facilities in proportion to each participant’s undivided ownership interest. Consumers is required to provide only its share of financing for the jointly owned utility facilities. |
Leases and Palisades Financing
Leases and Palisades Financing | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Line Items] | |
Leases and Palisades Financing | Leases and Palisades Financing Lessee CMS Energy and Consumers lease various assets from third parties, including coal-carrying railcars, real estate, service vehicles, and gas pipeline capacity. In addition, CMS Energy and Consumers account for several of their PPAs as leases. CMS Energy and Consumers do not record right-of-use assets or lease liabilities on their consolidated balance sheets for rentals with lease terms of 12 months or less, most of which are for the lease of real estate and service vehicles. Lease expense for these rentals is recognized on a straight-line basis over the lease term. CMS Energy and Consumers include future payments for all renewal options, fair market value extensions, and buyout provisions reasonably certain of exercise in their measurement of lease right-of-use assets and lease liabilities. In addition, certain leases for service vehicles contain end-of-lease adjustment clauses based on proceeds received from the sale or disposition of the vehicles. CMS Energy and Consumers also include executory costs in the measurement of their right-of-use assets and lease liabilities, except for maintenance costs related to their coal-carrying railcar leases. Most of Consumers’ PPAs contain provisions at the end of the initial contract terms to renew the agreements annually under mutually agreed‑upon terms at the time of renewal. Energy and capacity payments that vary depending on quantities delivered are recognized as variable lease costs when incurred. Consumers accounts for a PPA with one of CMS Energy’s equity method subsidiaries as a finance lease. Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities: In Millions, Except as Noted December 31, 2019 CMS Energy, including Consumers Consumers Operating leases Right-of-use assets 1 $ 47 $ 40 Lease liabilities Current lease liabilities 2 9 8 Non ‑ current lease liabilities 3 37 32 Finance leases Right-of-use assets $ 71 $ 71 Lease liabilities 4 Current lease liabilities 6 6 Non ‑ current lease liabilities 60 60 Weighted-average remaining lease term (in years) Operating leases 17 14 Finance leases 12 12 Weighted-average discount rate Operating leases 3.8 % 3.7 % Finance leases 5 1.9 1.9 1 CMS Energy’s and Consumers’ operating right-of-use lease assets are reported as other non ‑ current assets on their consolidated balance sheets. 2 The current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other current liabilities on their consolidated balance sheets. 3 The non ‑ current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other non ‑ current liabilities on their consolidated balance sheets. 4 This includes $25 million for leases with related parties, of which less than $1 million is current. 5 This rate excludes the impact of Consumers’ pipeline agreements and long-term PPAs accounted for as finance leases. The required capacity payments under these agreements, when compared to the underlying fair value of the leased assets, result in effective interest rates that exceed market rates for leases with similar terms. CMS Energy and Consumers report operating, variable, and short-term lease costs as operating expenses on their consolidated statements of income, except for certain amounts that may be capitalized to other assets. Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs: In Millions Year Ended December 31, 2019 CMS Energy, including Consumers Consumers Operating lease costs $ 11 $ 9 Finance lease costs Amortization of right-of-use assets 6 6 Interest on lease liabilities 18 18 Variable lease costs 95 95 Total lease costs $ 130 $ 128 Presented in the following table is cash flow information related to amounts paid on CMS Energy’s and Consumers’ lease liabilities: In Millions Year Ended December 31, 2019 CMS Energy, including Consumers Consumers Cash paid for amounts included in the measurement of lease liabilities Cash used in operating activities for operating leases $ 11 $ 9 Cash used in operating activities for finance leases 18 18 Cash used in financing activities for finance leases 7 7 Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases: In Millions Finance Leases December 31, 2019 Operating Leases Pipelines and PPAs Other Total CMS Energy, including Consumers 2020 $ 11 $ 17 $ 6 $ 23 2021 11 17 6 23 2022 5 14 5 19 2023 3 13 5 18 2024 2 13 3 16 2025 and thereafter 35 78 12 90 Total minimum lease payments $ 67 $ 152 $ 37 $ 189 Less discount 21 119 4 123 Present value of minimum lease payments $ 46 $ 33 $ 33 $ 66 Consumers 2020 $ 9 $ 17 $ 6 $ 23 2021 9 17 6 23 2022 4 14 5 19 2023 3 13 5 18 2024 2 13 3 16 2025 and thereafter 29 78 12 90 Total minimum lease payments $ 56 $ 152 $ 37 $ 189 Less discount 16 119 4 123 Present value of minimum lease payments $ 40 $ 33 $ 33 $ 66 Lessor CMS Energy and Consumers are the lessor under power sales and natural gas delivery agreements that are accounted for as leases. CMS Energy has power sales agreements that are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. For the year ended December 31, 2019 , CMS Energy’s lease revenue from its power sales agreements was $174 million , which included variable lease payments of $119 million . Presented in the following table are the minimum rental payments to be received under CMS Energy’s non‑cancelable operating leases: In Millions December 31, 2019 2020 $ 55 2021 55 2022 48 2023 43 2024 43 2025 and thereafter 62 Total minimum lease payments $ 306 Consumers has an agreement to build, own, operate, and maintain a compressed natural gas fueling station through December 2038 . This agreement is accounted for as a direct finance lease, under which the lessee has the option to purchase the natural gas fueling station at the end of the lease term. Fixed monthly payments escalate annually with inflation. Beginning in December 2018 , Consumers and a subsidiary of CMS Energy executed a 20 ‑year natural gas transportation agreement, related to a pipeline owned by Consumers. This agreement is accounted for as a direct finance lease and will automatically extend annually unless terminated by either party. The effects of the lease are eliminated on CMS Energy’s consolidated financial statements. Minimum rental payments to be received under Consumers’ direct financing leases are $1 million for each of the next five years and $19 million for the years thereafter. The lease receivable was $10 million as of December 31, 2019 , which does not include unearned income of $14 million . Minimum rental payments to be received under CMS Energy’s direct finance lease are less than $1 million for each of the next five years and $10 million for the years thereafter. The lease receivable was $5 million as of December 31, 2019 , which does not include unearned income of $5 million . Palisades Financing In 2007, Consumers sold Palisades to Entergy and entered into a 15 -year PPA to purchase virtually all of the capacity and energy produced by Palisades, up to the annual average capacity of 798 MW . Consumers accounted for this transaction as a financing because of its continuing involvement with Palisades through security provided to Entergy for the PPA obligation and other arrangements. Palisades has therefore remained on Consumers’ consolidated balance sheets and Consumers has continued to depreciate it. At the time of the sale, Consumers recorded the sales proceeds as a financing obligation, and has subsequently recorded a portion of the payments under the PPA as interest expense and as a reduction of the financing obligation. Total amortization and interest charges under the financing were $15 million for the year ended December 31, 2019 , $16 million for the year ended December 31, 2018 , and $17 million for the year ended December 31, 2017 . At December 31, 2019 , the Palisades asset and financing obligation both had a balance of $29 million . Presented in the following table are the minimum Palisades PPA payments included in the financing obligation: In Millions December 31, 2019 2020 $ 14 2021 14 2022 3 Total minimum payments $ 31 Less discount 2 Financing obligation $ 29 Less current portion 13 Non-current portion $ 16 |
Consumers Energy Company | |
Leases [Line Items] | |
Leases and Palisades Financing | Leases and Palisades Financing Lessee CMS Energy and Consumers lease various assets from third parties, including coal-carrying railcars, real estate, service vehicles, and gas pipeline capacity. In addition, CMS Energy and Consumers account for several of their PPAs as leases. CMS Energy and Consumers do not record right-of-use assets or lease liabilities on their consolidated balance sheets for rentals with lease terms of 12 months or less, most of which are for the lease of real estate and service vehicles. Lease expense for these rentals is recognized on a straight-line basis over the lease term. CMS Energy and Consumers include future payments for all renewal options, fair market value extensions, and buyout provisions reasonably certain of exercise in their measurement of lease right-of-use assets and lease liabilities. In addition, certain leases for service vehicles contain end-of-lease adjustment clauses based on proceeds received from the sale or disposition of the vehicles. CMS Energy and Consumers also include executory costs in the measurement of their right-of-use assets and lease liabilities, except for maintenance costs related to their coal-carrying railcar leases. Most of Consumers’ PPAs contain provisions at the end of the initial contract terms to renew the agreements annually under mutually agreed‑upon terms at the time of renewal. Energy and capacity payments that vary depending on quantities delivered are recognized as variable lease costs when incurred. Consumers accounts for a PPA with one of CMS Energy’s equity method subsidiaries as a finance lease. Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities: In Millions, Except as Noted December 31, 2019 CMS Energy, including Consumers Consumers Operating leases Right-of-use assets 1 $ 47 $ 40 Lease liabilities Current lease liabilities 2 9 8 Non ‑ current lease liabilities 3 37 32 Finance leases Right-of-use assets $ 71 $ 71 Lease liabilities 4 Current lease liabilities 6 6 Non ‑ current lease liabilities 60 60 Weighted-average remaining lease term (in years) Operating leases 17 14 Finance leases 12 12 Weighted-average discount rate Operating leases 3.8 % 3.7 % Finance leases 5 1.9 1.9 1 CMS Energy’s and Consumers’ operating right-of-use lease assets are reported as other non ‑ current assets on their consolidated balance sheets. 2 The current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other current liabilities on their consolidated balance sheets. 3 The non ‑ current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other non ‑ current liabilities on their consolidated balance sheets. 4 This includes $25 million for leases with related parties, of which less than $1 million is current. 5 This rate excludes the impact of Consumers’ pipeline agreements and long-term PPAs accounted for as finance leases. The required capacity payments under these agreements, when compared to the underlying fair value of the leased assets, result in effective interest rates that exceed market rates for leases with similar terms. CMS Energy and Consumers report operating, variable, and short-term lease costs as operating expenses on their consolidated statements of income, except for certain amounts that may be capitalized to other assets. Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs: In Millions Year Ended December 31, 2019 CMS Energy, including Consumers Consumers Operating lease costs $ 11 $ 9 Finance lease costs Amortization of right-of-use assets 6 6 Interest on lease liabilities 18 18 Variable lease costs 95 95 Total lease costs $ 130 $ 128 Presented in the following table is cash flow information related to amounts paid on CMS Energy’s and Consumers’ lease liabilities: In Millions Year Ended December 31, 2019 CMS Energy, including Consumers Consumers Cash paid for amounts included in the measurement of lease liabilities Cash used in operating activities for operating leases $ 11 $ 9 Cash used in operating activities for finance leases 18 18 Cash used in financing activities for finance leases 7 7 Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases: In Millions Finance Leases December 31, 2019 Operating Leases Pipelines and PPAs Other Total CMS Energy, including Consumers 2020 $ 11 $ 17 $ 6 $ 23 2021 11 17 6 23 2022 5 14 5 19 2023 3 13 5 18 2024 2 13 3 16 2025 and thereafter 35 78 12 90 Total minimum lease payments $ 67 $ 152 $ 37 $ 189 Less discount 21 119 4 123 Present value of minimum lease payments $ 46 $ 33 $ 33 $ 66 Consumers 2020 $ 9 $ 17 $ 6 $ 23 2021 9 17 6 23 2022 4 14 5 19 2023 3 13 5 18 2024 2 13 3 16 2025 and thereafter 29 78 12 90 Total minimum lease payments $ 56 $ 152 $ 37 $ 189 Less discount 16 119 4 123 Present value of minimum lease payments $ 40 $ 33 $ 33 $ 66 Lessor CMS Energy and Consumers are the lessor under power sales and natural gas delivery agreements that are accounted for as leases. CMS Energy has power sales agreements that are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. For the year ended December 31, 2019 , CMS Energy’s lease revenue from its power sales agreements was $174 million , which included variable lease payments of $119 million . Presented in the following table are the minimum rental payments to be received under CMS Energy’s non‑cancelable operating leases: In Millions December 31, 2019 2020 $ 55 2021 55 2022 48 2023 43 2024 43 2025 and thereafter 62 Total minimum lease payments $ 306 Consumers has an agreement to build, own, operate, and maintain a compressed natural gas fueling station through December 2038 . This agreement is accounted for as a direct finance lease, under which the lessee has the option to purchase the natural gas fueling station at the end of the lease term. Fixed monthly payments escalate annually with inflation. Beginning in December 2018 , Consumers and a subsidiary of CMS Energy executed a 20 ‑year natural gas transportation agreement, related to a pipeline owned by Consumers. This agreement is accounted for as a direct finance lease and will automatically extend annually unless terminated by either party. The effects of the lease are eliminated on CMS Energy’s consolidated financial statements. Minimum rental payments to be received under Consumers’ direct financing leases are $1 million for each of the next five years and $19 million for the years thereafter. The lease receivable was $10 million as of December 31, 2019 , which does not include unearned income of $14 million . Minimum rental payments to be received under CMS Energy’s direct finance lease are less than $1 million for each of the next five years and $10 million for the years thereafter. The lease receivable was $5 million as of December 31, 2019 , which does not include unearned income of $5 million . Palisades Financing In 2007, Consumers sold Palisades to Entergy and entered into a 15 -year PPA to purchase virtually all of the capacity and energy produced by Palisades, up to the annual average capacity of 798 MW . Consumers accounted for this transaction as a financing because of its continuing involvement with Palisades through security provided to Entergy for the PPA obligation and other arrangements. Palisades has therefore remained on Consumers’ consolidated balance sheets and Consumers has continued to depreciate it. At the time of the sale, Consumers recorded the sales proceeds as a financing obligation, and has subsequently recorded a portion of the payments under the PPA as interest expense and as a reduction of the financing obligation. Total amortization and interest charges under the financing were $15 million for the year ended December 31, 2019 , $16 million for the year ended December 31, 2018 , and $17 million for the year ended December 31, 2017 . At December 31, 2019 , the Palisades asset and financing obligation both had a balance of $29 million . Presented in the following table are the minimum Palisades PPA payments included in the financing obligation: In Millions December 31, 2019 2020 $ 14 2021 14 2022 3 Total minimum payments $ 31 Less discount 2 Financing obligation $ 29 Less current portion 13 Non-current portion $ 16 |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Asset Retirement Obligations [Line Items] | |
Asset Retirement Obligations | Asset Retirement Obligations CMS Energy and Consumers record the fair value of the cost to remove assets at the end of their useful lives, if there is a legal obligation to remove them. If a reasonable estimate of fair value cannot be made in the period in which the ARO is incurred, such as for assets with indeterminate lives, the liability is recognized when a reasonable estimate of fair value can be made. CMS Energy and Consumers have not recorded liabilities for assets that have immaterial cumulative disposal costs, such as substation batteries. CMS Energy and Consumers calculate the fair value of ARO liabilities using an expected present-value technique that reflects assumptions about costs and inflation, and uses a credit-adjusted risk-free rate to discount the expected cash flows. CMS Energy’s ARO liabilities are primarily at Consumers. Presented below are the categories of assets that CMS Energy and Consumers have legal obligations to remove at the end of their useful lives and for which they have an ARO liability recorded: Company and ARO Description In-Service Date Long-Lived Assets CMS Energy, including Consumers Closure of gas treating plant and gas wells various Gas transmission and storage Closure of coal ash disposal areas various Generating plants coal ash areas Gas distribution cut, purge, and cap various Gas distribution mains and services Asbestos abatement 1973 Electric and gas utility plant Closure of renewable generation assets various Wind and solar generation facilities Gas wells plug and abandon various Gas transmission and storage Consumers Closure of coal ash disposal areas various Generating plants coal ash areas Gas distribution cut, purge, and cap various Gas distribution mains and services Asbestos abatement 1973 Electric and gas utility plant Closure of renewable generation assets various Wind and solar generation facilities Gas wells plug and abandon various Gas transmission and storage No assets have been restricted for purposes of settling AROs. Presented in the following tables are the changes in CMS Energy’s and Consumers’ ARO liabilities: In Millions Company and ARO Description ARO Liability 12/31/2018 Incurred Settled Accretion Cash Flow Revisions ARO Liability 12/31/2019 CMS Energy, including Consumers Consumers $ 428 $ 55 $ (37 ) $ 21 $ 7 $ 474 Gas treating plant and gas wells 1 — (1 ) — — — Renewable generation assets 3 — — — — 3 Total CMS Energy $ 432 $ 55 $ (38 ) $ 21 $ 7 $ 477 Consumers Coal ash disposal areas $ 179 $ — $ (27 ) $ 7 $ 7 $ 166 Gas distribution cut, purge, and cap 205 22 (8 ) 12 — 231 Asbestos abatement 33 — (1 ) 2 — 34 Renewable generation assets 11 10 — — — 21 Gas wells plug and abandon — 23 (1 ) — — 22 Total Consumers $ 428 $ 55 $ (37 ) $ 21 $ 7 $ 474 In Millions Company and ARO Description ARO Liability 12/31/2017 Incurred Settled Accretion Cash Flow Revisions ARO Liability 12/31/2018 CMS Energy, including Consumers Consumers $ 429 $ 17 $ (40 ) $ 22 $ — $ 428 Gas treating plant and gas wells 1 — — — — 1 Renewable generation assets — 3 — — — 3 Total CMS Energy $ 430 $ 20 $ (40 ) $ 22 $ — $ 432 Consumers Coal ash disposal areas $ 191 $ — $ (20 ) $ 8 $ — $ 179 Gas distribution cut, purge, and cap 186 17 (9 ) 11 — 205 Asbestos abatement 42 — (11 ) 2 — 33 Renewable generation assets 10 — — 1 — 11 Total Consumers $ 429 $ 17 $ (40 ) $ 22 $ — $ 428 |
Consumers Energy Company | |
Asset Retirement Obligations [Line Items] | |
Asset Retirement Obligations | Asset Retirement Obligations CMS Energy and Consumers record the fair value of the cost to remove assets at the end of their useful lives, if there is a legal obligation to remove them. If a reasonable estimate of fair value cannot be made in the period in which the ARO is incurred, such as for assets with indeterminate lives, the liability is recognized when a reasonable estimate of fair value can be made. CMS Energy and Consumers have not recorded liabilities for assets that have immaterial cumulative disposal costs, such as substation batteries. CMS Energy and Consumers calculate the fair value of ARO liabilities using an expected present-value technique that reflects assumptions about costs and inflation, and uses a credit-adjusted risk-free rate to discount the expected cash flows. CMS Energy’s ARO liabilities are primarily at Consumers. Presented below are the categories of assets that CMS Energy and Consumers have legal obligations to remove at the end of their useful lives and for which they have an ARO liability recorded: Company and ARO Description In-Service Date Long-Lived Assets CMS Energy, including Consumers Closure of gas treating plant and gas wells various Gas transmission and storage Closure of coal ash disposal areas various Generating plants coal ash areas Gas distribution cut, purge, and cap various Gas distribution mains and services Asbestos abatement 1973 Electric and gas utility plant Closure of renewable generation assets various Wind and solar generation facilities Gas wells plug and abandon various Gas transmission and storage Consumers Closure of coal ash disposal areas various Generating plants coal ash areas Gas distribution cut, purge, and cap various Gas distribution mains and services Asbestos abatement 1973 Electric and gas utility plant Closure of renewable generation assets various Wind and solar generation facilities Gas wells plug and abandon various Gas transmission and storage No assets have been restricted for purposes of settling AROs. Presented in the following tables are the changes in CMS Energy’s and Consumers’ ARO liabilities: In Millions Company and ARO Description ARO Liability 12/31/2018 Incurred Settled Accretion Cash Flow Revisions ARO Liability 12/31/2019 CMS Energy, including Consumers Consumers $ 428 $ 55 $ (37 ) $ 21 $ 7 $ 474 Gas treating plant and gas wells 1 — (1 ) — — — Renewable generation assets 3 — — — — 3 Total CMS Energy $ 432 $ 55 $ (38 ) $ 21 $ 7 $ 477 Consumers Coal ash disposal areas $ 179 $ — $ (27 ) $ 7 $ 7 $ 166 Gas distribution cut, purge, and cap 205 22 (8 ) 12 — 231 Asbestos abatement 33 — (1 ) 2 — 34 Renewable generation assets 11 10 — — — 21 Gas wells plug and abandon — 23 (1 ) — — 22 Total Consumers $ 428 $ 55 $ (37 ) $ 21 $ 7 $ 474 In Millions Company and ARO Description ARO Liability 12/31/2017 Incurred Settled Accretion Cash Flow Revisions ARO Liability 12/31/2018 CMS Energy, including Consumers Consumers $ 429 $ 17 $ (40 ) $ 22 $ — $ 428 Gas treating plant and gas wells 1 — — — — 1 Renewable generation assets — 3 — — — 3 Total CMS Energy $ 430 $ 20 $ (40 ) $ 22 $ — $ 432 Consumers Coal ash disposal areas $ 191 $ — $ (20 ) $ 8 $ — $ 179 Gas distribution cut, purge, and cap 186 17 (9 ) 11 — 205 Asbestos abatement 42 — (11 ) 2 — 33 Renewable generation assets 10 — — 1 — 11 Total Consumers $ 429 $ 17 $ (40 ) $ 22 $ — $ 428 |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |
Retirement Benefits | Retirement Benefits Benefit Plans: CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans. These plans include: • non‑contributory, qualified DB Pension Plans (closed to new non‑union participants as of July 1, 2003 and closed to new union participants as of September 1, 2005) • a non‑contributory, qualified DCCP for employees hired on or after July 1, 2003 • benefits to certain management employees under a non‑contributory, nonqualified DB SERP (closed to new participants as of March 31, 2006) • a non‑contributory, nonqualified DC SERP for certain management employees hired or promoted on or after April 1, 2006 • a contributory, qualified defined contribution 401(k) plan • health care and life insurance benefits under an OPEB Plan DB Pension Plans: Participants in the pension plans include present and former employees of CMS Energy and Consumers, including certain present and former affiliates and subsidiaries. Pension plan trust assets are not distinguishable by company. Effective December 31, 2017, CMS Energy’s and Consumers’ then-existing pension plan was amended to include only retired and former employees already covered; this amended plan is referred to as DB Pension Plan B. Also effective December 31, 2017, active employees were moved to a newly created pension plan, referred to as DB Pension Plan A, whose benefits mirror those provided under DB Pension Plan B. Maintaining separate plans for the two groups allows CMS Energy and Consumers to employ a more targeted investment strategy and provides additional opportunities to mitigate risk and volatility. DCCP: CMS Energy and Consumers provide an employer contribution to the DCCP 401(k) plan for employees hired on or after July 1, 2003. The contribution ranges from five to seven percent of base pay, depending on years of service. Employees are not required to contribute in order to receive the plan’s employer contribution. DCCP expense for CMS Energy, including Consumers, was $30 million for the year ended December 31, 2019 , $26 million for the year ended December 31, 2018 , and $23 million for the year ended December 31, 2017 . DCCP expense for Consumers was $28 million for the year ended December 31, 2019 , $25 million for the year ended December 31, 2018 , and $22 million for the year ended December 31, 2017 . DB SERP: The DB SERP is a nonqualified plan as defined by the Internal Revenue Code. DB SERP benefits are paid from a rabbi trust established in 1988. The trust assets are not considered plan assets under ASC 715. DB SERP rabbi trust earnings are taxable. Presented in the following table are the fair values of trust assets, ABO, and contributions for CMS Energy’s and Consumers’ DB SERP: In Millions Years Ended December 31 2019 2018 CMS Energy, including Consumers Trust assets $ 143 $ 147 ABO 149 137 Contributions — 8 Consumers Trust assets $ 104 $ 106 ABO 107 98 Contributions — 5 DC SERP: On April 1, 2006, CMS Energy and Consumers implemented a DC SERP and froze further new participation in the DB SERP. The DC SERP provides participants benefits ranging from 5 percent to 15 percent of total compensation. The DC SERP requires a minimum of five years of participation before vesting. CMS Energy’s and Consumers’ contributions to the plan, if any, are placed in a grantor trust. For CMS Energy and Consumers, trust assets were $8 million at December 31, 2019 and $5 million at December 31, 2018 . DC SERP assets are included in other non‑current assets on CMS Energy’s and Consumers’ consolidated balance sheets. CMS Energy’s and Consumers’ DC SERP expense was $2 million for the year ended December 31, 2019 , and $1 million for each of the years ended December 31, 2018 and 2017 . 401(k) Plan: The 401(k) plan employer match equals 100 percent of eligible contributions up to the first three percent of an employee’s wages and 50 percent of eligible contributions up to the next two percent of an employee’s wages. The total 401(k) plan cost for CMS Energy, including Consumers, was $28 million for the year ended December 31, 2019 , $27 million for the year ended December 31, 2018 , and $26 million for the year ended December 31, 2017 . The total 401(k) plan cost for Consumers was $27 million for the year ended December 31, 2019 , $26 million for the year ended December 31, 2018 , and $25 million for the year ended December 31, 2017 . OPEB Plan: Participants in the OPEB Plan include all regular full-time employees covered by the employee health care plan on the day before retirement from either CMS Energy or Consumers at age 55 or older with at least ten full years of applicable continuous service. Regular full-time employees who qualify for disability retirement under the DB Pension Plans or are disabled and covered by the DCCP and who have 15 years of applicable continuous service may also participate in the OPEB Plan. Retiree health care costs were based on the assumption that costs would increase 6.75 percent in 2020 and 7.00 percent in 2019 for those under 65 and would increase 7.25 percent in 2020 and 7.75 percent in 2019 for those over 65. The rate of increase was assumed to decline to 4.75 percent by 2027 and thereafter for all retirees. In 2017, CMS Energy and Consumers approved certain amendments to the OPEB Plan. Under these amendments, effective January 1, 2019, certain Medicare-eligible retirees will purchase health care plans from private Medicare exchanges. CMS Energy and Consumers performed a remeasurement of the OPEB Plan as of October 31, 2017, resulting in a significant reduction in the benefit obligation. In July 2018, CMS Energy and Consumers approved an amendment to the OPEB Plan to improve survivor benefits for certain Medicare-eligible retirees, effective January 1, 2019, resulting in a $26 million increase in the benefit obligation. Assumptions: Presented in the following table are the weighted-average assumptions used in CMS Energy’s and Consumers’ retirement benefits plans to determine benefit obligations and net periodic benefit cost: December 31 2019 2018 2017 CMS Energy, including Consumers Weighted average for benefit obligations 1 Discount rate 2 DB Pension Plan A 3.37 % 4.48 % 3.78 % DB Pension Plan B 3.17 4.32 3.64 DB SERP 3.15 4.32 3.65 OPEB Plan 3.32 4.42 3.74 Rate of compensation increase DB Pension Plan A 3.50 3.50 3.50 DB SERP 5.50 5.50 5.50 Weighted average for net periodic benefit cost 1 Service cost discount rate 2,3 DB Pension Plan A 4 4.55 3.85 DB SERP 4.58 3.83 4.51 OPEB Plan 4.63 3.93 4.89 Interest cost discount rate 2,3 DB Pension Plan A 4 4.08 3.39 DB Pension Plan B 4 3.93 3.24 DB SERP 3.94 3.26 3.51 OPEB Plan 4.03 3.35 3.79 Expected long-term rate of return on plan assets 5 DB Pension Plans 7.00 7.00 7.25 OPEB Plan 7.00 7.00 7.25 Rate of compensation increase DB Pension Plan A 4 3.50 3.50 DB SERP 5.50 5.50 5.50 1 The mortality assumption for benefit obligations was based on the Pri-2012 mortality table for 2019 and on the RP-2014 mortality table for 2018 and 2017 , with projection scales MP-2019 for 2019 , MP-2018 for 2018 , and MP-2017 for 2017 . The mortality assumption for net periodic benefit cost for 2019 , 2018 , and 2017 was based on the RP-2014 mortality table, with projection scales MP-2018 for 2019 , MP-2017 for 2018 , and MP-2016 for 2017 . 2 The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better. 3 CMS Energy and Consumers have elected to use a full-yield-curve approach in the estimation of service cost and interest cost; this approach applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment. 4 Effective December 31, 2017, CMS Energy’s and Consumers’ existing defined benefit pension plan was amended to include only retired or inactive employees; this amended plan is referred to as DB Pension Plan B. Active employees were moved to a newly created pension plan, referred to as DB Pension Plan A. The assumptions used to measure the plan cost of the previous defined benefit pension plan at December 31, 2017 were: • service cost discount rate of 4.53 percent • interest cost discount rate of 3.56 percent • weighted-average rate of compensation increase of 3.60 percent 5 CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 7.00 percent in 2019 . The actual return (loss) on the assets of the DB Pension Plans was 21.0 percent in 2019 , (6.7) percent in 2018 , and 18.0 percent in 2017 . Costs: Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefits plans: In Millions DB Pension Plans and DB SERP OPEB Plan Years Ended December 31 2019 2018 2017 2019 2018 2017 CMS Energy, including Consumers Net periodic cost (credit) Service cost $ 41 $ 48 $ 45 $ 14 $ 17 $ 19 Interest cost 103 95 93 41 34 51 Expected return on plan assets (162 ) (149 ) (153 ) (88 ) (97 ) (90 ) Amortization of: Net loss 50 76 82 26 15 29 Prior service cost (credit) 1 3 5 (62 ) (67 ) (40 ) Net periodic cost (credit) $ 33 $ 73 $ 72 $ (69 ) $ (98 ) $ (31 ) Consumers Net periodic cost (credit) Service cost $ 40 $ 47 $ 44 $ 13 $ 16 $ 19 Interest cost 97 88 90 40 33 49 Expected return on plan assets (153 ) (139 ) (149 ) (82 ) (91 ) (84 ) Amortization of: Net loss 47 73 79 26 16 29 Prior service cost (credit) 1 3 4 (61 ) (65 ) (39 ) Net periodic cost (credit) $ 32 $ 72 $ 68 $ (64 ) $ (91 ) $ (26 ) CMS Energy and Consumers amortize net gains and losses in excess of ten percent of the greater of the PBO or the MRV over the average remaining service period for DB Pension Plan A and the OPEB Plan and, began in 2018, over the average remaining life expectancy of participants for DB Pension Plan B. For DB Pension Plan A, the estimated period of amortization of gains and losses was nine years for the years ended December 31, 2019 and 2018 . For DB Pension Plan B, the estimated period of amortization of gains and losses was 20 years for the years ended December 31, 2019 and 2018 . The estimated period of amortization for gains and losses for CMS Energy and Consumers was ten years for the DB Pension Plans for the year ended December 31, 2017. For the OPEB Plan, the estimated amortization period was ten years for the year ended December 31, 2019 and 2018 and 11 years for the year ended December 31, 2017 . Prior service cost (credit) amortization is established in the year in which the prior service cost (credit) first occurred, and is based on the same amortization period for all future years until the prior service cost (credit) is fully amortized. CMS Energy and Consumers had new prior service costs (credits) for OPEB in 2018 and 2017. The estimated period of amortization of these new prior service costs (credits) for CMS Energy and Consumers is nine years . CMS Energy and Consumers determine the MRV for the assets of the DB Pension Plans as the fair value of plan assets on the measurement date, adjusted by the gains or losses that will not be admitted into the MRV until future years. CMS Energy and Consumers reflect each year’s gain or loss in the MRV in equal amounts over a five -year period beginning on the date the original amount was determined. CMS Energy and Consumers determine the MRV for OPEB Plan assets as the fair value of assets on the measurement date. Reconciliations: Presented in the following table are reconciliations of the funded status of CMS Energy’s and Consumers’ retirement benefits plans with their retirement benefits plans’ liabilities: In Millions DB Pension Plans DB SERP OPEB Plan Years Ended December 31 2019 2018 2019 2018 2019 2018 CMS Energy, including Consumers Benefit obligation at beginning of period $ 2,512 $ 2,780 $ 140 $ 154 $ 1,045 $ 1,097 Service cost 41 48 — — 14 17 Interest cost 98 90 5 5 41 34 Plan amendments — — — — — 26 Actuarial loss (gain) 476 1 (258 ) 1 15 (10 ) 110 1 (74 ) 1 Benefits paid (154 ) (148 ) (10 ) (9 ) (45 ) (55 ) Benefit obligation at end of period $ 2,973 $ 2,512 $ 150 $ 140 $ 1,165 $ 1,045 Plan assets at fair value at beginning of period $ 2,247 $ 2,305 $ — $ — $ 1,280 $ 1,420 Actual return on plan assets 453 (150 ) — — 273 (86 ) Company contribution — 240 10 9 — — Actual benefits paid (154 ) (148 ) (10 ) (9 ) (44 ) (54 ) Plan assets at fair value at end of period $ 2,546 $ 2,247 $ — $ — $ 1,509 $ 1,280 Funded status $ (427 ) 2 $ (265 ) 2 $ (150 ) $ (140 ) $ 344 $ 235 Consumers Benefit obligation at beginning of period $ 101 $ 112 $ 1,004 $ 1,053 Service cost — — 13 16 Interest cost 4 4 40 33 Plan amendments — — — 25 Actuarial loss (gain) 11 (8 ) 106 1 (70 ) 1 Benefits paid (7 ) (7 ) (43 ) (53 ) Benefit obligation at end of period $ 109 $ 101 $ 1,120 $ 1,004 Plan assets at fair value at beginning of period $ — $ — $ 1,197 $ 1,329 Actual return on plan assets — — 255 (80 ) Company contribution 7 7 — — Actual benefits paid (7 ) (7 ) (42 ) (52 ) Plan assets at fair value at end of period $ — $ — $ 1,410 $ 1,197 Funded status $ (109 ) $ (101 ) $ 290 $ 193 1 The actuarial loss for 2019 for the DB Pension Plans was primarily the result of lower discount rates and lower interest rates used to calculate the value of lump-sum payments. The actuarial gain for 2018 was primarily the result of higher discount rates. The actuarial loss for 2019 for the OPEB Plan was primarily the result of lower discount rates. The actuarial gain for 2018 was primarily the result of higher discount rates. 2 The total funded status of the DB Pension Plans attributable to Consumers, based on an allocation of expenses, was $408 million at December 31, 2019 and $246 million at December 31, 2018 . Presented in the following table is the classification of CMS Energy’s and Consumers’ retirement benefit plans’ assets and liabilities: In Millions December 31 2019 2018 CMS Energy, including Consumers Non ‑ current assets DB Pension Plans $ 104 $ 38 OPEB Plan 344 235 Current liabilities DB SERP 10 10 Non ‑ current liabilities DB Pension Plans 531 303 DB SERP 140 130 Consumers Non ‑ current assets DB Pension Plans $ 109 $ 49 OPEB Plan 290 193 Current liabilities DB SERP 7 7 Non ‑ current liabilities DB Pension Plans 517 295 DB SERP 102 94 The ABO for the DB Pension Plans was $2.6 billion at December 31, 2019 and $2.2 billion at December 31, 2018 . Presented in the following table is information related to the defined benefit pension plan for which the PBO and the ABO exceed plan assets: In Millions December 31 2019 2018 CMS Energy, including Consumers PBO $ 1,736 $ 1,363 ABO 1,398 1,091 Fair value of plan assets 1,205 1,059 Items Not Yet Recognized as a Component of Net Periodic Benefit Cost: Presented in the following table are the amounts recognized in regulatory assets and AOCI that have not been recognized as components of net periodic benefit cost. For additional details on regulatory assets , see Note 3, Regulatory Matters . In Millions DB Pension Plans and DB SERP OPEB Plan Years Ended December 31 2019 2018 2019 2018 CMS Energy, including Consumers Regulatory assets Net loss $ 1,114 $ 978 $ 308 $ 402 Prior service cost (credit) 8 9 (300 ) (361 ) Regulatory assets $ 1,122 $ 987 $ 8 $ 41 AOCI Net loss (gain) 105 90 (6 ) 2 Prior service credit — — (8 ) (9 ) Total amounts recognized in regulatory assets and AOCI $ 1,227 $ 1,077 $ (6 ) $ 34 Consumers Regulatory assets Net loss $ 1,114 $ 978 $ 308 $ 402 Prior service cost (credit) 8 9 (300 ) (361 ) Regulatory assets $ 1,122 $ 987 $ 8 $ 41 AOCI Net loss 36 27 — — Total amounts recognized in regulatory assets and AOCI $ 1,158 $ 1,014 $ 8 $ 41 Plan Assets: Presented in the following tables are the fair values of the assets of CMS Energy’s DB Pension Plans and OPEB Plan, by asset category and by level within the fair value hierarchy. For additional details regarding the fair value hierarchy, see Note 6, Fair Value Measurements . In Millions DB Pension Plans December 31, 2019 December 31, 2018 Total Level 1 Level 2 Total Level 1 Level 2 CMS Energy, including Consumers Cash and short-term investments $ 44 $ 44 $ — $ 242 $ 242 $ — U.S. government and agencies securities 66 — 66 11 — 11 Corporate debt 493 — 493 400 — 400 State and municipal bonds 17 — 17 6 — 6 Foreign corporate bonds 33 — 33 35 — 35 Mutual funds 640 640 — 552 552 — $ 1,293 $ 684 $ 609 $ 1,246 $ 794 $ 452 Pooled funds 1,253 1,001 Total $ 2,546 $ 2,247 In Millions OPEB Plan December 31, 2019 December 31, 2018 Total Level 1 Level 2 Total Level 1 Level 2 CMS Energy, including Consumers Cash and short-term investments $ 9 $ 9 $ — $ 36 $ 36 $ — U.S. government and agencies securities 10 — 10 2 — 2 Corporate debt 71 — 71 55 — 55 State and municipal bonds 2 — 2 1 — 1 Foreign corporate bonds 5 — 5 5 — 5 Common stocks 55 55 — 41 41 — Mutual funds 713 713 — 594 594 — $ 865 $ 777 $ 88 $ 734 $ 671 $ 63 Pooled funds 644 546 Total $ 1,509 $ 1,280 Cash and Short-Term Investments: Cash and short-term investments consist of money market funds with daily liquidity. U.S. Government and Agencies Securities: U.S. government and agencies securities consist of U.S. Treasury notes and other debt securities backed by the U.S. government and related agencies. These securities are valued based on quoted market prices. Corporate Debt: Corporate debt investments consist of investment grade bonds of U.S. issuers from diverse industries. These securities are valued based on quoted market prices, when available, or yields available on comparable securities of issuers with similar credit ratings. State and Municipal Bonds: State and municipal bonds are valued using a matrix-pricing model that incorporates Level 2 market-based information. The fair value of the bonds is derived from various observable inputs, including benchmark yields, reported securities trades, broker/dealer quotes, bond ratings, and general information on market movements for investment grade state and municipal securities normally considered by market participants when pricing such debt securities. Foreign Corporate Bonds: Foreign corporate debt securities are valued based on quoted market prices, when available, or on yields available on comparable securities of issuers with similar credit ratings. Common Stocks: Common stocks in the OPEB Plan consist of equity securities that are actively managed and tracked to the S&P 500 Index. These securities are valued at their quoted closing prices. Mutual Funds: Mutual funds represent shares in registered investment companies that are priced based on the daily quoted net asset values that are publicly available and are the basis for transactions to buy or sell shares in the funds. Pooled Funds: Pooled funds include both common and collective trust funds as well as special funds that contain only employee benefit plan assets from two or more unrelated benefit plans. These funds primarily consist of U.S. and foreign equity securities, but also include U.S. and foreign fixed-income securities and multi-asset investments. Since these investments are valued at their net asset value as a practical expedient, they are not classified in the fair value hierarchy. Asset Allocations: Presented in the following table are the investment components of the assets of CMS Energy’s DB Pension Plans and OPEB Plan as of December 31, 2019 : DB Pension Plans OPEB Plan Equity securities 55 % 48 % Fixed-income securities 39 33 Multi-asset investments 6 19 100 % 100 % CMS Energy’s target asset allocation for the assets of the DB Pension Plans is 53 percent equity, 35 percent fixed income, and 12 percent multi-asset investments. This target asset allocation is expected to continue to maximize the long-term return on plan assets, while maintaining a prudent level of risk. The level of acceptable risk is a function of the liabilities of the plan. Equity investments are diversified mostly across the S&P 500 Index, with lesser allocations to the S&P MidCap and SmallCap Indexes and Foreign Equity Funds. Fixed-income investments are diversified across investment grade instruments of government and corporate issuers as well as high-yield and global bond funds. Multi-assets are diversified across absolute return investment approaches and global tactical asset allocation, such as inflation protected securities, real estate investment trusts, commodities, currency, and preferred stock. CMS Energy uses annual liability measurements, quarterly portfolio reviews, and periodic asset/liability studies to evaluate the need for adjustments to the portfolio allocation. CMS Energy established union and non‑union VEBA trusts to fund future retiree health and life insurance benefits. These trusts are funded through the ratemaking process for Consumers and through direct contributions from the non‑utility subsidiaries. CMS Energy’s target asset allocation for the health trusts is 50 percent equity, 30 percent fixed income, and 20 percent multi-asset investments. CMS Energy’s target asset allocation for the life trusts is 42 percent equity, 28 percent fixed income, and 30 percent multi-asset investments. These target allocations are expected to continue to maximize the long-term return on plan assets, while maintaining a prudent level of risk. The level of acceptable risk is a function of the liabilities of the plans. Equity investments are diversified mostly across the S&P 500 Index, with lesser allocations to the S&P SmallCap Index and Foreign Equity Funds. Fixed-income investments are diversified across investment grade instruments of government and corporate issuers. Multi-assets are diversified across absolute return investment approaches and global tactical asset allocation, such as inflation protected securities, real estate investment trusts, commodities, currency and preferred stock. CMS Energy uses annual liability measurements, quarterly portfolio reviews, and periodic asset/liability studies to evaluate the need for adjustments to the portfolio allocation. Contributions: Presented in the following table are the contributions to CMS Energy’s and Consumers’ DB Pension Plans : In Millions Years Ended December 31 2019 2018 CMS Energy, including Consumers DB Pension Plans $ — $ 240 Consumers DB Pension Plans $ — $ 234 Contributions comprise required amounts and discretionary contributions. Neither CMS Energy nor Consumers contributed to the OPEB Plan in 2019 and 2018 . CMS Energy, including Consumers, contributed $531 million to the DB Pension Plans in January 2020 . Consumers contributed $518 million to the DB Pension Plans in January 2020 . Neither CMS Energy nor Consumers plans to contribute to the OPEB Plan in 2020 . Actual future contributions will depend on future investment performance, discount rates, and various factors related to the participants of the DB Pension Plans and OPEB Plan. CMS Energy and Consumers will, at a minimum, contribute to the plans as needed to comply with federal funding requirements. Benefit Payments: Presented in the following table are the expected benefit payments for each of the next five years and the five-year period thereafter: In Millions DB Pension Plans DB SERP OPEB Plan CMS Energy, including Consumers 2020 $ 174 $ 10 $ 58 2021 176 10 60 2022 177 10 62 2023 177 10 63 2024 175 10 64 2025-2029 870 46 319 Consumers 2020 $ 165 $ 7 $ 56 2021 166 7 58 2022 167 7 59 2023 167 7 60 2024 166 7 61 2025-2029 825 32 305 Collective Bargaining Agreements: At December 31, 2019 , unions represented 35 percent of CMS Energy’s employees and 37 percent of Consumers’ employees. The UWUA represents Consumers’ operating, maintenance, construction, and call center employees. The USW represents Zeeland plant employees. Union contracts expire in 2020 . |
Consumers Energy Company | |
Defined Benefit Plan Disclosure [Line Items] | |
Retirement Benefits | Retirement Benefits Benefit Plans: CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans. These plans include: • non‑contributory, qualified DB Pension Plans (closed to new non‑union participants as of July 1, 2003 and closed to new union participants as of September 1, 2005) • a non‑contributory, qualified DCCP for employees hired on or after July 1, 2003 • benefits to certain management employees under a non‑contributory, nonqualified DB SERP (closed to new participants as of March 31, 2006) • a non‑contributory, nonqualified DC SERP for certain management employees hired or promoted on or after April 1, 2006 • a contributory, qualified defined contribution 401(k) plan • health care and life insurance benefits under an OPEB Plan DB Pension Plans: Participants in the pension plans include present and former employees of CMS Energy and Consumers, including certain present and former affiliates and subsidiaries. Pension plan trust assets are not distinguishable by company. Effective December 31, 2017, CMS Energy’s and Consumers’ then-existing pension plan was amended to include only retired and former employees already covered; this amended plan is referred to as DB Pension Plan B. Also effective December 31, 2017, active employees were moved to a newly created pension plan, referred to as DB Pension Plan A, whose benefits mirror those provided under DB Pension Plan B. Maintaining separate plans for the two groups allows CMS Energy and Consumers to employ a more targeted investment strategy and provides additional opportunities to mitigate risk and volatility. DCCP: CMS Energy and Consumers provide an employer contribution to the DCCP 401(k) plan for employees hired on or after July 1, 2003. The contribution ranges from five to seven percent of base pay, depending on years of service. Employees are not required to contribute in order to receive the plan’s employer contribution. DCCP expense for CMS Energy, including Consumers, was $30 million for the year ended December 31, 2019 , $26 million for the year ended December 31, 2018 , and $23 million for the year ended December 31, 2017 . DCCP expense for Consumers was $28 million for the year ended December 31, 2019 , $25 million for the year ended December 31, 2018 , and $22 million for the year ended December 31, 2017 . DB SERP: The DB SERP is a nonqualified plan as defined by the Internal Revenue Code. DB SERP benefits are paid from a rabbi trust established in 1988. The trust assets are not considered plan assets under ASC 715. DB SERP rabbi trust earnings are taxable. Presented in the following table are the fair values of trust assets, ABO, and contributions for CMS Energy’s and Consumers’ DB SERP: In Millions Years Ended December 31 2019 2018 CMS Energy, including Consumers Trust assets $ 143 $ 147 ABO 149 137 Contributions — 8 Consumers Trust assets $ 104 $ 106 ABO 107 98 Contributions — 5 DC SERP: On April 1, 2006, CMS Energy and Consumers implemented a DC SERP and froze further new participation in the DB SERP. The DC SERP provides participants benefits ranging from 5 percent to 15 percent of total compensation. The DC SERP requires a minimum of five years of participation before vesting. CMS Energy’s and Consumers’ contributions to the plan, if any, are placed in a grantor trust. For CMS Energy and Consumers, trust assets were $8 million at December 31, 2019 and $5 million at December 31, 2018 . DC SERP assets are included in other non‑current assets on CMS Energy’s and Consumers’ consolidated balance sheets. CMS Energy’s and Consumers’ DC SERP expense was $2 million for the year ended December 31, 2019 , and $1 million for each of the years ended December 31, 2018 and 2017 . 401(k) Plan: The 401(k) plan employer match equals 100 percent of eligible contributions up to the first three percent of an employee’s wages and 50 percent of eligible contributions up to the next two percent of an employee’s wages. The total 401(k) plan cost for CMS Energy, including Consumers, was $28 million for the year ended December 31, 2019 , $27 million for the year ended December 31, 2018 , and $26 million for the year ended December 31, 2017 . The total 401(k) plan cost for Consumers was $27 million for the year ended December 31, 2019 , $26 million for the year ended December 31, 2018 , and $25 million for the year ended December 31, 2017 . OPEB Plan: Participants in the OPEB Plan include all regular full-time employees covered by the employee health care plan on the day before retirement from either CMS Energy or Consumers at age 55 or older with at least ten full years of applicable continuous service. Regular full-time employees who qualify for disability retirement under the DB Pension Plans or are disabled and covered by the DCCP and who have 15 years of applicable continuous service may also participate in the OPEB Plan. Retiree health care costs were based on the assumption that costs would increase 6.75 percent in 2020 and 7.00 percent in 2019 for those under 65 and would increase 7.25 percent in 2020 and 7.75 percent in 2019 for those over 65. The rate of increase was assumed to decline to 4.75 percent by 2027 and thereafter for all retirees. In 2017, CMS Energy and Consumers approved certain amendments to the OPEB Plan. Under these amendments, effective January 1, 2019, certain Medicare-eligible retirees will purchase health care plans from private Medicare exchanges. CMS Energy and Consumers performed a remeasurement of the OPEB Plan as of October 31, 2017, resulting in a significant reduction in the benefit obligation. In July 2018, CMS Energy and Consumers approved an amendment to the OPEB Plan to improve survivor benefits for certain Medicare-eligible retirees, effective January 1, 2019, resulting in a $26 million increase in the benefit obligation. Assumptions: Presented in the following table are the weighted-average assumptions used in CMS Energy’s and Consumers’ retirement benefits plans to determine benefit obligations and net periodic benefit cost: December 31 2019 2018 2017 CMS Energy, including Consumers Weighted average for benefit obligations 1 Discount rate 2 DB Pension Plan A 3.37 % 4.48 % 3.78 % DB Pension Plan B 3.17 4.32 3.64 DB SERP 3.15 4.32 3.65 OPEB Plan 3.32 4.42 3.74 Rate of compensation increase DB Pension Plan A 3.50 3.50 3.50 DB SERP 5.50 5.50 5.50 Weighted average for net periodic benefit cost 1 Service cost discount rate 2,3 DB Pension Plan A 4 4.55 3.85 DB SERP 4.58 3.83 4.51 OPEB Plan 4.63 3.93 4.89 Interest cost discount rate 2,3 DB Pension Plan A 4 4.08 3.39 DB Pension Plan B 4 3.93 3.24 DB SERP 3.94 3.26 3.51 OPEB Plan 4.03 3.35 3.79 Expected long-term rate of return on plan assets 5 DB Pension Plans 7.00 7.00 7.25 OPEB Plan 7.00 7.00 7.25 Rate of compensation increase DB Pension Plan A 4 3.50 3.50 DB SERP 5.50 5.50 5.50 1 The mortality assumption for benefit obligations was based on the Pri-2012 mortality table for 2019 and on the RP-2014 mortality table for 2018 and 2017 , with projection scales MP-2019 for 2019 , MP-2018 for 2018 , and MP-2017 for 2017 . The mortality assumption for net periodic benefit cost for 2019 , 2018 , and 2017 was based on the RP-2014 mortality table, with projection scales MP-2018 for 2019 , MP-2017 for 2018 , and MP-2016 for 2017 . 2 The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better. 3 CMS Energy and Consumers have elected to use a full-yield-curve approach in the estimation of service cost and interest cost; this approach applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment. 4 Effective December 31, 2017, CMS Energy’s and Consumers’ existing defined benefit pension plan was amended to include only retired or inactive employees; this amended plan is referred to as DB Pension Plan B. Active employees were moved to a newly created pension plan, referred to as DB Pension Plan A. The assumptions used to measure the plan cost of the previous defined benefit pension plan at December 31, 2017 were: • service cost discount rate of 4.53 percent • interest cost discount rate of 3.56 percent • weighted-average rate of compensation increase of 3.60 percent 5 CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 7.00 percent in 2019 . The actual return (loss) on the assets of the DB Pension Plans was 21.0 percent in 2019 , (6.7) percent in 2018 , and 18.0 percent in 2017 . Costs: Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefits plans: In Millions DB Pension Plans and DB SERP OPEB Plan Years Ended December 31 2019 2018 2017 2019 2018 2017 CMS Energy, including Consumers Net periodic cost (credit) Service cost $ 41 $ 48 $ 45 $ 14 $ 17 $ 19 Interest cost 103 95 93 41 34 51 Expected return on plan assets (162 ) (149 ) (153 ) (88 ) (97 ) (90 ) Amortization of: Net loss 50 76 82 26 15 29 Prior service cost (credit) 1 3 5 (62 ) (67 ) (40 ) Net periodic cost (credit) $ 33 $ 73 $ 72 $ (69 ) $ (98 ) $ (31 ) Consumers Net periodic cost (credit) Service cost $ 40 $ 47 $ 44 $ 13 $ 16 $ 19 Interest cost 97 88 90 40 33 49 Expected return on plan assets (153 ) (139 ) (149 ) (82 ) (91 ) (84 ) Amortization of: Net loss 47 73 79 26 16 29 Prior service cost (credit) 1 3 4 (61 ) (65 ) (39 ) Net periodic cost (credit) $ 32 $ 72 $ 68 $ (64 ) $ (91 ) $ (26 ) CMS Energy and Consumers amortize net gains and losses in excess of ten percent of the greater of the PBO or the MRV over the average remaining service period for DB Pension Plan A and the OPEB Plan and, began in 2018, over the average remaining life expectancy of participants for DB Pension Plan B. For DB Pension Plan A, the estimated period of amortization of gains and losses was nine years for the years ended December 31, 2019 and 2018 . For DB Pension Plan B, the estimated period of amortization of gains and losses was 20 years for the years ended December 31, 2019 and 2018 . The estimated period of amortization for gains and losses for CMS Energy and Consumers was ten years for the DB Pension Plans for the year ended December 31, 2017. For the OPEB Plan, the estimated amortization period was ten years for the year ended December 31, 2019 and 2018 and 11 years for the year ended December 31, 2017 . Prior service cost (credit) amortization is established in the year in which the prior service cost (credit) first occurred, and is based on the same amortization period for all future years until the prior service cost (credit) is fully amortized. CMS Energy and Consumers had new prior service costs (credits) for OPEB in 2018 and 2017. The estimated period of amortization of these new prior service costs (credits) for CMS Energy and Consumers is nine years . CMS Energy and Consumers determine the MRV for the assets of the DB Pension Plans as the fair value of plan assets on the measurement date, adjusted by the gains or losses that will not be admitted into the MRV until future years. CMS Energy and Consumers reflect each year’s gain or loss in the MRV in equal amounts over a five -year period beginning on the date the original amount was determined. CMS Energy and Consumers determine the MRV for OPEB Plan assets as the fair value of assets on the measurement date. Reconciliations: Presented in the following table are reconciliations of the funded status of CMS Energy’s and Consumers’ retirement benefits plans with their retirement benefits plans’ liabilities: In Millions DB Pension Plans DB SERP OPEB Plan Years Ended December 31 2019 2018 2019 2018 2019 2018 CMS Energy, including Consumers Benefit obligation at beginning of period $ 2,512 $ 2,780 $ 140 $ 154 $ 1,045 $ 1,097 Service cost 41 48 — — 14 17 Interest cost 98 90 5 5 41 34 Plan amendments — — — — — 26 Actuarial loss (gain) 476 1 (258 ) 1 15 (10 ) 110 1 (74 ) 1 Benefits paid (154 ) (148 ) (10 ) (9 ) (45 ) (55 ) Benefit obligation at end of period $ 2,973 $ 2,512 $ 150 $ 140 $ 1,165 $ 1,045 Plan assets at fair value at beginning of period $ 2,247 $ 2,305 $ — $ — $ 1,280 $ 1,420 Actual return on plan assets 453 (150 ) — — 273 (86 ) Company contribution — 240 10 9 — — Actual benefits paid (154 ) (148 ) (10 ) (9 ) (44 ) (54 ) Plan assets at fair value at end of period $ 2,546 $ 2,247 $ — $ — $ 1,509 $ 1,280 Funded status $ (427 ) 2 $ (265 ) 2 $ (150 ) $ (140 ) $ 344 $ 235 Consumers Benefit obligation at beginning of period $ 101 $ 112 $ 1,004 $ 1,053 Service cost — — 13 16 Interest cost 4 4 40 33 Plan amendments — — — 25 Actuarial loss (gain) 11 (8 ) 106 1 (70 ) 1 Benefits paid (7 ) (7 ) (43 ) (53 ) Benefit obligation at end of period $ 109 $ 101 $ 1,120 $ 1,004 Plan assets at fair value at beginning of period $ — $ — $ 1,197 $ 1,329 Actual return on plan assets — — 255 (80 ) Company contribution 7 7 — — Actual benefits paid (7 ) (7 ) (42 ) (52 ) Plan assets at fair value at end of period $ — $ — $ 1,410 $ 1,197 Funded status $ (109 ) $ (101 ) $ 290 $ 193 1 The actuarial loss for 2019 for the DB Pension Plans was primarily the result of lower discount rates and lower interest rates used to calculate the value of lump-sum payments. The actuarial gain for 2018 was primarily the result of higher discount rates. The actuarial loss for 2019 for the OPEB Plan was primarily the result of lower discount rates. The actuarial gain for 2018 was primarily the result of higher discount rates. 2 The total funded status of the DB Pension Plans attributable to Consumers, based on an allocation of expenses, was $408 million at December 31, 2019 and $246 million at December 31, 2018 . Presented in the following table is the classification of CMS Energy’s and Consumers’ retirement benefit plans’ assets and liabilities: In Millions December 31 2019 2018 CMS Energy, including Consumers Non ‑ current assets DB Pension Plans $ 104 $ 38 OPEB Plan 344 235 Current liabilities DB SERP 10 10 Non ‑ current liabilities DB Pension Plans 531 303 DB SERP 140 130 Consumers Non ‑ current assets DB Pension Plans $ 109 $ 49 OPEB Plan 290 193 Current liabilities DB SERP 7 7 Non ‑ current liabilities DB Pension Plans 517 295 DB SERP 102 94 The ABO for the DB Pension Plans was $2.6 billion at December 31, 2019 and $2.2 billion at December 31, 2018 . Presented in the following table is information related to the defined benefit pension plan for which the PBO and the ABO exceed plan assets: In Millions December 31 2019 2018 CMS Energy, including Consumers PBO $ 1,736 $ 1,363 ABO 1,398 1,091 Fair value of plan assets 1,205 1,059 Items Not Yet Recognized as a Component of Net Periodic Benefit Cost: Presented in the following table are the amounts recognized in regulatory assets and AOCI that have not been recognized as components of net periodic benefit cost. For additional details on regulatory assets , see Note 3, Regulatory Matters . In Millions DB Pension Plans and DB SERP OPEB Plan Years Ended December 31 2019 2018 2019 2018 CMS Energy, including Consumers Regulatory assets Net loss $ 1,114 $ 978 $ 308 $ 402 Prior service cost (credit) 8 9 (300 ) (361 ) Regulatory assets $ 1,122 $ 987 $ 8 $ 41 AOCI Net loss (gain) 105 90 (6 ) 2 Prior service credit — — (8 ) (9 ) Total amounts recognized in regulatory assets and AOCI $ 1,227 $ 1,077 $ (6 ) $ 34 Consumers Regulatory assets Net loss $ 1,114 $ 978 $ 308 $ 402 Prior service cost (credit) 8 9 (300 ) (361 ) Regulatory assets $ 1,122 $ 987 $ 8 $ 41 AOCI Net loss 36 27 — — Total amounts recognized in regulatory assets and AOCI $ 1,158 $ 1,014 $ 8 $ 41 Plan Assets: Presented in the following tables are the fair values of the assets of CMS Energy’s DB Pension Plans and OPEB Plan, by asset category and by level within the fair value hierarchy. For additional details regarding the fair value hierarchy, see Note 6, Fair Value Measurements . In Millions DB Pension Plans December 31, 2019 December 31, 2018 Total Level 1 Level 2 Total Level 1 Level 2 CMS Energy, including Consumers Cash and short-term investments $ 44 $ 44 $ — $ 242 $ 242 $ — U.S. government and agencies securities 66 — 66 11 — 11 Corporate debt 493 — 493 400 — 400 State and municipal bonds 17 — 17 6 — 6 Foreign corporate bonds 33 — 33 35 — 35 Mutual funds 640 640 — 552 552 — $ 1,293 $ 684 $ 609 $ 1,246 $ 794 $ 452 Pooled funds 1,253 1,001 Total $ 2,546 $ 2,247 In Millions OPEB Plan December 31, 2019 December 31, 2018 Total Level 1 Level 2 Total Level 1 Level 2 CMS Energy, including Consumers Cash and short-term investments $ 9 $ 9 $ — $ 36 $ 36 $ — U.S. government and agencies securities 10 — 10 2 — 2 Corporate debt 71 — 71 55 — 55 State and municipal bonds 2 — 2 1 — 1 Foreign corporate bonds 5 — 5 5 — 5 Common stocks 55 55 — 41 41 — Mutual funds 713 713 — 594 594 — $ 865 $ 777 $ 88 $ 734 $ 671 $ 63 Pooled funds 644 546 Total $ 1,509 $ 1,280 Cash and Short-Term Investments: Cash and short-term investments consist of money market funds with daily liquidity. U.S. Government and Agencies Securities: U.S. government and agencies securities consist of U.S. Treasury notes and other debt securities backed by the U.S. government and related agencies. These securities are valued based on quoted market prices. Corporate Debt: Corporate debt investments consist of investment grade bonds of U.S. issuers from diverse industries. These securities are valued based on quoted market prices, when available, or yields available on comparable securities of issuers with similar credit ratings. State and Municipal Bonds: State and municipal bonds are valued using a matrix-pricing model that incorporates Level 2 market-based information. The fair value of the bonds is derived from various observable inputs, including benchmark yields, reported securities trades, broker/dealer quotes, bond ratings, and general information on market movements for investment grade state and municipal securities normally considered by market participants when pricing such debt securities. Foreign Corporate Bonds: Foreign corporate debt securities are valued based on quoted market prices, when available, or on yields available on comparable securities of issuers with similar credit ratings. Common Stocks: Common stocks in the OPEB Plan consist of equity securities that are actively managed and tracked to the S&P 500 Index. These securities are valued at their quoted closing prices. Mutual Funds: Mutual funds represent shares in registered investment companies that are priced based on the daily quoted net asset values that are publicly available and are the basis for transactions to buy or sell shares in the funds. Pooled Funds: Pooled funds include both common and collective trust funds as well as special funds that contain only employee benefit plan assets from two or more unrelated benefit plans. These funds primarily consist of U.S. and foreign equity securities, but also include U.S. and foreign fixed-income securities and multi-asset investments. Since these investments are valued at their net asset value as a practical expedient, they are not classified in the fair value hierarchy. Asset Allocations: Presented in the following table are the investment components of the assets of CMS Energy’s DB Pension Plans and OPEB Plan as of December 31, 2019 : DB Pension Plans OPEB Plan Equity securities 55 % 48 % Fixed-income securities 39 33 Multi-asset investments 6 19 100 % 100 % CMS Energy’s target asset allocation for the assets of the DB Pension Plans is 53 percent equity, 35 percent fixed income, and 12 percent multi-asset investments. This target asset allocation is expected to continue to maximize the long-term return on plan assets, while maintaining a prudent level of risk. The level of acceptable risk is a function of the liabilities of the plan. Equity investments are diversified mostly across the S&P 500 Index, with lesser allocations to the S&P MidCap and SmallCap Indexes and Foreign Equity Funds. Fixed-income investments are diversified across investment grade instruments of government and corporate issuers as well as high-yield and global bond funds. Multi-assets are diversified across absolute return investment approaches and global tactical asset allocation, such as inflation protected securities, real estate investment trusts, commodities, currency, and preferred stock. CMS Energy uses annual liability measurements, quarterly portfolio reviews, and periodic asset/liability studies to evaluate the need for adjustments to the portfolio allocation. CMS Energy established union and non‑union VEBA trusts to fund future retiree health and life insurance benefits. These trusts are funded through the ratemaking process for Consumers and through direct contributions from the non‑utility subsidiaries. CMS Energy’s target asset allocation for the health trusts is 50 percent equity, 30 percent fixed income, and 20 percent multi-asset investments. CMS Energy’s target asset allocation for the life trusts is 42 percent equity, 28 percent fixed income, and 30 percent multi-asset investments. These target allocations are expected to continue to maximize the long-term return on plan assets, while maintaining a prudent level of risk. The level of acceptable risk is a function of the liabilities of the plans. Equity investments are diversified mostly across the S&P 500 Index, with lesser allocations to the S&P SmallCap Index and Foreign Equity Funds. Fixed-income investments are diversified across investment grade instruments of government and corporate issuers. Multi-assets are diversified across absolute return investment approaches and global tactical asset allocation, such as inflation protected securities, real estate investment trusts, commodities, currency and preferred stock. CMS Energy uses annual liability measurements, quarterly portfolio reviews, and periodic asset/liability studies to evaluate the need for adjustments to the portfolio allocation. Contributions: Presented in the following table are the contributions to CMS Energy’s and Consumers’ DB Pension Plans : In Millions Years Ended December 31 2019 2018 CMS Energy, including Consumers DB Pension Plans $ — $ 240 Consumers DB Pension Plans $ — $ 234 Contributions comprise required amounts and discretionary contributions. Neither CMS Energy nor Consumers contributed to the OPEB Plan in 2019 and 2018 . CMS Energy, including Consumers, contributed $531 million to the DB Pension Plans in January 2020 . Consumers contributed $518 million to the DB Pension Plans in January 2020 . Neither CMS Energy nor Consumers plans to contribute to the OPEB Plan in 2020 . Actual future contributions will depend on future investment performance, discount rates, and various factors related to the participants of the DB Pension Plans and OPEB Plan. CMS Energy and Consumers will, at a minimum, contribute to the plans as needed to comply with federal funding requirements. Benefit Payments: Presented in the following table are the expected benefit payments for each of the next five years and the five-year period thereafter: In Millions DB Pension Plans DB SERP OPEB Plan CMS Energy, including Consumers 2020 $ 174 $ 10 $ 58 2021 176 10 60 2022 177 10 62 2023 177 10 63 2024 175 10 64 2025-2029 870 46 319 Consumers 2020 $ 165 $ 7 $ 56 2021 166 7 58 2022 167 7 59 2023 167 7 60 2024 166 7 61 2025-2029 825 32 305 Collective Bargaining Agreements: At December 31, 2019 , unions represented 35 percent of CMS Energy’s employees and 37 percent of Consumers’ employees. The UWUA represents Consumers’ operating, maintenance, construction, and call center employees. The USW represents Zeeland plant employees. Union contracts expire in 2020 . |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-Based Compensation | Stock-Based Compensation CMS Energy and Consumers provide a PISP to officers, employees, and non‑employee directors based on their contributions to the successful management of the company. The PISP has a ten -year term, expiring in May 2024. In 2019 , all awards were in the form of restricted stock or restricted stock units. The PISP also allows for unrestricted common stock, stock options, stock appreciation rights, phantom shares, performance units, and incentive options, none of which was granted in 2019 , 2018 , or 2017 . Shares awarded or subject to stock options, phantom shares, or performance units may not exceed 6.5 million shares from June 2014 through May 2024, nor may such awards to any recipient exceed 500,000 shares in any calendar year. CMS Energy and Consumers may issue awards of up to 3,258,000 shares of common stock under the PISP as of December 31, 2019 . Shares for which payment or exercise is in cash, as well as shares that expire, terminate, or are canceled or forfeited, may be awarded or granted again under the PISP. All awards under the PISP vest fully upon death. Upon a change of control of CMS Energy or termination under an officer separation agreement, the awards will vest in accordance with specific officer agreements. If stated in the award, for restricted stock recipients who terminate employment due to retirement or disability, a pro-rata portion of the award will vest upon termination, with any market-based award also contingent upon the outcome of the market condition and any performance-based award contingent upon the outcome of the performance condition. The pro-rata portion is equal to the portion of the service period served between the award grant date and the employee’s termination date. The remaining portion of the awards will be forfeited. All awards for directors vest fully upon retirement. Restricted shares may be forfeited if employment terminates for any other reason or if the minimum service requirements are not met, as described in the award document. Restricted Stock Awards: Restricted stock awards for employees under the PISP are in the form of performance-based, market-based, and time-lapse restricted stock. Award recipients receive shares of CMS Energy common stock that have dividend and voting rights. The dividends on time-lapse restricted stock are paid in cash or in CMS Energy common stock. The dividends on performance-based and market-based restricted stock are paid in restricted shares equal to the value of the dividends. These additional restricted shares are subject to the same vesting conditions as the underlying restricted stock shares. Performance-based restricted stock vesting is contingent on meeting at least a 36 -month service requirement and a performance condition. The performance condition is based on an adjusted measure of CMS Energy’s EPS growth relative to a peer group over a three -year period. The awards granted in 2019 , 2018 , and 2017 require a 38 -month service period. Market-based restricted stock vesting is generally contingent on meeting a three -year service requirement and a market condition. The market condition is based on a comparison of CMS Energy’s total shareholder return with the median total shareholder return of a peer group over the same three -year period. Depending on the outcome of the performance condition or the market condition, a recipient may earn a total award ranging from zero to 200 percent of the initial grant. Time-lapse restricted stock generally vests after a service period of three years . Restricted Stock Units: In 2019 , 2018 , and 2017 , CMS Energy and Consumers granted restricted stock units to certain non‑employee directors who elected to defer their restricted stock awards. The restricted stock units generally vest after a service period of one year or, if earlier, at the next annual meeting. The restricted stock units will be distributed to the recipients as shares in accordance with the directors’ deferral agreements. Restricted stock units do not have voting rights, but do have dividend rights. In lieu of cash dividend payments, the dividends on restricted stock units are paid in additional units equal to the value of the dividends. These additional restricted stock units are subject to the same vesting and distribution conditions as the underlying restricted stock units. No restricted stock units were forfeited during 2019 . Presented in the following tables is the activity for restricted stock and restricted stock units under the PISP: CMS Energy, including Consumers Consumers Year Ended December 31, 2019 Number of Shares Weighted-Average Grant Date Fair Value per Share Number of Shares Weighted-Average Grant Date Fair Value per Share Nonvested at beginning of period 1,211,229 $ 39.70 1,158,836 $ 39.71 Granted Restricted stock 488,594 43.57 464,485 43.57 Restricted stock units 14,899 50.35 14,050 51.15 Vested Restricted stock (468,308 ) 31.09 (447,214 ) 31.11 Restricted stock units (12,503 ) 41.59 (11,836 ) 42.35 Forfeited – restricted stock (46,949 ) 45.81 (40,139 ) 45.69 Nonvested at end of period 1,186,962 $ 44.56 1,138,182 $ 44.57 Year Ended December 31, 2019 CMS Energy, including Consumers Consumers Granted Time-lapse awards 119,167 113,627 Market-based awards 144,963 137,636 Performance-based awards 144,963 137,636 Director restricted stock units 13,575 13,005 Dividend equivalents on market-based awards 12,779 12,176 Dividend equivalents on performance-based awards 15,899 15,145 Dividend equivalents on restricted stock units 1,324 1,045 Additional market-based shares based on achievement of condition 15,320 14,550 Additional performance-based shares based on achievement of condition 35,503 33,715 Total granted 503,493 478,535 CMS Energy and Consumers charge the fair value of the restricted stock awards to expense over the required service period and charge the fair value of the restricted stock units to expense immediately. For performance-based awards, CMS Energy and Consumers estimate the number of shares expected to vest at the end of the performance period based on the probable achievement of the performance objective. Performance-based and market-based restricted stock awards have graded vesting features for retirement-eligible employees, and CMS Energy and Consumers recognize expense for those awards on a graded vesting schedule over the required service period. Expense for performance-based and market-based restricted stock awards for non‑retirement-eligible employees and time-lapse awards is recognized on a straight-line basis over the required service period. The fair value of performance-based and time-lapse restricted stock and restricted stock units is based on the price of CMS Energy’s common stock on the grant date. The fair value of market-based restricted stock awards is calculated on the grant date using a Monte Carlo simulation. CMS Energy and Consumers base expected volatilities on the historical volatility of the price of CMS Energy common stock. The risk-free rate for valuation of the market-based restricted stock awards was based on the three -year U.S. Treasury yield at the award grant date. Presented in the following table are the most important assumptions used to estimate the fair value of the market-based restricted stock awards: Years Ended December 31 2019 2018 2017 Expected volatility 14.9 % 16.7 % 18.0 % Expected dividend yield 2.8 2.8 3.0 Risk-free rate 2.5 2.1 1.5 Presented in the following table is the weighted-average grant-date fair value of all awards under the PISP: Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Weighted-average grant-date fair value per share Restricted stock granted $ 43.57 $ 26.49 $ 28.61 Restricted stock units granted 50.35 41.77 41.98 Consumers Weighted-average grant-date fair value per share Restricted stock granted $ 43.57 $ 26.51 $ 28.67 Restricted stock units granted 51.15 42.01 41.97 Presented in the following table are amounts related to restricted stock awards and restricted stock units: In Millions Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Fair value of shares that vested during the year $ 26 $ 27 $ 37 Compensation expense recognized 22 17 17 Income tax benefit recognized 1 1 7 Consumers Fair value of shares that vested during the year $ 25 $ 26 $ 35 Compensation expense recognized 21 16 16 Income tax benefit recognized 1 1 7 At December 31, 2019 , $21.7 million of total unrecognized compensation cost was related to restricted stock for CMS Energy, including Consumers, and $20.8 million of total unrecognized compensation cost was related to restricted stock for Consumers. CMS Energy and Consumers expect to recognize this cost over a weighted-average period of two years . |
Consumers Energy Company | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-Based Compensation | Stock-Based Compensation CMS Energy and Consumers provide a PISP to officers, employees, and non‑employee directors based on their contributions to the successful management of the company. The PISP has a ten -year term, expiring in May 2024. In 2019 , all awards were in the form of restricted stock or restricted stock units. The PISP also allows for unrestricted common stock, stock options, stock appreciation rights, phantom shares, performance units, and incentive options, none of which was granted in 2019 , 2018 , or 2017 . Shares awarded or subject to stock options, phantom shares, or performance units may not exceed 6.5 million shares from June 2014 through May 2024, nor may such awards to any recipient exceed 500,000 shares in any calendar year. CMS Energy and Consumers may issue awards of up to 3,258,000 shares of common stock under the PISP as of December 31, 2019 . Shares for which payment or exercise is in cash, as well as shares that expire, terminate, or are canceled or forfeited, may be awarded or granted again under the PISP. All awards under the PISP vest fully upon death. Upon a change of control of CMS Energy or termination under an officer separation agreement, the awards will vest in accordance with specific officer agreements. If stated in the award, for restricted stock recipients who terminate employment due to retirement or disability, a pro-rata portion of the award will vest upon termination, with any market-based award also contingent upon the outcome of the market condition and any performance-based award contingent upon the outcome of the performance condition. The pro-rata portion is equal to the portion of the service period served between the award grant date and the employee’s termination date. The remaining portion of the awards will be forfeited. All awards for directors vest fully upon retirement. Restricted shares may be forfeited if employment terminates for any other reason or if the minimum service requirements are not met, as described in the award document. Restricted Stock Awards: Restricted stock awards for employees under the PISP are in the form of performance-based, market-based, and time-lapse restricted stock. Award recipients receive shares of CMS Energy common stock that have dividend and voting rights. The dividends on time-lapse restricted stock are paid in cash or in CMS Energy common stock. The dividends on performance-based and market-based restricted stock are paid in restricted shares equal to the value of the dividends. These additional restricted shares are subject to the same vesting conditions as the underlying restricted stock shares. Performance-based restricted stock vesting is contingent on meeting at least a 36 -month service requirement and a performance condition. The performance condition is based on an adjusted measure of CMS Energy’s EPS growth relative to a peer group over a three -year period. The awards granted in 2019 , 2018 , and 2017 require a 38 -month service period. Market-based restricted stock vesting is generally contingent on meeting a three -year service requirement and a market condition. The market condition is based on a comparison of CMS Energy’s total shareholder return with the median total shareholder return of a peer group over the same three -year period. Depending on the outcome of the performance condition or the market condition, a recipient may earn a total award ranging from zero to 200 percent of the initial grant. Time-lapse restricted stock generally vests after a service period of three years . Restricted Stock Units: In 2019 , 2018 , and 2017 , CMS Energy and Consumers granted restricted stock units to certain non‑employee directors who elected to defer their restricted stock awards. The restricted stock units generally vest after a service period of one year or, if earlier, at the next annual meeting. The restricted stock units will be distributed to the recipients as shares in accordance with the directors’ deferral agreements. Restricted stock units do not have voting rights, but do have dividend rights. In lieu of cash dividend payments, the dividends on restricted stock units are paid in additional units equal to the value of the dividends. These additional restricted stock units are subject to the same vesting and distribution conditions as the underlying restricted stock units. No restricted stock units were forfeited during 2019 . Presented in the following tables is the activity for restricted stock and restricted stock units under the PISP: CMS Energy, including Consumers Consumers Year Ended December 31, 2019 Number of Shares Weighted-Average Grant Date Fair Value per Share Number of Shares Weighted-Average Grant Date Fair Value per Share Nonvested at beginning of period 1,211,229 $ 39.70 1,158,836 $ 39.71 Granted Restricted stock 488,594 43.57 464,485 43.57 Restricted stock units 14,899 50.35 14,050 51.15 Vested Restricted stock (468,308 ) 31.09 (447,214 ) 31.11 Restricted stock units (12,503 ) 41.59 (11,836 ) 42.35 Forfeited – restricted stock (46,949 ) 45.81 (40,139 ) 45.69 Nonvested at end of period 1,186,962 $ 44.56 1,138,182 $ 44.57 Year Ended December 31, 2019 CMS Energy, including Consumers Consumers Granted Time-lapse awards 119,167 113,627 Market-based awards 144,963 137,636 Performance-based awards 144,963 137,636 Director restricted stock units 13,575 13,005 Dividend equivalents on market-based awards 12,779 12,176 Dividend equivalents on performance-based awards 15,899 15,145 Dividend equivalents on restricted stock units 1,324 1,045 Additional market-based shares based on achievement of condition 15,320 14,550 Additional performance-based shares based on achievement of condition 35,503 33,715 Total granted 503,493 478,535 CMS Energy and Consumers charge the fair value of the restricted stock awards to expense over the required service period and charge the fair value of the restricted stock units to expense immediately. For performance-based awards, CMS Energy and Consumers estimate the number of shares expected to vest at the end of the performance period based on the probable achievement of the performance objective. Performance-based and market-based restricted stock awards have graded vesting features for retirement-eligible employees, and CMS Energy and Consumers recognize expense for those awards on a graded vesting schedule over the required service period. Expense for performance-based and market-based restricted stock awards for non‑retirement-eligible employees and time-lapse awards is recognized on a straight-line basis over the required service period. The fair value of performance-based and time-lapse restricted stock and restricted stock units is based on the price of CMS Energy’s common stock on the grant date. The fair value of market-based restricted stock awards is calculated on the grant date using a Monte Carlo simulation. CMS Energy and Consumers base expected volatilities on the historical volatility of the price of CMS Energy common stock. The risk-free rate for valuation of the market-based restricted stock awards was based on the three -year U.S. Treasury yield at the award grant date. Presented in the following table are the most important assumptions used to estimate the fair value of the market-based restricted stock awards: Years Ended December 31 2019 2018 2017 Expected volatility 14.9 % 16.7 % 18.0 % Expected dividend yield 2.8 2.8 3.0 Risk-free rate 2.5 2.1 1.5 Presented in the following table is the weighted-average grant-date fair value of all awards under the PISP: Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Weighted-average grant-date fair value per share Restricted stock granted $ 43.57 $ 26.49 $ 28.61 Restricted stock units granted 50.35 41.77 41.98 Consumers Weighted-average grant-date fair value per share Restricted stock granted $ 43.57 $ 26.51 $ 28.67 Restricted stock units granted 51.15 42.01 41.97 Presented in the following table are amounts related to restricted stock awards and restricted stock units: In Millions Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Fair value of shares that vested during the year $ 26 $ 27 $ 37 Compensation expense recognized 22 17 17 Income tax benefit recognized 1 1 7 Consumers Fair value of shares that vested during the year $ 25 $ 26 $ 35 Compensation expense recognized 21 16 16 Income tax benefit recognized 1 1 7 At December 31, 2019 , $21.7 million of total unrecognized compensation cost was related to restricted stock for CMS Energy, including Consumers, and $20.8 million of total unrecognized compensation cost was related to restricted stock for Consumers. CMS Energy and Consumers expect to recognize this cost over a weighted-average period of two years . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Line Items] | |
Income Taxes | Income Taxes CMS Energy and its subsidiaries file a consolidated U.S. federal income tax return as well as a Michigan Corporate Income Tax return for the unitary business group and various other state unitary group combined income tax returns. Income taxes are allocated based on each company’s separate taxable income in accordance with the CMS Energy tax sharing agreement. In December 2017, the TCJA was enacted, which changed existing federal tax law and included numerous provisions that affect businesses, with the primary impact being a reduction of the corporate tax rate from 35 percent to 21 percent . Presented in the following table is the difference between actual income tax expense on continuing operations and income tax expense computed by applying the statutory U.S. federal income tax rate: In Millions, Except Tax Rate Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Income from continuing operations before income taxes $ 829 $ 774 $ 886 Income tax expense at statutory rate 174 163 310 Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 1 48 46 26 TCJA excess deferred taxes 2 (31 ) (26 ) — Production tax credits (20 ) (14 ) (8 ) Accelerated flow-through of regulatory tax benefits 3 (13 ) (39 ) (39 ) Research and development tax credits, net 4 (2 ) (11 ) (1 ) Impact of the TCJA 5 — (4 ) 148 Other, net (9 ) — (12 ) Income tax expense $ 147 $ 115 $ 424 Effective tax rate 17.7 % 14.9 % 47.9 % Consumers Income from continuing operations before income taxes $ 928 $ 847 $ 971 Income tax expense at statutory rate 195 178 340 Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 1 53 51 30 TCJA excess deferred taxes 2 (31 ) (26 ) — Accelerated flow-through of regulatory tax benefits 3 (13 ) (39 ) (39 ) Production tax credits (12 ) (12 ) (8 ) Research and development tax credits, net 4 (2 ) (11 ) (1 ) Impact of the TCJA 5 — 1 33 Other, net (5 ) — (16 ) Income tax expense $ 185 $ 142 $ 339 Effective tax rate 19.9 % 16.8 % 34.9 % 1 In 2017, CMS Energy completed the evaluation of its methodology for the state apportionment of Consumers’ electricity sales to MISO, taking into account recent state tax law developments in the electric utility sector. To recognize the anticipated refund and the impact of the expected lower effective tax rate on their deferred state tax liabilities, CMS Energy, including Consumers, recorded a $14 million income tax benefit in 2017. These tax benefits were net of reserves for uncertain tax positions and primarily attributable to Consumers. In 2018, CMS Energy amended its 2013 Michigan Corporate Income Tax return and submitted a refund claim for taxes previously paid. The refund claim was denied by the State of Michigan. In 2019, CMS Energy received an unfavorable informal conference decision and filed a petition with the Michigan Tax Tribunal. A trial is anticipated in 2020. CMS Energy’s uncertain tax position on this matter remains unchanged. 2 In December 2017, Consumers remeasured its deferred tax assets and liabilities at the new federal tax rate enacted by the TCJA and recorded a net $1.6 billion regulatory liability. As a result of an order received in September 2019, Consumers began refunding these excess deferred taxes to customers. For additional details on the order received, see Note 3, Regulatory Matters . 3 In 2013, the MPSC issued an order authorizing Consumers to accelerate the flow-through to electric and gas customers of certain income tax benefits associated primarily with the cost of removal of plant placed in service before 1993. Consumers implemented this regulatory treatment beginning in 2014, with the electric portion ending in 2018 and the gas portion continuing through 2025. 4 In March 2018, Consumers finalized a study of research and development tax credits for the tax years 2012 through 2016. As a result, Consumers recognized an $8 million increase in the credit, net of reserves for uncertain tax positions, at that time. 5 In December 2017, CMS Energy and Consumers recorded a reasonable estimate to measure and account for the impact of the TCJA. In December 2018, CMS Energy recorded a true-up of their estimate and eliminated the $9 million valuation allowance on the sequestration of alternative minimum tax credits. Presented in the following table are the significant components of income tax expense on continuing operations: In Millions Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Current income taxes Federal $ (31 ) $ (67 ) $ — State and local 28 — 6 $ (3 ) $ (67 ) $ 6 Deferred income taxes Federal $ 97 $ 112 $ 368 State and local 32 58 36 $ 129 $ 170 $ 404 Deferred income tax credit 21 12 14 Tax expense $ 147 $ 115 $ 424 Consumers Current income taxes Federal $ 107 $ 6 $ 159 State and local 41 13 17 $ 148 $ 19 $ 176 Deferred income taxes Federal $ (10 ) $ 60 $ 120 State and local 26 51 29 $ 16 $ 111 $ 149 Deferred income tax credit 21 12 14 Tax expense $ 185 $ 142 $ 339 For the year ended December 31, 2017 , the impact of the TCJA was a $148 million increase in deferred income tax expense at CMS Energy, including Consumers, and a $33 million increase in deferred income tax expense at Consumers. The TCJA had no impact on current income tax expense in 2017 . Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized: In Millions December 31 2019 2018 CMS Energy, including Consumers Deferred income tax assets Tax loss and credit carryforwards $ 239 $ 385 Net regulatory tax liability 385 395 Reserves and accruals 43 39 Total deferred income tax assets $ 667 $ 819 Valuation allowance (2 ) (8 ) Total deferred income tax assets, net of valuation allowance $ 665 $ 811 Deferred income tax liabilities Plant, property, and equipment $ (2,033 ) $ (1,955 ) Employee benefits (172 ) (165 ) Securitized costs (59 ) (65 ) Gas inventory (32 ) (35 ) Other (24 ) (78 ) Total deferred income tax liabilities $ (2,320 ) $ (2,298 ) Total net deferred income tax liabilities $ (1,655 ) $ (1,487 ) Consumers Deferred income tax assets Net regulatory tax liability $ 385 $ 395 Tax loss and credit carryforwards 20 64 Reserves and accruals 24 21 Total deferred income tax assets $ 429 $ 480 Deferred income tax liabilities Plant, property, and equipment $ (1,995 ) $ (1,943 ) Employee benefits (178 ) (172 ) Securitized costs (59 ) (65 ) Gas inventory (32 ) (35 ) Other (29 ) (74 ) Total deferred income tax liabilities $ (2,293 ) $ (2,289 ) Total net deferred income tax liabilities $ (1,864 ) $ (1,809 ) Deferred tax assets and liabilities are recognized for the estimated future tax effect of temporary differences between the tax basis of assets or liabilities and the reported amounts on CMS Energy’s and Consumers’ consolidated financial statements. Presented in the following table are the tax loss and credit carryforwards at December 31, 2019 : In Millions Gross Amount Tax Attribute Expiration CMS Energy, including Consumers Local net operating loss carryforwards $ 389 $ 4 2023 – 2036 General business credits 206 206 2026 – 2039 Alternative minimum tax credits 29 29 Not applicable Total tax attributes $ 239 Consumers General business credits $ 20 $ 20 2027 – 2039 Total tax attributes $ 20 CMS Energy has provided a valuation allowance of $2 million for the local tax loss carryforward. The TCJA repealed the corporate alternative minimum tax and requires companies to recover (through offsets of regular tax and through cash refunds) all alternative minimum tax credits over the four -year period ending in 2021. Therefore, for the year ended December 31, 2019 , CMS Energy reclassified $31 million of alternative minimum tax credits to a current receivable. CMS Energy and Consumers expect to utilize fully their tax loss and credit carryforwards for which no valuation allowance has been provided. It is reasonably possible that further adjustments will be made to the valuation allowances within one year. Presented in the following table is a reconciliation of the beginning and ending amount of uncertain tax benefits: In Millions Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Balance at beginning of period $ 19 $ 14 $ 5 Additions for current-year tax positions 1 1 10 Additions for prior-year tax positions 3 4 — Reductions for prior-year tax positions — — (1 ) Balance at end of period $ 23 $ 19 $ 14 Consumers Balance at beginning of period $ 28 $ 21 $ 5 Additions for current-year tax positions 1 2 17 Additions for prior-year tax positions 5 5 — Reductions for prior-year tax positions — — (1 ) Balance at end of period $ 34 $ 28 $ 21 If recognized, all of these uncertain tax benefits would affect CMS Energy’s and Consumers’ annual effective tax rates in future years. CMS Energy and Consumers recognize accrued interest and penalties, where applicable, as part of income tax expense . CMS Energy, including Consumers, recognized no interest or penalties for the years ended December 31, 2019 , 2018 , or 2017 . The amount of income taxes paid is subject to ongoing audits by federal, state, local, and foreign tax authorities, which can result in proposed assessments. CMS Energy’s federal income tax returns for 2016 and subsequent years remain subject to examination by the IRS. CMS Energy’s Michigan Corporate Income Tax returns for 2013 and subsequent years remain subject to examination by the State of Michigan. CMS Energy’s and Consumers’ estimate of the potential outcome for any uncertain tax issue is highly judgmental. CMS Energy and Consumers believe that their accrued tax liabilities at December 31, 2019 were adequate for all years. |
Consumers Energy Company | |
Income Taxes [Line Items] | |
Income Taxes | Income Taxes CMS Energy and its subsidiaries file a consolidated U.S. federal income tax return as well as a Michigan Corporate Income Tax return for the unitary business group and various other state unitary group combined income tax returns. Income taxes are allocated based on each company’s separate taxable income in accordance with the CMS Energy tax sharing agreement. In December 2017, the TCJA was enacted, which changed existing federal tax law and included numerous provisions that affect businesses, with the primary impact being a reduction of the corporate tax rate from 35 percent to 21 percent . Presented in the following table is the difference between actual income tax expense on continuing operations and income tax expense computed by applying the statutory U.S. federal income tax rate: In Millions, Except Tax Rate Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Income from continuing operations before income taxes $ 829 $ 774 $ 886 Income tax expense at statutory rate 174 163 310 Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 1 48 46 26 TCJA excess deferred taxes 2 (31 ) (26 ) — Production tax credits (20 ) (14 ) (8 ) Accelerated flow-through of regulatory tax benefits 3 (13 ) (39 ) (39 ) Research and development tax credits, net 4 (2 ) (11 ) (1 ) Impact of the TCJA 5 — (4 ) 148 Other, net (9 ) — (12 ) Income tax expense $ 147 $ 115 $ 424 Effective tax rate 17.7 % 14.9 % 47.9 % Consumers Income from continuing operations before income taxes $ 928 $ 847 $ 971 Income tax expense at statutory rate 195 178 340 Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 1 53 51 30 TCJA excess deferred taxes 2 (31 ) (26 ) — Accelerated flow-through of regulatory tax benefits 3 (13 ) (39 ) (39 ) Production tax credits (12 ) (12 ) (8 ) Research and development tax credits, net 4 (2 ) (11 ) (1 ) Impact of the TCJA 5 — 1 33 Other, net (5 ) — (16 ) Income tax expense $ 185 $ 142 $ 339 Effective tax rate 19.9 % 16.8 % 34.9 % 1 In 2017, CMS Energy completed the evaluation of its methodology for the state apportionment of Consumers’ electricity sales to MISO, taking into account recent state tax law developments in the electric utility sector. To recognize the anticipated refund and the impact of the expected lower effective tax rate on their deferred state tax liabilities, CMS Energy, including Consumers, recorded a $14 million income tax benefit in 2017. These tax benefits were net of reserves for uncertain tax positions and primarily attributable to Consumers. In 2018, CMS Energy amended its 2013 Michigan Corporate Income Tax return and submitted a refund claim for taxes previously paid. The refund claim was denied by the State of Michigan. In 2019, CMS Energy received an unfavorable informal conference decision and filed a petition with the Michigan Tax Tribunal. A trial is anticipated in 2020. CMS Energy’s uncertain tax position on this matter remains unchanged. 2 In December 2017, Consumers remeasured its deferred tax assets and liabilities at the new federal tax rate enacted by the TCJA and recorded a net $1.6 billion regulatory liability. As a result of an order received in September 2019, Consumers began refunding these excess deferred taxes to customers. For additional details on the order received, see Note 3, Regulatory Matters . 3 In 2013, the MPSC issued an order authorizing Consumers to accelerate the flow-through to electric and gas customers of certain income tax benefits associated primarily with the cost of removal of plant placed in service before 1993. Consumers implemented this regulatory treatment beginning in 2014, with the electric portion ending in 2018 and the gas portion continuing through 2025. 4 In March 2018, Consumers finalized a study of research and development tax credits for the tax years 2012 through 2016. As a result, Consumers recognized an $8 million increase in the credit, net of reserves for uncertain tax positions, at that time. 5 In December 2017, CMS Energy and Consumers recorded a reasonable estimate to measure and account for the impact of the TCJA. In December 2018, CMS Energy recorded a true-up of their estimate and eliminated the $9 million valuation allowance on the sequestration of alternative minimum tax credits. Presented in the following table are the significant components of income tax expense on continuing operations: In Millions Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Current income taxes Federal $ (31 ) $ (67 ) $ — State and local 28 — 6 $ (3 ) $ (67 ) $ 6 Deferred income taxes Federal $ 97 $ 112 $ 368 State and local 32 58 36 $ 129 $ 170 $ 404 Deferred income tax credit 21 12 14 Tax expense $ 147 $ 115 $ 424 Consumers Current income taxes Federal $ 107 $ 6 $ 159 State and local 41 13 17 $ 148 $ 19 $ 176 Deferred income taxes Federal $ (10 ) $ 60 $ 120 State and local 26 51 29 $ 16 $ 111 $ 149 Deferred income tax credit 21 12 14 Tax expense $ 185 $ 142 $ 339 For the year ended December 31, 2017 , the impact of the TCJA was a $148 million increase in deferred income tax expense at CMS Energy, including Consumers, and a $33 million increase in deferred income tax expense at Consumers. The TCJA had no impact on current income tax expense in 2017 . Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized: In Millions December 31 2019 2018 CMS Energy, including Consumers Deferred income tax assets Tax loss and credit carryforwards $ 239 $ 385 Net regulatory tax liability 385 395 Reserves and accruals 43 39 Total deferred income tax assets $ 667 $ 819 Valuation allowance (2 ) (8 ) Total deferred income tax assets, net of valuation allowance $ 665 $ 811 Deferred income tax liabilities Plant, property, and equipment $ (2,033 ) $ (1,955 ) Employee benefits (172 ) (165 ) Securitized costs (59 ) (65 ) Gas inventory (32 ) (35 ) Other (24 ) (78 ) Total deferred income tax liabilities $ (2,320 ) $ (2,298 ) Total net deferred income tax liabilities $ (1,655 ) $ (1,487 ) Consumers Deferred income tax assets Net regulatory tax liability $ 385 $ 395 Tax loss and credit carryforwards 20 64 Reserves and accruals 24 21 Total deferred income tax assets $ 429 $ 480 Deferred income tax liabilities Plant, property, and equipment $ (1,995 ) $ (1,943 ) Employee benefits (178 ) (172 ) Securitized costs (59 ) (65 ) Gas inventory (32 ) (35 ) Other (29 ) (74 ) Total deferred income tax liabilities $ (2,293 ) $ (2,289 ) Total net deferred income tax liabilities $ (1,864 ) $ (1,809 ) Deferred tax assets and liabilities are recognized for the estimated future tax effect of temporary differences between the tax basis of assets or liabilities and the reported amounts on CMS Energy’s and Consumers’ consolidated financial statements. Presented in the following table are the tax loss and credit carryforwards at December 31, 2019 : In Millions Gross Amount Tax Attribute Expiration CMS Energy, including Consumers Local net operating loss carryforwards $ 389 $ 4 2023 – 2036 General business credits 206 206 2026 – 2039 Alternative minimum tax credits 29 29 Not applicable Total tax attributes $ 239 Consumers General business credits $ 20 $ 20 2027 – 2039 Total tax attributes $ 20 CMS Energy has provided a valuation allowance of $2 million for the local tax loss carryforward. The TCJA repealed the corporate alternative minimum tax and requires companies to recover (through offsets of regular tax and through cash refunds) all alternative minimum tax credits over the four -year period ending in 2021. Therefore, for the year ended December 31, 2019 , CMS Energy reclassified $31 million of alternative minimum tax credits to a current receivable. CMS Energy and Consumers expect to utilize fully their tax loss and credit carryforwards for which no valuation allowance has been provided. It is reasonably possible that further adjustments will be made to the valuation allowances within one year. Presented in the following table is a reconciliation of the beginning and ending amount of uncertain tax benefits: In Millions Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Balance at beginning of period $ 19 $ 14 $ 5 Additions for current-year tax positions 1 1 10 Additions for prior-year tax positions 3 4 — Reductions for prior-year tax positions — — (1 ) Balance at end of period $ 23 $ 19 $ 14 Consumers Balance at beginning of period $ 28 $ 21 $ 5 Additions for current-year tax positions 1 2 17 Additions for prior-year tax positions 5 5 — Reductions for prior-year tax positions — — (1 ) Balance at end of period $ 34 $ 28 $ 21 If recognized, all of these uncertain tax benefits would affect CMS Energy’s and Consumers’ annual effective tax rates in future years. CMS Energy and Consumers recognize accrued interest and penalties, where applicable, as part of income tax expense . CMS Energy, including Consumers, recognized no interest or penalties for the years ended December 31, 2019 , 2018 , or 2017 . The amount of income taxes paid is subject to ongoing audits by federal, state, local, and foreign tax authorities, which can result in proposed assessments. CMS Energy’s federal income tax returns for 2016 and subsequent years remain subject to examination by the IRS. CMS Energy’s Michigan Corporate Income Tax returns for 2013 and subsequent years remain subject to examination by the State of Michigan. CMS Energy’s and Consumers’ estimate of the potential outcome for any uncertain tax issue is highly judgmental. CMS Energy and Consumers believe that their accrued tax liabilities at December 31, 2019 were adequate for all years. |
Earnings Per Share - CMS Energy
Earnings Per Share - CMS Energy | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share - CMS Energy | Earnings Per Share—CMS Energy Presented in the following table are CMS Energy’s basic and diluted EPS computations based on net income : In Millions, Except Per Share Amounts Years Ended December 31 2019 2018 2017 Income available to common stockholders Net income $ 682 $ 659 $ 462 Less income attributable to noncontrolling interests 2 2 2 Net income available to common stockholders – basic and diluted $ 680 $ 657 $ 460 Average common shares outstanding Weighted-average shares – basic 283.0 282.2 280.0 Add dilutive nonvested stock awards 0.7 0.7 0.8 Add dilutive forward equity sale contracts 0.6 — — Weighted-average shares – diluted 284.3 282.9 280.8 Net income per average common share available to common stockholders Basic $ 2.40 $ 2.33 $ 1.64 Diluted 2.39 2.32 1.64 Nonvested Stock Awards CMS Energy’s nonvested stock awards are composed of participating and non‑participating securities. The participating securities accrue cash dividends when common stockholders receive dividends. Since the recipient is not required to return the dividends to CMS Energy if the recipient forfeits the award, the nonvested stock awards are considered participating securities. As such, the participating nonvested stock awards were included in the computation of basic EPS. The non‑participating securities accrue stock dividends that vest concurrently with the stock award. If the recipient forfeits the award, the stock dividends accrued on the non‑participating securities are also forfeited. Accordingly, the non‑participating awards and stock dividends were included in the computation of diluted EPS, but not in the computation of basic EPS. Forward Equity Sale Contracts In November 2018 and February 2019, CMS Energy entered into forward equity sale contracts. These forward equity sale contracts are non‑participating securities. While the forward sale price in the forward equity sale contract is decreased on certain dates by certain predetermined amounts to reflect expected dividend payments, these price adjustments were set upon inception of the agreement and the forward contract does not give the owner the right to participate in undistributed earnings. Accordingly, the forward equity sale contracts were included in the computation of diluted EPS, but not in the computation of basic EPS. For further details on the forward equity sale contracts, see Note 5, Financings and Capitalization . |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |
Revenue | Revenue Presented in the following tables are the components of operating revenue: In Millions Year Ended December 31, 2019 Electric Utility Gas Utility Enterprises 1 EnerBank Consolidated CMS Energy, including Consumers Consumers utility revenue $ 4,407 $ 1,922 $ — $ — $ 6,329 Other — — 74 — 74 Revenue recognized from contracts with customers $ 4,407 $ 1,922 $ 74 $ — $ 6,403 Leasing income — — 174 — 174 Financing income 9 5 — 221 235 Consumers alternative-revenue programs 23 10 — — 33 Total operating revenue – CMS Energy $ 4,439 $ 1,937 $ 248 $ 221 $ 6,845 Consumers Consumers utility revenue Residential $ 1,988 $ 1,316 $ — $ — $ 3,304 Commercial 1,502 372 — — 1,874 Industrial 669 51 — — 720 Other 248 183 — — 431 Revenue recognized from contracts with customers $ 4,407 $ 1,922 $ — $ — $ 6,329 Financing income 9 5 — — 14 Alternative-revenue programs 23 10 — — 33 Total operating revenue – Consumers $ 4,439 $ 1,937 $ — $ — $ 6,376 1 Amounts represent the enterprises segment’s operating revenue from independent power production and CMS ERM’s sales of energy commodities in support of the independent power production portfolio. In Millions Year Ended December 31, 2018 Electric Utility Gas Utility Enterprises 1 EnerBank Consolidated CMS Energy, including Consumers Consumers utility revenue $ 4,528 $ 1,882 $ — $ — $ 6,410 Other — — 92 — 92 Revenue recognized from contracts with customers $ 4,528 $ 1,882 $ 92 $ — $ 6,502 Leasing income — — 160 — 160 Financing income 10 5 — 157 172 Consumers alternative-revenue programs 23 16 — — 39 Total operating revenue – CMS Energy $ 4,561 $ 1,903 $ 252 $ 157 $ 6,873 Consumers Consumers utility revenue Residential $ 2,049 $ 1,284 $ — $ — $ 3,333 Commercial 1,545 367 — — 1,912 Industrial 674 55 — — 729 Other 260 176 — — 436 Revenue recognized from contracts with customers $ 4,528 $ 1,882 $ — $ — $ 6,410 Financing income 10 5 — — 15 Alternative-revenue programs 23 16 — — 39 Total operating revenue – Consumers $ 4,561 $ 1,903 $ — $ — $ 6,464 1 Amounts represent the enterprises segment’s operating revenue from independent power production and CMS ERM’s sales of energy commodities in support of the independent power production portfolio. Electric and Gas Utilities Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff-based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff-based sales performance obligations are described below. • Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of Consumers’ service to stand ready to deliver. • Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of a bundled product comprising the commodity, electricity or natural gas, and the service of delivering such commodity. In some instances, Consumers has specific fixed-term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature. Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost, which approximates fair value. CMS Energy and Consumers establish an allowance for uncollectible accounts based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and other factors. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. CMS Energy and Consumers charge off accounts deemed uncollectible to operating expense. Uncollectible expense for CMS Energy and Consumers was $29 million for the year ended December 31, 2019 and $29 million for the year ended December 31, 2018 . Consumers’ customers are billed monthly in cycles having billing dates that do not generally coincide with the end of a calendar month. This results in customers having received electricity or natural gas that they have not been billed for as of the month-end. Consumers estimates its unbilled revenues by applying an average billed rate to total unbilled deliveries for each customer class. Unbilled revenues, which are recorded as accounts receivable on CMS Energy’s and Consumers’ consolidated balance sheets, were $426 million at December 31, 2019 and $409 million at December 31, 2018 . Alternative ‑ Revenue Programs: The energy waste reduction incentive mechanism provides a financial incentive if the energy savings of Consumers’ customers exceed annual targets established by the MPSC. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing revenue related to the incentive as soon as energy savings exceed the annual targets established by the MPSC. Under a gas revenue decoupling mechanism authorized by the MPSC, Consumers is allowed to adjust future gas rates for differences between Consumers’ actual weather‑normalized, non‑fuel revenues and the revenues approved by the MPSC. Consumers accounts for this program as an alternative‑revenue program that meets the criteria for recognizing the effects of decoupling adjustments on revenue as gas is delivered. Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers. |
Consumers Energy Company | |
Disaggregation of Revenue [Line Items] | |
Revenue | Revenue Presented in the following tables are the components of operating revenue: In Millions Year Ended December 31, 2019 Electric Utility Gas Utility Enterprises 1 EnerBank Consolidated CMS Energy, including Consumers Consumers utility revenue $ 4,407 $ 1,922 $ — $ — $ 6,329 Other — — 74 — 74 Revenue recognized from contracts with customers $ 4,407 $ 1,922 $ 74 $ — $ 6,403 Leasing income — — 174 — 174 Financing income 9 5 — 221 235 Consumers alternative-revenue programs 23 10 — — 33 Total operating revenue – CMS Energy $ 4,439 $ 1,937 $ 248 $ 221 $ 6,845 Consumers Consumers utility revenue Residential $ 1,988 $ 1,316 $ — $ — $ 3,304 Commercial 1,502 372 — — 1,874 Industrial 669 51 — — 720 Other 248 183 — — 431 Revenue recognized from contracts with customers $ 4,407 $ 1,922 $ — $ — $ 6,329 Financing income 9 5 — — 14 Alternative-revenue programs 23 10 — — 33 Total operating revenue – Consumers $ 4,439 $ 1,937 $ — $ — $ 6,376 1 Amounts represent the enterprises segment’s operating revenue from independent power production and CMS ERM’s sales of energy commodities in support of the independent power production portfolio. In Millions Year Ended December 31, 2018 Electric Utility Gas Utility Enterprises 1 EnerBank Consolidated CMS Energy, including Consumers Consumers utility revenue $ 4,528 $ 1,882 $ — $ — $ 6,410 Other — — 92 — 92 Revenue recognized from contracts with customers $ 4,528 $ 1,882 $ 92 $ — $ 6,502 Leasing income — — 160 — 160 Financing income 10 5 — 157 172 Consumers alternative-revenue programs 23 16 — — 39 Total operating revenue – CMS Energy $ 4,561 $ 1,903 $ 252 $ 157 $ 6,873 Consumers Consumers utility revenue Residential $ 2,049 $ 1,284 $ — $ — $ 3,333 Commercial 1,545 367 — — 1,912 Industrial 674 55 — — 729 Other 260 176 — — 436 Revenue recognized from contracts with customers $ 4,528 $ 1,882 $ — $ — $ 6,410 Financing income 10 5 — — 15 Alternative-revenue programs 23 16 — — 39 Total operating revenue – Consumers $ 4,561 $ 1,903 $ — $ — $ 6,464 1 Amounts represent the enterprises segment’s operating revenue from independent power production and CMS ERM’s sales of energy commodities in support of the independent power production portfolio. Electric and Gas Utilities Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff-based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff-based sales performance obligations are described below. • Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of Consumers’ service to stand ready to deliver. • Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of a bundled product comprising the commodity, electricity or natural gas, and the service of delivering such commodity. In some instances, Consumers has specific fixed-term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature. Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost, which approximates fair value. CMS Energy and Consumers establish an allowance for uncollectible accounts based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and other factors. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. CMS Energy and Consumers charge off accounts deemed uncollectible to operating expense. Uncollectible expense for CMS Energy and Consumers was $29 million for the year ended December 31, 2019 and $29 million for the year ended December 31, 2018 . Consumers’ customers are billed monthly in cycles having billing dates that do not generally coincide with the end of a calendar month. This results in customers having received electricity or natural gas that they have not been billed for as of the month-end. Consumers estimates its unbilled revenues by applying an average billed rate to total unbilled deliveries for each customer class. Unbilled revenues, which are recorded as accounts receivable on CMS Energy’s and Consumers’ consolidated balance sheets, were $426 million at December 31, 2019 and $409 million at December 31, 2018 . Alternative ‑ Revenue Programs: The energy waste reduction incentive mechanism provides a financial incentive if the energy savings of Consumers’ customers exceed annual targets established by the MPSC. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing revenue related to the incentive as soon as energy savings exceed the annual targets established by the MPSC. Under a gas revenue decoupling mechanism authorized by the MPSC, Consumers is allowed to adjust future gas rates for differences between Consumers’ actual weather‑normalized, non‑fuel revenues and the revenues approved by the MPSC. Consumers accounts for this program as an alternative‑revenue program that meets the criteria for recognizing the effects of decoupling adjustments on revenue as gas is delivered. Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers. |
Other Income and Other Expense
Other Income and Other Expense | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Line Items] | |
Other Income and Other Expense | Other Income and Other Expense Other income was not significant for any of the periods presented except for a $14 million gain on the sale of CMS Energy common stock by Consumers in 2017. This gain was eliminated on CMS Energy’s consolidated statements of income. Presented in the following table are the components of other expense at CMS Energy and Consumers: In Millions Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Donations $ (3 ) $ (13 ) $ (31 ) Civic and political expenditures (6 ) (6 ) (27 ) Loss on reacquired and extinguished debt — (16 ) (18 ) All other (4 ) (13 ) — Total other expense – CMS Energy $ (13 ) $ (48 ) $ (76 ) Consumers Donations $ (3 ) $ (13 ) $ (31 ) Civic and political expenditures (6 ) (6 ) (27 ) All other (4 ) (11 ) — Total other expense – Consumers $ (13 ) $ (30 ) $ (58 ) |
Consumers Energy Company | |
Other Income and Expenses [Line Items] | |
Other Income and Other Expense | Other Income and Other Expense Other income was not significant for any of the periods presented except for a $14 million gain on the sale of CMS Energy common stock by Consumers in 2017. This gain was eliminated on CMS Energy’s consolidated statements of income. Presented in the following table are the components of other expense at CMS Energy and Consumers: In Millions Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Donations $ (3 ) $ (13 ) $ (31 ) Civic and political expenditures (6 ) (6 ) (27 ) Loss on reacquired and extinguished debt — (16 ) (18 ) All other (4 ) (13 ) — Total other expense – CMS Energy $ (13 ) $ (48 ) $ (76 ) Consumers Donations $ (3 ) $ (13 ) $ (31 ) Civic and political expenditures (6 ) (6 ) (27 ) All other (4 ) (11 ) — Total other expense – Consumers $ (13 ) $ (30 ) $ (58 ) |
Cash And Cash Equivalents
Cash And Cash Equivalents | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Line Items] | |
Cash And Cash Equivalents | Cash and Cash Equivalents Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets: In Millions December 31 2019 2018 CMS Energy, including Consumers Cash and cash equivalents $ 140 $ 153 Restricted cash and cash equivalents 17 21 Other non‑current assets — 1 Cash and cash equivalents, including restricted amounts $ 157 $ 175 Consumers Cash and cash equivalents $ 11 $ 39 Restricted cash and cash equivalents 17 17 Cash and cash equivalents, including restricted amounts $ 28 $ 56 Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less. Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year. |
Consumers Energy Company | |
Cash and Cash Equivalents [Line Items] | |
Cash And Cash Equivalents | Cash and Cash Equivalents Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets: In Millions December 31 2019 2018 CMS Energy, including Consumers Cash and cash equivalents $ 140 $ 153 Restricted cash and cash equivalents 17 21 Other non‑current assets — 1 Cash and cash equivalents, including restricted amounts $ 157 $ 175 Consumers Cash and cash equivalents $ 11 $ 39 Restricted cash and cash equivalents 17 17 Cash and cash equivalents, including restricted amounts $ 28 $ 56 Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less. Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year. |
Reportable Segments
Reportable Segments | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |
Reportable Segments | 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 . Accounting policies for CMS Energy’s and Consumers’ segments are as described in Note 1, Significant Accounting Policies . The consolidated financial statements reflect the assets, liabilities, revenues, and expenses of the individual segments when appropriate. Accounts are allocated among the segments when common accounts are attributable to more than one segment. The allocations are based on certain measures of business activities, such as revenue, labor dollars, customers, other operating and maintenance expense, construction expense, leased property, taxes, or functional surveys. For example, customer receivables are allocated based on revenue, and pension provisions are allocated based on labor dollars. Inter-segment sales and transfers are accounted for at current market prices and are eliminated in consolidated net income available to common stockholders by segment. CMS Energy The segments reported for CMS Energy are: • electric utility, consisting of regulated activities associated with the generation, purchase, transmission, distribution, and sale of electricity in Michigan • gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan • enterprises, consisting of various subsidiaries engaging in domestic independent power production, including the development and operation of renewable generation, and the marketing of independent power production • EnerBank, a Utah state-chartered, FDIC-insured industrial bank providing unsecured consumer installment loans, largely for financing home improvements CMS Energy presents corporate interest and other expenses and Consumers’ other consolidated entities within other reconciling items. In 2019, EnerBank’s assets exceeded ten percent of CMS Energy’s consolidated assets. Consumers The segments reported for Consumers are: • electric utility, consisting of regulated activities associated with the generation, purchase, transmission, distribution, and sale of electricity in Michigan • gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan Consumers’ other consolidated entities are presented within other reconciling items. Presented in the following tables is financial information by segment: In Millions Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Operating revenue Electric utility $ 4,439 $ 4,561 $ 4,448 Gas utility 1,937 1,903 1,774 Enterprises 248 252 229 EnerBank 221 157 132 Total operating revenue – CMS Energy $ 6,845 $ 6,873 $ 6,583 Consumers Operating revenue Electric utility $ 4,439 $ 4,561 $ 4,448 Gas utility 1,937 1,903 1,774 Total operating revenue – Consumers $ 6,376 $ 6,464 $ 6,222 CMS Energy, including Consumers Depreciation and amortization Electric utility $ 713 $ 682 $ 654 Gas utility 261 239 218 Enterprises 14 8 6 EnerBank 3 4 3 Other reconciling items 1 — — Total depreciation and amortization – CMS Energy $ 992 $ 933 $ 881 Consumers Depreciation and amortization Electric utility $ 713 $ 682 $ 654 Gas utility 261 239 218 Other reconciling items 1 — — Total depreciation and amortization – Consumers $ 975 $ 921 $ 872 CMS Energy, including Consumers Income from equity method investees¹ Enterprises $ 10 $ 9 $ 15 Total income from equity method investees – CMS Energy $ 10 $ 9 $ 15 CMS Energy, including Consumers Interest charges Electric utility $ 213 $ 209 $ 201 Gas utility 83 79 74 Enterprises 7 2 — EnerBank 59 32 19 Other reconciling items 157 136 144 Total interest charges – CMS Energy $ 519 $ 458 $ 438 In Millions Years Ended December 31 2019 2018 2017 Consumers Interest charges Electric utility $ 213 $ 209 $ 201 Gas utility 83 79 74 Other reconciling items 1 1 1 Total interest charges – Consumers $ 297 $ 289 $ 276 CMS Energy, including Consumers Income tax expense (benefit) Electric utility $ 134 $ 109 $ 245 Gas utility 51 33 96 Enterprises 2 2 72 EnerBank 16 12 22 Other reconciling items (56 ) (41 ) (11 ) Total income tax expense – CMS Energy $ 147 $ 115 $ 424 Consumers Income tax expense (benefit) Electric utility $ 134 $ 109 $ 245 Gas utility 51 33 96 Other reconciling items — — (2 ) Total income tax expense – Consumers $ 185 $ 142 $ 339 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 509 $ 535 $ 455 Gas utility 233 169 173 Enterprises 33 34 (27 ) EnerBank 49 38 28 Other reconciling items (144 ) (119 ) (169 ) Total net income available to common stockholders – CMS Energy $ 680 $ 657 $ 460 Consumers Net income (loss) available to common stoc kholder Electric utility $ 509 $ 535 $ 455 Gas utility 233 169 173 Other reconciling items (1 ) (1 ) 2 Total net income available to common stockholder – Consumers $ 741 $ 703 $ 630 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 2,3 $ 16,158 $ 16,027 $ 15,221 Gas utility² 8,785 7,919 7,080 Enterprises 405 412 167 EnerBank 22 25 21 Other reconciling items 20 17 17 Total plant, property, and equipment, gross – CMS Energy $ 25,390 $ 24,400 $ 22,506 In Millions Years Ended December 31 2019 2018 2017 Consumers Plant, property, and equipment, gross Electric utility 2,3 $ 16,158 $ 16,027 $ 15,221 Gas utility² 8,785 7,919 7,080 Other reconciling items 20 17 17 Total plant, property, and equipment, gross – Consumers $ 24,963 $ 23,963 $ 22,318 CMS Energy, including Consumers Investments in equity method investees¹ Enterprises $ 71 $ 69 $ 64 Total investments in equity method investees – CMS Energy $ 71 $ 69 $ 64 CMS Energy, including Consumers Total assets Electric utility² $ 14,911 $ 14,079 $ 13,906 Gas utility² 8,659 7,806 7,139 Enterprises 527 540 342 EnerBank 2,692 2,006 1,453 Other reconciling items 48 98 210 Total assets – CMS Energy $ 26,837 $ 24,529 $ 23,050 Consumers Total assets Electric utility² $ 14,973 $ 14,143 $ 13,907 Gas utility² 8,706 7,853 7,139 Other reconciling items 20 29 53 Total assets – Consumers $ 23,699 $ 22,025 $ 21,099 CMS Energy, including Consumers Capital expenditures 4 Electric utility 5 $ 1,162 $ 865 $ 882 Gas utility 5 971 958 800 Enterprises 5 246 33 EnerBank 8 10 6 Other reconciling items 1 2 1 Total capital expenditures – CMS Energy $ 2,147 $ 2,081 $ 1,722 Consumers Capital expenditures 4 Electric utility 5 $ 1,162 $ 865 $ 882 Gas utility 5 971 958 800 Other reconciling items 1 2 1 Total capital expenditures – Consumers $ 2,134 $ 1,825 $ 1,683 1 Consumers had no significant equity method investments. 2 Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. 3 Costs related to coal-fueled electric generating units to be retired in 2023 were removed and recorded as a regulatory asset in June 2019. For additional details, see Note 3, Regulatory Matters . 4 Amounts include finance lease additions. 5 Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses. |
Consumers Energy Company | |
Segment Reporting Information [Line Items] | |
Reportable Segments | 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 . Accounting policies for CMS Energy’s and Consumers’ segments are as described in Note 1, Significant Accounting Policies . The consolidated financial statements reflect the assets, liabilities, revenues, and expenses of the individual segments when appropriate. Accounts are allocated among the segments when common accounts are attributable to more than one segment. The allocations are based on certain measures of business activities, such as revenue, labor dollars, customers, other operating and maintenance expense, construction expense, leased property, taxes, or functional surveys. For example, customer receivables are allocated based on revenue, and pension provisions are allocated based on labor dollars. Inter-segment sales and transfers are accounted for at current market prices and are eliminated in consolidated net income available to common stockholders by segment. CMS Energy The segments reported for CMS Energy are: • electric utility, consisting of regulated activities associated with the generation, purchase, transmission, distribution, and sale of electricity in Michigan • gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan • enterprises, consisting of various subsidiaries engaging in domestic independent power production, including the development and operation of renewable generation, and the marketing of independent power production • EnerBank, a Utah state-chartered, FDIC-insured industrial bank providing unsecured consumer installment loans, largely for financing home improvements CMS Energy presents corporate interest and other expenses and Consumers’ other consolidated entities within other reconciling items. In 2019, EnerBank’s assets exceeded ten percent of CMS Energy’s consolidated assets. Consumers The segments reported for Consumers are: • electric utility, consisting of regulated activities associated with the generation, purchase, transmission, distribution, and sale of electricity in Michigan • gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan Consumers’ other consolidated entities are presented within other reconciling items. Presented in the following tables is financial information by segment: In Millions Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Operating revenue Electric utility $ 4,439 $ 4,561 $ 4,448 Gas utility 1,937 1,903 1,774 Enterprises 248 252 229 EnerBank 221 157 132 Total operating revenue – CMS Energy $ 6,845 $ 6,873 $ 6,583 Consumers Operating revenue Electric utility $ 4,439 $ 4,561 $ 4,448 Gas utility 1,937 1,903 1,774 Total operating revenue – Consumers $ 6,376 $ 6,464 $ 6,222 CMS Energy, including Consumers Depreciation and amortization Electric utility $ 713 $ 682 $ 654 Gas utility 261 239 218 Enterprises 14 8 6 EnerBank 3 4 3 Other reconciling items 1 — — Total depreciation and amortization – CMS Energy $ 992 $ 933 $ 881 Consumers Depreciation and amortization Electric utility $ 713 $ 682 $ 654 Gas utility 261 239 218 Other reconciling items 1 — — Total depreciation and amortization – Consumers $ 975 $ 921 $ 872 CMS Energy, including Consumers Income from equity method investees¹ Enterprises $ 10 $ 9 $ 15 Total income from equity method investees – CMS Energy $ 10 $ 9 $ 15 CMS Energy, including Consumers Interest charges Electric utility $ 213 $ 209 $ 201 Gas utility 83 79 74 Enterprises 7 2 — EnerBank 59 32 19 Other reconciling items 157 136 144 Total interest charges – CMS Energy $ 519 $ 458 $ 438 In Millions Years Ended December 31 2019 2018 2017 Consumers Interest charges Electric utility $ 213 $ 209 $ 201 Gas utility 83 79 74 Other reconciling items 1 1 1 Total interest charges – Consumers $ 297 $ 289 $ 276 CMS Energy, including Consumers Income tax expense (benefit) Electric utility $ 134 $ 109 $ 245 Gas utility 51 33 96 Enterprises 2 2 72 EnerBank 16 12 22 Other reconciling items (56 ) (41 ) (11 ) Total income tax expense – CMS Energy $ 147 $ 115 $ 424 Consumers Income tax expense (benefit) Electric utility $ 134 $ 109 $ 245 Gas utility 51 33 96 Other reconciling items — — (2 ) Total income tax expense – Consumers $ 185 $ 142 $ 339 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 509 $ 535 $ 455 Gas utility 233 169 173 Enterprises 33 34 (27 ) EnerBank 49 38 28 Other reconciling items (144 ) (119 ) (169 ) Total net income available to common stockholders – CMS Energy $ 680 $ 657 $ 460 Consumers Net income (loss) available to common stoc kholder Electric utility $ 509 $ 535 $ 455 Gas utility 233 169 173 Other reconciling items (1 ) (1 ) 2 Total net income available to common stockholder – Consumers $ 741 $ 703 $ 630 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 2,3 $ 16,158 $ 16,027 $ 15,221 Gas utility² 8,785 7,919 7,080 Enterprises 405 412 167 EnerBank 22 25 21 Other reconciling items 20 17 17 Total plant, property, and equipment, gross – CMS Energy $ 25,390 $ 24,400 $ 22,506 In Millions Years Ended December 31 2019 2018 2017 Consumers Plant, property, and equipment, gross Electric utility 2,3 $ 16,158 $ 16,027 $ 15,221 Gas utility² 8,785 7,919 7,080 Other reconciling items 20 17 17 Total plant, property, and equipment, gross – Consumers $ 24,963 $ 23,963 $ 22,318 CMS Energy, including Consumers Investments in equity method investees¹ Enterprises $ 71 $ 69 $ 64 Total investments in equity method investees – CMS Energy $ 71 $ 69 $ 64 CMS Energy, including Consumers Total assets Electric utility² $ 14,911 $ 14,079 $ 13,906 Gas utility² 8,659 7,806 7,139 Enterprises 527 540 342 EnerBank 2,692 2,006 1,453 Other reconciling items 48 98 210 Total assets – CMS Energy $ 26,837 $ 24,529 $ 23,050 Consumers Total assets Electric utility² $ 14,973 $ 14,143 $ 13,907 Gas utility² 8,706 7,853 7,139 Other reconciling items 20 29 53 Total assets – Consumers $ 23,699 $ 22,025 $ 21,099 CMS Energy, including Consumers Capital expenditures 4 Electric utility 5 $ 1,162 $ 865 $ 882 Gas utility 5 971 958 800 Enterprises 5 246 33 EnerBank 8 10 6 Other reconciling items 1 2 1 Total capital expenditures – CMS Energy $ 2,147 $ 2,081 $ 1,722 Consumers Capital expenditures 4 Electric utility 5 $ 1,162 $ 865 $ 882 Gas utility 5 971 958 800 Other reconciling items 1 2 1 Total capital expenditures – Consumers $ 2,134 $ 1,825 $ 1,683 1 Consumers had no significant equity method investments. 2 Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. 3 Costs related to coal-fueled electric generating units to be retired in 2023 were removed and recorded as a regulatory asset in June 2019. For additional details, see Note 3, Regulatory Matters . 4 Amounts include finance lease additions. 5 Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses. |
Related Party Transactions - Co
Related Party Transactions - Consumers | 12 Months Ended |
Dec. 31, 2019 | |
Consumers Energy Company | |
Related Party Transaction [Line Items] | |
Related Party Transactions - Consumers | Related-Party Transactions—Consumers Consumers enters into a number of transactions with related parties in the normal course of business. These transactions include: • purchases of electricity from affiliates of CMS Enterprises • payments to and from CMS Energy related to parent company overhead costs Transactions involving power supply purchases from certain affiliates of CMS Enterprises are based on avoided costs under PURPA, state law, and competitive bidding. The payment of parent company overhead costs is based on the use of accepted industry allocation methodologies. These payments are for costs that occur in the normal course of business. Presented in the following table is Consumers’ expense recorded from related-party transactions for the years ended December 31: In Millions Description Related Party 2019 2018 2017 Purchases of capacity and energy Affiliates of CMS Enterprises $ 75 $ 83 $ 90 Amounts payable to related parties for purchased power and other services were $26 million at December 31, 2019 and $20 million at December 31, 2018 . Accounts receivable from related parties were $8 million at December 31, 2019 and $13 million at December 31, 2018 . In 2018, CMS Energy and Consumers sold the DB SERP debt securities and CMS Energy issued a demand note payable to the DB SERP rabbi trust . The portion of the demand note attributable to Consumers was recorded as a note receivable – related party on Consumers’ consolidated balance sheets at December 31, 2019 and December 31, 2018 . For additional details about the note receivable – related party, see Note 7, Financial Instruments and Note 8, Notes Receivable . Beginning in December 2018 , Consumers and a subsidiary of CMS Energy executed a 20 ‑year natural gas transportation agreement, related to a pipeline owned by Consumers. For additional details about the agreement, see Note 10, Leases and Palisades Financing . Consumers owned shares of CMS Energy common stock with a fair value of $1 million at December 31, 2019 and December 31, 2018 . In January 2020, Consumers renewed a short-term credit agreement with CMS Energy, permitting Consumers to borrow up to $300 million . At December 31, 2019 , there were no outstanding loans under the agreement. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2019 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities CMS Energy has variable interests in T.E.S. Filer City, Grayling, Genesee, and Craven. While CMS Energy owns 50 percent of each partnership, it is not the primary beneficiary of any of these partnerships because decision making is shared among unrelated parties, and no one party has the ability to direct the activities that most significantly impact the entities’ economic performance, such as operations and maintenance, plant dispatch, and fuel strategy. The partners must agree on all major decisions for each of the partnerships. Presented in the following table is information about these partnerships: Name Nature of the Entity Nature of CMS Energy’s Involvement T.E.S. Filer City Coal-fueled power generator Long-term PPA between partnership and Consumers Employee assignment agreement Grayling Wood waste-fueled power generator Long-term PPA between partnership and Consumers Reduced dispatch agreement with Consumers¹ Operating and management contract Genesee Wood waste-fueled power generator Long-term PPA between partnership and Consumers Reduced dispatch agreement with Consumers¹ Operating and management contract Guarantee of fixed rate debt² Deferred collection of certain receivables³ Craven Wood waste-fueled power generator Operating and management contract 1 Reduced dispatch agreements allow the facilities to be dispatched based on the market price of power compared with the cost of production of the plants. This results in fuel cost savings that each partnership shares with Consumers’ customers. 2 CMS Energy’s guarantee is capped at $3 million annually through 2021. For additional details on this guarantee, see Note 4, Contingencies and Commitments—Guarantees . 3 CMS Energy’s maximum exposure to loss from these receivables is $10 million . The creditors of these partnerships do not have recourse to the general credit of CMS Energy or Consumers, except as noted in the table above. Consumers has not provided any financial or other support during the periods presented that was not previously contractually required. CMS Energy’s investment in these partnerships is included in investments on its consolidated balance sheets in the amount of $71 million as of December 31, 2019 and $69 million as of December 31, 2018 |
Asset Sales and Exit Activities
Asset Sales and Exit Activities | 12 Months Ended |
Dec. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Asset Sales and Exit Activities | Asset Sales and Exit Activities Enterprises In April 2019, DIG completed a sale of transmission equipment to ITC and recognized a pre-tax gain of $16 million within maintenance and other operating expenses on CMS Energy’s consolidated statements of income. Consumers Asset Sale: In September 2019, Consumers completed a sale of a portion of its electric utility’s substation transmission equipment to METC. In December 2019, Consumers filed an application with the MPSC requesting approval to share voluntarily half of the gain from the sale with customers. As a result, during 2019, Consumers recorded a regulatory liability of $17 million and recognized a pre-tax gain of $17 million within maintenance and other operating expenses on its consolidated statements of income. For additional details on the sharing of the gain with customers, see Note 3, Regulatory Matters . Exit Activities: Under its Clean Energy Plan, Consumers plans to retire the D.E. Karn 1 & 2 coal-fueled electric generating units in 2023. For additional details on Consumers’ plans to request recovery of the remaining book value of the two units upon their retirement, see Note 3, Regulatory Matters . In October 2019, Consumers announced a retention incentive program to ensure necessary staffing at the D.E. Karn generating complex through the anticipated retirement of the coal-fueled electric generating units. Based on the number of employees that have chosen to participate, the aggregate cost of the program through 2023 is estimated to be $35 million . Consumers will seek recovery of these costs from customers. In 2019, Consumers’ electric utility recognized $6 million related to retention and severance benefits within maintenance and other operating expenses on Consumers’ consolidated statements of income. The amount was reported as other liabilities on its consolidated balance sheets at December 31, 2019 , which included $2 million of current liabilities. |
Consumers Energy Company | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Asset Sales and Exit Activities | Asset Sales and Exit Activities Enterprises In April 2019, DIG completed a sale of transmission equipment to ITC and recognized a pre-tax gain of $16 million within maintenance and other operating expenses on CMS Energy’s consolidated statements of income. Consumers Asset Sale: In September 2019, Consumers completed a sale of a portion of its electric utility’s substation transmission equipment to METC. In December 2019, Consumers filed an application with the MPSC requesting approval to share voluntarily half of the gain from the sale with customers. As a result, during 2019, Consumers recorded a regulatory liability of $17 million and recognized a pre-tax gain of $17 million within maintenance and other operating expenses on its consolidated statements of income. For additional details on the sharing of the gain with customers, see Note 3, Regulatory Matters . Exit Activities: Under its Clean Energy Plan, Consumers plans to retire the D.E. Karn 1 & 2 coal-fueled electric generating units in 2023. For additional details on Consumers’ plans to request recovery of the remaining book value of the two units upon their retirement, see Note 3, Regulatory Matters . In October 2019, Consumers announced a retention incentive program to ensure necessary staffing at the D.E. Karn generating complex through the anticipated retirement of the coal-fueled electric generating units. Based on the number of employees that have chosen to participate, the aggregate cost of the program through 2023 is estimated to be $35 million . Consumers will seek recovery of these costs from customers. In 2019, Consumers’ electric utility recognized $6 million related to retention and severance benefits within maintenance and other operating expenses on Consumers’ consolidated statements of income. The amount was reported as other liabilities on its consolidated balance sheets at December 31, 2019 , which included $2 million of current liabilities. |
Quarterly Financial And Common
Quarterly Financial And Common Stock Information (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial and Common Stock Information [Line Items] | |
Quarterly Financial and Common Stock Information (Unaudited) | Quarterly Financial and Common Stock Information (Unaudited) In Millions, Except Per Share Amounts 2019 Quarters Ended March 31 June 30 Sept 30 Dec 31 CMS Energy, including Consumers Operating revenue $ 2,059 $ 1,445 $ 1,546 $ 1,795 Operating income 359 218 351 311 Net income 213 94 207 168 Income attributable to noncontrolling interests — 1 — 1 Net income available to common stockholders 213 93 207 167 Basic earnings per average common share¹ 0.75 0.33 0.73 0.59 Diluted earnings per average common share¹ 0.75 0.33 0.73 0.58 Consumers Operating revenue $ 1,943 $ 1,334 $ 1,429 $ 1,670 Operating income 328 175 319 308 Net income 226 98 213 206 Preferred stock dividends — 1 — 1 Net income available to common stockholder 226 97 213 205 1 The sum of the quarters may not equal annual EPS due to changes in the number of shares outstanding. In Millions, Except Per Share Amounts 2018 Quarters Ended March 31 June 30 Sept 30 Dec 31 CMS Energy, including Consumers Operating revenue $ 1,953 $ 1,492 $ 1,599 $ 1,829 Operating income 363 255 294 250 Net income 241 140 169 109 Income attributable to noncontrolling interests — 1 — 1 Net income available to common stockholders 241 139 169 108 Basic earnings per average common share¹ 0.86 0.49 0.60 0.38 Diluted earnings per average common share¹ 0.86 0.49 0.59 0.38 Consumers Operating revenue $ 1,855 $ 1,395 $ 1,502 $ 1,712 Operating income 334 229 271 231 Net income 242 152 180 131 Preferred stock dividends — 1 — 1 Net income available to common stockholder 242 151 180 130 1 The sum of the quarters may not equal annual EPS due to changes in the number of shares outstanding. (This page intentionally left blank) |
Consumers Energy Company | |
Quarterly Financial and Common Stock Information [Line Items] | |
Quarterly Financial and Common Stock Information (Unaudited) | Quarterly Financial and Common Stock Information (Unaudited) In Millions, Except Per Share Amounts 2019 Quarters Ended March 31 June 30 Sept 30 Dec 31 CMS Energy, including Consumers Operating revenue $ 2,059 $ 1,445 $ 1,546 $ 1,795 Operating income 359 218 351 311 Net income 213 94 207 168 Income attributable to noncontrolling interests — 1 — 1 Net income available to common stockholders 213 93 207 167 Basic earnings per average common share¹ 0.75 0.33 0.73 0.59 Diluted earnings per average common share¹ 0.75 0.33 0.73 0.58 Consumers Operating revenue $ 1,943 $ 1,334 $ 1,429 $ 1,670 Operating income 328 175 319 308 Net income 226 98 213 206 Preferred stock dividends — 1 — 1 Net income available to common stockholder 226 97 213 205 1 The sum of the quarters may not equal annual EPS due to changes in the number of shares outstanding. In Millions, Except Per Share Amounts 2018 Quarters Ended March 31 June 30 Sept 30 Dec 31 CMS Energy, including Consumers Operating revenue $ 1,953 $ 1,492 $ 1,599 $ 1,829 Operating income 363 255 294 250 Net income 241 140 169 109 Income attributable to noncontrolling interests — 1 — 1 Net income available to common stockholders 241 139 169 108 Basic earnings per average common share¹ 0.86 0.49 0.60 0.38 Diluted earnings per average common share¹ 0.86 0.49 0.59 0.38 Consumers Operating revenue $ 1,855 $ 1,395 $ 1,502 $ 1,712 Operating income 334 229 271 231 Net income 242 152 180 131 Preferred stock dividends — 1 — 1 Net income available to common stockholder 242 151 180 130 1 The sum of the quarters may not equal annual EPS due to changes in the number of shares outstanding. (This page intentionally left blank) |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |
Schedule II - Valuation and Qualifying Accounts and Reserves | CMS Energy Corporation Years Ended December 31, 2019 , 2018 , and 2017 In Millions Description Balance at Beginning of Period Charged to Expense Charged to Other Accounts Deductions Balance at End of Period Allowance for uncollectible accounts 1 2019 $ 20 $ 29 $ — $ 29 $ 20 2018 20 29 — 29 20 2017 24 29 — 33 20 Deferred tax valuation allowance 2019 $ 8 $ — $ — $ 6 $ 2 2018 15 2 — 9 8 2017 5 10 — — 15 Allowance for notes receivable 1 2019 $ 24 $ 38 $ — $ 29 $ 33 2018 20 25 — 21 24 2017 16 20 — 16 20 1 Deductions represent write-offs of uncollectible accounts, net of recoveries. Consumers Energy Company Years Ended December 31, 2019 , 2018 , and 2017 In Millions Description Balance at Beginning of Period Charged to Expense Charged to Other Accounts Deductions Balance at End of Period Allowance for uncollectible accounts 1 2019 $ 20 $ 29 $ — $ 29 $ 20 2018 20 29 — 29 20 2017 24 29 — 33 20 1 Deductions represent write-offs of uncollectible accounts, net of recoveries. |
Consumers Energy Company | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |
Schedule II - Valuation and Qualifying Accounts and Reserves | CMS Energy Corporation Years Ended December 31, 2019 , 2018 , and 2017 In Millions Description Balance at Beginning of Period Charged to Expense Charged to Other Accounts Deductions Balance at End of Period Allowance for uncollectible accounts 1 2019 $ 20 $ 29 $ — $ 29 $ 20 2018 20 29 — 29 20 2017 24 29 — 33 20 Deferred tax valuation allowance 2019 $ 8 $ — $ — $ 6 $ 2 2018 15 2 — 9 8 2017 5 10 — — 15 Allowance for notes receivable 1 2019 $ 24 $ 38 $ — $ 29 $ 33 2018 20 25 — 21 24 2017 16 20 — 16 20 1 Deductions represent write-offs of uncollectible accounts, net of recoveries. Consumers Energy Company Years Ended December 31, 2019 , 2018 , and 2017 In Millions Description Balance at Beginning of Period Charged to Expense Charged to Other Accounts Deductions Balance at End of Period Allowance for uncollectible accounts 1 2019 $ 20 $ 29 $ — $ 29 $ 20 2018 20 29 — 29 20 2017 24 29 — 33 20 1 Deductions represent write-offs of uncollectible accounts, net of recoveries. |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule I - Condensed Financial Information of Registrant | CMS Energy—Parent Company Condensed Statements of Income In Millions Years Ended December 31 2019 2018 2017 Operating Expenses Other operating expenses $ (38 ) $ (7 ) $ (9 ) Total operating expenses (38 ) (7 ) (9 ) Operating Loss (38 ) (7 ) (9 ) Other Income (Expense) Equity earnings of subsidiaries 826 780 633 Nonoperating retirement benefits, net (1 ) (1 ) (1 ) Interest income 1 2 1 Other income 1 — 2 Other expense — (17 ) (31 ) Total other income 827 764 604 Interest Charges Interest on long-term debt 156 135 143 Intercompany interest expense and other 10 7 3 Total interest charges 166 142 146 Income Before Income Taxes 623 615 449 Income Tax Benefit (57 ) (42 ) (11 ) Net Income Available to Common Stockholders $ 680 $ 657 $ 460 The accompanying notes are an integral part of these statements. Schedule I — Condensed Financial Information of Registrant (Continued) CMS Energy—Parent Company Condensed Statements of Cash Flows In Millions Years Ended December 31 2019 2018 2017 Cash Flows from Operating Activities Net cash provided by operating activities $ 697 $ 702 $ 433 Cash Flows from Investing Activities Investment in subsidiaries (683 ) (363 ) (447 ) Proceeds from DB SERP investments — 22 — Net cash used in investing activities (683 ) (341 ) (447 ) Cash Flows from Financing Activities Proceeds from issuance of debt 1,158 560 799 Issuance of common stock 12 41 83 Retirement of long-term debt (738 ) (675 ) (425 ) Debt prepayment costs — (16 ) (18 ) Payment of dividends on common stock (434 ) (405 ) (375 ) Debt issuance costs and financing fees (18 ) (8 ) (3 ) Change in notes payable – intercompany 6 142 (47 ) Net cash provided by (used in) financing activities (14 ) (361 ) 14 Net Increase in Cash and Cash Equivalents, Including Restricted Amounts — — — Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period — — — Cash and Cash Equivalents, Including Restricted Amounts, End of Period $ — $ — $ — The accompanying notes are an integral part of these statements. Schedule I — Condensed Financial Information of Registrant (Continued) CMS Energy—Parent Company Condensed Balance Sheets ASSETS In Millions December 31 2019 2018 Current Assets Notes and accrued interest receivable $ 2 $ 2 Accounts receivable – intercompany and related parties 9 7 Federal income tax receivable 18 44 Accrued taxes — 26 Prepayments and other current assets 1 1 Total current assets 30 80 Other Non ‑ current Assets Deferred income taxes 126 180 Investments in subsidiaries 8,526 7,706 Other investments 4 3 Other 16 10 Total other non ‑ current assets 8,672 7,899 Total Assets $ 8,702 $ 7,979 LIABILITIES AND EQUITY In Millions December 31 2019 2018 Current Liabilities Current portion of long-term debt $ — $ 180 Accounts and notes payable – intercompany 123 113 Accrued interest, including intercompany 34 32 Accrued taxes 5 — Other current liabilities 38 7 Total current liabilities 200 332 Non ‑ current Liabilities Long-term debt 3,334 2,750 Notes payable – intercompany 112 116 Postretirement benefits 21 17 Other non ‑ current liabilities 17 9 Total non ‑ current liabilities 3,484 2,892 Equity Common stockholders’ equity 5,018 4,755 Total Liabilities and Equity $ 8,702 $ 7,979 The accompanying notes are an integral part of these statements. Basis of Presentation CMS Energy’s condensed financial statements have been prepared on a parent-only basis. In accordance with Rule 12-04 of Regulation S-X, these parent-only financial statements do not include all of the information and notes required by GAAP for annual financial statements, and therefore these parent-only financial statements and other information included should be read in conjunction with CMS Energy’s audited consolidated financial statements contained within Item 8. Financial Statements and Supplementary Data . Contingencies Gas Index Price Reporting Litigation : CMS Energy, along with CMS MST, CMS Field Services, Cantera Natural Gas, Inc., and Cantera Gas Company, were named as defendants in four 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. In 2016, CMS Energy entities reached a settlement with the plaintiffs in the Kansas and Missouri class action cases for an amount that was not material to CMS Energy. In 2017, the federal district court approved the settlement. CMS Energy and the plaintiffs in each of the Kansas and the Wisconsin actions engaged in settlement discussions and CMS Energy has recorded a $30 million liability at December 31, 2019 as a probable estimate to settle these two cases. CMS Energy can give no assurances that it can reach a final settlement with the plaintiffs in these two cases, of the actual amount CMS Energy would have to pay in any settlement, or, in the Wisconsin case, that the Wisconsin court would approve any such settlement. If settlement does not occur and the outcome after appeals is unfavorable to CMS Energy, these cases could negatively affect CMS Energy’s liquidity, financial condition, and results of operations. Guarantees CMS Energy has issued guarantees with a maximum potential obligation of $430 million on behalf of some of its wholly owned subsidiaries and related parties. CMS Energy’s maximum potential obligation consists primarily of potential payments: • to third parties under certain commodity purchase and swap agreements entered into with CMS ERM • to third parties under certain agreements entered into with Grand River Wind, LLC , a wholly owned subsidiary of CMS Enterprises • to third parties in support of non‑recourse revenue bonds issued by Genesee • to EGLE on behalf of CMS Land and CMS Capital, for environmental remediation obligations at Bay Harbor • to the U.S. Department of Energy on behalf of Consumers, in connection with Consumers’ 2011 settlement agreement with the U.S. Department of Energy regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers The expiry dates of these guarantees vary, depending upon contractual provisions or upon the statute of limitations under the relevant governing law. Note Payable — Intercompany In July 2018, CMS Energy issued a demand note payable to the DB SERP rabbi trust , of which $124 million was attributable to CMS Energy’s subsidiaries. The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028. This note payable is not recorded at fair value; however, its carrying value approximates fair value at December 31, 2019 . This fair value measurement is classified in Level 3 within the fair value hierarchy. |
Significant Accounting Polici_2
Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2019 | |
Significant Accounting Policies [Line Items] | |
Principles of Consolidation | Principles of Consolidation: CMS Energy and Consumers prepare their consolidated financial statements in conformity with GAAP. CMS Energy’s consolidated financial statements comprise CMS Energy, Consumers, CMS Enterprises, EnerBank, and all other entities in which CMS Energy has a controlling financial interest or is the primary beneficiary. Consumers’ consolidated financial statements comprise Consumers and all other entities in which it has a controlling financial interest or is the primary beneficiary. CMS Energy uses the equity method of accounting for investments in companies and partnerships that are not consolidated, where they have significant influence over operations and financial policies but are not the primary beneficiary. CMS Energy and Consumers eliminate intercompany transactions and balances. |
Use of Estimates | Use of Estimates: CMS Energy and Consumers are required to make estimates using assumptions that may affect reported amounts and disclosures. Actual results could differ from those estimates. |
Contingencies | Contingencies: CMS Energy and Consumers record estimated liabilities for contingencies on their consolidated financial statements when it is probable that a liability has been incurred and when the amount of loss can be reasonably estimated. For environmental remediation projects in which the timing of estimated expenditures is considered reliably determinable, CMS Energy and Consumers record the liability at its net present value, using a discount rate equal to the interest rate on monetary assets that are essentially risk-free and have maturities comparable to that of the environmental liability. CMS Energy and Consumers expense legal fees as incurred; fees incurred but not yet billed are accrued based on estimates of work performed. |
Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs | Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs: Upon the issuance of long-term debt, CMS Energy and Consumers defer issuance costs, discounts, and premiums and amortize those amounts over the terms of the associated debt. Debt issuance costs are presented as a direct deduction from the carrying amount of long-term debt on the balance sheet. Upon the refinancing of long-term debt, Consumers, as a regulated entity, defers any remaining unamortized issuance costs, discounts, and premiums associated with the refinanced debt and amortizes those amounts over the term of the newly issued debt. For the non‑regulated portions of CMS Energy’s business, any remaining unamortized issuance costs, discounts, and premiums associated with extinguished debt are charged to earnings. |
Derivative Instruments | Derivative Instruments: In order to support ongoing operations, CMS Energy and Consumers enter into contracts for the future purchase and sale of various commodities, such as electricity, natural gas, and coal. These forward contracts are generally long-term in nature and result in physical delivery of the commodity at a contracted price. Most of these contracts are not subject to derivative accounting for one or more of the following reasons: • they do not have a notional amount (that is, a number of units specified in a derivative instrument, such as MWh of electricity or bcf of natural gas) • they qualify for the normal purchases and sales exception • they cannot be net settled due in part to the absence of an active market for the commodity Consumers also uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion-related transmission charges. Consumers accounts for FTRs as derivatives. Additionally, CMS Energy uses interest rate swaps to manage its interest rate risk on certain long-term debt and notes receivable transactions. CMS Energy and Consumers record derivative contracts that do not qualify for the normal purchases and sales exception at fair value on their consolidated balance sheets. At CMS Energy, if the derivative is accounted for as a cash flow hedge, unrealized gains and losses from changes in the fair value of the derivative are recognized in AOCI and subsequently recognized in earnings when the hedged transactions impact earnings. If the derivative is accounted for as a fair value hedge, changes in the fair value of the derivative and changes in the fair value of the hedged item due to the hedged risk are recognized in earnings. For the FTRs at Consumers, changes in fair value are deferred as regulatory assets or liabilities. For details regarding CMS Energy’s and Consumers’ derivative instruments recorded at fair value, see Note 6, Fair Value Measurements . |
Earnings Per Share | EPS: CMS Energy calculates basic and diluted EPS using the weighted-average number of shares of common stock and dilutive potential common stock outstanding during the period. Potential common stock, for purposes of determining diluted EPS, includes the effects of nonvested stock awards and forward equity sales. CMS Energy computes the effect on potential common stock using the treasury stock method. Diluted EPS excludes the impact of antidilutive securities, which are those securities resulting in an increase in EPS or a decrease in loss per share. For EPS computations, see Note 15, Earnings Per Share—CMS Energy . |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets and Equity Method Investments: CMS Energy and Consumers perform tests of impairment if certain triggering events occur or if there has been a decline in value that may be other than temporary. CMS Energy and Consumers evaluate long-lived assets held in use for impairment by calculating the undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. If the undiscounted future cash flows are less than the carrying amount, CMS Energy and Consumers recognize an impairment loss equal to the amount by which the carrying amount exceeds the fair value. CMS Energy and Consumers estimate the fair value of the asset using quoted market prices, market prices of similar assets, or discounted future cash flow analyses. |
Impairment of Equity Method Investments | CMS Energy also assesses equity method investments for impairment whenever there has been a decline in value that is other than temporary. This assessment requires CMS Energy to determine the fair value of the equity method investment. CMS Energy determines fair value using valuation methodologies, including discounted cash flows, and assesses the ability of the investee to sustain an earnings capacity that justifies the carrying amount of the investment. CMS Energy records an impairment if the fair value is less than the carrying amount and the decline in value is considered to be other than temporary. |
Investment Tax Credits | Investment Tax Credits: Consumers amortizes its investment tax credits over the life of the related property in accordance with regulatory treatment. CMS Energy’s non‑regulated businesses use the deferral method of accounting for investment tax credits. Under the deferral method, the book basis of the associated assets is reduced by the amount of the credit, resulting in lower depreciation expense over the life of the assets. Furthermore, the tax basis of the assets is reduced by 50 percent of the related credit, resulting in a net deferred tax asset. CMS Energy recognizes the tax benefit of this basis difference as a reduction to income tax expense in the year in which the plant reaches commercial operation. |
Inventory - Gas and Coal | Inventory: CMS Energy and Consumers use the weighted-average cost method for valuing working gas, recoverable base gas in underground storage facilities, and materials and supplies inventory. CMS Energy and Consumers also use this method for valuing coal inventory, and they classify these amounts as generating plant fuel stock on their consolidated balance sheets. |
Inventory - RECs and Emission Allowances | CMS Energy and Consumers account for RECs and emission allowances as inventory and use the weighted-average cost method to remove amounts from inventory. RECs and emission allowances are used to satisfy compliance obligations related to the generation of power. CMS Energy and Consumers classify these amounts within other assets on their consolidated balance sheets. |
Inventory - Impairment | CMS Energy and Consumers evaluate inventory for impairment as required to ensure that its carrying value does not exceed the lower of cost or net realizable value. |
MISO Transactions | MISO Transactions: MISO requires the submission of hourly day-ahead and real-time bids and offers for energy at locations across the MISO region. CMS Energy and Consumers account for MISO transactions on a net hourly basis in each of the real-time and day-ahead markets, netted across all MISO energy market locations. CMS Energy and Consumers record net hourly purchases in purchased and interchange power and net hourly sales in operating revenue on their consolidated statements of income. They record net billing adjustments upon receipt of settlement statements, record accruals for future net purchases and sales adjustments based on historical experience, and reconcile accruals to actual expenses and sales upon receipt of settlement statements. |
Property Taxes | Property Taxes: Property taxes are based on the taxable value of Consumers’ real and personal property assessed by local taxing authorities. Consumers records property tax expense over the fiscal year of the taxing authority for which the taxes are levied. The deferred property tax balance represents the amount of Consumers’ accrued property tax that will be recognized over future governmental fiscal periods. |
Renewable Energy Grant | Renewable Energy Grant: In 2013, Consumers received a renewable energy cash grant for Lake Winds ® Energy Park under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009. Upon receipt of the grant, Consumers recorded a regulatory liability, which Consumers is amortizing over the life of Lake Winds ® Energy Park. Consumers presents the amortization as a reduction to maintenance and other operating expenses on its consolidated statements of income. Consumers recorded the deferred income taxes related to the grant as a reduction of the book basis of Lake Winds ® Energy Park. |
New Accounting Standards | Implementation of New Accounting Standards ASU 2016 ‑ 02, Leases: This standard, which was effective on January 1, 2019 for CMS Energy and Consumers, establishes a new accounting model for leases. The standard requires lessees 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 were not recorded on the balance sheet under previous standards. The new guidance also amends the definition of a lease to require that a lessee have the right to control the use of a specified asset, and not simply control or take the output of the asset. On the statement of income, operating leases are generally accounted for under a straight-line expense model, while finance leases, which were previously referred to as capital leases, are generally accounted for under a financing model. Consistent with the previous lease guidance, however, the standard allows rate-regulated utilities to recognize expense consistent with the timing of recovery in rates. CMS Energy and Consumers elected to use certain practical expedients permitted by the standard, under which they were not required to perform lease assessments or reassessments for agreements existing on the effective date. They also elected a transition method under which they initially applied the standard on January 1, 2019, without adjusting amounts presented for prior periods. Under the standard, CMS Energy and Consumers recognized additional lease assets and liabilities on their consolidated balance sheets as of January 1, 2019 for their operating leases. In addition, in accordance with the standard, they have provided additional disclosures about their leases in Note 10, Leases and Palisades Financing . The standard did not have any impact on CMS Energy’s and Consumers’ consolidated net income or cash flows, and there was no cumulative-effect adjustment recorded to beginning retained earnings. New Accounting Standards Not Yet Effective ASU 2016 ‑ 13, Measurement of Credit Losses on Financial Instruments: This standard, effective January 1, 2020 for CMS Energy and Consumers, provides new guidance for measuring and recognizing credit losses on financial instruments. The standard applies to financial assets that are not measured at fair value through net income as well as to certain off-balance sheet credit exposures. Entities will apply the standard using a modified retrospective approach, with a cumulative‑effect adjustment recorded to beginning retained earnings on the effective date. The standard will require an increase to the allowance for loan losses at EnerBank. At December 31, 2019, the allowance reflected expected credit losses over a 12‑month period, but the new standard will require the allowance to reflect expected credit losses over the entire life of the loans. EnerBank expects to record a $65 million increase to its expected credit loss reserves on January 1, 2020, with the offsetting adjustment recorded to retained earnings, net of taxes. The standard will also require an increase in the initial provision for loan losses recognized in net income for new loans originated in 2020 and beyond. At Consumers, the new guidance will apply to the allowance for uncollectible accounts; however, Consumers does not expect material impacts from the standard. |
Allowance For Loan Losses Policy | 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 $134 million at December 31, 2019 and $102 million at December 31, 2018 . Unearned income associated with loan fees for notes receivable held for sale was $2 million at December 31, 2019 . 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. |
Asset Retirement Obligations Policy | CMS Energy and Consumers record the fair value of the cost to remove assets at the end of their useful lives, if there is a legal obligation to remove them. If a reasonable estimate of fair value cannot be made in the period in which the ARO is incurred, such as for assets with indeterminate lives, the liability is recognized when a reasonable estimate of fair value can be made. CMS Energy and Consumers have not recorded liabilities for assets that have immaterial cumulative disposal costs, such as substation batteries. CMS Energy and Consumers calculate the fair value of ARO liabilities using an expected present-value technique that reflects assumptions about costs and inflation, and uses a credit-adjusted risk-free rate to discount the expected cash flows. CMS Energy’s ARO liabilities are primarily at Consumers. |
Income Tax Policy | CMS Energy and its subsidiaries file a consolidated U.S. federal income tax return as well as a Michigan Corporate Income Tax return for the unitary business group and various other state unitary group combined income tax returns. Income taxes are allocated based on each company’s separate taxable income in accordance with the CMS Energy tax sharing agreement. |
Revenue | Electric and Gas Utilities Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff-based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff-based sales performance obligations are described below. • Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of Consumers’ service to stand ready to deliver. • Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of a bundled product comprising the commodity, electricity or natural gas, and the service of delivering such commodity. In some instances, Consumers has specific fixed-term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature. Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost, which approximates fair value. CMS Energy and Consumers establish an allowance for uncollectible accounts based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and other factors. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. CMS Energy and Consumers charge off accounts deemed uncollectible to operating expense. Uncollectible expense for CMS Energy and Consumers was $29 million for the year ended December 31, 2019 and $29 million for the year ended December 31, 2018 . Consumers’ customers are billed monthly in cycles having billing dates that do not generally coincide with the end of a calendar month. This results in customers having received electricity or natural gas that they have not been billed for as of the month-end. Consumers estimates its unbilled revenues by applying an average billed rate to total unbilled deliveries for each customer class. Unbilled revenues, which are recorded as accounts receivable on CMS Energy’s and Consumers’ consolidated balance sheets, were $426 million at December 31, 2019 and $409 million at December 31, 2018 . Alternative ‑ Revenue Programs: The energy waste reduction incentive mechanism provides a financial incentive if the energy savings of Consumers’ customers exceed annual targets established by the MPSC. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing revenue related to the incentive as soon as energy savings exceed the annual targets established by the MPSC. Under a gas revenue decoupling mechanism authorized by the MPSC, Consumers is allowed to adjust future gas rates for differences between Consumers’ actual weather‑normalized, non‑fuel revenues and the revenues approved by the MPSC. Consumers accounts for this program as an alternative‑revenue program that meets the criteria for recognizing the effects of decoupling adjustments on revenue as gas is delivered. Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year. |
Consumers Energy Company | |
Significant Accounting Policies [Line Items] | |
Principles of Consolidation | Principles of Consolidation: CMS Energy and Consumers prepare their consolidated financial statements in conformity with GAAP. CMS Energy’s consolidated financial statements comprise CMS Energy, Consumers, CMS Enterprises, EnerBank, and all other entities in which CMS Energy has a controlling financial interest or is the primary beneficiary. Consumers’ consolidated financial statements comprise Consumers and all other entities in which it has a controlling financial interest or is the primary beneficiary. CMS Energy uses the equity method of accounting for investments in companies and partnerships that are not consolidated, where they have significant influence over operations and financial policies but are not the primary beneficiary. CMS Energy and Consumers eliminate intercompany transactions and balances. |
Use of Estimates | Use of Estimates: CMS Energy and Consumers are required to make estimates using assumptions that may affect reported amounts and disclosures. Actual results could differ from those estimates. |
Contingencies | Contingencies: CMS Energy and Consumers record estimated liabilities for contingencies on their consolidated financial statements when it is probable that a liability has been incurred and when the amount of loss can be reasonably estimated. For environmental remediation projects in which the timing of estimated expenditures is considered reliably determinable, CMS Energy and Consumers record the liability at its net present value, using a discount rate equal to the interest rate on monetary assets that are essentially risk-free and have maturities comparable to that of the environmental liability. CMS Energy and Consumers expense legal fees as incurred; fees incurred but not yet billed are accrued based on estimates of work performed. |
Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs | Debt Issuance Costs, Discounts, Premiums, and Refinancing Costs: Upon the issuance of long-term debt, CMS Energy and Consumers defer issuance costs, discounts, and premiums and amortize those amounts over the terms of the associated debt. Debt issuance costs are presented as a direct deduction from the carrying amount of long-term debt on the balance sheet. Upon the refinancing of long-term debt, Consumers, as a regulated entity, defers any remaining unamortized issuance costs, discounts, and premiums associated with the refinanced debt and amortizes those amounts over the term of the newly issued debt. For the non‑regulated portions of CMS Energy’s business, any remaining unamortized issuance costs, discounts, and premiums associated with extinguished debt are charged to earnings. |
Derivative Instruments | Derivative Instruments: In order to support ongoing operations, CMS Energy and Consumers enter into contracts for the future purchase and sale of various commodities, such as electricity, natural gas, and coal. These forward contracts are generally long-term in nature and result in physical delivery of the commodity at a contracted price. Most of these contracts are not subject to derivative accounting for one or more of the following reasons: • they do not have a notional amount (that is, a number of units specified in a derivative instrument, such as MWh of electricity or bcf of natural gas) • they qualify for the normal purchases and sales exception • they cannot be net settled due in part to the absence of an active market for the commodity Consumers also uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion-related transmission charges. Consumers accounts for FTRs as derivatives. Additionally, CMS Energy uses interest rate swaps to manage its interest rate risk on certain long-term debt and notes receivable transactions. CMS Energy and Consumers record derivative contracts that do not qualify for the normal purchases and sales exception at fair value on their consolidated balance sheets. At CMS Energy, if the derivative is accounted for as a cash flow hedge, unrealized gains and losses from changes in the fair value of the derivative are recognized in AOCI and subsequently recognized in earnings when the hedged transactions impact earnings. If the derivative is accounted for as a fair value hedge, changes in the fair value of the derivative and changes in the fair value of the hedged item due to the hedged risk are recognized in earnings. For the FTRs at Consumers, changes in fair value are deferred as regulatory assets or liabilities. For details regarding CMS Energy’s and Consumers’ derivative instruments recorded at fair value, see Note 6, Fair Value Measurements . |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets and Equity Method Investments: CMS Energy and Consumers perform tests of impairment if certain triggering events occur or if there has been a decline in value that may be other than temporary. CMS Energy and Consumers evaluate long-lived assets held in use for impairment by calculating the undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. If the undiscounted future cash flows are less than the carrying amount, CMS Energy and Consumers recognize an impairment loss equal to the amount by which the carrying amount exceeds the fair value. CMS Energy and Consumers estimate the fair value of the asset using quoted market prices, market prices of similar assets, or discounted future cash flow analyses. |
Investment Tax Credits | Investment Tax Credits: Consumers amortizes its investment tax credits over the life of the related property in accordance with regulatory treatment. CMS Energy’s non‑regulated businesses use the deferral method of accounting for investment tax credits. Under the deferral method, the book basis of the associated assets is reduced by the amount of the credit, resulting in lower depreciation expense over the life of the assets. Furthermore, the tax basis of the assets is reduced by 50 percent of the related credit, resulting in a net deferred tax asset. CMS Energy recognizes the tax benefit of this basis difference as a reduction to income tax expense in the year in which the plant reaches commercial operation. |
Inventory - Gas and Coal | Inventory: CMS Energy and Consumers use the weighted-average cost method for valuing working gas, recoverable base gas in underground storage facilities, and materials and supplies inventory. CMS Energy and Consumers also use this method for valuing coal inventory, and they classify these amounts as generating plant fuel stock on their consolidated balance sheets. |
Inventory - RECs and Emission Allowances | CMS Energy and Consumers account for RECs and emission allowances as inventory and use the weighted-average cost method to remove amounts from inventory. RECs and emission allowances are used to satisfy compliance obligations related to the generation of power. CMS Energy and Consumers classify these amounts within other assets on their consolidated balance sheets. |
Inventory - Impairment | CMS Energy and Consumers evaluate inventory for impairment as required to ensure that its carrying value does not exceed the lower of cost or net realizable value. |
MISO Transactions | MISO Transactions: MISO requires the submission of hourly day-ahead and real-time bids and offers for energy at locations across the MISO region. CMS Energy and Consumers account for MISO transactions on a net hourly basis in each of the real-time and day-ahead markets, netted across all MISO energy market locations. CMS Energy and Consumers record net hourly purchases in purchased and interchange power and net hourly sales in operating revenue on their consolidated statements of income. They record net billing adjustments upon receipt of settlement statements, record accruals for future net purchases and sales adjustments based on historical experience, and reconcile accruals to actual expenses and sales upon receipt of settlement statements. |
Property Taxes | Property Taxes: Property taxes are based on the taxable value of Consumers’ real and personal property assessed by local taxing authorities. Consumers records property tax expense over the fiscal year of the taxing authority for which the taxes are levied. The deferred property tax balance represents the amount of Consumers’ accrued property tax that will be recognized over future governmental fiscal periods. |
Renewable Energy Grant | Renewable Energy Grant: In 2013, Consumers received a renewable energy cash grant for Lake Winds ® Energy Park under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009. Upon receipt of the grant, Consumers recorded a regulatory liability, which Consumers is amortizing over the life of Lake Winds ® Energy Park. Consumers presents the amortization as a reduction to maintenance and other operating expenses on its consolidated statements of income. Consumers recorded the deferred income taxes related to the grant as a reduction of the book basis of Lake Winds ® Energy Park. |
New Accounting Standards | Implementation of New Accounting Standards ASU 2016 ‑ 02, Leases: This standard, which was effective on January 1, 2019 for CMS Energy and Consumers, establishes a new accounting model for leases. The standard requires lessees 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 were not recorded on the balance sheet under previous standards. The new guidance also amends the definition of a lease to require that a lessee have the right to control the use of a specified asset, and not simply control or take the output of the asset. On the statement of income, operating leases are generally accounted for under a straight-line expense model, while finance leases, which were previously referred to as capital leases, are generally accounted for under a financing model. Consistent with the previous lease guidance, however, the standard allows rate-regulated utilities to recognize expense consistent with the timing of recovery in rates. CMS Energy and Consumers elected to use certain practical expedients permitted by the standard, under which they were not required to perform lease assessments or reassessments for agreements existing on the effective date. They also elected a transition method under which they initially applied the standard on January 1, 2019, without adjusting amounts presented for prior periods. Under the standard, CMS Energy and Consumers recognized additional lease assets and liabilities on their consolidated balance sheets as of January 1, 2019 for their operating leases. In addition, in accordance with the standard, they have provided additional disclosures about their leases in Note 10, Leases and Palisades Financing . The standard did not have any impact on CMS Energy’s and Consumers’ consolidated net income or cash flows, and there was no cumulative-effect adjustment recorded to beginning retained earnings. New Accounting Standards Not Yet Effective ASU 2016 ‑ 13, Measurement of Credit Losses on Financial Instruments: This standard, effective January 1, 2020 for CMS Energy and Consumers, provides new guidance for measuring and recognizing credit losses on financial instruments. The standard applies to financial assets that are not measured at fair value through net income as well as to certain off-balance sheet credit exposures. Entities will apply the standard using a modified retrospective approach, with a cumulative‑effect adjustment recorded to beginning retained earnings on the effective date. The standard will require an increase to the allowance for loan losses at EnerBank. At December 31, 2019, the allowance reflected expected credit losses over a 12‑month period, but the new standard will require the allowance to reflect expected credit losses over the entire life of the loans. EnerBank expects to record a $65 million increase to its expected credit loss reserves on January 1, 2020, with the offsetting adjustment recorded to retained earnings, net of taxes. The standard will also require an increase in the initial provision for loan losses recognized in net income for new loans originated in 2020 and beyond. At Consumers, the new guidance will apply to the allowance for uncollectible accounts; however, Consumers does not expect material impacts from the standard. |
Asset Retirement Obligations Policy | CMS Energy and Consumers record the fair value of the cost to remove assets at the end of their useful lives, if there is a legal obligation to remove them. If a reasonable estimate of fair value cannot be made in the period in which the ARO is incurred, such as for assets with indeterminate lives, the liability is recognized when a reasonable estimate of fair value can be made. CMS Energy and Consumers have not recorded liabilities for assets that have immaterial cumulative disposal costs, such as substation batteries. CMS Energy and Consumers calculate the fair value of ARO liabilities using an expected present-value technique that reflects assumptions about costs and inflation, and uses a credit-adjusted risk-free rate to discount the expected cash flows. CMS Energy’s ARO liabilities are primarily at Consumers. |
Income Tax Policy | CMS Energy and its subsidiaries file a consolidated U.S. federal income tax return as well as a Michigan Corporate Income Tax return for the unitary business group and various other state unitary group combined income tax returns. Income taxes are allocated based on each company’s separate taxable income in accordance with the CMS Energy tax sharing agreement. |
Revenue | Electric and Gas Utilities Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff-based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff-based sales performance obligations are described below. • Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of Consumers’ service to stand ready to deliver. • Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of a bundled product comprising the commodity, electricity or natural gas, and the service of delivering such commodity. In some instances, Consumers has specific fixed-term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature. Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost, which approximates fair value. CMS Energy and Consumers establish an allowance for uncollectible accounts based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and other factors. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. CMS Energy and Consumers charge off accounts deemed uncollectible to operating expense. Uncollectible expense for CMS Energy and Consumers was $29 million for the year ended December 31, 2019 and $29 million for the year ended December 31, 2018 . Consumers’ customers are billed monthly in cycles having billing dates that do not generally coincide with the end of a calendar month. This results in customers having received electricity or natural gas that they have not been billed for as of the month-end. Consumers estimates its unbilled revenues by applying an average billed rate to total unbilled deliveries for each customer class. Unbilled revenues, which are recorded as accounts receivable on CMS Energy’s and Consumers’ consolidated balance sheets, were $426 million at December 31, 2019 and $409 million at December 31, 2018 . Alternative ‑ Revenue Programs: The energy waste reduction incentive mechanism provides a financial incentive if the energy savings of Consumers’ customers exceed annual targets established by the MPSC. Consumers accounts for this program as an alternative-revenue program that meets the criteria for recognizing revenue related to the incentive as soon as energy savings exceed the annual targets established by the MPSC. Under a gas revenue decoupling mechanism authorized by the MPSC, Consumers is allowed to adjust future gas rates for differences between Consumers’ actual weather‑normalized, non‑fuel revenues and the revenues approved by the MPSC. Consumers accounts for this program as an alternative‑revenue program that meets the criteria for recognizing the effects of decoupling adjustments on revenue as gas is delivered. Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash and cash equivalents include short-term, highly liquid investments with original maturities of three months or less. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year. |
Regulatory Matters (Tables)
Regulatory Matters (Tables) - Consumers Energy Company | 12 Months Ended |
Dec. 31, 2019 | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Schedule of Regulatory Assets and Liabilities | Presented in the following table are the regulatory assets and liabilities on Consumers’ consolidated balance sheets: In Millions December 31 End of Recovery or Refund Period 2019 2018 Regulatory assets Current Energy waste reduction plan incentive 1 2020 $ 33 $ 32 Other 2019 — 5 Total current regulatory assets $ 33 $ 37 Non-current Postretirement benefits 2 various $ 1,130 $ 1,028 Costs of coal-fueled electric generating units to be retired 3 various 667 — Securitized costs 3 2029 247 273 ARO 4 various 191 175 MGP sites 4 various 130 133 Unamortized loss on reacquired debt 4 various 70 68 Energy waste reduction plan incentive 1 2021 34 34 Energy waste reduction plan 4 various 10 26 Deferred capital spending 4 various 3 — Gas storage inventory adjustments 4 various 3 4 Other various 4 2 Total non - current regulatory assets $ 2,489 $ 1,743 Total regulatory assets $ 2,522 $ 1,780 Regulatory liabilities Current Income taxes, net 2020 $ 65 $ 18 Gain to be shared with customers 2020 17 — Reserve for customer refunds 2019 2 36 TCJA reserve for refund 2019 — 98 Other 2020 3 3 Total current regulatory liabilities $ 87 $ 155 Non-current Cost of removal various $ 2,126 $ 1,966 Income taxes, net various 1,510 1,537 Renewable energy grant 2043 52 54 ARO various 26 38 Renewable energy plan 2028 17 42 TCJA reserve for refund various — 35 Other various 11 9 Total non-current regulatory liabilities $ 3,742 $ 3,681 Total regulatory liabilities $ 3,829 $ 3,836 1 These regulatory assets have arisen from an alternative revenue program and are not associated with incurred costs or capital investments. Therefore, the MPSC has provided for recovery without a return. 2 This regulatory asset is included in rate base, thereby providing a return. 3 The MPSC has historically authorized and Consumers expects the MPSC to authorize a specific return on these regulatory assets. 4 These regulatory assets represent incurred costs for which the MPSC has provided, or Consumers expects, recovery without a return on investment. |
Schedule of Assets and Liabilities for PSCR and GCR Underrecoveries and Overrecoveries | Presented in the following table are the assets and liabilities for PSCR and GCR underrecoveries and overrecoveries reflected on Consumers’ consolidated balance sheets: In Millions December 31 2019 2018 Assets GCR underrecoveries $ — $ 16 Accrued gas revenue $ — $ 16 Liabilities PSCR overrecoveries $ 33 $ 4 GCR overrecoveries 2 — Accrued rate refunds $ 35 $ 4 |
Contingencies And Commitments (
Contingencies And Commitments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Site Contingency [Line Items] | |
Guarantees | Presented in the following table are CMS Energy’s and Consumers’ guarantees at December 31, 2019 : In Millions Guarantee Description Issue Date Expiration Date Maximum Obligation Carrying Amount CMS Energy, including Consumers Indemnity obligations from stock and asset sale agreements 1 various indefinite $ 153 $ 2 Guarantees 2 various indefinite 36 — Consumers Guarantee 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. The maximum obligation amount is mostly related to the Equatorial Guinea tax claim discussed in the CMS Energy Contingencies section of this Note. 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 U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers. At CMS Energy, the guarantee obligations comprise Consumers’ guarantee to the U.S. Department of Energy and CMS Energy’s 1994 guarantee of non ‑ recourse revenue bonds issued by Genesee. For additional details on this guarantee, see Note 21, Variable Interest Entities . |
Purchase Obligations | Presented in the following table are CMS Energy’s and Consumers’ contractual purchase obligations at December 31, 2019 for each of the periods shown: In Millions Payments Due Total 2020 2021 2022 2023 2024 Beyond 2024 CMS Energy, including Consumers Total PPAs $ 9,336 $ 1,030 $ 1,035 $ 750 $ 608 $ 605 $ 5,308 Other 3,244 1,685 520 451 210 199 179 Consumers PPAs MCV PPA $ 3,295 $ 313 $ 287 $ 272 $ 225 $ 201 $ 1,997 Palisades PPA 899 388 398 113 — — — Related-party PPAs 472 71 72 74 74 75 106 Other PPAs 4,670 258 278 291 309 329 3,205 Total PPAs $ 9,336 $ 1,030 $ 1,035 $ 750 $ 608 $ 605 $ 5,308 Other 2,865 1,638 477 413 174 162 1 |
Consumers Energy Company | |
Site Contingency [Line Items] | |
Guarantees | Presented in the following table are CMS Energy’s and Consumers’ guarantees at December 31, 2019 : In Millions Guarantee Description Issue Date Expiration Date Maximum Obligation Carrying Amount CMS Energy, including Consumers Indemnity obligations from stock and asset sale agreements 1 various indefinite $ 153 $ 2 Guarantees 2 various indefinite 36 — Consumers Guarantee 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. The maximum obligation amount is mostly related to the Equatorial Guinea tax claim discussed in the CMS Energy Contingencies section of this Note. 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 U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers. At CMS Energy, the guarantee obligations comprise Consumers’ guarantee to the U.S. Department of Energy and CMS Energy’s 1994 guarantee of non ‑ recourse revenue bonds issued by Genesee. For additional details on this guarantee, see Note 21, Variable Interest Entities . |
Purchase Obligations | Presented in the following table are CMS Energy’s and Consumers’ contractual purchase obligations at December 31, 2019 for each of the periods shown: In Millions Payments Due Total 2020 2021 2022 2023 2024 Beyond 2024 CMS Energy, including Consumers Total PPAs $ 9,336 $ 1,030 $ 1,035 $ 750 $ 608 $ 605 $ 5,308 Other 3,244 1,685 520 451 210 199 179 Consumers PPAs MCV PPA $ 3,295 $ 313 $ 287 $ 272 $ 225 $ 201 $ 1,997 Palisades PPA 899 388 398 113 — — — Related-party PPAs 472 71 72 74 74 75 106 Other PPAs 4,670 258 278 291 309 329 3,205 Total PPAs $ 9,336 $ 1,030 $ 1,035 $ 750 $ 608 $ 605 $ 5,308 Other 2,865 1,638 477 413 174 162 1 |
Manufactured Gas Plant | Consumers Energy Company | |
Site Contingency [Line Items] | |
Expected Remediation Costs By Year | In Millions 2020 2021 2022 2023 2024 Consumers Remediation and other response activity costs $ 12 $ 8 $ 20 $ 11 $ 2 |
Bay Harbor | |
Site Contingency [Line Items] | |
Expected Remediation Costs By Year | . CMS Energy expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs in each of the next five years: In Millions 2020 2021 2022 2023 2024 CMS Energy Long-term leachate disposal and operating and maintenance costs $ 5 $ 4 $ 4 $ 4 $ 4 |
Financings And Capitalization (
Financings And Capitalization (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Instrument [Line Items] | |
Summary Of Long-Term Debt Outstanding | Presented in the following table is CMS Energy’s long-term debt at December 31: In Millions Interest Rate (%) Maturity 2019 2018 CMS Energy, including Consumers CMS Energy, parent only Senior notes 5.050 2022 $ 300 $ 300 3.875 2024 250 250 3.600 2025 250 250 3.000 2026 300 300 2.950 2027 275 275 3.450 2027 350 350 4.700 2043 250 250 4.875 2044 300 300 Total senior notes $ 2,275 $ 2,275 Term loans and revolving credit agreements variable 2019 — 180 variable 2023 — 30 $ — $ 210 Junior subordinated notes¹ 5.625 2078 200 200 5.875 2078 280 280 5.875 2079 630 — $ 1,110 $ 480 Total CMS Energy, parent only $ 3,385 $ 2,965 CMS Energy subsidiaries CMS Enterprises, including subsidiaries Term loan facility variable 2 2025 $ 92 $ 98 EnerBank Certificates of deposit 2.445 3 2020-2027 2,389 1,758 Consumers 7,322 6,862 Total principal amount outstanding $ 13,188 $ 11,683 Current amounts (1,111 ) (974 ) Unamortized discounts (27 ) (21 ) Unamortized issuance costs (99 ) (73 ) Total long-term debt $ 11,951 $ 10,615 1 These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness. 2 A subsidiary of CMS Enterprises issued non ‑ recourse debt to finance the acquisition of a wind generation project in Northwest Ohio. The debt bears interest at an annual interest rate of LIBOR plus 1.500 percent through October 2022 ( 3.445 percent at December 31, 2019 and 4.303 percent at December 31, 2018 ). Beginning in October 2022, the debt will bear interest at an annual interest rate of LIBOR plus 1.750 percent . The same subsidiary of CMS Enterprises entered into interest rate swaps with the lending banks to fix the interest charges associated with the debt, at a rate of 4.702 percent through October 2022 and 4.952 percent beginning in October 2022. Principal and interest payments are made quarterly. For information about the interest rate swaps, see Note 6, Fair Value Measurements . 3 The weighted-average interest rate for EnerBank’s certificates of deposit was 2.445 percent at December 31, 2019 and 2.440 percent at December 31, 2018 . EnerBank’s primary deposit product consists of brokered certificates of deposit with varying maturities and having a face value of $1,000 . |
Major Long-Term Debt Transactions | Presented in the following table is a summary of major long-term debt retirements during the year ended December 31, 2019 : Principal (In Millions) Interest Rate (%) Retirement Date Maturity Date CMS Energy, parent only Term loan facility $ 300 variable February December 2019 Term loan facility 180 variable February April 2019 Term loan facility 165 variable August-December June 2020 Total CMS Energy, parent only $ 645 Consumers First mortgage bonds $ 300 5.650 % May April 2020 Total Consumers $ 300 Total CMS Energy $ 945 December 31, 2019 : Principal (In Millions) Interest Rate (%) Issuance Date Maturity Date CMS Energy, parent only Term loan facility $ 300 variable January December 2019 Junior subordinated notes 1 630 5.875 February March 2079 Term loan facility 165 variable June June 2020 Total CMS Energy, parent only $ 1,095 Consumers First mortgage bonds $ 300 3.750 May February 2050 First mortgage bonds 550 3.100 September August 2050 First mortgage bonds 76 variable September September 2069 Tax-exempt revenue bonds 75 1.800 October October 2049 Total Consumers $ 1,001 Total CMS Energy $ 2,096 1 These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness. |
Debt Maturities | At December 31, 2019 , the aggregate annual contractual maturities for long-term debt for the next five years were: In Millions 2020 2021 2022 2023 2024 CMS Energy, including Consumers Long-term debt $ 1,111 $ 538 $ 1,354 $ 669 $ 808 Consumers Long-term debt $ 202 $ 27 $ 653 $ 354 $ 332 |
Revolving Credit Facilities | The following revolving credit facilities with banks were available at December 31, 2019 : In Millions Expiration Date Amount of Facility Amount Borrowed Letters of Credit Outstanding Amount Available CMS Energy, parent only June 5, 2023 1 $ 550 $ — $ 6 $ 544 CMS Enterprises, including subsidiaries September 30, 2025 2 $ 18 $ — $ 8 $ 10 Consumers 3 June 5, 2023 $ 850 $ — $ 7 $ 843 November 19, 2021 250 — 10 240 April 18, 2022 30 — 30 — 1 During the year ended December 31, 2019 , CMS Energy’s average borrowings totaled $5 million with a weighted-average interest rate of 3.859 percent . 2 Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank. There were no borrowings under this facility during the year ended December 31, 2019 . 3 Obligations under these facilities are secured by first mortgage bonds of Consumers. During the year ended December 31, 2019 , Consumers’ average borrowings totaled $2 million with a weighted-average interest rate of 3.225 percent . |
Schedule of Forward Contracts | Presented in the following table are details of these contracts: Contract Date Maturity Date Number of Shares Initial Forward Price Per Share November 16, 2018 May 16, 2020 2,017,783 $ 49.06 November 20, 2018 May 20, 2020 777,899 50.91 February 21, 2019 August 21, 2020 2,083,340 52.27 |
Consumers Energy Company | |
Debt Instrument [Line Items] | |
Summary Of Long-Term Debt Outstanding | Presented in the following table is Consumers’ long-term debt at December 31: In Millions Interest Rate (%) Maturity 2019 2018 Consumers First mortgage bonds 5.650 2020 $ — $ 300 3.770 2020 100 100 2.850 2022 375 375 5.300 2022 250 250 3.375 2023 325 325 3.125 2024 250 250 3.190 2024 52 52 3.680 2027 100 100 3.390 2027 35 35 3.800 2028 300 300 3.180 2032 100 100 5.800 2035 175 175 3.520 2037 335 335 4.010 2038 215 215 6.170 2040 50 50 4.970 2040 50 50 4.310 2042 263 263 3.950 2043 425 425 4.100 2045 250 250 3.250 2046 450 450 3.950 2047 350 350 4.050 2048 550 550 4.350 2049 550 550 3.750 2050 300 — 3.100 2050 550 — 3.860 2052 50 50 4.280 2057 185 185 4.350 2064 250 250 variable 1 2069 76 — Total first mortgage bonds $ 6,961 $ 6,335 Tax-exempt revenue bonds variable 2 2035 35 35 1.800 3 2049 75 — $ 110 $ 35 Securitization bonds 3.220 4 2025-2029 5 251 277 Revolving credit agreements variable 2020-2023 — 215 Total principal amount outstanding $ 7,322 $ 6,862 Current amounts (202 ) (26 ) Unamortized discounts (23 ) (16 ) Unamortized issuance costs (49 ) (41 ) Total long-term debt $ 7,048 $ 6,779 1 The variable-rate bonds bear interest quarterly at a rate of three-month LIBOR minus 0.300 percent ( 1.594 percent at December 31, 2019 ). 2 The interest rate on these tax‑exempt revenue bonds is reset weekly and was 1.740 percent at December 31, 2019 and 1.780 percent at December 31, 2018 . 3 The interest rate on these tax‑exempt revenue bonds will reset on October 1, 2024. 4 The weighted-average interest rate for Consumers’ securitization bonds issued through its subsidiary, Consumers 2014 Securitization Funding, was 3.220 percent at December 31, 2019 and 3.057 percent at December 31, 2018 . 5 Principal and interest payments are made semiannually. |
Major Long-Term Debt Transactions | Presented in the following table is a summary of major long-term debt issuances during the year ended December 31, 2019 : Principal (In Millions) Interest Rate (%) Issuance Date Maturity Date CMS Energy, parent only Term loan facility $ 300 variable January December 2019 Junior subordinated notes 1 630 5.875 February March 2079 Term loan facility 165 variable June June 2020 Total CMS Energy, parent only $ 1,095 Consumers First mortgage bonds $ 300 3.750 May February 2050 First mortgage bonds 550 3.100 September August 2050 First mortgage bonds 76 variable September September 2069 Tax-exempt revenue bonds 75 1.800 October October 2049 Total Consumers $ 1,001 Total CMS Energy $ 2,096 1 These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness. Presented in the following table is a summary of major long-term debt retirements during the year ended December 31, 2019 : Principal (In Millions) Interest Rate (%) Retirement Date Maturity Date CMS Energy, parent only Term loan facility $ 300 variable February December 2019 Term loan facility 180 variable February April 2019 Term loan facility 165 variable August-December June 2020 Total CMS Energy, parent only $ 645 Consumers First mortgage bonds $ 300 5.650 % May April 2020 Total Consumers $ 300 Total CMS Energy $ 945 |
Debt Maturities | At December 31, 2019 , the aggregate annual contractual maturities for long-term debt for the next five years were: In Millions 2020 2021 2022 2023 2024 CMS Energy, including Consumers Long-term debt $ 1,111 $ 538 $ 1,354 $ 669 $ 808 Consumers Long-term debt $ 202 $ 27 $ 653 $ 354 $ 332 Presented in the following table are the minimum Palisades PPA payments included in the financing obligation: In Millions December 31, 2019 2020 $ 14 2021 14 2022 3 Total minimum payments $ 31 Less discount 2 Financing obligation $ 29 Less current portion 13 Non-current portion $ 16 |
Revolving Credit Facilities | The following revolving credit facilities with banks were available at December 31, 2019 : In Millions Expiration Date Amount of Facility Amount Borrowed Letters of Credit Outstanding Amount Available CMS Energy, parent only June 5, 2023 1 $ 550 $ — $ 6 $ 544 CMS Enterprises, including subsidiaries September 30, 2025 2 $ 18 $ — $ 8 $ 10 Consumers 3 June 5, 2023 $ 850 $ — $ 7 $ 843 November 19, 2021 250 — 10 240 April 18, 2022 30 — 30 — 1 During the year ended December 31, 2019 , CMS Energy’s average borrowings totaled $5 million with a weighted-average interest rate of 3.859 percent . 2 Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank. There were no borrowings under this facility during the year ended December 31, 2019 . 3 Obligations under these facilities are secured by first mortgage bonds of Consumers. During the year ended December 31, 2019 , Consumers’ average borrowings totaled $2 million with a weighted-average interest rate of 3.225 percent . |
Preferred Stock | Presented in the following table are details of Consumers’ preferred stock at December 31, 2019 and 2018 : Par Value Optional Redemption Price Number of Shares Authorized Number of Shares Outstanding Cumulative, with no mandatory redemption $ 100 $ 110 7,500,000 373,148 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets And Liabilities Measured At Fair Value On A Recurring Basis | Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis: In Millions CMS Energy, including Consumers Consumers December 31 2019 2018 2019 2018 Assets 1 Cash equivalents $ — $ 27 $ — $ — Restricted cash and cash equivalents 17 21 17 17 CMS Energy common stock — — 1 1 Nonqualified deferred compensation plan assets 18 14 14 10 Other non-current assets — 1 — — Derivative instruments 1 1 1 1 Total $ 36 $ 64 $ 33 $ 29 Liabilities 1 Nonqualified deferred compensation plan liabilities $ 18 $ 14 $ 14 $ 10 Derivative instruments 8 3 — — Total $ 26 $ 17 $ 14 $ 10 1 All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3. |
Consumers Energy Company | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets And Liabilities Measured At Fair Value On A Recurring Basis | Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis: In Millions CMS Energy, including Consumers Consumers December 31 2019 2018 2019 2018 Assets 1 Cash equivalents $ — $ 27 $ — $ — Restricted cash and cash equivalents 17 21 17 17 CMS Energy common stock — — 1 1 Nonqualified deferred compensation plan assets 18 14 14 10 Other non-current assets — 1 — — Derivative instruments 1 1 1 1 Total $ 36 $ 64 $ 33 $ 29 Liabilities 1 Nonqualified deferred compensation plan liabilities $ 18 $ 14 $ 14 $ 10 Derivative instruments 8 3 — — Total $ 26 $ 17 $ 14 $ 10 1 All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Line Items] | |
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments | For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 6, Fair Value Measurements . In Millions December 31, 2019 December 31, 2018 Fair Value Fair Value Carrying Level Carrying Level Amount Total 1 2 3 Amount Total 1 2 3 CMS Energy, including Consumers Assets Long-term receivables 1 $ 20 $ 20 $ — $ — $ 20 $ 22 $ 22 $ — $ — $ 22 Notes receivable 2 2,500 2,652 — — 2,652 1,857 1,967 — — 1,967 Securities held to maturity 26 26 — 26 — 22 21 — 21 — Liabilities Long-term debt 3 13,062 14,185 1,197 11,048 1,940 11,589 11,630 459 9,404 1,767 Long-term payables 4 30 32 — — 32 27 27 — — 27 Consumers Assets Long-term receivables 1 $ 20 $ 20 $ — $ — $ 20 $ 22 $ 22 $ — $ — $ 22 Notes receivable – related party 5 103 103 — — 103 106 106 — — 106 Liabilities Long-term debt 6 7,250 8,010 — 6,070 1,940 6,805 6,833 — 5,066 1,767 1 Includes current portion of long-term accounts receivable of $13 million at December 31, 2019 and $14 million at December 31, 2018 . 2 Includes current portion of notes receivable of $242 million at December 31, 2019 and $233 million at December 31, 2018 . For further details, see Note 8, Notes Receivable . 3 Includes current portion of long-term debt of $1.1 billion at December 31, 2019 and $1.0 billion at December 31, 2018 . 4 Includes current portion of long-term payables of $1 million at December 31, 2019 and December 31, 2018 . 5 Includes current portion of notes receivable – related party of $7 million at December 31, 2019 and December 31, 2018 . For further details on this note receivable, see the DB SERP discussion below. 6 Includes current portion of long-term debt of $202 million at December 31, 2019 and $26 million at December 31, 2018 . |
Schedule Of Sales Activity For Investment Securities | Presented in the following table is a summary of the sales activity for investment securities held within the DB SERP and classified as available for sale: In Millions Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Proceeds from sales of investment securities $ — $ 142 $ 145 Consumers Proceeds from sales of investment securities $ — $ 103 $ 105 |
Schedule Of Investment Securities | Presented in the following table are these investment securities: In Millions December 31, 2019 December 31, 2018 Cost Unrealized Gains Unrealized Losses Fair Value Cost Unrealized Gains Unrealized Losses Fair Value CMS Energy Debt securities $ 26 $ — $ — $ 26 $ 22 $ — $ 1 $ 21 |
Consumers Energy Company | |
Financial Instruments [Line Items] | |
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments | For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 6, Fair Value Measurements . In Millions December 31, 2019 December 31, 2018 Fair Value Fair Value Carrying Level Carrying Level Amount Total 1 2 3 Amount Total 1 2 3 CMS Energy, including Consumers Assets Long-term receivables 1 $ 20 $ 20 $ — $ — $ 20 $ 22 $ 22 $ — $ — $ 22 Notes receivable 2 2,500 2,652 — — 2,652 1,857 1,967 — — 1,967 Securities held to maturity 26 26 — 26 — 22 21 — 21 — Liabilities Long-term debt 3 13,062 14,185 1,197 11,048 1,940 11,589 11,630 459 9,404 1,767 Long-term payables 4 30 32 — — 32 27 27 — — 27 Consumers Assets Long-term receivables 1 $ 20 $ 20 $ — $ — $ 20 $ 22 $ 22 $ — $ — $ 22 Notes receivable – related party 5 103 103 — — 103 106 106 — — 106 Liabilities Long-term debt 6 7,250 8,010 — 6,070 1,940 6,805 6,833 — 5,066 1,767 1 Includes current portion of long-term accounts receivable of $13 million at December 31, 2019 and $14 million at December 31, 2018 . 2 Includes current portion of notes receivable of $242 million at December 31, 2019 and $233 million at December 31, 2018 . For further details, see Note 8, Notes Receivable . 3 Includes current portion of long-term debt of $1.1 billion at December 31, 2019 and $1.0 billion at December 31, 2018 . 4 Includes current portion of long-term payables of $1 million at December 31, 2019 and December 31, 2018 . 5 Includes current portion of notes receivable – related party of $7 million at December 31, 2019 and December 31, 2018 . For further details on this note receivable, see the DB SERP discussion below. 6 Includes current portion of long-term debt of $202 million at December 31, 2019 and $26 million at December 31, 2018 . |
Schedule Of Sales Activity For Investment Securities | Presented in the following table is a summary of the sales activity for investment securities held within the DB SERP and classified as available for sale: In Millions Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Proceeds from sales of investment securities $ — $ 142 $ 145 Consumers Proceeds from sales of investment securities $ — $ 103 $ 105 |
Notes Receivable (Tables)
Notes Receivable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule Of Current And Non-Current Notes Receivable | Presented in the following table are details of CMS Energy’s and Consumers’ current and non‑current notes receivable: In Millions December 31 2019 2018 CMS Energy, including Consumers Current EnerBank notes receivable, net of allowance for loan losses $ 223 $ 233 EnerBank notes receivable held for sale 19 — Non‑current EnerBank notes receivable 2,258 1,624 Total notes receivable $ 2,500 $ 1,857 Consumers Current DB SERP note receivable – related party $ 7 $ 7 Non‑current DB SERP note receivable – related party 96 99 Total notes receivable $ 103 $ 106 |
Schedule Of Allowance For Loan Losses | Presented in the following table are the changes in the allowance for loan losses: In Millions Years Ended December 31 2019 2018 Balance at beginning of period $ 24 $ 20 Charge-offs (35 ) (24 ) Recoveries 6 3 Provision for loan losses 38 25 Balance at end of period $ 33 $ 24 |
Consumers Energy Company | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule Of Current And Non-Current Notes Receivable | Presented in the following table are details of CMS Energy’s and Consumers’ current and non‑current notes receivable: In Millions December 31 2019 2018 CMS Energy, including Consumers Current EnerBank notes receivable, net of allowance for loan losses $ 223 $ 233 EnerBank notes receivable held for sale 19 — Non‑current EnerBank notes receivable 2,258 1,624 Total notes receivable $ 2,500 $ 1,857 Consumers Current DB SERP note receivable – related party $ 7 $ 7 Non‑current DB SERP note receivable – related party 96 99 Total notes receivable $ 103 $ 106 |
Plant, Property, and Equipment
Plant, Property, and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Schedule Of Property, Plant And Equipment | Presented in the following table are details of CMS Energy’s and Consumers’ plant, property, and equipment: In Millions December 31 Estimated Depreciable Life in Years 2019 2018 CMS Energy, including Consumers Plant, property, and equipment, gross Consumers 3 — 125 $ 24,963 $ 23,963 Enterprises Independent power production 1 3 — 40 403 410 Other 3 — 5 2 2 EnerBank 1 — 7 22 25 Plant, property, and equipment, gross $ 25,390 $ 24,400 Construction work in progress 896 763 Accumulated depreciation and amortization (7,360 ) (7,037 ) Total plant, property, and equipment $ 18,926 $ 18,126 Consumers Plant, property, and equipment, gross Electric Generation 22 — 125 $ 5,942 $ 6,305 Distribution 20 — 75 8,519 7,957 Transmission 46 — 75 113 154 Other 5 — 50 1,258 1,316 Assets under finance leases and other financing 2 326 295 Gas Distribution 20 — 85 5,235 4,651 Transmission 17 — 75 1,752 1,521 Underground storage facilities 3 27 — 75 987 910 Other 5 — 50 797 823 Assets under finance leases 2 14 14 Other non‑utility property 3 — 51 20 17 Plant, property, and equipment, gross $ 24,963 $ 23,963 Construction work in progress 879 756 Accumulated depreciation and amortization (7,272 ) (6,958 ) Total plant, property, and equipment 4 $ 18,570 $ 17,761 1 The majority of independent power production assets are leased to others under operating leases. For information regarding CMS Energy’s operating leases of owned assets, see Note 10, Leases and Palisades Financing . 2 For information regarding the amortization terms of Consumers’ assets under finance leases and other financing, see Note 10, Leases and Palisades Financing . 3 Underground storage includes base natural gas of $26 million at December 31, 2019 and 2018 . Base natural gas is not subject to depreciation. 4 For the year ended December 31, 2019 , Consumers’ plant additions were $2.0 billion and plant retirements were $380 million . For the year ended December 31, 2018 , Consumers’ plant additions were $1.8 billion and plant retirements were $190 million . Consumers plans to retire the D.E. Karn 1 & 2 coal-fueled electric generating units in 2023. Accordingly, in 2019, Consumers removed from total plant, property, and equipment $667 million , representing the remaining book value of the two units upon their retirement, and recorded it as a regulatory asset. For additional details, see Note 3, Regulatory Matters . |
Schedule of Finite-Lived Intangible Assets by Major Class Table | Presented in the following table are details about CMS Energy’s and Consumers’ intangible assets: In Millions December 31, 2019 December 31, 2018 Description Amortization Life in Years Gross Cost¹ Accumulated Amortization Gross Cost¹ Accumulated Amortization CMS Energy, including Consumers Software development 1 — 15 $ 882 $ 529 $ 1,024 $ 603 Rights of way 50 — 85 180 55 167 52 Franchises and consents 5 — 50 16 9 15 9 Leasehold improvements various² 9 7 9 7 Other intangibles various 27 15 27 15 Total $ 1,114 $ 615 $ 1,242 $ 686 Consumers Software development 3 — 15 $ 869 $ 521 $ 1,009 $ 595 Rights of way 50 — 85 180 55 167 52 Franchises and consents 5 — 50 16 9 15 9 Leasehold improvements various² 9 7 9 7 Other intangibles various 26 15 26 15 Total $ 1,100 $ 607 $ 1,226 $ 678 1 For the year ended December 31, 2019 , Consumers’ intangible asset additions were $67 million and intangible asset retirements were $193 million . For the year ended December 31, 2018 , Consumers’ intangible asset additions were $90 million and intangible asset retirements were $7 million . 2 Leasehold improvements are amortized over the life of the lease, which may change whenever the lease is renewed or extended. |
Public Utilities Property Plant and Equipment Schedule of Accumulated Depreciation and Amortization Table | Presented in the following table are further details about CMS Energy’s and Consumers’ accumulated depreciation and amortization: In Millions December 31 2019 2018 CMS Energy, including Consumers Utility plant assets $ 7,269 $ 6,956 Non ‑ utility plant assets 91 81 Consumers Utility plant assets $ 7,269 $ 6,956 Non ‑ utility plant assets 3 2 |
Schedule Of Depreciation And Amortization | Presented in the following table are the components of CMS Energy’s and Consumers’ depreciation and amortization expense: In Millions Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Depreciation expense – plant, property, and equipment $ 842 $ 778 $ 739 Amortization expense Software 121 127 114 Other intangible assets 3 3 3 Securitized regulatory assets 26 25 25 Total depreciation and amortization expense $ 992 $ 933 $ 881 Consumers Depreciation expense – plant, property, and equipment $ 827 $ 768 $ 732 Amortization expense Software 119 125 112 Other intangible assets 3 3 3 Securitized regulatory assets 26 25 25 Total depreciation and amortization expense $ 975 $ 921 $ 872 |
Schedule Of Estimated Amortization Expense For Intangibles | Presented in the following table is CMS Energy’s and Consumers’ estimated amortization expense on intangible assets for each of the next five years: In Millions 2020 2021 2022 2023 2024 CMS Energy, including Consumers Intangible asset amortization expense $ 118 $ 112 $ 107 $ 87 $ 70 Consumers Intangible asset amortization expense $ 116 $ 110 $ 106 $ 87 $ 70 |
Consumers Energy Company | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Schedule Of Property, Plant And Equipment | Assets Under Finance Leases and Other Financing: Presented in the following table are further details about changes in Consumers’ assets under finance leases and other financing: In Millions Years Ended December 31 2019 2018 Consumers Balance at beginning of period $ 309 $ 312 Additions 26 — Net retirements and other adjustments 5 (3 ) Balance at end of period $ 340 $ 309 Presented in the following table are details of CMS Energy’s and Consumers’ plant, property, and equipment: In Millions December 31 Estimated Depreciable Life in Years 2019 2018 CMS Energy, including Consumers Plant, property, and equipment, gross Consumers 3 — 125 $ 24,963 $ 23,963 Enterprises Independent power production 1 3 — 40 403 410 Other 3 — 5 2 2 EnerBank 1 — 7 22 25 Plant, property, and equipment, gross $ 25,390 $ 24,400 Construction work in progress 896 763 Accumulated depreciation and amortization (7,360 ) (7,037 ) Total plant, property, and equipment $ 18,926 $ 18,126 Consumers Plant, property, and equipment, gross Electric Generation 22 — 125 $ 5,942 $ 6,305 Distribution 20 — 75 8,519 7,957 Transmission 46 — 75 113 154 Other 5 — 50 1,258 1,316 Assets under finance leases and other financing 2 326 295 Gas Distribution 20 — 85 5,235 4,651 Transmission 17 — 75 1,752 1,521 Underground storage facilities 3 27 — 75 987 910 Other 5 — 50 797 823 Assets under finance leases 2 14 14 Other non‑utility property 3 — 51 20 17 Plant, property, and equipment, gross $ 24,963 $ 23,963 Construction work in progress 879 756 Accumulated depreciation and amortization (7,272 ) (6,958 ) Total plant, property, and equipment 4 $ 18,570 $ 17,761 1 The majority of independent power production assets are leased to others under operating leases. For information regarding CMS Energy’s operating leases of owned assets, see Note 10, Leases and Palisades Financing . 2 For information regarding the amortization terms of Consumers’ assets under finance leases and other financing, see Note 10, Leases and Palisades Financing . 3 Underground storage includes base natural gas of $26 million at December 31, 2019 and 2018 . Base natural gas is not subject to depreciation. 4 For the year ended December 31, 2019 , Consumers’ plant additions were $2.0 billion and plant retirements were $380 million . For the year ended December 31, 2018 , Consumers’ plant additions were $1.8 billion and plant retirements were $190 million . Consumers plans to retire the D.E. Karn 1 & 2 coal-fueled electric generating units in 2023. Accordingly, in 2019, Consumers removed from total plant, property, and equipment $667 million , representing the remaining book value of the two units upon their retirement, and recorded it as a regulatory asset. For additional details, see Note 3, Regulatory Matters . |
Schedule of Finite-Lived Intangible Assets by Major Class Table | Presented in the following table are details about CMS Energy’s and Consumers’ intangible assets: In Millions December 31, 2019 December 31, 2018 Description Amortization Life in Years Gross Cost¹ Accumulated Amortization Gross Cost¹ Accumulated Amortization CMS Energy, including Consumers Software development 1 — 15 $ 882 $ 529 $ 1,024 $ 603 Rights of way 50 — 85 180 55 167 52 Franchises and consents 5 — 50 16 9 15 9 Leasehold improvements various² 9 7 9 7 Other intangibles various 27 15 27 15 Total $ 1,114 $ 615 $ 1,242 $ 686 Consumers Software development 3 — 15 $ 869 $ 521 $ 1,009 $ 595 Rights of way 50 — 85 180 55 167 52 Franchises and consents 5 — 50 16 9 15 9 Leasehold improvements various² 9 7 9 7 Other intangibles various 26 15 26 15 Total $ 1,100 $ 607 $ 1,226 $ 678 1 For the year ended December 31, 2019 , Consumers’ intangible asset additions were $67 million and intangible asset retirements were $193 million . For the year ended December 31, 2018 , Consumers’ intangible asset additions were $90 million and intangible asset retirements were $7 million . 2 Leasehold improvements are amortized over the life of the lease, which may change whenever the lease is renewed or extended. |
Public Utilities, Allowance For Funds Used During Construction Average Rate | Presented in the following table are Consumers’ average AFUDC capitalization rates: Years Ended December 31 2019 2018 2017 Electric 6.4 % 6.9 % 6.8 % Gas 5.8 5.9 6.0 |
Public Utilities Property Plant and Equipment Schedule of Accumulated Depreciation and Amortization Table | Presented in the following table are further details about CMS Energy’s and Consumers’ accumulated depreciation and amortization: In Millions December 31 2019 2018 CMS Energy, including Consumers Utility plant assets $ 7,269 $ 6,956 Non ‑ utility plant assets 91 81 Consumers Utility plant assets $ 7,269 $ 6,956 Non ‑ utility plant assets 3 2 |
Public Utilities Property Plant and Equipment Schedule of Composite Depreciation Rate Table | Presented in the following table are the composite depreciation rates for Consumers’ segment properties: Years Ended December 31 2019 2018 2017 Electric utility property 3.9 % 3.9 % 3.9 % Gas utility property 2.9 2.9 2.9 Other property 10.0 10.1 10.0 |
Schedule Of Depreciation And Amortization | Presented in the following table are the components of CMS Energy’s and Consumers’ depreciation and amortization expense: In Millions Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Depreciation expense – plant, property, and equipment $ 842 $ 778 $ 739 Amortization expense Software 121 127 114 Other intangible assets 3 3 3 Securitized regulatory assets 26 25 25 Total depreciation and amortization expense $ 992 $ 933 $ 881 Consumers Depreciation expense – plant, property, and equipment $ 827 $ 768 $ 732 Amortization expense Software 119 125 112 Other intangible assets 3 3 3 Securitized regulatory assets 26 25 25 Total depreciation and amortization expense $ 975 $ 921 $ 872 |
Schedule Of Estimated Amortization Expense For Intangibles | Presented in the following table is CMS Energy’s and Consumers’ estimated amortization expense on intangible assets for each of the next five years: In Millions 2020 2021 2022 2023 2024 CMS Energy, including Consumers Intangible asset amortization expense $ 118 $ 112 $ 107 $ 87 $ 70 Consumers Intangible asset amortization expense $ 116 $ 110 $ 106 $ 87 $ 70 |
Jointly Owned Regulated Utility Facilities | Presented in the following table are Consumers’ investments in jointly owned regulated utility facilities at December 31, 2019 : In Millions, Except Ownership Share J.H. Campbell Unit 3 Ludington Other Ownership share 93.3 % 51.0 % various Utility plant in service $ 1,731 $ 486 $ 233 Accumulated depreciation (753 ) (166 ) (68 ) Construction work in progress 16 64 15 Net investment $ 994 $ 384 $ 180 |
Leases and Palisades Financing
Leases and Palisades Financing - (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Line Items] | |
Assets and Liabilities of Lessee | Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities: In Millions, Except as Noted December 31, 2019 CMS Energy, including Consumers Consumers Operating leases Right-of-use assets 1 $ 47 $ 40 Lease liabilities Current lease liabilities 2 9 8 Non ‑ current lease liabilities 3 37 32 Finance leases Right-of-use assets $ 71 $ 71 Lease liabilities 4 Current lease liabilities 6 6 Non ‑ current lease liabilities 60 60 Weighted-average remaining lease term (in years) Operating leases 17 14 Finance leases 12 12 Weighted-average discount rate Operating leases 3.8 % 3.7 % Finance leases 5 1.9 1.9 1 CMS Energy’s and Consumers’ operating right-of-use lease assets are reported as other non ‑ current assets on their consolidated balance sheets. 2 The current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other current liabilities on their consolidated balance sheets. 3 The non ‑ current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other non ‑ current liabilities on their consolidated balance sheets. 4 This includes $25 million for leases with related parties, of which less than $1 million is current. 5 This rate excludes the impact of Consumers’ pipeline agreements and long-term PPAs accounted for as finance leases. The required capacity payments under these agreements, when compared to the underlying fair value of the leased assets, result in effective interest rates that exceed market rates for leases with similar terms. |
Lease Cost | Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs: In Millions Year Ended December 31, 2019 CMS Energy, including Consumers Consumers Operating lease costs $ 11 $ 9 Finance lease costs Amortization of right-of-use assets 6 6 Interest on lease liabilities 18 18 Variable lease costs 95 95 Total lease costs $ 130 $ 128 Presented in the following table is cash flow information related to amounts paid on CMS Energy’s and Consumers’ lease liabilities: In Millions Year Ended December 31, 2019 CMS Energy, including Consumers Consumers Cash paid for amounts included in the measurement of lease liabilities Cash used in operating activities for operating leases $ 11 $ 9 Cash used in operating activities for finance leases 18 18 Cash used in financing activities for finance leases 7 7 |
Lessee Operating Lease Liability and Finance Liability Maturity | Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases: In Millions Finance Leases December 31, 2019 Operating Leases Pipelines and PPAs Other Total CMS Energy, including Consumers 2020 $ 11 $ 17 $ 6 $ 23 2021 11 17 6 23 2022 5 14 5 19 2023 3 13 5 18 2024 2 13 3 16 2025 and thereafter 35 78 12 90 Total minimum lease payments $ 67 $ 152 $ 37 $ 189 Less discount 21 119 4 123 Present value of minimum lease payments $ 46 $ 33 $ 33 $ 66 Consumers 2020 $ 9 $ 17 $ 6 $ 23 2021 9 17 6 23 2022 4 14 5 19 2023 3 13 5 18 2024 2 13 3 16 2025 and thereafter 29 78 12 90 Total minimum lease payments $ 56 $ 152 $ 37 $ 189 Less discount 16 119 4 123 Present value of minimum lease payments $ 40 $ 33 $ 33 $ 66 |
Lessor, Operating Lease, Payments to be Received, Maturity | Presented in the following table are the minimum rental payments to be received under CMS Energy’s non‑cancelable operating leases: In Millions December 31, 2019 2020 $ 55 2021 55 2022 48 2023 43 2024 43 2025 and thereafter 62 Total minimum lease payments $ 306 |
Debt Maturities | At December 31, 2019 , the aggregate annual contractual maturities for long-term debt for the next five years were: In Millions 2020 2021 2022 2023 2024 CMS Energy, including Consumers Long-term debt $ 1,111 $ 538 $ 1,354 $ 669 $ 808 Consumers Long-term debt $ 202 $ 27 $ 653 $ 354 $ 332 |
Consumers Energy Company | |
Leases [Line Items] | |
Assets and Liabilities of Lessee | Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities: In Millions, Except as Noted December 31, 2019 CMS Energy, including Consumers Consumers Operating leases Right-of-use assets 1 $ 47 $ 40 Lease liabilities Current lease liabilities 2 9 8 Non ‑ current lease liabilities 3 37 32 Finance leases Right-of-use assets $ 71 $ 71 Lease liabilities 4 Current lease liabilities 6 6 Non ‑ current lease liabilities 60 60 Weighted-average remaining lease term (in years) Operating leases 17 14 Finance leases 12 12 Weighted-average discount rate Operating leases 3.8 % 3.7 % Finance leases 5 1.9 1.9 1 CMS Energy’s and Consumers’ operating right-of-use lease assets are reported as other non ‑ current assets on their consolidated balance sheets. 2 The current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other current liabilities on their consolidated balance sheets. 3 The non ‑ current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other non ‑ current liabilities on their consolidated balance sheets. 4 This includes $25 million for leases with related parties, of which less than $1 million is current. 5 This rate excludes the impact of Consumers’ pipeline agreements and long-term PPAs accounted for as finance leases. The required capacity payments under these agreements, when compared to the underlying fair value of the leased assets, result in effective interest rates that exceed market rates for leases with similar terms. |
Lease Cost | Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs: In Millions Year Ended December 31, 2019 CMS Energy, including Consumers Consumers Operating lease costs $ 11 $ 9 Finance lease costs Amortization of right-of-use assets 6 6 Interest on lease liabilities 18 18 Variable lease costs 95 95 Total lease costs $ 130 $ 128 Presented in the following table is cash flow information related to amounts paid on CMS Energy’s and Consumers’ lease liabilities: In Millions Year Ended December 31, 2019 CMS Energy, including Consumers Consumers Cash paid for amounts included in the measurement of lease liabilities Cash used in operating activities for operating leases $ 11 $ 9 Cash used in operating activities for finance leases 18 18 Cash used in financing activities for finance leases 7 7 |
Lessee Operating Lease Liability and Finance Liability Maturity | Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases: In Millions Finance Leases December 31, 2019 Operating Leases Pipelines and PPAs Other Total CMS Energy, including Consumers 2020 $ 11 $ 17 $ 6 $ 23 2021 11 17 6 23 2022 5 14 5 19 2023 3 13 5 18 2024 2 13 3 16 2025 and thereafter 35 78 12 90 Total minimum lease payments $ 67 $ 152 $ 37 $ 189 Less discount 21 119 4 123 Present value of minimum lease payments $ 46 $ 33 $ 33 $ 66 Consumers 2020 $ 9 $ 17 $ 6 $ 23 2021 9 17 6 23 2022 4 14 5 19 2023 3 13 5 18 2024 2 13 3 16 2025 and thereafter 29 78 12 90 Total minimum lease payments $ 56 $ 152 $ 37 $ 189 Less discount 16 119 4 123 Present value of minimum lease payments $ 40 $ 33 $ 33 $ 66 |
Debt Maturities | At December 31, 2019 , the aggregate annual contractual maturities for long-term debt for the next five years were: In Millions 2020 2021 2022 2023 2024 CMS Energy, including Consumers Long-term debt $ 1,111 $ 538 $ 1,354 $ 669 $ 808 Consumers Long-term debt $ 202 $ 27 $ 653 $ 354 $ 332 Presented in the following table are the minimum Palisades PPA payments included in the financing obligation: In Millions December 31, 2019 2020 $ 14 2021 14 2022 3 Total minimum payments $ 31 Less discount 2 Financing obligation $ 29 Less current portion 13 Non-current portion $ 16 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Asset Retirement Obligations [Line Items] | |
Schedule of Asset Retirement Obligations | Presented below are the categories of assets that CMS Energy and Consumers have legal obligations to remove at the end of their useful lives and for which they have an ARO liability recorded: Company and ARO Description In-Service Date Long-Lived Assets CMS Energy, including Consumers Closure of gas treating plant and gas wells various Gas transmission and storage Closure of coal ash disposal areas various Generating plants coal ash areas Gas distribution cut, purge, and cap various Gas distribution mains and services Asbestos abatement 1973 Electric and gas utility plant Closure of renewable generation assets various Wind and solar generation facilities Gas wells plug and abandon various Gas transmission and storage Consumers Closure of coal ash disposal areas various Generating plants coal ash areas Gas distribution cut, purge, and cap various Gas distribution mains and services Asbestos abatement 1973 Electric and gas utility plant Closure of renewable generation assets various Wind and solar generation facilities Gas wells plug and abandon various Gas transmission and storage |
Schedule of Change in Asset Retirement Obligation | Presented in the following tables are the changes in CMS Energy’s and Consumers’ ARO liabilities: In Millions Company and ARO Description ARO Liability 12/31/2018 Incurred Settled Accretion Cash Flow Revisions ARO Liability 12/31/2019 CMS Energy, including Consumers Consumers $ 428 $ 55 $ (37 ) $ 21 $ 7 $ 474 Gas treating plant and gas wells 1 — (1 ) — — — Renewable generation assets 3 — — — — 3 Total CMS Energy $ 432 $ 55 $ (38 ) $ 21 $ 7 $ 477 Consumers Coal ash disposal areas $ 179 $ — $ (27 ) $ 7 $ 7 $ 166 Gas distribution cut, purge, and cap 205 22 (8 ) 12 — 231 Asbestos abatement 33 — (1 ) 2 — 34 Renewable generation assets 11 10 — — — 21 Gas wells plug and abandon — 23 (1 ) — — 22 Total Consumers $ 428 $ 55 $ (37 ) $ 21 $ 7 $ 474 In Millions Company and ARO Description ARO Liability 12/31/2017 Incurred Settled Accretion Cash Flow Revisions ARO Liability 12/31/2018 CMS Energy, including Consumers Consumers $ 429 $ 17 $ (40 ) $ 22 $ — $ 428 Gas treating plant and gas wells 1 — — — — 1 Renewable generation assets — 3 — — — 3 Total CMS Energy $ 430 $ 20 $ (40 ) $ 22 $ — $ 432 Consumers Coal ash disposal areas $ 191 $ — $ (20 ) $ 8 $ — $ 179 Gas distribution cut, purge, and cap 186 17 (9 ) 11 — 205 Asbestos abatement 42 — (11 ) 2 — 33 Renewable generation assets 10 — — 1 — 11 Total Consumers $ 429 $ 17 $ (40 ) $ 22 $ — $ 428 |
Consumers Energy Company | |
Asset Retirement Obligations [Line Items] | |
Schedule of Asset Retirement Obligations | Presented below are the categories of assets that CMS Energy and Consumers have legal obligations to remove at the end of their useful lives and for which they have an ARO liability recorded: Company and ARO Description In-Service Date Long-Lived Assets CMS Energy, including Consumers Closure of gas treating plant and gas wells various Gas transmission and storage Closure of coal ash disposal areas various Generating plants coal ash areas Gas distribution cut, purge, and cap various Gas distribution mains and services Asbestos abatement 1973 Electric and gas utility plant Closure of renewable generation assets various Wind and solar generation facilities Gas wells plug and abandon various Gas transmission and storage Consumers Closure of coal ash disposal areas various Generating plants coal ash areas Gas distribution cut, purge, and cap various Gas distribution mains and services Asbestos abatement 1973 Electric and gas utility plant Closure of renewable generation assets various Wind and solar generation facilities Gas wells plug and abandon various Gas transmission and storage |
Schedule of Change in Asset Retirement Obligation | Presented in the following tables are the changes in CMS Energy’s and Consumers’ ARO liabilities: In Millions Company and ARO Description ARO Liability 12/31/2018 Incurred Settled Accretion Cash Flow Revisions ARO Liability 12/31/2019 CMS Energy, including Consumers Consumers $ 428 $ 55 $ (37 ) $ 21 $ 7 $ 474 Gas treating plant and gas wells 1 — (1 ) — — — Renewable generation assets 3 — — — — 3 Total CMS Energy $ 432 $ 55 $ (38 ) $ 21 $ 7 $ 477 Consumers Coal ash disposal areas $ 179 $ — $ (27 ) $ 7 $ 7 $ 166 Gas distribution cut, purge, and cap 205 22 (8 ) 12 — 231 Asbestos abatement 33 — (1 ) 2 — 34 Renewable generation assets 11 10 — — — 21 Gas wells plug and abandon — 23 (1 ) — — 22 Total Consumers $ 428 $ 55 $ (37 ) $ 21 $ 7 $ 474 In Millions Company and ARO Description ARO Liability 12/31/2017 Incurred Settled Accretion Cash Flow Revisions ARO Liability 12/31/2018 CMS Energy, including Consumers Consumers $ 429 $ 17 $ (40 ) $ 22 $ — $ 428 Gas treating plant and gas wells 1 — — — — 1 Renewable generation assets — 3 — — — 3 Total CMS Energy $ 430 $ 20 $ (40 ) $ 22 $ — $ 432 Consumers Coal ash disposal areas $ 191 $ — $ (20 ) $ 8 $ — $ 179 Gas distribution cut, purge, and cap 186 17 (9 ) 11 — 205 Asbestos abatement 42 — (11 ) 2 — 33 Renewable generation assets 10 — — 1 — 11 Total Consumers $ 429 $ 17 $ (40 ) $ 22 $ — $ 428 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule Of SERP Trust Assets, ABO And Contributions | Presented in the following table are the fair values of trust assets, ABO, and contributions for CMS Energy’s and Consumers’ DB SERP: In Millions Years Ended December 31 2019 2018 CMS Energy, including Consumers Trust assets $ 143 $ 147 ABO 149 137 Contributions — 8 Consumers Trust assets $ 104 $ 106 ABO 107 98 Contributions — 5 |
Schedule Of Assumptions Used | Presented in the following table are the weighted-average assumptions used in CMS Energy’s and Consumers’ retirement benefits plans to determine benefit obligations and net periodic benefit cost: December 31 2019 2018 2017 CMS Energy, including Consumers Weighted average for benefit obligations 1 Discount rate 2 DB Pension Plan A 3.37 % 4.48 % 3.78 % DB Pension Plan B 3.17 4.32 3.64 DB SERP 3.15 4.32 3.65 OPEB Plan 3.32 4.42 3.74 Rate of compensation increase DB Pension Plan A 3.50 3.50 3.50 DB SERP 5.50 5.50 5.50 Weighted average for net periodic benefit cost 1 Service cost discount rate 2,3 DB Pension Plan A 4 4.55 3.85 DB SERP 4.58 3.83 4.51 OPEB Plan 4.63 3.93 4.89 Interest cost discount rate 2,3 DB Pension Plan A 4 4.08 3.39 DB Pension Plan B 4 3.93 3.24 DB SERP 3.94 3.26 3.51 OPEB Plan 4.03 3.35 3.79 Expected long-term rate of return on plan assets 5 DB Pension Plans 7.00 7.00 7.25 OPEB Plan 7.00 7.00 7.25 Rate of compensation increase DB Pension Plan A 4 3.50 3.50 DB SERP 5.50 5.50 5.50 1 The mortality assumption for benefit obligations was based on the Pri-2012 mortality table for 2019 and on the RP-2014 mortality table for 2018 and 2017 , with projection scales MP-2019 for 2019 , MP-2018 for 2018 , and MP-2017 for 2017 . The mortality assumption for net periodic benefit cost for 2019 , 2018 , and 2017 was based on the RP-2014 mortality table, with projection scales MP-2018 for 2019 , MP-2017 for 2018 , and MP-2016 for 2017 . 2 The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better. 3 CMS Energy and Consumers have elected to use a full-yield-curve approach in the estimation of service cost and interest cost; this approach applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment. 4 Effective December 31, 2017, CMS Energy’s and Consumers’ existing defined benefit pension plan was amended to include only retired or inactive employees; this amended plan is referred to as DB Pension Plan B. Active employees were moved to a newly created pension plan, referred to as DB Pension Plan A. The assumptions used to measure the plan cost of the previous defined benefit pension plan at December 31, 2017 were: • service cost discount rate of 4.53 percent • interest cost discount rate of 3.56 percent • weighted-average rate of compensation increase of 3.60 percent 5 CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 7.00 percent in 2019 . The actual return (loss) on the assets of the DB Pension Plans was 21.0 percent in 2019 , (6.7) percent in 2018 , and 18.0 percent in 2017 |
Schedule Of Net Benefit Costs | Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefits plans: In Millions DB Pension Plans and DB SERP OPEB Plan Years Ended December 31 2019 2018 2017 2019 2018 2017 CMS Energy, including Consumers Net periodic cost (credit) Service cost $ 41 $ 48 $ 45 $ 14 $ 17 $ 19 Interest cost 103 95 93 41 34 51 Expected return on plan assets (162 ) (149 ) (153 ) (88 ) (97 ) (90 ) Amortization of: Net loss 50 76 82 26 15 29 Prior service cost (credit) 1 3 5 (62 ) (67 ) (40 ) Net periodic cost (credit) $ 33 $ 73 $ 72 $ (69 ) $ (98 ) $ (31 ) Consumers Net periodic cost (credit) Service cost $ 40 $ 47 $ 44 $ 13 $ 16 $ 19 Interest cost 97 88 90 40 33 49 Expected return on plan assets (153 ) (139 ) (149 ) (82 ) (91 ) (84 ) Amortization of: Net loss 47 73 79 26 16 29 Prior service cost (credit) 1 3 4 (61 ) (65 ) (39 ) Net periodic cost (credit) $ 32 $ 72 $ 68 $ (64 ) $ (91 ) $ (26 ) |
Schedule Of Funded Status Of Retirement Benefit Plans | Presented in the following table are reconciliations of the funded status of CMS Energy’s and Consumers’ retirement benefits plans with their retirement benefits plans’ liabilities: In Millions DB Pension Plans DB SERP OPEB Plan Years Ended December 31 2019 2018 2019 2018 2019 2018 CMS Energy, including Consumers Benefit obligation at beginning of period $ 2,512 $ 2,780 $ 140 $ 154 $ 1,045 $ 1,097 Service cost 41 48 — — 14 17 Interest cost 98 90 5 5 41 34 Plan amendments — — — — — 26 Actuarial loss (gain) 476 1 (258 ) 1 15 (10 ) 110 1 (74 ) 1 Benefits paid (154 ) (148 ) (10 ) (9 ) (45 ) (55 ) Benefit obligation at end of period $ 2,973 $ 2,512 $ 150 $ 140 $ 1,165 $ 1,045 Plan assets at fair value at beginning of period $ 2,247 $ 2,305 $ — $ — $ 1,280 $ 1,420 Actual return on plan assets 453 (150 ) — — 273 (86 ) Company contribution — 240 10 9 — — Actual benefits paid (154 ) (148 ) (10 ) (9 ) (44 ) (54 ) Plan assets at fair value at end of period $ 2,546 $ 2,247 $ — $ — $ 1,509 $ 1,280 Funded status $ (427 ) 2 $ (265 ) 2 $ (150 ) $ (140 ) $ 344 $ 235 Consumers Benefit obligation at beginning of period $ 101 $ 112 $ 1,004 $ 1,053 Service cost — — 13 16 Interest cost 4 4 40 33 Plan amendments — — — 25 Actuarial loss (gain) 11 (8 ) 106 1 (70 ) 1 Benefits paid (7 ) (7 ) (43 ) (53 ) Benefit obligation at end of period $ 109 $ 101 $ 1,120 $ 1,004 Plan assets at fair value at beginning of period $ — $ — $ 1,197 $ 1,329 Actual return on plan assets — — 255 (80 ) Company contribution 7 7 — — Actual benefits paid (7 ) (7 ) (42 ) (52 ) Plan assets at fair value at end of period $ — $ — $ 1,410 $ 1,197 Funded status $ (109 ) $ (101 ) $ 290 $ 193 1 The actuarial loss for 2019 for the DB Pension Plans was primarily the result of lower discount rates and lower interest rates used to calculate the value of lump-sum payments. The actuarial gain for 2018 was primarily the result of higher discount rates. The actuarial loss for 2019 for the OPEB Plan was primarily the result of lower discount rates. The actuarial gain for 2018 was primarily the result of higher discount rates. 2 The total funded status of the DB Pension Plans attributable to Consumers, based on an allocation of expenses, was $408 million at December 31, 2019 and $246 million at December 31, 2018 . |
Schedule Of Retirement Benefit Plan Assets (Liabilities) | Presented in the following table is the classification of CMS Energy’s and Consumers’ retirement benefit plans’ assets and liabilities: In Millions December 31 2019 2018 CMS Energy, including Consumers Non ‑ current assets DB Pension Plans $ 104 $ 38 OPEB Plan 344 235 Current liabilities DB SERP 10 10 Non ‑ current liabilities DB Pension Plans 531 303 DB SERP 140 130 Consumers Non ‑ current assets DB Pension Plans $ 109 $ 49 OPEB Plan 290 193 Current liabilities DB SERP 7 7 Non ‑ current liabilities DB Pension Plans 517 295 DB SERP 102 94 |
Schedule Of Accumulated And Projected Benefit Obligations | Presented in the following table is information related to the defined benefit pension plan for which the PBO and the ABO exceed plan assets: In Millions December 31 2019 2018 CMS Energy, including Consumers PBO $ 1,736 $ 1,363 ABO 1,398 1,091 Fair value of plan assets 1,205 1,059 |
Schedule Of Net Periodic Benefit Cost Not Yet Recognized | For additional details on regulatory assets , see Note 3, Regulatory Matters . In Millions DB Pension Plans and DB SERP OPEB Plan Years Ended December 31 2019 2018 2019 2018 CMS Energy, including Consumers Regulatory assets Net loss $ 1,114 $ 978 $ 308 $ 402 Prior service cost (credit) 8 9 (300 ) (361 ) Regulatory assets $ 1,122 $ 987 $ 8 $ 41 AOCI Net loss (gain) 105 90 (6 ) 2 Prior service credit — — (8 ) (9 ) Total amounts recognized in regulatory assets and AOCI $ 1,227 $ 1,077 $ (6 ) $ 34 Consumers Regulatory assets Net loss $ 1,114 $ 978 $ 308 $ 402 Prior service cost (credit) 8 9 (300 ) (361 ) Regulatory assets $ 1,122 $ 987 $ 8 $ 41 AOCI Net loss 36 27 — — Total amounts recognized in regulatory assets and AOCI $ 1,158 $ 1,014 $ 8 $ 41 |
Schedule Of Allocation Of Plan Assets | For additional details regarding the fair value hierarchy, see Note 6, Fair Value Measurements . In Millions DB Pension Plans December 31, 2019 December 31, 2018 Total Level 1 Level 2 Total Level 1 Level 2 CMS Energy, including Consumers Cash and short-term investments $ 44 $ 44 $ — $ 242 $ 242 $ — U.S. government and agencies securities 66 — 66 11 — 11 Corporate debt 493 — 493 400 — 400 State and municipal bonds 17 — 17 6 — 6 Foreign corporate bonds 33 — 33 35 — 35 Mutual funds 640 640 — 552 552 — $ 1,293 $ 684 $ 609 $ 1,246 $ 794 $ 452 Pooled funds 1,253 1,001 Total $ 2,546 $ 2,247 In Millions OPEB Plan December 31, 2019 December 31, 2018 Total Level 1 Level 2 Total Level 1 Level 2 CMS Energy, including Consumers Cash and short-term investments $ 9 $ 9 $ — $ 36 $ 36 $ — U.S. government and agencies securities 10 — 10 2 — 2 Corporate debt 71 — 71 55 — 55 State and municipal bonds 2 — 2 1 — 1 Foreign corporate bonds 5 — 5 5 — 5 Common stocks 55 55 — 41 41 — Mutual funds 713 713 — 594 594 — $ 865 $ 777 $ 88 $ 734 $ 671 $ 63 Pooled funds 644 546 Total $ 1,509 $ 1,280 |
Schedule Of Asset Allocation | Asset Allocations: Presented in the following table are the investment components of the assets of CMS Energy’s DB Pension Plans and OPEB Plan as of December 31, 2019 : DB Pension Plans OPEB Plan Equity securities 55 % 48 % Fixed-income securities 39 33 Multi-asset investments 6 19 100 % 100 % |
Schedule Of Plan Contributions | Presented in the following table are the contributions to CMS Energy’s and Consumers’ DB Pension Plans : In Millions Years Ended December 31 2019 2018 CMS Energy, including Consumers DB Pension Plans $ — $ 240 Consumers DB Pension Plans $ — $ 234 |
Schedule Of Expected Benefit Payments | Presented in the following table are the expected benefit payments for each of the next five years and the five-year period thereafter: In Millions DB Pension Plans DB SERP OPEB Plan CMS Energy, including Consumers 2020 $ 174 $ 10 $ 58 2021 176 10 60 2022 177 10 62 2023 177 10 63 2024 175 10 64 2025-2029 870 46 319 Consumers 2020 $ 165 $ 7 $ 56 2021 166 7 58 2022 167 7 59 2023 167 7 60 2024 166 7 61 2025-2029 825 32 305 |
Consumers Energy Company | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule Of SERP Trust Assets, ABO And Contributions | Presented in the following table are the fair values of trust assets, ABO, and contributions for CMS Energy’s and Consumers’ DB SERP: In Millions Years Ended December 31 2019 2018 CMS Energy, including Consumers Trust assets $ 143 $ 147 ABO 149 137 Contributions — 8 Consumers Trust assets $ 104 $ 106 ABO 107 98 Contributions — 5 |
Schedule Of Assumptions Used | Presented in the following table are the weighted-average assumptions used in CMS Energy’s and Consumers’ retirement benefits plans to determine benefit obligations and net periodic benefit cost: December 31 2019 2018 2017 CMS Energy, including Consumers Weighted average for benefit obligations 1 Discount rate 2 DB Pension Plan A 3.37 % 4.48 % 3.78 % DB Pension Plan B 3.17 4.32 3.64 DB SERP 3.15 4.32 3.65 OPEB Plan 3.32 4.42 3.74 Rate of compensation increase DB Pension Plan A 3.50 3.50 3.50 DB SERP 5.50 5.50 5.50 Weighted average for net periodic benefit cost 1 Service cost discount rate 2,3 DB Pension Plan A 4 4.55 3.85 DB SERP 4.58 3.83 4.51 OPEB Plan 4.63 3.93 4.89 Interest cost discount rate 2,3 DB Pension Plan A 4 4.08 3.39 DB Pension Plan B 4 3.93 3.24 DB SERP 3.94 3.26 3.51 OPEB Plan 4.03 3.35 3.79 Expected long-term rate of return on plan assets 5 DB Pension Plans 7.00 7.00 7.25 OPEB Plan 7.00 7.00 7.25 Rate of compensation increase DB Pension Plan A 4 3.50 3.50 DB SERP 5.50 5.50 5.50 1 The mortality assumption for benefit obligations was based on the Pri-2012 mortality table for 2019 and on the RP-2014 mortality table for 2018 and 2017 , with projection scales MP-2019 for 2019 , MP-2018 for 2018 , and MP-2017 for 2017 . The mortality assumption for net periodic benefit cost for 2019 , 2018 , and 2017 was based on the RP-2014 mortality table, with projection scales MP-2018 for 2019 , MP-2017 for 2018 , and MP-2016 for 2017 . 2 The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better. 3 CMS Energy and Consumers have elected to use a full-yield-curve approach in the estimation of service cost and interest cost; this approach applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment. 4 Effective December 31, 2017, CMS Energy’s and Consumers’ existing defined benefit pension plan was amended to include only retired or inactive employees; this amended plan is referred to as DB Pension Plan B. Active employees were moved to a newly created pension plan, referred to as DB Pension Plan A. The assumptions used to measure the plan cost of the previous defined benefit pension plan at December 31, 2017 were: • service cost discount rate of 4.53 percent • interest cost discount rate of 3.56 percent • weighted-average rate of compensation increase of 3.60 percent 5 CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 7.00 percent in 2019 . The actual return (loss) on the assets of the DB Pension Plans was 21.0 percent in 2019 , (6.7) percent in 2018 , and 18.0 percent in 2017 |
Schedule Of Net Benefit Costs | Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefits plans: In Millions DB Pension Plans and DB SERP OPEB Plan Years Ended December 31 2019 2018 2017 2019 2018 2017 CMS Energy, including Consumers Net periodic cost (credit) Service cost $ 41 $ 48 $ 45 $ 14 $ 17 $ 19 Interest cost 103 95 93 41 34 51 Expected return on plan assets (162 ) (149 ) (153 ) (88 ) (97 ) (90 ) Amortization of: Net loss 50 76 82 26 15 29 Prior service cost (credit) 1 3 5 (62 ) (67 ) (40 ) Net periodic cost (credit) $ 33 $ 73 $ 72 $ (69 ) $ (98 ) $ (31 ) Consumers Net periodic cost (credit) Service cost $ 40 $ 47 $ 44 $ 13 $ 16 $ 19 Interest cost 97 88 90 40 33 49 Expected return on plan assets (153 ) (139 ) (149 ) (82 ) (91 ) (84 ) Amortization of: Net loss 47 73 79 26 16 29 Prior service cost (credit) 1 3 4 (61 ) (65 ) (39 ) Net periodic cost (credit) $ 32 $ 72 $ 68 $ (64 ) $ (91 ) $ (26 ) |
Schedule Of Funded Status Of Retirement Benefit Plans | Presented in the following table are reconciliations of the funded status of CMS Energy’s and Consumers’ retirement benefits plans with their retirement benefits plans’ liabilities: In Millions DB Pension Plans DB SERP OPEB Plan Years Ended December 31 2019 2018 2019 2018 2019 2018 CMS Energy, including Consumers Benefit obligation at beginning of period $ 2,512 $ 2,780 $ 140 $ 154 $ 1,045 $ 1,097 Service cost 41 48 — — 14 17 Interest cost 98 90 5 5 41 34 Plan amendments — — — — — 26 Actuarial loss (gain) 476 1 (258 ) 1 15 (10 ) 110 1 (74 ) 1 Benefits paid (154 ) (148 ) (10 ) (9 ) (45 ) (55 ) Benefit obligation at end of period $ 2,973 $ 2,512 $ 150 $ 140 $ 1,165 $ 1,045 Plan assets at fair value at beginning of period $ 2,247 $ 2,305 $ — $ — $ 1,280 $ 1,420 Actual return on plan assets 453 (150 ) — — 273 (86 ) Company contribution — 240 10 9 — — Actual benefits paid (154 ) (148 ) (10 ) (9 ) (44 ) (54 ) Plan assets at fair value at end of period $ 2,546 $ 2,247 $ — $ — $ 1,509 $ 1,280 Funded status $ (427 ) 2 $ (265 ) 2 $ (150 ) $ (140 ) $ 344 $ 235 Consumers Benefit obligation at beginning of period $ 101 $ 112 $ 1,004 $ 1,053 Service cost — — 13 16 Interest cost 4 4 40 33 Plan amendments — — — 25 Actuarial loss (gain) 11 (8 ) 106 1 (70 ) 1 Benefits paid (7 ) (7 ) (43 ) (53 ) Benefit obligation at end of period $ 109 $ 101 $ 1,120 $ 1,004 Plan assets at fair value at beginning of period $ — $ — $ 1,197 $ 1,329 Actual return on plan assets — — 255 (80 ) Company contribution 7 7 — — Actual benefits paid (7 ) (7 ) (42 ) (52 ) Plan assets at fair value at end of period $ — $ — $ 1,410 $ 1,197 Funded status $ (109 ) $ (101 ) $ 290 $ 193 1 The actuarial loss for 2019 for the DB Pension Plans was primarily the result of lower discount rates and lower interest rates used to calculate the value of lump-sum payments. The actuarial gain for 2018 was primarily the result of higher discount rates. The actuarial loss for 2019 for the OPEB Plan was primarily the result of lower discount rates. The actuarial gain for 2018 was primarily the result of higher discount rates. 2 The total funded status of the DB Pension Plans attributable to Consumers, based on an allocation of expenses, was $408 million at December 31, 2019 and $246 million at December 31, 2018 . |
Schedule Of Retirement Benefit Plan Assets (Liabilities) | Presented in the following table is the classification of CMS Energy’s and Consumers’ retirement benefit plans’ assets and liabilities: In Millions December 31 2019 2018 CMS Energy, including Consumers Non ‑ current assets DB Pension Plans $ 104 $ 38 OPEB Plan 344 235 Current liabilities DB SERP 10 10 Non ‑ current liabilities DB Pension Plans 531 303 DB SERP 140 130 Consumers Non ‑ current assets DB Pension Plans $ 109 $ 49 OPEB Plan 290 193 Current liabilities DB SERP 7 7 Non ‑ current liabilities DB Pension Plans 517 295 DB SERP 102 94 |
Schedule Of Net Periodic Benefit Cost Not Yet Recognized | For additional details on regulatory assets , see Note 3, Regulatory Matters . In Millions DB Pension Plans and DB SERP OPEB Plan Years Ended December 31 2019 2018 2019 2018 CMS Energy, including Consumers Regulatory assets Net loss $ 1,114 $ 978 $ 308 $ 402 Prior service cost (credit) 8 9 (300 ) (361 ) Regulatory assets $ 1,122 $ 987 $ 8 $ 41 AOCI Net loss (gain) 105 90 (6 ) 2 Prior service credit — — (8 ) (9 ) Total amounts recognized in regulatory assets and AOCI $ 1,227 $ 1,077 $ (6 ) $ 34 Consumers Regulatory assets Net loss $ 1,114 $ 978 $ 308 $ 402 Prior service cost (credit) 8 9 (300 ) (361 ) Regulatory assets $ 1,122 $ 987 $ 8 $ 41 AOCI Net loss 36 27 — — Total amounts recognized in regulatory assets and AOCI $ 1,158 $ 1,014 $ 8 $ 41 |
Schedule Of Plan Contributions | Presented in the following table are the contributions to CMS Energy’s and Consumers’ DB Pension Plans : In Millions Years Ended December 31 2019 2018 CMS Energy, including Consumers DB Pension Plans $ — $ 240 Consumers DB Pension Plans $ — $ 234 |
Schedule Of Expected Benefit Payments | Presented in the following table are the expected benefit payments for each of the next five years and the five-year period thereafter: In Millions DB Pension Plans DB SERP OPEB Plan CMS Energy, including Consumers 2020 $ 174 $ 10 $ 58 2021 176 10 60 2022 177 10 62 2023 177 10 63 2024 175 10 64 2025-2029 870 46 319 Consumers 2020 $ 165 $ 7 $ 56 2021 166 7 58 2022 167 7 59 2023 167 7 60 2024 166 7 61 2025-2029 825 32 305 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule Of Restricted Stock Activity | Presented in the following tables is the activity for restricted stock and restricted stock units under the PISP: CMS Energy, including Consumers Consumers Year Ended December 31, 2019 Number of Shares Weighted-Average Grant Date Fair Value per Share Number of Shares Weighted-Average Grant Date Fair Value per Share Nonvested at beginning of period 1,211,229 $ 39.70 1,158,836 $ 39.71 Granted Restricted stock 488,594 43.57 464,485 43.57 Restricted stock units 14,899 50.35 14,050 51.15 Vested Restricted stock (468,308 ) 31.09 (447,214 ) 31.11 Restricted stock units (12,503 ) 41.59 (11,836 ) 42.35 Forfeited – restricted stock (46,949 ) 45.81 (40,139 ) 45.69 Nonvested at end of period 1,186,962 $ 44.56 1,138,182 $ 44.57 Year Ended December 31, 2019 CMS Energy, including Consumers Consumers Granted Time-lapse awards 119,167 113,627 Market-based awards 144,963 137,636 Performance-based awards 144,963 137,636 Director restricted stock units 13,575 13,005 Dividend equivalents on market-based awards 12,779 12,176 Dividend equivalents on performance-based awards 15,899 15,145 Dividend equivalents on restricted stock units 1,324 1,045 Additional market-based shares based on achievement of condition 15,320 14,550 Additional performance-based shares based on achievement of condition 35,503 33,715 Total granted 503,493 478,535 |
Schedule of Share-based Payment Award, Restricted Stock, Valuation Assumptions | Presented in the following table are the most important assumptions used to estimate the fair value of the market-based restricted stock awards: Years Ended December 31 2019 2018 2017 Expected volatility 14.9 % 16.7 % 18.0 % Expected dividend yield 2.8 2.8 3.0 Risk-free rate 2.5 2.1 1.5 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | Presented in the following table is the weighted-average grant-date fair value of all awards under the PISP: Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Weighted-average grant-date fair value per share Restricted stock granted $ 43.57 $ 26.49 $ 28.61 Restricted stock units granted 50.35 41.77 41.98 Consumers Weighted-average grant-date fair value per share Restricted stock granted $ 43.57 $ 26.51 $ 28.67 Restricted stock units granted 51.15 42.01 41.97 |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | Presented in the following table are amounts related to restricted stock awards and restricted stock units: In Millions Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Fair value of shares that vested during the year $ 26 $ 27 $ 37 Compensation expense recognized 22 17 17 Income tax benefit recognized 1 1 7 Consumers Fair value of shares that vested during the year $ 25 $ 26 $ 35 Compensation expense recognized 21 16 16 Income tax benefit recognized 1 1 7 |
Consumers Energy Company | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule Of Restricted Stock Activity | Presented in the following tables is the activity for restricted stock and restricted stock units under the PISP: CMS Energy, including Consumers Consumers Year Ended December 31, 2019 Number of Shares Weighted-Average Grant Date Fair Value per Share Number of Shares Weighted-Average Grant Date Fair Value per Share Nonvested at beginning of period 1,211,229 $ 39.70 1,158,836 $ 39.71 Granted Restricted stock 488,594 43.57 464,485 43.57 Restricted stock units 14,899 50.35 14,050 51.15 Vested Restricted stock (468,308 ) 31.09 (447,214 ) 31.11 Restricted stock units (12,503 ) 41.59 (11,836 ) 42.35 Forfeited – restricted stock (46,949 ) 45.81 (40,139 ) 45.69 Nonvested at end of period 1,186,962 $ 44.56 1,138,182 $ 44.57 Year Ended December 31, 2019 CMS Energy, including Consumers Consumers Granted Time-lapse awards 119,167 113,627 Market-based awards 144,963 137,636 Performance-based awards 144,963 137,636 Director restricted stock units 13,575 13,005 Dividend equivalents on market-based awards 12,779 12,176 Dividend equivalents on performance-based awards 15,899 15,145 Dividend equivalents on restricted stock units 1,324 1,045 Additional market-based shares based on achievement of condition 15,320 14,550 Additional performance-based shares based on achievement of condition 35,503 33,715 Total granted 503,493 478,535 |
Schedule of Share-based Payment Award, Restricted Stock, Valuation Assumptions | Presented in the following table are the most important assumptions used to estimate the fair value of the market-based restricted stock awards: Years Ended December 31 2019 2018 2017 Expected volatility 14.9 % 16.7 % 18.0 % Expected dividend yield 2.8 2.8 3.0 Risk-free rate 2.5 2.1 1.5 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | Presented in the following table is the weighted-average grant-date fair value of all awards under the PISP: Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Weighted-average grant-date fair value per share Restricted stock granted $ 43.57 $ 26.49 $ 28.61 Restricted stock units granted 50.35 41.77 41.98 Consumers Weighted-average grant-date fair value per share Restricted stock granted $ 43.57 $ 26.51 $ 28.67 Restricted stock units granted 51.15 42.01 41.97 |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | Presented in the following table are amounts related to restricted stock awards and restricted stock units: In Millions Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Fair value of shares that vested during the year $ 26 $ 27 $ 37 Compensation expense recognized 22 17 17 Income tax benefit recognized 1 1 7 Consumers Fair value of shares that vested during the year $ 25 $ 26 $ 35 Compensation expense recognized 21 16 16 Income tax benefit recognized 1 1 7 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Line Items] | |
Schedule Of Effective Income Tax Rate Reconciliation | Presented in the following table is the difference between actual income tax expense on continuing operations and income tax expense computed by applying the statutory U.S. federal income tax rate: In Millions, Except Tax Rate Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Income from continuing operations before income taxes $ 829 $ 774 $ 886 Income tax expense at statutory rate 174 163 310 Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 1 48 46 26 TCJA excess deferred taxes 2 (31 ) (26 ) — Production tax credits (20 ) (14 ) (8 ) Accelerated flow-through of regulatory tax benefits 3 (13 ) (39 ) (39 ) Research and development tax credits, net 4 (2 ) (11 ) (1 ) Impact of the TCJA 5 — (4 ) 148 Other, net (9 ) — (12 ) Income tax expense $ 147 $ 115 $ 424 Effective tax rate 17.7 % 14.9 % 47.9 % Consumers Income from continuing operations before income taxes $ 928 $ 847 $ 971 Income tax expense at statutory rate 195 178 340 Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 1 53 51 30 TCJA excess deferred taxes 2 (31 ) (26 ) — Accelerated flow-through of regulatory tax benefits 3 (13 ) (39 ) (39 ) Production tax credits (12 ) (12 ) (8 ) Research and development tax credits, net 4 (2 ) (11 ) (1 ) Impact of the TCJA 5 — 1 33 Other, net (5 ) — (16 ) Income tax expense $ 185 $ 142 $ 339 Effective tax rate 19.9 % 16.8 % 34.9 % 1 In 2017, CMS Energy completed the evaluation of its methodology for the state apportionment of Consumers’ electricity sales to MISO, taking into account recent state tax law developments in the electric utility sector. To recognize the anticipated refund and the impact of the expected lower effective tax rate on their deferred state tax liabilities, CMS Energy, including Consumers, recorded a $14 million income tax benefit in 2017. These tax benefits were net of reserves for uncertain tax positions and primarily attributable to Consumers. In 2018, CMS Energy amended its 2013 Michigan Corporate Income Tax return and submitted a refund claim for taxes previously paid. The refund claim was denied by the State of Michigan. In 2019, CMS Energy received an unfavorable informal conference decision and filed a petition with the Michigan Tax Tribunal. A trial is anticipated in 2020. CMS Energy’s uncertain tax position on this matter remains unchanged. 2 In December 2017, Consumers remeasured its deferred tax assets and liabilities at the new federal tax rate enacted by the TCJA and recorded a net $1.6 billion regulatory liability. As a result of an order received in September 2019, Consumers began refunding these excess deferred taxes to customers. For additional details on the order received, see Note 3, Regulatory Matters . 3 In 2013, the MPSC issued an order authorizing Consumers to accelerate the flow-through to electric and gas customers of certain income tax benefits associated primarily with the cost of removal of plant placed in service before 1993. Consumers implemented this regulatory treatment beginning in 2014, with the electric portion ending in 2018 and the gas portion continuing through 2025. 4 In March 2018, Consumers finalized a study of research and development tax credits for the tax years 2012 through 2016. As a result, Consumers recognized an $8 million increase in the credit, net of reserves for uncertain tax positions, at that time. 5 In December 2017, CMS Energy and Consumers recorded a reasonable estimate to measure and account for the impact of the TCJA. In December 2018, CMS Energy recorded a true-up of their estimate and eliminated the $9 million valuation allowance on the sequestration of alternative minimum tax credits. |
Significant Components Of Income Tax Expense | Presented in the following table are the significant components of income tax expense on continuing operations: In Millions Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Current income taxes Federal $ (31 ) $ (67 ) $ — State and local 28 — 6 $ (3 ) $ (67 ) $ 6 Deferred income taxes Federal $ 97 $ 112 $ 368 State and local 32 58 36 $ 129 $ 170 $ 404 Deferred income tax credit 21 12 14 Tax expense $ 147 $ 115 $ 424 Consumers Current income taxes Federal $ 107 $ 6 $ 159 State and local 41 13 17 $ 148 $ 19 $ 176 Deferred income taxes Federal $ (10 ) $ 60 $ 120 State and local 26 51 29 $ 16 $ 111 $ 149 Deferred income tax credit 21 12 14 Tax expense $ 185 $ 142 $ 339 |
Principal Components Of Deferred Income Tax Assets And Liailities | Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized: In Millions December 31 2019 2018 CMS Energy, including Consumers Deferred income tax assets Tax loss and credit carryforwards $ 239 $ 385 Net regulatory tax liability 385 395 Reserves and accruals 43 39 Total deferred income tax assets $ 667 $ 819 Valuation allowance (2 ) (8 ) Total deferred income tax assets, net of valuation allowance $ 665 $ 811 Deferred income tax liabilities Plant, property, and equipment $ (2,033 ) $ (1,955 ) Employee benefits (172 ) (165 ) Securitized costs (59 ) (65 ) Gas inventory (32 ) (35 ) Other (24 ) (78 ) Total deferred income tax liabilities $ (2,320 ) $ (2,298 ) Total net deferred income tax liabilities $ (1,655 ) $ (1,487 ) Consumers Deferred income tax assets Net regulatory tax liability $ 385 $ 395 Tax loss and credit carryforwards 20 64 Reserves and accruals 24 21 Total deferred income tax assets $ 429 $ 480 Deferred income tax liabilities Plant, property, and equipment $ (1,995 ) $ (1,943 ) Employee benefits (178 ) (172 ) Securitized costs (59 ) (65 ) Gas inventory (32 ) (35 ) Other (29 ) (74 ) Total deferred income tax liabilities $ (2,293 ) $ (2,289 ) Total net deferred income tax liabilities $ (1,864 ) $ (1,809 ) |
Loss And Credit Carryforwards | Presented in the following table are the tax loss and credit carryforwards at December 31, 2019 : In Millions Gross Amount Tax Attribute Expiration CMS Energy, including Consumers Local net operating loss carryforwards $ 389 $ 4 2023 – 2036 General business credits 206 206 2026 – 2039 Alternative minimum tax credits 29 29 Not applicable Total tax attributes $ 239 Consumers General business credits $ 20 $ 20 2027 – 2039 Total tax attributes $ 20 |
Reconciliation Of Beginning And Ending Uncertain Tax Benefits | Presented in the following table is a reconciliation of the beginning and ending amount of uncertain tax benefits: In Millions Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Balance at beginning of period $ 19 $ 14 $ 5 Additions for current-year tax positions 1 1 10 Additions for prior-year tax positions 3 4 — Reductions for prior-year tax positions — — (1 ) Balance at end of period $ 23 $ 19 $ 14 Consumers Balance at beginning of period $ 28 $ 21 $ 5 Additions for current-year tax positions 1 2 17 Additions for prior-year tax positions 5 5 — Reductions for prior-year tax positions — — (1 ) Balance at end of period $ 34 $ 28 $ 21 |
Consumers Energy Company | |
Income Taxes [Line Items] | |
Schedule Of Effective Income Tax Rate Reconciliation | Presented in the following table is the difference between actual income tax expense on continuing operations and income tax expense computed by applying the statutory U.S. federal income tax rate: In Millions, Except Tax Rate Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Income from continuing operations before income taxes $ 829 $ 774 $ 886 Income tax expense at statutory rate 174 163 310 Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 1 48 46 26 TCJA excess deferred taxes 2 (31 ) (26 ) — Production tax credits (20 ) (14 ) (8 ) Accelerated flow-through of regulatory tax benefits 3 (13 ) (39 ) (39 ) Research and development tax credits, net 4 (2 ) (11 ) (1 ) Impact of the TCJA 5 — (4 ) 148 Other, net (9 ) — (12 ) Income tax expense $ 147 $ 115 $ 424 Effective tax rate 17.7 % 14.9 % 47.9 % Consumers Income from continuing operations before income taxes $ 928 $ 847 $ 971 Income tax expense at statutory rate 195 178 340 Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 1 53 51 30 TCJA excess deferred taxes 2 (31 ) (26 ) — Accelerated flow-through of regulatory tax benefits 3 (13 ) (39 ) (39 ) Production tax credits (12 ) (12 ) (8 ) Research and development tax credits, net 4 (2 ) (11 ) (1 ) Impact of the TCJA 5 — 1 33 Other, net (5 ) — (16 ) Income tax expense $ 185 $ 142 $ 339 Effective tax rate 19.9 % 16.8 % 34.9 % 1 In 2017, CMS Energy completed the evaluation of its methodology for the state apportionment of Consumers’ electricity sales to MISO, taking into account recent state tax law developments in the electric utility sector. To recognize the anticipated refund and the impact of the expected lower effective tax rate on their deferred state tax liabilities, CMS Energy, including Consumers, recorded a $14 million income tax benefit in 2017. These tax benefits were net of reserves for uncertain tax positions and primarily attributable to Consumers. In 2018, CMS Energy amended its 2013 Michigan Corporate Income Tax return and submitted a refund claim for taxes previously paid. The refund claim was denied by the State of Michigan. In 2019, CMS Energy received an unfavorable informal conference decision and filed a petition with the Michigan Tax Tribunal. A trial is anticipated in 2020. CMS Energy’s uncertain tax position on this matter remains unchanged. 2 In December 2017, Consumers remeasured its deferred tax assets and liabilities at the new federal tax rate enacted by the TCJA and recorded a net $1.6 billion regulatory liability. As a result of an order received in September 2019, Consumers began refunding these excess deferred taxes to customers. For additional details on the order received, see Note 3, Regulatory Matters . 3 In 2013, the MPSC issued an order authorizing Consumers to accelerate the flow-through to electric and gas customers of certain income tax benefits associated primarily with the cost of removal of plant placed in service before 1993. Consumers implemented this regulatory treatment beginning in 2014, with the electric portion ending in 2018 and the gas portion continuing through 2025. 4 In March 2018, Consumers finalized a study of research and development tax credits for the tax years 2012 through 2016. As a result, Consumers recognized an $8 million increase in the credit, net of reserves for uncertain tax positions, at that time. 5 In December 2017, CMS Energy and Consumers recorded a reasonable estimate to measure and account for the impact of the TCJA. In December 2018, CMS Energy recorded a true-up of their estimate and eliminated the $9 million valuation allowance on the sequestration of alternative minimum tax credits. |
Significant Components Of Income Tax Expense | Presented in the following table are the significant components of income tax expense on continuing operations: In Millions Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Current income taxes Federal $ (31 ) $ (67 ) $ — State and local 28 — 6 $ (3 ) $ (67 ) $ 6 Deferred income taxes Federal $ 97 $ 112 $ 368 State and local 32 58 36 $ 129 $ 170 $ 404 Deferred income tax credit 21 12 14 Tax expense $ 147 $ 115 $ 424 Consumers Current income taxes Federal $ 107 $ 6 $ 159 State and local 41 13 17 $ 148 $ 19 $ 176 Deferred income taxes Federal $ (10 ) $ 60 $ 120 State and local 26 51 29 $ 16 $ 111 $ 149 Deferred income tax credit 21 12 14 Tax expense $ 185 $ 142 $ 339 |
Principal Components Of Deferred Income Tax Assets And Liailities | Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized: In Millions December 31 2019 2018 CMS Energy, including Consumers Deferred income tax assets Tax loss and credit carryforwards $ 239 $ 385 Net regulatory tax liability 385 395 Reserves and accruals 43 39 Total deferred income tax assets $ 667 $ 819 Valuation allowance (2 ) (8 ) Total deferred income tax assets, net of valuation allowance $ 665 $ 811 Deferred income tax liabilities Plant, property, and equipment $ (2,033 ) $ (1,955 ) Employee benefits (172 ) (165 ) Securitized costs (59 ) (65 ) Gas inventory (32 ) (35 ) Other (24 ) (78 ) Total deferred income tax liabilities $ (2,320 ) $ (2,298 ) Total net deferred income tax liabilities $ (1,655 ) $ (1,487 ) Consumers Deferred income tax assets Net regulatory tax liability $ 385 $ 395 Tax loss and credit carryforwards 20 64 Reserves and accruals 24 21 Total deferred income tax assets $ 429 $ 480 Deferred income tax liabilities Plant, property, and equipment $ (1,995 ) $ (1,943 ) Employee benefits (178 ) (172 ) Securitized costs (59 ) (65 ) Gas inventory (32 ) (35 ) Other (29 ) (74 ) Total deferred income tax liabilities $ (2,293 ) $ (2,289 ) Total net deferred income tax liabilities $ (1,864 ) $ (1,809 ) |
Loss And Credit Carryforwards | Presented in the following table are the tax loss and credit carryforwards at December 31, 2019 : In Millions Gross Amount Tax Attribute Expiration CMS Energy, including Consumers Local net operating loss carryforwards $ 389 $ 4 2023 – 2036 General business credits 206 206 2026 – 2039 Alternative minimum tax credits 29 29 Not applicable Total tax attributes $ 239 Consumers General business credits $ 20 $ 20 2027 – 2039 Total tax attributes $ 20 |
Reconciliation Of Beginning And Ending Uncertain Tax Benefits | Presented in the following table is a reconciliation of the beginning and ending amount of uncertain tax benefits: In Millions Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Balance at beginning of period $ 19 $ 14 $ 5 Additions for current-year tax positions 1 1 10 Additions for prior-year tax positions 3 4 — Reductions for prior-year tax positions — — (1 ) Balance at end of period $ 23 $ 19 $ 14 Consumers Balance at beginning of period $ 28 $ 21 $ 5 Additions for current-year tax positions 1 2 17 Additions for prior-year tax positions 5 5 — Reductions for prior-year tax positions — — (1 ) Balance at end of period $ 34 $ 28 $ 21 |
Earnings Per Share - CMS Ener_2
Earnings Per Share - CMS Energy (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Basic And Diluted EPS Computations | Presented in the following table are CMS Energy’s basic and diluted EPS computations based on net income : In Millions, Except Per Share Amounts Years Ended December 31 2019 2018 2017 Income available to common stockholders Net income $ 682 $ 659 $ 462 Less income attributable to noncontrolling interests 2 2 2 Net income available to common stockholders – basic and diluted $ 680 $ 657 $ 460 Average common shares outstanding Weighted-average shares – basic 283.0 282.2 280.0 Add dilutive nonvested stock awards 0.7 0.7 0.8 Add dilutive forward equity sale contracts 0.6 — — Weighted-average shares – diluted 284.3 282.9 280.8 Net income per average common share available to common stockholders Basic $ 2.40 $ 2.33 $ 1.64 Diluted 2.39 2.32 1.64 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue | Presented in the following tables are the components of operating revenue: In Millions Year Ended December 31, 2019 Electric Utility Gas Utility Enterprises 1 EnerBank Consolidated CMS Energy, including Consumers Consumers utility revenue $ 4,407 $ 1,922 $ — $ — $ 6,329 Other — — 74 — 74 Revenue recognized from contracts with customers $ 4,407 $ 1,922 $ 74 $ — $ 6,403 Leasing income — — 174 — 174 Financing income 9 5 — 221 235 Consumers alternative-revenue programs 23 10 — — 33 Total operating revenue – CMS Energy $ 4,439 $ 1,937 $ 248 $ 221 $ 6,845 Consumers Consumers utility revenue Residential $ 1,988 $ 1,316 $ — $ — $ 3,304 Commercial 1,502 372 — — 1,874 Industrial 669 51 — — 720 Other 248 183 — — 431 Revenue recognized from contracts with customers $ 4,407 $ 1,922 $ — $ — $ 6,329 Financing income 9 5 — — 14 Alternative-revenue programs 23 10 — — 33 Total operating revenue – Consumers $ 4,439 $ 1,937 $ — $ — $ 6,376 1 Amounts represent the enterprises segment’s operating revenue from independent power production and CMS ERM’s sales of energy commodities in support of the independent power production portfolio. In Millions Year Ended December 31, 2018 Electric Utility Gas Utility Enterprises 1 EnerBank Consolidated CMS Energy, including Consumers Consumers utility revenue $ 4,528 $ 1,882 $ — $ — $ 6,410 Other — — 92 — 92 Revenue recognized from contracts with customers $ 4,528 $ 1,882 $ 92 $ — $ 6,502 Leasing income — — 160 — 160 Financing income 10 5 — 157 172 Consumers alternative-revenue programs 23 16 — — 39 Total operating revenue – CMS Energy $ 4,561 $ 1,903 $ 252 $ 157 $ 6,873 Consumers Consumers utility revenue Residential $ 2,049 $ 1,284 $ — $ — $ 3,333 Commercial 1,545 367 — — 1,912 Industrial 674 55 — — 729 Other 260 176 — — 436 Revenue recognized from contracts with customers $ 4,528 $ 1,882 $ — $ — $ 6,410 Financing income 10 5 — — 15 Alternative-revenue programs 23 16 — — 39 Total operating revenue – Consumers $ 4,561 $ 1,903 $ — $ — $ 6,464 1 Amounts represent the enterprises segment’s operating revenue from independent power production and CMS ERM’s sales of energy commodities in support of the independent power production portfolio. |
Consumers Energy Company | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue | Presented in the following tables are the components of operating revenue: In Millions Year Ended December 31, 2019 Electric Utility Gas Utility Enterprises 1 EnerBank Consolidated CMS Energy, including Consumers Consumers utility revenue $ 4,407 $ 1,922 $ — $ — $ 6,329 Other — — 74 — 74 Revenue recognized from contracts with customers $ 4,407 $ 1,922 $ 74 $ — $ 6,403 Leasing income — — 174 — 174 Financing income 9 5 — 221 235 Consumers alternative-revenue programs 23 10 — — 33 Total operating revenue – CMS Energy $ 4,439 $ 1,937 $ 248 $ 221 $ 6,845 Consumers Consumers utility revenue Residential $ 1,988 $ 1,316 $ — $ — $ 3,304 Commercial 1,502 372 — — 1,874 Industrial 669 51 — — 720 Other 248 183 — — 431 Revenue recognized from contracts with customers $ 4,407 $ 1,922 $ — $ — $ 6,329 Financing income 9 5 — — 14 Alternative-revenue programs 23 10 — — 33 Total operating revenue – Consumers $ 4,439 $ 1,937 $ — $ — $ 6,376 1 Amounts represent the enterprises segment’s operating revenue from independent power production and CMS ERM’s sales of energy commodities in support of the independent power production portfolio. In Millions Year Ended December 31, 2018 Electric Utility Gas Utility Enterprises 1 EnerBank Consolidated CMS Energy, including Consumers Consumers utility revenue $ 4,528 $ 1,882 $ — $ — $ 6,410 Other — — 92 — 92 Revenue recognized from contracts with customers $ 4,528 $ 1,882 $ 92 $ — $ 6,502 Leasing income — — 160 — 160 Financing income 10 5 — 157 172 Consumers alternative-revenue programs 23 16 — — 39 Total operating revenue – CMS Energy $ 4,561 $ 1,903 $ 252 $ 157 $ 6,873 Consumers Consumers utility revenue Residential $ 2,049 $ 1,284 $ — $ — $ 3,333 Commercial 1,545 367 — — 1,912 Industrial 674 55 — — 729 Other 260 176 — — 436 Revenue recognized from contracts with customers $ 4,528 $ 1,882 $ — $ — $ 6,410 Financing income 10 5 — — 15 Alternative-revenue programs 23 16 — — 39 Total operating revenue – Consumers $ 4,561 $ 1,903 $ — $ — $ 6,464 1 Amounts represent the enterprises segment’s operating revenue from independent power production and CMS ERM’s sales of energy commodities in support of the independent power production portfolio. |
Other Income and Other Expense
Other Income and Other Expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Line Items] | |
Components Of Other Income And Other Expense | Presented in the following table are the components of other expense at CMS Energy and Consumers: In Millions Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Donations $ (3 ) $ (13 ) $ (31 ) Civic and political expenditures (6 ) (6 ) (27 ) Loss on reacquired and extinguished debt — (16 ) (18 ) All other (4 ) (13 ) — Total other expense – CMS Energy $ (13 ) $ (48 ) $ (76 ) Consumers Donations $ (3 ) $ (13 ) $ (31 ) Civic and political expenditures (6 ) (6 ) (27 ) All other (4 ) (11 ) — Total other expense – Consumers $ (13 ) $ (30 ) $ (58 ) |
Consumers Energy Company | |
Other Income and Expenses [Line Items] | |
Components Of Other Income And Other Expense | Presented in the following table are the components of other expense at CMS Energy and Consumers: In Millions Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Donations $ (3 ) $ (13 ) $ (31 ) Civic and political expenditures (6 ) (6 ) (27 ) Loss on reacquired and extinguished debt — (16 ) (18 ) All other (4 ) (13 ) — Total other expense – CMS Energy $ (13 ) $ (48 ) $ (76 ) Consumers Donations $ (3 ) $ (13 ) $ (31 ) Civic and political expenditures (6 ) (6 ) (27 ) All other (4 ) (11 ) — Total other expense – Consumers $ (13 ) $ (30 ) $ (58 ) |
Cash And Cash Equivalents (Tabl
Cash And Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Line Items] | |
Schedule Of Cash And Cash Equivalents, Including Restricted Amounts | Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets: In Millions December 31 2019 2018 CMS Energy, including Consumers Cash and cash equivalents $ 140 $ 153 Restricted cash and cash equivalents 17 21 Other non‑current assets — 1 Cash and cash equivalents, including restricted amounts $ 157 $ 175 Consumers Cash and cash equivalents $ 11 $ 39 Restricted cash and cash equivalents 17 17 Cash and cash equivalents, including restricted amounts $ 28 $ 56 |
Consumers Energy Company | |
Cash and Cash Equivalents [Line Items] | |
Schedule Of Cash And Cash Equivalents, Including Restricted Amounts | Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets: In Millions December 31 2019 2018 CMS Energy, including Consumers Cash and cash equivalents $ 140 $ 153 Restricted cash and cash equivalents 17 21 Other non‑current assets — 1 Cash and cash equivalents, including restricted amounts $ 157 $ 175 Consumers Cash and cash equivalents $ 11 $ 39 Restricted cash and cash equivalents 17 17 Cash and cash equivalents, including restricted amounts $ 28 $ 56 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |
Schedule Of Financial Information By Reportable Segments | Presented in the following tables is financial information by segment: In Millions Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Operating revenue Electric utility $ 4,439 $ 4,561 $ 4,448 Gas utility 1,937 1,903 1,774 Enterprises 248 252 229 EnerBank 221 157 132 Total operating revenue – CMS Energy $ 6,845 $ 6,873 $ 6,583 Consumers Operating revenue Electric utility $ 4,439 $ 4,561 $ 4,448 Gas utility 1,937 1,903 1,774 Total operating revenue – Consumers $ 6,376 $ 6,464 $ 6,222 CMS Energy, including Consumers Depreciation and amortization Electric utility $ 713 $ 682 $ 654 Gas utility 261 239 218 Enterprises 14 8 6 EnerBank 3 4 3 Other reconciling items 1 — — Total depreciation and amortization – CMS Energy $ 992 $ 933 $ 881 Consumers Depreciation and amortization Electric utility $ 713 $ 682 $ 654 Gas utility 261 239 218 Other reconciling items 1 — — Total depreciation and amortization – Consumers $ 975 $ 921 $ 872 CMS Energy, including Consumers Income from equity method investees¹ Enterprises $ 10 $ 9 $ 15 Total income from equity method investees – CMS Energy $ 10 $ 9 $ 15 CMS Energy, including Consumers Interest charges Electric utility $ 213 $ 209 $ 201 Gas utility 83 79 74 Enterprises 7 2 — EnerBank 59 32 19 Other reconciling items 157 136 144 Total interest charges – CMS Energy $ 519 $ 458 $ 438 In Millions Years Ended December 31 2019 2018 2017 Consumers Interest charges Electric utility $ 213 $ 209 $ 201 Gas utility 83 79 74 Other reconciling items 1 1 1 Total interest charges – Consumers $ 297 $ 289 $ 276 CMS Energy, including Consumers Income tax expense (benefit) Electric utility $ 134 $ 109 $ 245 Gas utility 51 33 96 Enterprises 2 2 72 EnerBank 16 12 22 Other reconciling items (56 ) (41 ) (11 ) Total income tax expense – CMS Energy $ 147 $ 115 $ 424 Consumers Income tax expense (benefit) Electric utility $ 134 $ 109 $ 245 Gas utility 51 33 96 Other reconciling items — — (2 ) Total income tax expense – Consumers $ 185 $ 142 $ 339 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 509 $ 535 $ 455 Gas utility 233 169 173 Enterprises 33 34 (27 ) EnerBank 49 38 28 Other reconciling items (144 ) (119 ) (169 ) Total net income available to common stockholders – CMS Energy $ 680 $ 657 $ 460 Consumers Net income (loss) available to common stoc kholder Electric utility $ 509 $ 535 $ 455 Gas utility 233 169 173 Other reconciling items (1 ) (1 ) 2 Total net income available to common stockholder – Consumers $ 741 $ 703 $ 630 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 2,3 $ 16,158 $ 16,027 $ 15,221 Gas utility² 8,785 7,919 7,080 Enterprises 405 412 167 EnerBank 22 25 21 Other reconciling items 20 17 17 Total plant, property, and equipment, gross – CMS Energy $ 25,390 $ 24,400 $ 22,506 In Millions Years Ended December 31 2019 2018 2017 Consumers Plant, property, and equipment, gross Electric utility 2,3 $ 16,158 $ 16,027 $ 15,221 Gas utility² 8,785 7,919 7,080 Other reconciling items 20 17 17 Total plant, property, and equipment, gross – Consumers $ 24,963 $ 23,963 $ 22,318 CMS Energy, including Consumers Investments in equity method investees¹ Enterprises $ 71 $ 69 $ 64 Total investments in equity method investees – CMS Energy $ 71 $ 69 $ 64 CMS Energy, including Consumers Total assets Electric utility² $ 14,911 $ 14,079 $ 13,906 Gas utility² 8,659 7,806 7,139 Enterprises 527 540 342 EnerBank 2,692 2,006 1,453 Other reconciling items 48 98 210 Total assets – CMS Energy $ 26,837 $ 24,529 $ 23,050 Consumers Total assets Electric utility² $ 14,973 $ 14,143 $ 13,907 Gas utility² 8,706 7,853 7,139 Other reconciling items 20 29 53 Total assets – Consumers $ 23,699 $ 22,025 $ 21,099 CMS Energy, including Consumers Capital expenditures 4 Electric utility 5 $ 1,162 $ 865 $ 882 Gas utility 5 971 958 800 Enterprises 5 246 33 EnerBank 8 10 6 Other reconciling items 1 2 1 Total capital expenditures – CMS Energy $ 2,147 $ 2,081 $ 1,722 Consumers Capital expenditures 4 Electric utility 5 $ 1,162 $ 865 $ 882 Gas utility 5 971 958 800 Other reconciling items 1 2 1 Total capital expenditures – Consumers $ 2,134 $ 1,825 $ 1,683 1 Consumers had no significant equity method investments. 2 Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. 3 Costs related to coal-fueled electric generating units to be retired in 2023 were removed and recorded as a regulatory asset in June 2019. For additional details, see Note 3, Regulatory Matters . 4 Amounts include finance lease additions. 5 Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses. |
Consumers Energy Company | |
Segment Reporting Information [Line Items] | |
Schedule Of Financial Information By Reportable Segments | Presented in the following tables is financial information by segment: In Millions Years Ended December 31 2019 2018 2017 CMS Energy, including Consumers Operating revenue Electric utility $ 4,439 $ 4,561 $ 4,448 Gas utility 1,937 1,903 1,774 Enterprises 248 252 229 EnerBank 221 157 132 Total operating revenue – CMS Energy $ 6,845 $ 6,873 $ 6,583 Consumers Operating revenue Electric utility $ 4,439 $ 4,561 $ 4,448 Gas utility 1,937 1,903 1,774 Total operating revenue – Consumers $ 6,376 $ 6,464 $ 6,222 CMS Energy, including Consumers Depreciation and amortization Electric utility $ 713 $ 682 $ 654 Gas utility 261 239 218 Enterprises 14 8 6 EnerBank 3 4 3 Other reconciling items 1 — — Total depreciation and amortization – CMS Energy $ 992 $ 933 $ 881 Consumers Depreciation and amortization Electric utility $ 713 $ 682 $ 654 Gas utility 261 239 218 Other reconciling items 1 — — Total depreciation and amortization – Consumers $ 975 $ 921 $ 872 CMS Energy, including Consumers Income from equity method investees¹ Enterprises $ 10 $ 9 $ 15 Total income from equity method investees – CMS Energy $ 10 $ 9 $ 15 CMS Energy, including Consumers Interest charges Electric utility $ 213 $ 209 $ 201 Gas utility 83 79 74 Enterprises 7 2 — EnerBank 59 32 19 Other reconciling items 157 136 144 Total interest charges – CMS Energy $ 519 $ 458 $ 438 In Millions Years Ended December 31 2019 2018 2017 Consumers Interest charges Electric utility $ 213 $ 209 $ 201 Gas utility 83 79 74 Other reconciling items 1 1 1 Total interest charges – Consumers $ 297 $ 289 $ 276 CMS Energy, including Consumers Income tax expense (benefit) Electric utility $ 134 $ 109 $ 245 Gas utility 51 33 96 Enterprises 2 2 72 EnerBank 16 12 22 Other reconciling items (56 ) (41 ) (11 ) Total income tax expense – CMS Energy $ 147 $ 115 $ 424 Consumers Income tax expense (benefit) Electric utility $ 134 $ 109 $ 245 Gas utility 51 33 96 Other reconciling items — — (2 ) Total income tax expense – Consumers $ 185 $ 142 $ 339 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 509 $ 535 $ 455 Gas utility 233 169 173 Enterprises 33 34 (27 ) EnerBank 49 38 28 Other reconciling items (144 ) (119 ) (169 ) Total net income available to common stockholders – CMS Energy $ 680 $ 657 $ 460 Consumers Net income (loss) available to common stoc kholder Electric utility $ 509 $ 535 $ 455 Gas utility 233 169 173 Other reconciling items (1 ) (1 ) 2 Total net income available to common stockholder – Consumers $ 741 $ 703 $ 630 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 2,3 $ 16,158 $ 16,027 $ 15,221 Gas utility² 8,785 7,919 7,080 Enterprises 405 412 167 EnerBank 22 25 21 Other reconciling items 20 17 17 Total plant, property, and equipment, gross – CMS Energy $ 25,390 $ 24,400 $ 22,506 In Millions Years Ended December 31 2019 2018 2017 Consumers Plant, property, and equipment, gross Electric utility 2,3 $ 16,158 $ 16,027 $ 15,221 Gas utility² 8,785 7,919 7,080 Other reconciling items 20 17 17 Total plant, property, and equipment, gross – Consumers $ 24,963 $ 23,963 $ 22,318 CMS Energy, including Consumers Investments in equity method investees¹ Enterprises $ 71 $ 69 $ 64 Total investments in equity method investees – CMS Energy $ 71 $ 69 $ 64 CMS Energy, including Consumers Total assets Electric utility² $ 14,911 $ 14,079 $ 13,906 Gas utility² 8,659 7,806 7,139 Enterprises 527 540 342 EnerBank 2,692 2,006 1,453 Other reconciling items 48 98 210 Total assets – CMS Energy $ 26,837 $ 24,529 $ 23,050 Consumers Total assets Electric utility² $ 14,973 $ 14,143 $ 13,907 Gas utility² 8,706 7,853 7,139 Other reconciling items 20 29 53 Total assets – Consumers $ 23,699 $ 22,025 $ 21,099 CMS Energy, including Consumers Capital expenditures 4 Electric utility 5 $ 1,162 $ 865 $ 882 Gas utility 5 971 958 800 Enterprises 5 246 33 EnerBank 8 10 6 Other reconciling items 1 2 1 Total capital expenditures – CMS Energy $ 2,147 $ 2,081 $ 1,722 Consumers Capital expenditures 4 Electric utility 5 $ 1,162 $ 865 $ 882 Gas utility 5 971 958 800 Other reconciling items 1 2 1 Total capital expenditures – Consumers $ 2,134 $ 1,825 $ 1,683 1 Consumers had no significant equity method investments. 2 Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. 3 Costs related to coal-fueled electric generating units to be retired in 2023 were removed and recorded as a regulatory asset in June 2019. For additional details, see Note 3, Regulatory Matters . 4 Amounts include finance lease additions. 5 Amounts include a portion of Consumers’ capital expenditures for plant and equipment attributable to both the electric and gas utility businesses. |
Related Party Transactions - _2
Related Party Transactions - Consumers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Consumers Energy Company | |
Related Party Transaction [Line Items] | |
Schedule of Related Party Transactions, by Related Party Table | Presented in the following table is Consumers’ expense recorded from related-party transactions for the years ended December 31: In Millions Description Related Party 2019 2018 2017 Purchases of capacity and energy Affiliates of CMS Enterprises $ 75 $ 83 $ 90 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Variable Interest Entities [Abstract] | |
Schedule Of Variable Interest Entities | Presented in the following table is information about these partnerships: Name Nature of the Entity Nature of CMS Energy’s Involvement T.E.S. Filer City Coal-fueled power generator Long-term PPA between partnership and Consumers Employee assignment agreement Grayling Wood waste-fueled power generator Long-term PPA between partnership and Consumers Reduced dispatch agreement with Consumers¹ Operating and management contract Genesee Wood waste-fueled power generator Long-term PPA between partnership and Consumers Reduced dispatch agreement with Consumers¹ Operating and management contract Guarantee of fixed rate debt² Deferred collection of certain receivables³ Craven Wood waste-fueled power generator Operating and management contract 1 Reduced dispatch agreements allow the facilities to be dispatched based on the market price of power compared with the cost of production of the plants. This results in fuel cost savings that each partnership shares with Consumers’ customers. 2 CMS Energy’s guarantee is capped at $3 million annually through 2021. For additional details on this guarantee, see Note 4, Contingencies and Commitments—Guarantees . 3 CMS Energy’s maximum exposure to loss from these receivables is $10 million . |
Quarterly Financial And Commo_2
Quarterly Financial And Common Stock Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial and Common Stock Information [Line Items] | |
Schedule of Quarterly Financial Information Table | In Millions, Except Per Share Amounts 2019 Quarters Ended March 31 June 30 Sept 30 Dec 31 CMS Energy, including Consumers Operating revenue $ 2,059 $ 1,445 $ 1,546 $ 1,795 Operating income 359 218 351 311 Net income 213 94 207 168 Income attributable to noncontrolling interests — 1 — 1 Net income available to common stockholders 213 93 207 167 Basic earnings per average common share¹ 0.75 0.33 0.73 0.59 Diluted earnings per average common share¹ 0.75 0.33 0.73 0.58 Consumers Operating revenue $ 1,943 $ 1,334 $ 1,429 $ 1,670 Operating income 328 175 319 308 Net income 226 98 213 206 Preferred stock dividends — 1 — 1 Net income available to common stockholder 226 97 213 205 1 The sum of the quarters may not equal annual EPS due to changes in the number of shares outstanding. In Millions, Except Per Share Amounts 2018 Quarters Ended March 31 June 30 Sept 30 Dec 31 CMS Energy, including Consumers Operating revenue $ 1,953 $ 1,492 $ 1,599 $ 1,829 Operating income 363 255 294 250 Net income 241 140 169 109 Income attributable to noncontrolling interests — 1 — 1 Net income available to common stockholders 241 139 169 108 Basic earnings per average common share¹ 0.86 0.49 0.60 0.38 Diluted earnings per average common share¹ 0.86 0.49 0.59 0.38 Consumers Operating revenue $ 1,855 $ 1,395 $ 1,502 $ 1,712 Operating income 334 229 271 231 Net income 242 152 180 131 Preferred stock dividends — 1 — 1 Net income available to common stockholder 242 151 180 130 1 The sum of the quarters may not equal annual EPS due to changes in the number of shares outstanding. (This page intentionally left blank) |
Consumers Energy Company | |
Quarterly Financial and Common Stock Information [Line Items] | |
Schedule of Quarterly Financial Information Table | In Millions, Except Per Share Amounts 2019 Quarters Ended March 31 June 30 Sept 30 Dec 31 CMS Energy, including Consumers Operating revenue $ 2,059 $ 1,445 $ 1,546 $ 1,795 Operating income 359 218 351 311 Net income 213 94 207 168 Income attributable to noncontrolling interests — 1 — 1 Net income available to common stockholders 213 93 207 167 Basic earnings per average common share¹ 0.75 0.33 0.73 0.59 Diluted earnings per average common share¹ 0.75 0.33 0.73 0.58 Consumers Operating revenue $ 1,943 $ 1,334 $ 1,429 $ 1,670 Operating income 328 175 319 308 Net income 226 98 213 206 Preferred stock dividends — 1 — 1 Net income available to common stockholder 226 97 213 205 1 The sum of the quarters may not equal annual EPS due to changes in the number of shares outstanding. In Millions, Except Per Share Amounts 2018 Quarters Ended March 31 June 30 Sept 30 Dec 31 CMS Energy, including Consumers Operating revenue $ 1,953 $ 1,492 $ 1,599 $ 1,829 Operating income 363 255 294 250 Net income 241 140 169 109 Income attributable to noncontrolling interests — 1 — 1 Net income available to common stockholders 241 139 169 108 Basic earnings per average common share¹ 0.86 0.49 0.60 0.38 Diluted earnings per average common share¹ 0.86 0.49 0.59 0.38 Consumers Operating revenue $ 1,855 $ 1,395 $ 1,502 $ 1,712 Operating income 334 229 271 231 Net income 242 152 180 131 Preferred stock dividends — 1 — 1 Net income available to common stockholder 242 151 180 130 1 The sum of the quarters may not equal annual EPS due to changes in the number of shares outstanding. (This page intentionally left blank) |
New Accounting Standards (Detai
New Accounting Standards (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Allowance for credit loss | $ 33 | $ 24 | $ 20 | |
Retained earnings | $ (25) | $ (271) | ||
EnerBank | Forecast | Accounting Standards Update 2016-13 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Allowance for credit loss | $ 65 | |||
Retained earnings | $ 0 |
Regulatory Matters (Schedule Of
Regulatory Matters (Schedule Of The Components Of Regulatory Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, current | $ 33 | $ 37 | |
Regulatory assets, noncurrent | 2,489 | 1,743 | |
Regulatory liabilities, current | 87 | 155 | |
Regulatory liability, noncurrent | 3,742 | 3,681 | |
Consumers Energy Company | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, current | 33 | 37 | |
Regulatory assets, noncurrent | 2,489 | 1,743 | |
Total regulatory assets | 2,522 | 1,780 | |
Regulatory liabilities, current | 87 | 155 | |
Regulatory liability, noncurrent | 3,742 | 3,681 | |
Total regulatory liabilities | 3,829 | 3,836 | |
Income taxes, net | Consumers Energy Company | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory liabilities, current | 65 | 18 | |
Regulatory liability, noncurrent | 1,510 | 1,537 | |
Gain shared with customers | Consumers Energy Company | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory liabilities, current | 17 | 0 | |
Reserve for customer refunds | Consumers Energy Company | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory liabilities, current | 2 | 36 | |
TCJA reserve for refund | Consumers Energy Company | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory liabilities, current | 0 | 98 | |
Regulatory liability, noncurrent | 0 | $ 62 | 35 |
Other | Consumers Energy Company | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory liabilities, current | 3 | 3 | |
Regulatory liability, noncurrent | 11 | 9 | |
Cost of removal | Consumers Energy Company | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory liability, noncurrent | 2,126 | 1,966 | |
Renewable energy grant | Consumers Energy Company | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory liability, noncurrent | 52 | 54 | |
ARO | Consumers Energy Company | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory liability, noncurrent | 26 | 38 | |
Renewable energy plan | Consumers Energy Company | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory liability, noncurrent | 17 | 42 | |
Energy Waste Reduction Plan Incentive | Consumers Energy Company | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, current | 33 | 32 | |
Regulatory assets, noncurrent | 34 | 34 | |
Other | Consumers Energy Company | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, current | 0 | 5 | |
Regulatory assets, noncurrent | 4 | 2 | |
Postretirement benefits | Consumers Energy Company | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, noncurrent | 1,130 | 1,028 | |
Costs of coal-fueled electric generating units to be retired | Consumers Energy Company | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, noncurrent | 667 | 0 | |
Securitized Costs | Consumers Energy Company | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, noncurrent | 247 | 273 | |
ARO | Consumers Energy Company | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, noncurrent | 191 | 175 | |
Manufactured Gas Plant | Consumers Energy Company | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, noncurrent | 133 | ||
Unamortized Loss On Reacquired Debt | Consumers Energy Company | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, noncurrent | 70 | 68 | |
Deferred capital spending | Consumers Energy Company | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, noncurrent | 3 | 0 | |
Gas Storage Inventory Adjustments | Consumers Energy Company | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, noncurrent | 3 | 4 | |
Energy Waste Reduction Plan | Consumers Energy Company | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, noncurrent | $ 10 | $ 26 |
Regulatory Matters (Narrative)
Regulatory Matters (Narrative) (Details) $ in Millions | Mar. 31, 2019USD ($) | Oct. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Apr. 30, 2019USD ($) | Jan. 31, 2019USD ($) | Nov. 30, 2018USD ($) | Oct. 31, 2018USD ($) | May 31, 2018USD ($) | Dec. 31, 2019USD ($)coal_fueled_electric_generating_unitsite | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)coal_fueled_electric_generating_unitsite | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016site | Dec. 31, 2015site | Dec. 31, 2013USD ($) |
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Revenue | $ 1,795 | $ 1,546 | $ 1,445 | $ 2,059 | $ 1,829 | $ 1,599 | $ 1,492 | $ 1,953 | $ 6,845 | $ 6,873 | $ 6,583 | ||||||||||||
Regulatory liability, noncurrent | 3,742 | 3,681 | 3,742 | 3,681 | |||||||||||||||||||
Regulatory liabilities, current | 87 | 155 | 87 | 155 | |||||||||||||||||||
Regulatory assets, noncurrent | 2,489 | 1,743 | 2,489 | 1,743 | |||||||||||||||||||
Consumers Energy Company | |||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Revenue | 1,670 | 1,429 | 1,334 | 1,943 | 1,712 | $ 1,502 | $ 1,395 | $ 1,855 | $ 6,376 | 6,464 | 6,222 | ||||||||||||
Number of units retired | site | 10 | ||||||||||||||||||||||
Regulatory liability, noncurrent | 3,742 | 3,681 | $ 3,742 | 3,681 | |||||||||||||||||||
Regulatory liabilities, current | 87 | 155 | 87 | 155 | |||||||||||||||||||
Regulatory assets, noncurrent | $ 2,489 | 1,743 | 2,489 | 1,743 | |||||||||||||||||||
Purchased and interchange power | 1,470 | 1,587 | 1,491 | ||||||||||||||||||||
Cost of gas sold | $ 754 | 819 | $ 730 | ||||||||||||||||||||
Costs of coal-fueled electric generating units to be retired | Consumers Energy Company | |||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Number of units | coal_fueled_electric_generating_unit | 2 | 2 | |||||||||||||||||||||
Coal-Fueled Electric Generation | Consumers Energy Company | |||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Number of units retired | site | 7 | ||||||||||||||||||||||
Gas-Fueled Electric Generation | Consumers Energy Company | |||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Number of units retired | site | 3 | ||||||||||||||||||||||
Energy Waste Reduction Plan Incentive | Consumers Energy Company | |||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Authorized recovery collection | $ 34 | $ 34 | |||||||||||||||||||||
Revenue | 34 | 34 | |||||||||||||||||||||
Requested recovery/collection | 34 | $ 34 | |||||||||||||||||||||
Electric Rate Case Tax Reform Rate Change | Consumers Energy Company | |||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Annual rate increase authorized | $ (113) | ||||||||||||||||||||||
Electric Rate Case Net Of TCJA Impact | Consumers Energy Company | |||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Annual rate increase authorized | 89 | ||||||||||||||||||||||
Electric Rate Case | Consumers Energy Company | |||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Annual rate increase authorized | $ (24) | ||||||||||||||||||||||
Annual rate increase requested | $ 58 | ||||||||||||||||||||||
Rate of return on equity requested | 10.75% | ||||||||||||||||||||||
Annual rate increase requested, amended | $ 44 | ||||||||||||||||||||||
Rate of return on equity authorized | 10.00% | ||||||||||||||||||||||
Gas Rate Case | Consumers Energy Company | |||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Annual rate increase authorized | $ 144 | ||||||||||||||||||||||
Annual rate increase requested | $ 229 | ||||||||||||||||||||||
Rate of return on equity requested | 10.75% | ||||||||||||||||||||||
Annual rate increase requested, amended | $ 204 | ||||||||||||||||||||||
Rate of return on equity authorized | 9.90% | ||||||||||||||||||||||
Gas Rate TCJA Adjustment | Consumers Energy Company | |||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Annual rate increase authorized | $ (13) | ||||||||||||||||||||||
PSCR overrecoveries | Consumers Energy Company | |||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Purchased and interchange power | $ 2,000 | $ 1,900 | |||||||||||||||||||||
Over (under) recovery authorized by the MPSC | $ (31) | $ 32 | $ (31) | ||||||||||||||||||||
GCR underrecoveries | Consumers Energy Company | |||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Over (under) recovery authorized by the MPSC | 1 | $ (18) | 1 | $ (18) | |||||||||||||||||||
Cost of gas sold | 600 | $ 600 | |||||||||||||||||||||
Manufactured Gas Plant | Consumers Energy Company | |||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Regulatory assets, noncurrent | 133 | 133 | |||||||||||||||||||||
Gas Storage Inventory Adjustments | Consumers Energy Company | |||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Regulatory asset collection period | 5 years | ||||||||||||||||||||||
Regulatory assets, noncurrent | 3 | 4 | $ 3 | 4 | |||||||||||||||||||
Renewable energy grant | Consumers Energy Company | |||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Regulatory liability, noncurrent | 52 | 54 | 52 | 54 | |||||||||||||||||||
Proceeds from government grant | $ 69 | ||||||||||||||||||||||
Revenue subject to refund tax reform rate change | Gas Rate Case Tax Reform Rate Change | Consumers Energy Company | |||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Regulatory liabilities, current | $ 31 | ||||||||||||||||||||||
Revenue subject to refund tax reform rate change | Electric Rate Case Tax Reform Rate Change | Consumers Energy Company | |||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Regulatory liabilities, current | 70 | 70 | |||||||||||||||||||||
Income Taxes, Net | Consumers Energy Company | |||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Regulatory liability, noncurrent | 1,600 | ||||||||||||||||||||||
Income Taxes, Net | Gas Rate Case Tax Reform Rate Change | Consumers Energy Company | |||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Regulatory liability, noncurrent | 400 | ||||||||||||||||||||||
Income Taxes, Net | Electric Rate Case Tax Reform Rate Change | Consumers Energy Company | |||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Regulatory liability, noncurrent | 1,200 | ||||||||||||||||||||||
Approved temporary bill credit | 32 | ||||||||||||||||||||||
Income Taxes Subject To Normalization | Consumers Energy Company | |||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Regulatory liability, noncurrent | $ 1,700 | ||||||||||||||||||||||
Income Taxes Subject To Normalization | Gas Rate Case Tax Reform Rate Change | Consumers Energy Company | |||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Regulatory liability remaining book life | 44 years | ||||||||||||||||||||||
Income Taxes Subject To Normalization | Electric Rate Case Tax Reform Rate Change | Consumers Energy Company | |||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Regulatory liability remaining book life | 27 years | ||||||||||||||||||||||
Income Taxes Not Subject To Normalization | Consumers Energy Company | |||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Regulatory assets, noncurrent | $ 300 | ||||||||||||||||||||||
Income Taxes Not Subject To Normalization | Gas Rate Case Tax Reform Rate Change | Consumers Energy Company | |||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Regulatory asset collection period | 44 years | ||||||||||||||||||||||
Income Taxes Not Subject To Normalization | Electric Rate Case Tax Reform Rate Change | Consumers Energy Company | |||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Regulatory asset collection period | 27 years | ||||||||||||||||||||||
Taxes Not Related To Plant Assets | Consumers Energy Company | |||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Regulatory liability, noncurrent | $ 200 | ||||||||||||||||||||||
Regulatory liability remaining book life | 10 years | ||||||||||||||||||||||
TCJA reserve for refund | Consumers Energy Company | |||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Regulatory liability, noncurrent | $ 62 | 0 | $ 62 | 35 | 0 | 35 | |||||||||||||||||
Regulatory liabilities, current | $ 0 | $ 98 | $ 0 | $ 98 | |||||||||||||||||||
Manufactured Gas Plant | Consumers Energy Company | |||||||||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||||||||
Number of former MGPs | site | 23 | 23 | |||||||||||||||||||||
Regulatory asset collection period | 10 years | ||||||||||||||||||||||
Regulatory assets, noncurrent | $ 130 | $ 130 |
Regulatory Matters (Schedule _2
Regulatory Matters (Schedule Of The Components Of PSCR And GCR Over/(Under) Recoveries) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Public Utilities, General Disclosures [Line Items] | ||
Accrued gas revenue | $ 0 | $ 16 |
Accrued rate refunds | 35 | 4 |
Consumers Energy Company | ||
Public Utilities, General Disclosures [Line Items] | ||
Accrued gas revenue | 0 | 16 |
Accrued rate refunds | 35 | 4 |
Consumers Energy Company | GCR overrecoveries/underrecoveries | ||
Public Utilities, General Disclosures [Line Items] | ||
Accrued gas revenue | 0 | 16 |
Accrued rate refunds | 2 | 0 |
Consumers Energy Company | PSCR overrecoveries | ||
Public Utilities, General Disclosures [Line Items] | ||
Accrued rate refunds | $ 33 | $ 4 |
Contingencies And Commitments_2
Contingencies And Commitments (Contingencies And Commitments) (Details) violation in Thousands | Jan. 31, 2019USD ($) | Jun. 30, 2019USD ($)violation | Dec. 31, 2019USD ($)sitelawsuit | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Loss Contingencies [Line Items] | |||||
Regulatory assets | $ 2,489,000,000 | $ 1,743,000,000 | |||
Consumers Energy Company | |||||
Loss Contingencies [Line Items] | |||||
Regulatory assets | 2,489,000,000 | 1,743,000,000 | |||
Cost of gas sold | 754,000,000 | 819,000,000 | $ 730,000,000 | ||
Plant additions | 2,000,000,000 | 1,800,000,000 | |||
Regulatory liability | 3,829,000,000 | $ 3,836,000,000 | |||
Bay Harbor | |||||
Loss Contingencies [Line Items] | |||||
Accrual for environmental loss contingencies | $ 46,000,000 | ||||
Discounted projected costs rate | 4.34% | ||||
Accrual for environmental loss contingencies, inflation rate | 1.00% | ||||
Remaining undiscounted obligation amount | $ 58,000,000 | ||||
CERCLA Liability | Consumers Energy Company | |||||
Loss Contingencies [Line Items] | |||||
Accrual for environmental loss contingencies | 3,000,000 | ||||
CERCLA Liability | Minimum | Consumers Energy Company | |||||
Loss Contingencies [Line Items] | |||||
Remediation and other response activity costs | 3,000,000 | ||||
CERCLA Liability | Maximum | Consumers Energy Company | |||||
Loss Contingencies [Line Items] | |||||
Remediation and other response activity costs | 8,000,000 | ||||
Manufactured Gas Plant | Consumers Energy Company | |||||
Loss Contingencies [Line Items] | |||||
Accrual for environmental loss contingencies | $ 68,000,000 | ||||
Discounted projected costs rate | 2.57% | ||||
Accrual for environmental loss contingencies, inflation rate | 2.50% | ||||
Remaining undiscounted obligation amount | $ 73,000,000 | ||||
Number of former MGPs | site | 23 | ||||
Regulatory asset collection period | 10 years | ||||
Regulatory assets | $ 130,000,000 | ||||
Electric Utility | NREPA | Consumers Energy Company | |||||
Loss Contingencies [Line Items] | |||||
Accrual for environmental loss contingencies | 3,000,000 | ||||
Electric Utility | NREPA | Minimum | Consumers Energy Company | |||||
Loss Contingencies [Line Items] | |||||
Remediation and other response activity costs | 3,000,000 | ||||
Electric Utility | NREPA | Maximum | Consumers Energy Company | |||||
Loss Contingencies [Line Items] | |||||
Remediation and other response activity costs | 4,000,000 | ||||
Gas Utility | NREPA | Consumers Energy Company | |||||
Loss Contingencies [Line Items] | |||||
Accrual for environmental loss contingencies | 1,000,000 | ||||
Gas Utility | NREPA | Maximum | Consumers Energy Company | |||||
Loss Contingencies [Line Items] | |||||
Accrual for environmental loss contingencies | 3,000,000 | ||||
Equatorial Guinea Tax Claim | |||||
Loss Contingencies [Line Items] | |||||
Foreign government tax claim on sale | $ 152,000,000 | ||||
Class Action Lawsuits | |||||
Loss Contingencies [Line Items] | |||||
Number of lawsuits | lawsuit | 4 | ||||
Individual Lawsuits | |||||
Loss Contingencies [Line Items] | |||||
Number of lawsuits | lawsuit | 1 | ||||
Gas Index Price Reporting Litigation | |||||
Loss Contingencies [Line Items] | |||||
Estimated current litigation liability | $ 30,000,000 | ||||
MCV PPA | Consumers Energy Company | |||||
Loss Contingencies [Line Items] | |||||
Remediation and other response activity costs | 270,000,000 | ||||
Underwater cables Straits of Mackinac | Minimum | Consumers Energy Company | |||||
Loss Contingencies [Line Items] | |||||
Remediation and other response activity costs | 5,000,000 | ||||
Underwater cables Straits of Mackinac | Maximum | Consumers Energy Company | |||||
Loss Contingencies [Line Items] | |||||
Remediation and other response activity costs | 10,000,000 | ||||
MPSC Gas Staking MISS DIG Act | Consumers Energy Company | |||||
Loss Contingencies [Line Items] | |||||
Number of alleged violations | violation | 20 | ||||
Maximum possible loss per violation | $ 5,000 | ||||
MPSC Gas Staking MISS DIG Act | Maximum | Consumers Energy Company | |||||
Loss Contingencies [Line Items] | |||||
Expected settlement | 1,000,000 | ||||
Ray Compressor Station | Consumers Energy Company | |||||
Loss Contingencies [Line Items] | |||||
Cost of gas sold | $ 7,000,000 | ||||
Plant additions | $ 12,000,000 |
Contingencies And Commitments_3
Contingencies And Commitments (Expected Remediation Cost By Year) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Bay Harbor | |
Site Contingency [Line Items] | |
2020 | $ 5 |
2021 | 4 |
2022 | 4 |
2023 | 4 |
2024 | 4 |
Manufactured Gas Plant | Consumers Energy Company | |
Site Contingency [Line Items] | |
2020 | 12 |
2021 | 8 |
2022 | 20 |
2023 | 11 |
2024 | $ 2 |
Contingencies And Commitments_4
Contingencies And Commitments (Guarantees) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)$ / MWMW | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Guarantees | |||
Guarantees And Other Contingencies [Line Items] | |||
Expiration Date | indefinite | ||
Maximum Obligation | $ 36 | ||
Carrying Amount | $ 0 | ||
Guarantees | Consumers Energy Company | |||
Guarantees And Other Contingencies [Line Items] | |||
Expiration Date | indefinite | ||
Maximum Obligation | $ 30 | ||
Carrying Amount | $ 0 | ||
Indemnity Obligations From Stock And Asset Sales Agreements | |||
Guarantees And Other Contingencies [Line Items] | |||
Expiration Date | indefinite | ||
Maximum Obligation | $ 153 | ||
Carrying Amount | 2 | ||
Tax And Other Indemnity Obligations | Consumers Energy Company | |||
Guarantees And Other Contingencies [Line Items] | |||
Carrying Amount | 1 | ||
MCV PPA | Consumers Energy Company | |||
Guarantees And Other Contingencies [Line Items] | |||
Total | 3,295 | ||
2020 | 313 | ||
2021 | 287 | ||
2022 | 272 | ||
2023 | 225 | ||
2024 | 201 | ||
Beyond 2024 | $ 1,997 | ||
Term of unrecorded PPA | 35 years | ||
PPA minimum quantity required | MW | 1,240 | ||
PPA capacity charge per MWh (in dollars per MWh) | $ / MW | 10.14 | ||
Annual contribution to renewable resources program by counterparty | $ 5 | ||
Contract extension period | 5 years | ||
Purchases | $ 318 | $ 353 | $ 321 |
Palisades PPA | Consumers Energy Company | |||
Guarantees And Other Contingencies [Line Items] | |||
Total | 899 | ||
2020 | 388 | ||
2021 | 398 | ||
2022 | 113 | ||
2023 | 0 | ||
2024 | 0 | ||
Beyond 2024 | 0 | ||
Purchases | 395 | 375 | 366 |
Related-party PPAs | Consumers Energy Company | |||
Guarantees And Other Contingencies [Line Items] | |||
Total | 472 | ||
2020 | 71 | ||
2021 | 72 | ||
2022 | 74 | ||
2023 | 74 | ||
2024 | 75 | ||
Beyond 2024 | 106 | ||
Other PPAs | Consumers Energy Company | |||
Guarantees And Other Contingencies [Line Items] | |||
Total | 4,670 | ||
2020 | 258 | ||
2021 | 278 | ||
2022 | 291 | ||
2023 | 309 | ||
2024 | 329 | ||
Beyond 2024 | 3,205 | ||
Purchases | 336 | $ 350 | $ 349 |
Total PPAs | Consumers Energy Company | |||
Guarantees And Other Contingencies [Line Items] | |||
Total | 9,336 | ||
2020 | 1,030 | ||
2021 | 1,035 | ||
2022 | 750 | ||
2023 | 608 | ||
2024 | 605 | ||
Beyond 2024 | 5,308 | ||
Other | |||
Guarantees And Other Contingencies [Line Items] | |||
Total | 3,244 | ||
2020 | 1,685 | ||
2021 | 520 | ||
2022 | 451 | ||
2023 | 210 | ||
2024 | 199 | ||
Beyond 2024 | 179 | ||
Other | Consumers Energy Company | |||
Guarantees And Other Contingencies [Line Items] | |||
Total | 2,865 | ||
2020 | 1,638 | ||
2021 | 477 | ||
2022 | 413 | ||
2023 | 174 | ||
2024 | 162 | ||
Beyond 2024 | $ 1 | ||
Palisades Power Purchase Agreement | Financing Obligation | Consumers Energy Company | |||
Guarantees And Other Contingencies [Line Items] | |||
Annual average capacity (in MW) | MW | 798 |
Financings and Capitalization_2
Financings and Capitalization (Summary of Long-Term Debt Outstanding) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2022 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Principal amounts outstanding | $ 13,188,000,000 | $ 11,683,000,000 | |
Current amounts | (1,111,000,000) | (974,000,000) | |
Unamortized discounts | 27,000,000 | 21,000,000 | |
Unamortized issuance costs | (99,000,000) | (73,000,000) | |
Long-term debt | 11,951,000,000 | 10,615,000,000 | |
Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Principal amounts outstanding | 7,322,000,000 | 6,862,000,000 | |
Current amounts | (202,000,000) | (26,000,000) | |
Unamortized discounts | (23,000,000) | (16,000,000) | |
Unamortized issuance costs | (49,000,000) | (41,000,000) | |
Long-term debt | 7,048,000,000 | 6,779,000,000 | |
Term loans and revolving credit agreements | Term Loan Facility Due 2025 | |||
Debt Instrument [Line Items] | |||
Principal amounts outstanding | $ 92,000,000 | $ 98,000,000 | |
Three-month LIBOR plus a spread | 1.50% | ||
Interest rate at period end | 3.445% | 4.303% | |
Fixed interest rate | 4.702% | ||
Certificates of deposit | EnerBank Certificates Of Deposit | |||
Debt Instrument [Line Items] | |||
Certificates of deposit | $ 2,389,000,000 | $ 1,758,000,000 | |
Weighted-average interest rate | 2.445% | 2.44% | |
Certificate of deposit face value | $ 1,000 | ||
First Mortgage Bonds | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Principal amounts outstanding | $ 6,961,000,000 | $ 6,335,000,000 | |
First Mortgage Bonds | 5.650% First Mortgage Bonds Due 2020 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.65% | ||
Principal amounts outstanding | $ 0 | 300,000,000 | |
First Mortgage Bonds | 3.770% Percent First Mortgage Bonds Due 2020 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.77% | ||
Principal amounts outstanding | $ 100,000,000 | 100,000,000 | |
First Mortgage Bonds | 2.850% First Mortgage Bonds Due 2022 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.85% | ||
Principal amounts outstanding | $ 375,000,000 | 375,000,000 | |
First Mortgage Bonds | 5.300% First Mortgage Bonds Due 2022 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.30% | ||
Principal amounts outstanding | $ 250,000,000 | 250,000,000 | |
First Mortgage Bonds | 3.375% First Mortgage Bonds Due 2023 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.375% | ||
Principal amounts outstanding | $ 325,000,000 | 325,000,000 | |
First Mortgage Bonds | 3.125% First Mortgage Bonds Due 2024 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.125% | ||
Principal amounts outstanding | $ 250,000,000 | 250,000,000 | |
First Mortgage Bonds | 3.190% First Mortgage Bonds Due 2024 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.19% | ||
Principal amounts outstanding | $ 52,000,000 | 52,000,000 | |
First Mortgage Bonds | 3.680% First Mortgage Bonds Due 2027 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.68% | ||
Principal amounts outstanding | $ 100,000,000 | 100,000,000 | |
First Mortgage Bonds | 3.390 % First Mortgage Bonds Due 2027 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.39% | ||
Principal amounts outstanding | $ 35,000,000 | 35,000,000 | |
First Mortgage Bonds | 3.800% First Mortgage Bonds Due 2028 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.80% | ||
Principal amounts outstanding | $ 300,000,000 | 300,000,000 | |
First Mortgage Bonds | 3.180% First Mortgage Bonds Due 2032 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.18% | ||
Principal amounts outstanding | $ 100,000,000 | 100,000,000 | |
First Mortgage Bonds | 5.800 % First Mortgage Bonds Due 2035 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.80% | ||
Principal amounts outstanding | $ 175,000,000 | 175,000,000 | |
First Mortgage Bonds | 3.520% First Mortgage Bonds Due 2037 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.52% | ||
Principal amounts outstanding | $ 335,000,000 | 335,000,000 | |
First Mortgage Bonds | 4.010% First Mortgage Bonds Due 2038 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.01% | ||
Principal amounts outstanding | $ 215,000,000 | 215,000,000 | |
First Mortgage Bonds | 6.170% First Mortgage Bonds Due 2040 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.17% | ||
Principal amounts outstanding | $ 50,000,000 | 50,000,000 | |
First Mortgage Bonds | 4.970% First Mortgage Bonds Due 2040 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.97% | ||
Principal amounts outstanding | $ 50,000,000 | 50,000,000 | |
First Mortgage Bonds | 4.310% First Mortgage Bonds Due 2042 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.31% | ||
Principal amounts outstanding | $ 263,000,000 | 263,000,000 | |
First Mortgage Bonds | 3.950% First Mortgage Bonds Due 2043 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.95% | ||
Principal amounts outstanding | $ 425,000,000 | 425,000,000 | |
First Mortgage Bonds | 4.100% First Mortgage Bonds Due 2045 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.10% | ||
Principal amounts outstanding | $ 250,000,000 | 250,000,000 | |
First Mortgage Bonds | 3.250% First Mortgage Bonds Due 2046 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.25% | ||
Principal amounts outstanding | $ 450,000,000 | 450,000,000 | |
First Mortgage Bonds | 3.950% First Mortgage Bonds Due 2047 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.95% | ||
Principal amounts outstanding | $ 350,000,000 | 350,000,000 | |
First Mortgage Bonds | 4.050% First Mortgage Bonds Due 2048 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.05% | ||
Principal amounts outstanding | $ 550,000,000 | 550,000,000 | |
First Mortgage Bonds | 4.350% First Mortgage Bonds Due 2049 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.35% | ||
Principal amounts outstanding | $ 550,000,000 | 550,000,000 | |
First Mortgage Bonds | 3.750% First Mortgage Bonds Due 2050 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.75% | ||
Principal amounts outstanding | $ 300,000,000 | 0 | |
First Mortgage Bonds | 3.100% First Mortgage Bonds Due 2050 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.10% | ||
Principal amounts outstanding | $ 550,000,000 | 0 | |
First Mortgage Bonds | 3.860% First Mortgage Bonds Due 2052 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.86% | ||
Principal amounts outstanding | $ 50,000,000 | 50,000,000 | |
First Mortgage Bonds | 4.280% First Mortgage Bonds Due 2057 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.28% | ||
Principal amounts outstanding | $ 185,000,000 | 185,000,000 | |
First Mortgage Bonds | 4.350% First Mortgage Bonds Due 2064 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.35% | ||
Principal amounts outstanding | $ 250,000,000 | 250,000,000 | |
First Mortgage Bonds | Variable Rate First Mortgage Bonds | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Principal amounts outstanding | $ 76,000,000 | 0 | |
Three-month LIBOR plus a spread | 0.30% | ||
Interest rate at period end | 1.594% | ||
Tax Exempt Revenue Bonds | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Principal amounts outstanding | $ 110,000,000 | 35,000,000 | |
Tax Exempt Revenue Bonds | Tax Exempt Revenue Bonds Due 2035 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Principal amounts outstanding | $ 35,000,000 | $ 35,000,000 | |
Interest rate at period end | 1.74% | 1.78% | |
Tax Exempt Revenue Bonds | 1.800% Tax Exempt Revenue Bonds Due 2049 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.80% | ||
Principal amounts outstanding | $ 75,000,000 | $ 0 | |
Weighted average interest rate | 1.80% | ||
Securitization bonds | 3.220% Securitization Bonds Due 2020-2029 | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Principal amounts outstanding | $ 251,000,000 | $ 277,000,000 | |
Weighted average interest rate | 3.22% | 3.057% | |
Revolving credit agreements | Revolving credit agreements | Consumers Energy Company | |||
Debt Instrument [Line Items] | |||
Principal amounts outstanding | $ 0 | $ 215,000,000 | |
CMS Energy | |||
Debt Instrument [Line Items] | |||
Principal amounts outstanding | 3,385,000,000 | 2,965,000,000 | |
Long-term debt | $ 3,334,000,000 | 2,750,000,000 | |
CMS Energy | 4.700% Senior Notes Due 2043 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.70% | ||
Principal amounts outstanding | $ 250,000,000 | 250,000,000 | |
CMS Energy | Senior notes | |||
Debt Instrument [Line Items] | |||
Principal amounts outstanding | $ 2,275,000,000 | 2,275,000,000 | |
CMS Energy | Senior notes | 5.050% Senior Notes Due 2022 | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.05% | ||
Principal amounts outstanding | $ 300,000,000 | 300,000,000 | |
CMS Energy | Senior notes | 3.875% Senior Notes Due 2024 | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.875% | ||
Principal amounts outstanding | $ 250,000,000 | 250,000,000 | |
CMS Energy | Senior notes | 3.600% Senior Notes Due 2025 | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.60% | ||
Principal amounts outstanding | $ 250,000,000 | 250,000,000 | |
CMS Energy | Senior notes | 3.000% Senior Notes Due 2026 | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.00% | ||
Principal amounts outstanding | $ 300,000,000 | 300,000,000 | |
CMS Energy | Senior notes | 2.950% Senior Notes Due 2027 | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.95% | ||
Principal amounts outstanding | $ 275,000,000 | 275,000,000 | |
CMS Energy | Senior notes | 3.450% Senior Notes Due 2027 | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.45% | ||
Principal amounts outstanding | $ 350,000,000 | 350,000,000 | |
CMS Energy | Senior notes | 4.875% Senior Notes Due 2044 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.875% | ||
Principal amounts outstanding | $ 300,000,000 | 300,000,000 | |
CMS Energy | Term loans and revolving credit agreements | |||
Debt Instrument [Line Items] | |||
Principal amounts outstanding | 0 | 210,000,000 | |
CMS Energy | Term loans and revolving credit agreements | Term Loan Facility Due 2019 | |||
Debt Instrument [Line Items] | |||
Principal amounts outstanding | 0 | 180,000,000 | |
CMS Energy | Junior subordinated notes¹ | |||
Debt Instrument [Line Items] | |||
Principal amounts outstanding | $ 1,110,000,000 | 480,000,000 | |
CMS Energy | Junior subordinated notes¹ | 5.625% Junior Subordinated Notes Due 2078 | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.625% | ||
Principal amounts outstanding | $ 200,000,000 | 200,000,000 | |
CMS Energy | Junior subordinated notes¹ | 5.875% Junior Subordinated Notes Due 2078 | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.875% | ||
Principal amounts outstanding | $ 280,000,000 | 280,000,000 | |
CMS Energy | Junior subordinated notes¹ | 5.875% Junior Subordinated Notes Due 2079 | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.875% | ||
Principal amounts outstanding | $ 630,000,000 | 0 | |
CMS Energy | Revolving credit agreements | Revolving Credit Facilities June 5, 2023 | |||
Debt Instrument [Line Items] | |||
Principal amounts outstanding | $ 0 | $ 30,000,000 | |
Forecast | Term loans and revolving credit agreements | Term Loan Facility Due 2025 | |||
Debt Instrument [Line Items] | |||
Three-month LIBOR plus a spread | 1.75% | ||
Fixed interest rate | 4.952% |
Financings And Capitalization_3
Financings And Capitalization (Major Long-Term Debt Transactions) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |
Principal Balance | $ 2,096 |
Debt retirement, principal | 945 |
Consumers Energy Company | |
Debt Instrument [Line Items] | |
Debt retirement, principal | 300 |
First Mortgage Bonds | 3.750% First Mortgage Bonds Due 2050 | Consumers Energy Company | |
Debt Instrument [Line Items] | |
Principal Balance | $ 300 |
Interest rate | 3.75% |
First Mortgage Bonds | 3.100% First Mortgage Bonds Due 2050 | Consumers Energy Company | |
Debt Instrument [Line Items] | |
Principal Balance | $ 550 |
Interest rate | 3.10% |
First Mortgage Bonds | Variable Rate First Mortgage Bonds | Consumers Energy Company | |
Debt Instrument [Line Items] | |
Principal Balance | $ 76 |
First Mortgage Bonds | 5.650% First Mortgage Bonds Due 2020 | Consumers Energy Company | |
Debt Instrument [Line Items] | |
Debt retirement, principal | $ 300 |
Interest rate | 5.65% |
Tax Exempt Revenue Bonds | Variable Tax Exempt Revenue Bonds Due 2049 | Consumers Energy Company | |
Debt Instrument [Line Items] | |
Principal Balance | $ 75 |
Interest rate | 1.80% |
First Mortgage Bonds and Tax Exempt Revenue Bonds | Consumers Energy Company | |
Debt Instrument [Line Items] | |
Principal Balance | $ 1,001 |
CMS Energy | |
Debt Instrument [Line Items] | |
Debt retirement, principal | 645 |
CMS Energy | Term Loan Facility Due 2019 | |
Debt Instrument [Line Items] | |
Debt retirement, principal | 300 |
CMS Energy | Term Loan Facility Due April 2019 | |
Debt Instrument [Line Items] | |
Debt retirement, principal | 180 |
CMS Energy | Term loans and revolving credit agreements | Term Loan Facility Due 2019 | |
Debt Instrument [Line Items] | |
Principal Balance | 300 |
CMS Energy | Term loans and revolving credit agreements | Term Loan Facility Due 2020 | |
Debt Instrument [Line Items] | |
Principal Balance | 165 |
CMS Energy | Junior subordinated notes¹ | |
Debt Instrument [Line Items] | |
Principal Balance | 1,095 |
CMS Energy | Junior subordinated notes¹ | 5.875% Junior Subordinated Notes Due 2079 | |
Debt Instrument [Line Items] | |
Principal Balance | $ 630 |
Interest rate | 5.875% |
Term Loan Facility Due June 2020 Tranche One | CMS Energy | Term Loan Facility Due 2020 | |
Debt Instrument [Line Items] | |
Debt retirement, principal | $ 165 |
Financings And Capitalization_4
Financings And Capitalization (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2018 | Dec. 31, 2019 | Jan. 31, 2020 | Dec. 31, 2018 | |
Financing And Capitalization [Line Items] | ||||
Debt instrument face amount | $ 2,096,000,000 | |||
Limitation on payment of stock dividends | 5,000,000,000 | |||
Dividends paid | $ 592,000,000 | |||
Common stock authorized (in shares) | 350,000,000 | 350,000,000 | ||
Par value of common stock (in dollars per share) | $ 0.01 | |||
Preferred stock authorized (in shares) | 10,000,000 | |||
Par value of preferred stock (in dollars per share) | $ 0.01 | |||
Stock offering program maximum value | $ 250,000,000 | |||
Number of shares required to settle forward contracts (in shares) | 992,596 | |||
Consumers Energy Company | ||||
Financing And Capitalization [Line Items] | ||||
Interest rate coverage ratio multiplier minimum to issue FMBs | 200.00% | |||
Unrestricted retained earnings | $ 1,400,000,000 | |||
Common stock authorized (in shares) | 125,000,000 | 125,000,000 | ||
Par value of preferred stock (in dollars per share) | $ 4.50 | $ 4.50 | ||
Consumers Energy Company | Commercial Paper | ||||
Financing And Capitalization [Line Items] | ||||
Short-term debt authorized borrowings | $ 500,000,000 | |||
Weighted average annual interest rate | 2.05% | |||
Short-term borrowings outstanding | $ 90,000,000 | |||
Forward Contracts | ||||
Financing And Capitalization [Line Items] | ||||
Forward contract indexed to issuer's equity | $ 250,000,000 | |||
Subsequent Event | Term loan facility due January 2021 | ||||
Financing And Capitalization [Line Items] | ||||
Debt instrument face amount | $ 300,000,000 |
Financings and Capitalization_5
Financings and Capitalization (Debt Maturities) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |
2020 | $ 1,111 |
2021 | 538 |
2022 | 1,354 |
2023 | 669 |
2024 | 808 |
Consumers Energy Company | |
Debt Instrument [Line Items] | |
2020 | 202 |
2021 | 27 |
2022 | 653 |
2023 | 354 |
2024 | $ 332 |
Financings And Capitalization_6
Financings And Capitalization (Revolving Credit Facilities) (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Revolving Credit Facilities June 5, 2023 | Consumers Energy Company | |
Line of Credit Facility [Line Items] | |
Amount of Facility | $ 850,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 7,000,000 |
Amount Available | 843,000,000 |
Revolving Credit Facilities September 30, 2025 | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 18,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 8,000,000 |
Amount Available | 10,000,000 |
Revolving Credit Facilities November 19, 2020 | Consumers Energy Company | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 250,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 10,000,000 |
Amount Available | 240,000,000 |
Revolving Credit Facilities September 9, 2019 | Consumers Energy Company | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 30,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 30,000,000 |
Amount Available | 0 |
Revolving credit agreements | Consumers Energy Company | |
Line of Credit Facility [Line Items] | |
Average borrowings | $ 2,000,000 |
Weighted average interest rate | 3.225% |
CMS Energy | Revolving Credit Facilities June 5, 2023 | |
Line of Credit Facility [Line Items] | |
Amount of Facility | $ 550,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 6,000,000 |
Amount Available | 544,000,000 |
Average borrowings | $ 5,000,000 |
Weighted average interest rate | 3.859% |
Letter of Credit | Revolving Credit Facilities September 30, 2025 | |
Line of Credit Facility [Line Items] | |
Amount Available | $ 8,000,000 |
Borrowings | $ 0 |
Financings and Capitalization_7
Financings and Capitalization (Forward Stock Contracts) (Details) - $ / shares | Feb. 21, 2019 | Nov. 20, 2018 | Nov. 16, 2018 |
Forward Contracts Maturing May 16, 2020 | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Number of Shares | 2,017,783 | ||
Initial forward price (in dollars per share) | $ 49.06 | ||
Forward Contracts Maturing May 20, 2020 | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Number of Shares | 777,899 | ||
Initial forward price (in dollars per share) | $ 50.91 | ||
Forward Contracts Maturing August 21, 2020 | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Number of Shares | 2,083,340 | ||
Initial forward price (in dollars per share) | $ 52.27 |
Financings and Capitalization_8
Financings and Capitalization (Preferred Stock of Subsidiary) (Details) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Par value of preferred stock (in dollars per share) | $ 0.01 | |
Preferred stock authorized (in shares) | 10,000,000 | |
Consumers Energy Company | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Par value of preferred stock (in dollars per share) | $ 4.50 | $ 4.50 |
Preferred Stock $4.50 Series | Consumers Energy Company | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Par value of preferred stock (in dollars per share) | 100 | 100 |
Optional redemption price (in dollars per share) | $ 110 | $ 110 |
Preferred stock authorized (in shares) | 7,500,000 | 7,500,000 |
Number of shares outstanding (in shares) | 373,148 | 373,148 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted cash and cash equivalents | $ 17 | $ 21 |
Other non-current assets | 739 | 478 |
Derivative instruments | 1 | 1 |
Derivative instruments | 8 | 3 |
Consumers Energy Company | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted cash and cash equivalents | 17 | 17 |
Other non-current assets | 637 | 410 |
Derivative instruments | 1 | 1 |
Derivative instruments | 0 | 0 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 27 |
Restricted cash and cash equivalents | 17 | 21 |
Nonqualified deferred compensation plan assets | 18 | 14 |
Other non-current assets | 0 | 1 |
Nonqualified deferred compensation plan liabilities | 18 | 14 |
Level 1 | Consumers Energy Company | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Restricted cash and cash equivalents | 17 | 17 |
Nonqualified deferred compensation plan assets | 14 | 10 |
Other non-current assets | 0 | 0 |
Nonqualified deferred compensation plan liabilities | 14 | 10 |
Fair Value, Inputs, Level 1, 2 and 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 36 | 64 |
Total | 26 | 17 |
Fair Value, Inputs, Level 1, 2 and 3 | Consumers Energy Company | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 33 | 29 |
Total | 14 | 10 |
Common Stock | Level 1 | Consumers Energy Company | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
CMS Energy common stock | $ 1 | $ 1 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash flow hedge gain (loss) | $ (4,000,000) | $ (2,000,000) |
Derivative instruments | 8,000,000 | 3,000,000 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional amount | 92,000,000 | |
Other Liabilities | Designated as Hedging Instrument | Cash Flow Hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments | 5,000,000 | $ 2,000,000 |
EnerBank | Designated as Hedging Instrument | Fair Value Hedging | Interest Rate Swap, Notes Receivable | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional amount | 134,000,000 | |
EnerBank | Other Liabilities | Designated as Hedging Instrument | Fair Value Hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments | $ 1,000,000 |
Financial Instruments (Schedule
Financial Instruments (Schedule Of Carrying Amounts And Fair Values Of Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Securities held to maturity | $ 26 | $ 21 |
Liabilities | ||
Current accounts receivable | 13 | 14 |
Current notes receivable | 223 | 233 |
Current portion of long term debt | 1,111 | 974 |
Current portion of long-term payables | 1 | 1 |
Carrying Amount | ||
Assets | ||
Long-term receivables | 20 | 22 |
Notes receivable | 2,500 | 1,857 |
Securities held to maturity | 26 | 22 |
Liabilities | ||
Long-term debt | 13,062 | 11,589 |
Long-term payables | 30 | 27 |
Fair Value | ||
Assets | ||
Long-term receivables | 20 | 22 |
Notes receivable | 2,652 | 1,967 |
Securities held to maturity | 26 | 21 |
Liabilities | ||
Long-term debt | 14,185 | 11,630 |
Long-term payables | 32 | 27 |
Consumers Energy Company | ||
Liabilities | ||
Current accounts receivable | 13 | 14 |
Current portion of long term debt | 202 | 26 |
DB SERP note receivable – related party | 7 | 7 |
Consumers Energy Company | Carrying Amount | ||
Assets | ||
Long-term receivables | 20 | 22 |
Notes receivable related party | 103 | 106 |
Liabilities | ||
Long-term debt | 7,250 | 6,805 |
Consumers Energy Company | Fair Value | ||
Assets | ||
Long-term receivables | 20 | 22 |
Notes receivable related party | 103 | 106 |
Liabilities | ||
Long-term debt | 8,010 | 6,833 |
Level 1 | Fair Value | ||
Liabilities | ||
Long-term debt | 1,197 | 459 |
Level 2 | Fair Value | ||
Assets | ||
Securities held to maturity | 26 | 21 |
Liabilities | ||
Long-term debt | 11,048 | 9,404 |
Level 2 | Consumers Energy Company | Fair Value | ||
Assets | ||
Notes receivable related party | 0 | |
Liabilities | ||
Long-term debt | 6,070 | 5,066 |
Level 3 | Fair Value | ||
Assets | ||
Long-term receivables | 20 | 22 |
Notes receivable | 2,652 | 1,967 |
Liabilities | ||
Long-term debt | 1,940 | 1,767 |
Long-term payables | 32 | 27 |
Level 3 | Consumers Energy Company | Fair Value | ||
Assets | ||
Long-term receivables | 20 | 22 |
Notes receivable related party | 103 | 106 |
Liabilities | ||
Long-term debt | 1,940 | 1,767 |
EnerBank | ||
Liabilities | ||
Current notes receivable | $ 242 | $ 233 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial Instruments [Line Items] | |||
Portion of long-term debt supported by third-party credit enhancements | $ 35 | $ 35 | |
Consumers Energy Company | |||
Financial Instruments [Line Items] | |||
Reclassified gain net of tax | $ 0 | (1) | $ 9 |
DB SERP | |||
Financial Instruments [Line Items] | |||
Gross reclassified gain | 2 | ||
Reclassified gain net of tax | 1 | ||
DB SERP | Consumers Energy Company | |||
Financial Instruments [Line Items] | |||
Gross reclassified gain | 2 | ||
Reclassified gain net of tax | $ 1 | ||
CMS Energy Note Payable | |||
Financial Instruments [Line Items] | |||
Notes payable | $ 146 | ||
Interest rate | 4.10% |
Financial Instruments (Summary
Financial Instruments (Summary Of Sales Activity For Investment Securities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial Instruments [Line Items] | |||
Proceeds from DB SERP investments | $ 0 | $ 146 | $ 0 |
Consumers Energy Company | |||
Financial Instruments [Line Items] | |||
Proceeds from DB SERP investments | 0 | 106 | 0 |
DB SERP | |||
Financial Instruments [Line Items] | |||
Proceeds from DB SERP investments | 0 | 142 | 145 |
DB SERP | Consumers Energy Company | |||
Financial Instruments [Line Items] | |||
Proceeds from DB SERP investments | $ 0 | $ 103 | $ 105 |
Financial Instruments (Schedu_2
Financial Instruments (Schedule Of Investment Securities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Instruments [Abstract] | ||
Cost | $ 26 | $ 22 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 1 |
Fair Value | $ 26 | $ 21 |
Notes Receivable (Schedule Of C
Notes Receivable (Schedule Of Current And Non-Current Notes Receivable) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current | ||
Current notes receivable | $ 223 | $ 233 |
Non‑current | ||
Total notes receivable | 2,500 | 1,857 |
Consumers Energy Company | ||
Current | ||
DB SERP note receivable – related party | 7 | 7 |
Non‑current | ||
Accounts and notes receivable – related parties | 96 | 99 |
Total notes receivable | 103 | 106 |
EnerBank | ||
Current | ||
Current notes receivable | 242 | 233 |
Non‑current | ||
Notes receivable | 2,258 | 1,624 |
EnerBank | EnerBank notes receivable, net of allowance for loan losses | ||
Current | ||
Current notes receivable | 223 | 233 |
EnerBank | EnerBank notes receivable held for sale | ||
Current | ||
Current notes receivable | $ 19 | $ 0 |
Notes Receivable (Narrative) (D
Notes Receivable (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Sale of notes receivable | $ 67,000,000 | $ 0 | $ 50,000,000 |
Notes and accrued interest receivable | 223,000,000 | $ 233,000,000 | |
CMS Energy Note Payable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest rate | 4.10% | ||
EnerBank | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Sale of notes receivable | 67,000,000 | ||
Notes and accrued interest receivable | 242,000,000 | $ 233,000,000 | |
Unearned income | 134,000,000 | 102,000,000 | |
Delinquent loans | 33,000,000 | 21,000,000 | |
EnerBank | EnerBank notes receivable held for sale | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Notes and accrued interest receivable | 19,000,000 | $ 0 | |
Unearned income | 2,000,000 | ||
EnerBank | Retail Installment Contracts | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Consumer retail installment contracts | 373,000,000 | ||
EnerBank | Interest Rate Swap, Notes Receivable | Fair Value Hedging | Designated as Hedging Instrument | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Notional amount | $ 134,000,000 |
Notes Receivable (Schedule Of A
Notes Receivable (Schedule Of Allowance For Loan Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Notes, Loans, And Financing Receivable, Net Rollforward [Roll Forward] | ||
Allowance for loan losses, at beginning of period | $ 24 | $ 20 |
Charge-offs | (35) | (24) |
Recoveries | 6 | 3 |
Provision for loan losses | 38 | 25 |
Allowance for loan losses, at end of period | $ 33 | $ 24 |
Plant, Property, and Equipmen_2
Plant, Property, and Equipment (Schedule Of Plant, Property, and Equipment) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)coal_fueled_electric_generating_unit | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Public Utility, Property, Plant and Equipment [Line Items] | |||
Plant, property, and equipment, gross | $ 25,390 | $ 24,400 | $ 22,506 |
Construction work in progress | 896 | 763 | |
Accumulated depreciation and amortization | (7,360) | (7,037) | |
Total plant, property, and equipment | 18,926 | 18,126 | |
Regulatory assets | 2,489 | 1,743 | |
Consumers Energy Company | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Plant, property, and equipment, gross | 24,963 | 23,963 | 22,318 |
Assets under finance leases and other financing obligations | 340 | 309 | $ 312 |
Construction work in progress | 879 | 756 | |
Accumulated depreciation and amortization | (7,272) | (6,958) | |
Total plant, property, and equipment | 18,570 | 17,761 | |
Plant additions | 2,000 | 1,800 | |
Plant retirements | 380 | 190 | |
Regulatory assets | $ 2,489 | 1,743 | |
Consumers Energy Company | Minimum | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated depreciable life in years, consumers | 3 years | ||
Consumers Energy Company | Maximum | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated depreciable life in years, consumers | 125 years | ||
Independent power production1 | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Plant, property, and equipment, gross | $ 403 | 410 | |
Independent power production1 | Minimum | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated depreciable life in years, other | 3 years | ||
Independent power production1 | Maximum | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated depreciable life in years, other | 40 years | ||
Other | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Plant, property, and equipment, gross | $ 2 | 2 | |
Other | Minimum | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated depreciable life in years, other | 3 years | ||
Other | Maximum | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated depreciable life in years, other | 5 years | ||
Generation | Consumers Energy Company | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Generation | $ 5,942 | 6,305 | |
Generation | Consumers Energy Company | Minimum | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated depreciable life in years, generation | 22 years | ||
Generation | Consumers Energy Company | Maximum | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated depreciable life in years, generation | 125 years | ||
Distribution | Consumers Energy Company | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Distribution | $ 8,519 | 7,957 | |
Distribution | Consumers Energy Company | Minimum | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated depreciable life in years, distribution | 20 years | ||
Distribution | Consumers Energy Company | Maximum | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated depreciable life in years, distribution | 75 years | ||
Transmission | Consumers Energy Company | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Transmission | $ 113 | 154 | |
Transmission | Consumers Energy Company | Minimum | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated depreciable life in years, transmission | 46 years | ||
Transmission | Consumers Energy Company | Maximum | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated depreciable life in years, transmission | 75 years | ||
Other | Consumers Energy Company | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Other | $ 1,258 | 1,316 | |
Other | Consumers Energy Company | Minimum | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated depreciable life in years, other | 5 years | ||
Other | Consumers Energy Company | Maximum | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated depreciable life in years, other | 50 years | ||
Assets under finance leases and other financing obligations | Consumers Energy Company | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Assets under finance leases and other financing obligations | $ 326 | 295 | |
Distribution | Consumers Energy Company | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Distribution | $ 5,235 | 4,651 | |
Distribution | Consumers Energy Company | Minimum | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated depreciable life in years, distribution | 20 years | ||
Distribution | Consumers Energy Company | Maximum | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated depreciable life in years, distribution | 85 years | ||
Transmission | Consumers Energy Company | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Transmission | $ 1,752 | 1,521 | |
Transmission | Consumers Energy Company | Minimum | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated depreciable life in years, transmission | 17 years | ||
Transmission | Consumers Energy Company | Maximum | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated depreciable life in years, transmission | 75 years | ||
Underground Storage Facilities | Consumers Energy Company | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Other | $ 987 | 910 | |
Underground Storage Facilities | Consumers Energy Company | Minimum | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated depreciable life in years, other | 27 years | ||
Underground Storage Facilities | Consumers Energy Company | Maximum | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated depreciable life in years, other | 75 years | ||
Other | Consumers Energy Company | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Other | $ 797 | 823 | |
Other | Consumers Energy Company | Minimum | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated depreciable life in years, other | 5 years | ||
Other | Consumers Energy Company | Maximum | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated depreciable life in years, other | 50 years | ||
Finance leases | Consumers Energy Company | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Assets under finance leases and other financing obligations | $ 14 | 14 | |
Other non‑utility property | Consumers Energy Company | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Other non‑utility property | $ 20 | 17 | |
Other non‑utility property | Consumers Energy Company | Minimum | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated depreciable life in years, other | 3 years | ||
Other non‑utility property | Consumers Energy Company | Maximum | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated depreciable life in years, other | 51 years | ||
Costs of coal-fueled electric generating units to be retired | Consumers Energy Company | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Number of units | coal_fueled_electric_generating_unit | 2 | ||
Natural Gas | Underground Storage Facilities | Consumers Energy Company | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Other | $ 26 | 26 | |
EnerBank | Minimum | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated depreciable life in years, consumers | 1 year | ||
EnerBank | Maximum | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Estimated depreciable life in years, consumers | 7 years | ||
Costs of coal-fueled electric generating units to be retired | Consumers Energy Company | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Regulatory assets | $ 667 | $ 0 |
Plant, Property, and Equipmen_3
Plant, Property, and Equipment (Schedule of Finite-Lived Intangible Assets by Major Class Table) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gross cost | $ 1,114 | $ 1,242 |
Accumulated Amortization | 615 | 686 |
Consumers Energy Company | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gross cost | 1,100 | 1,226 |
Accumulated Amortization | 607 | 678 |
Plant additions | 2,000 | 1,800 |
Plant retirements | 380 | 190 |
Software development | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gross cost | 882 | 1,024 |
Accumulated Amortization | 529 | 603 |
Software development | Consumers Energy Company | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gross cost | 869 | 1,009 |
Accumulated Amortization | 521 | 595 |
Leasehold improvements | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gross cost | 9 | 9 |
Accumulated Amortization | 7 | 7 |
Leasehold improvements | Consumers Energy Company | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gross cost | 9 | 9 |
Accumulated Amortization | 7 | 7 |
Intangible Plant | Consumers Energy Company | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Plant additions | 67 | 90 |
Plant retirements | 193 | 7 |
Rights of way | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gross cost | 180 | 167 |
Accumulated Amortization | 55 | 52 |
Rights of way | Consumers Energy Company | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gross cost | 180 | 167 |
Accumulated Amortization | 55 | 52 |
Franchises and consents | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gross cost | 16 | 15 |
Accumulated Amortization | 9 | 9 |
Franchises and consents | Consumers Energy Company | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gross cost | 16 | 15 |
Accumulated Amortization | 9 | 9 |
Other intangible assets | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gross cost | 27 | 27 |
Accumulated Amortization | 15 | 15 |
Other intangible assets | Consumers Energy Company | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gross cost | 26 | 26 |
Accumulated Amortization | $ 15 | $ 15 |
Minimum | Software development | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Amortization Life in Years | 1 year | |
Minimum | Software development | Consumers Energy Company | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Amortization Life in Years | 3 years | |
Minimum | Rights of way | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Amortization Life in Years | 50 years | |
Minimum | Rights of way | Consumers Energy Company | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Amortization Life in Years | 50 years | |
Minimum | Franchises and consents | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Amortization Life in Years | 5 years | |
Minimum | Franchises and consents | Consumers Energy Company | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Amortization Life in Years | 5 years | |
Maximum | Software development | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Amortization Life in Years | 15 years | |
Maximum | Software development | Consumers Energy Company | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Amortization Life in Years | 15 years | |
Maximum | Rights of way | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Amortization Life in Years | 85 years | |
Maximum | Rights of way | Consumers Energy Company | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Amortization Life in Years | 85 years | |
Maximum | Franchises and consents | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Amortization Life in Years | 50 years | |
Maximum | Franchises and consents | Consumers Energy Company | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Amortization Life in Years | 50 years |
Plant, Property, and Equipmen_4
Plant, Property, and Equipment (Public Utilities, Allowance for Funds Used During Construction, Schedule of Composite Rate Table) (Details) - Consumers Energy Company | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Electric Utility | |||
Property, Plant and Equipment [Line Items] | |||
AFUDC Capitalization rate | 6.40% | 6.90% | 6.80% |
Gas Utility | |||
Property, Plant and Equipment [Line Items] | |||
AFUDC Capitalization rate | 5.80% | 5.90% | 6.00% |
Plant, Property, and Equipmen_5
Plant, Property, and Equipment (Schedule of Finance Leases and Other Financing Obligations) (Details) - Consumers Energy Company - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finance Leases and Other Financing Obligations, Rollforward [Roll Forward] | ||
Balance at beginning of period | $ 309 | $ 312 |
Additions | 26 | 0 |
Net retirements and other adjustments | 5 | (3) |
Balance at end of period | 340 | 309 |
Less accumulated depreciation and amortization | $ 239 | $ 212 |
Plant, Property, and Equipmen_6
Plant, Property, and Equipment (Schedule Of Depreciation And Amortization) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Public Utility, Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation and amortization | $ 7,360 | $ 7,037 |
Consumers Energy Company | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation and amortization | 7,272 | 6,958 |
Utility plant assets | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation and amortization | 7,269 | 6,956 |
Utility plant assets | Consumers Energy Company | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation and amortization | 7,269 | 6,956 |
Non‑utility plant assets | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation and amortization | 91 | 81 |
Non‑utility plant assets | Consumers Energy Company | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation and amortization | $ 3 | $ 2 |
Plant, Property, and Equipmen_7
Plant, Property, and Equipment (Public Utilities Property Plant and Equipment Schedule of Composite Depreciation Rate Table) (Details) - Consumers Energy Company | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Electric utility property | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Composite depreciation rate | 3.90% | 3.90% | 3.90% |
Gas utility property | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Composite depreciation rate | 2.90% | 2.90% | 2.90% |
Other property | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Composite depreciation rate | 10.00% | 10.10% | 10.00% |
Plant, Property, and Equipmen_8
Plant, Property, and Equipment (Schedule Of Depreciation And Amortization Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense – plant, property, and equipment | $ 842 | $ 778 | $ 739 |
Total depreciation and amortization expense | 992 | 933 | 881 |
Securitized regulatory assets | |||
Property, Plant and Equipment [Line Items] | |||
Amortization expense | 26 | 25 | 25 |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Amortization expense | 121 | 127 | 114 |
Other intangible assets | |||
Property, Plant and Equipment [Line Items] | |||
Amortization expense | 3 | 3 | 3 |
Consumers Energy Company | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense – plant, property, and equipment | 827 | 768 | 732 |
Total depreciation and amortization expense | 975 | 921 | 872 |
Consumers Energy Company | Securitized regulatory assets | |||
Property, Plant and Equipment [Line Items] | |||
Amortization expense | 26 | 25 | 25 |
Consumers Energy Company | Software | |||
Property, Plant and Equipment [Line Items] | |||
Amortization expense | 119 | 125 | 112 |
Consumers Energy Company | Other intangible assets | |||
Property, Plant and Equipment [Line Items] | |||
Amortization expense | $ 3 | $ 3 | $ 3 |
Plant, Property, and Equipmen_9
Plant, Property, and Equipment (Schedule Of Estimated Amortization Expense For Intangibles) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Public Utility, Property, Plant and Equipment [Line Items] | |
2020 | $ 118 |
2021 | 112 |
2022 | 107 |
2023 | 87 |
2024 | 70 |
Consumers Energy Company | |
Public Utility, Property, Plant and Equipment [Line Items] | |
2020 | 116 |
2021 | 110 |
2022 | 106 |
2023 | 87 |
2024 | $ 70 |
Plant, Property, and Equipme_10
Plant, Property, and Equipment (Jointly Owned Regulated Utility Facilities) (Details) - Consumers Energy Company $ in Millions | Dec. 31, 2019USD ($) |
J.H. Campbell Unit 3 | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Ownership share | 93.30% |
Utility plant in service | $ 1,731 |
Accumulated depreciation | (753) |
Construction work in progress | 16 |
Net investment | $ 994 |
Ludington | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Ownership share | 51.00% |
Utility plant in service | $ 486 |
Accumulated depreciation | (166) |
Construction work in progress | 64 |
Net investment | 384 |
Other | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Utility plant in service | 233 |
Accumulated depreciation | (68) |
Construction work in progress | 15 |
Net investment | $ 180 |
Leases and Palisades Financin_2
Leases and Palisades Financing - Assets and Liabilities of Lessee (Details) $ in Millions | Dec. 31, 2019USD ($) |
Operating leases | |
Right-of-use assets | $ 47 |
Lease liabilities | |
Current lease liabilities | 9 |
Noncurrent lease liabilities | 37 |
Finance lease liability | 66 |
Finance leases | |
Right-of-use assets | 71 |
Lease liabilities | |
Current lease liabilities | 6 |
Non‑current lease liabilities | $ 60 |
Weighted-average remaining lease term (in years) | |
Operating leases | 17 years |
Finance leases | 12 years |
Weighted-average discount rate | |
Operating leases | 3.80% |
Finance leases | 1.90% |
Consumers Energy Company | |
Operating leases | |
Right-of-use assets | $ 40 |
Lease liabilities | |
Current lease liabilities | 8 |
Noncurrent lease liabilities | 32 |
Finance lease liability | 66 |
Finance leases | |
Right-of-use assets | 71 |
Lease liabilities | |
Current lease liabilities | 6 |
Non‑current lease liabilities | $ 60 |
Weighted-average remaining lease term (in years) | |
Operating leases | 14 years |
Finance leases | 12 years |
Weighted-average discount rate | |
Operating leases | 3.70% |
Finance leases | 1.90% |
Related Party Lease | |
Lease liabilities | |
Finance lease liability | $ 25 |
Related Party Lease | Consumers Energy Company | |
Lease liabilities | |
Finance lease liability | 25 |
Lease liabilities | |
Current lease liabilities | 1 |
Maximum | Related Party Lease | |
Lease liabilities | |
Current lease liabilities | $ 1 |
Leases and Palisades Financin_3
Leases and Palisades Financing - Schedule of Lease Costs (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Operating lease costs | $ 11 |
Finance lease costs | |
Amortization of right-of-use assets | 6 |
Interest on lease liabilities | 18 |
Variable lease costs | 95 |
Total lease costs | 130 |
Consumers Energy Company | |
Lessee, Lease, Description [Line Items] | |
Operating lease costs | 9 |
Finance lease costs | |
Amortization of right-of-use assets | 6 |
Interest on lease liabilities | 18 |
Variable lease costs | 95 |
Total lease costs | $ 128 |
Leases and Palisades Financin_4
Leases and Palisades Financing - Schedule of Lessee Cash Flows (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Cash used in operating activities for operating leases | $ 11 |
Cash used in operating activities for finance leases | 18 |
Cash used in financing activities for finance leases | 7 |
Consumers Energy Company | |
Cash paid for amounts included in the measurement of lease liabilities | |
Cash used in operating activities for operating leases | 9 |
Cash used in operating activities for finance leases | 18 |
Cash used in financing activities for finance leases | $ 7 |
Leases and Palisades Financin_5
Leases and Palisades Financing - Minimum Annual Rental Commitments post Topic 842 (Details) $ in Millions | Dec. 31, 2019USD ($) |
Operating Leases | |
2020 | $ 11 |
2021 | 11 |
2022 | 5 |
2023 | 3 |
2024 | 2 |
2025 and thereafter | 35 |
Total minimum lease payments | 67 |
Less discount | 21 |
Present value of minimum lease payments | 46 |
Finance Leases | |
2020 | 23 |
2021 | 23 |
2022 | 19 |
2023 | 18 |
2024 | 16 |
2025 and thereafter | 90 |
Total minimum lease payments | 189 |
Less discount | 123 |
Present value of minimum lease payments | 66 |
Consumers Energy Company | |
Operating Leases | |
2020 | 9 |
2021 | 9 |
2022 | 4 |
2023 | 3 |
2024 | 2 |
2025 and thereafter | 29 |
Total minimum lease payments | 56 |
Less discount | 16 |
Present value of minimum lease payments | 40 |
Finance Leases | |
2020 | 23 |
2021 | 23 |
2022 | 19 |
2023 | 18 |
2024 | 16 |
2025 and thereafter | 90 |
Total minimum lease payments | 189 |
Less discount | 123 |
Present value of minimum lease payments | 66 |
Pipelines and PPAs | |
Finance Leases | |
2020 | 17 |
2021 | 17 |
2022 | 14 |
2023 | 13 |
2024 | 13 |
2025 and thereafter | 78 |
Total minimum lease payments | 152 |
Less discount | 119 |
Present value of minimum lease payments | 33 |
Pipelines and PPAs | Consumers Energy Company | |
Finance Leases | |
2020 | 17 |
2021 | 17 |
2022 | 14 |
2023 | 13 |
2024 | 13 |
2025 and thereafter | 78 |
Total minimum lease payments | 152 |
Less discount | 119 |
Present value of minimum lease payments | 33 |
Other | |
Finance Leases | |
2020 | 6 |
2021 | 6 |
2022 | 5 |
2023 | 5 |
2024 | 3 |
2025 and thereafter | 12 |
Total minimum lease payments | 37 |
Less discount | 4 |
Present value of minimum lease payments | 33 |
Other | Consumers Energy Company | |
Finance Leases | |
2020 | 6 |
2021 | 6 |
2022 | 5 |
2023 | 5 |
2024 | 3 |
2025 and thereafter | 12 |
Total minimum lease payments | 37 |
Less discount | 4 |
Present value of minimum lease payments | $ 33 |
Leases and Palisades Financin_6
Leases and Palisades Financing - Lessor Leases Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract] | |
Minimum rental payments to be received 2025 and thereafter | $ 10 |
Unearned income | 5 |
Lease receivables | 5 |
Maximum | |
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract] | |
Minimum rental payments to be received 2020 | 1 |
Minimum annual rental payments to be received in 2021 | 1 |
Minimum annual rental payments to be received in 2022 | 1 |
Minimum annual rental payments to be received in 2023 | 1 |
Minimum rental payments to be received in 2024 | 1 |
Consumers Energy Company | |
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract] | |
Minimum rental payments to be received 2020 | 1 |
Minimum annual rental payments to be received in 2021 | 1 |
Minimum annual rental payments to be received in 2022 | 1 |
Minimum annual rental payments to be received in 2023 | 1 |
Minimum rental payments to be received in 2024 | 1 |
Minimum rental payments to be received 2025 and thereafter | 19 |
Unearned income | 14 |
Lease receivables | 10 |
Power Sales Agreement | |
Lessor, Lease, Description [Line Items] | |
Leasing income | 174 |
Variable lease income | $ 119 |
CMS Energy Subsidiary | Natural Gas Transportation Agreement | Consumers Energy Company | |
Lessor, Lease, Description [Line Items] | |
Direct financing lease term | 20 years |
Leases and Palisades Financin_7
Leases and Palisades Financing - Schedule of Future Payments to be Received (Details) $ in Millions | Dec. 31, 2019USD ($) |
Operating Leases | |
2020 | $ 55 |
2021 | 55 |
2022 | 48 |
2023 | 43 |
2024 | 43 |
2025 and thereafter | 62 |
Total minimum lease payments | $ 306 |
Leases and Palisades Financin_8
Leases and Palisades Financing - Palisades Financing (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019USD ($)MW | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2007 | |
Other Commitments [Line Items] | ||||
Non‑current lease liabilities | $ 11,951 | $ 10,615 | ||
Finance Obligation | ||||
2020 | 1,111 | |||
2021 | 538 | |||
2022 | 1,354 | |||
Total minimum payments | 13,188 | 11,683 | ||
Less discount | (27) | (21) | ||
Current lease liabilities | 1,111 | 974 | ||
Consumers Energy Company | ||||
Other Commitments [Line Items] | ||||
Non‑current lease liabilities | 7,048 | 6,779 | ||
Finance Obligation | ||||
2020 | 202 | |||
2021 | 27 | |||
2022 | 653 | |||
Total minimum payments | 7,322 | 6,862 | ||
Less discount | 23 | 16 | ||
Current lease liabilities | $ 202 | 26 | ||
Financing Obligation | Consumers Energy Company | Palisades Power Purchase Agreement | ||||
Other Commitments [Line Items] | ||||
Finance obligation term | 15 years | |||
Annual average capacity (in MW) | MW | 798 | |||
Amortization and interest expense | $ 15 | $ 16 | $ 17 | |
Right-of-use assets | 29 | |||
Non‑current lease liabilities | 16 | |||
Finance Obligation | ||||
2020 | 14 | |||
2021 | 14 | |||
2022 | 3 | |||
Total minimum payments | 31 | |||
Less discount | 2 | |||
Financing obligation | 29 | |||
Current lease liabilities | 13 | |||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | $ 29 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
ARO Liability, at beginning of period | $ 432 | $ 430 |
Incurred | 55 | 20 |
Settled | (38) | (40) |
Accretion | 21 | 22 |
Cash Flow Revisions | 7 | 0 |
ARO Liability, end of period | 477 | 432 |
Consumers Energy Company | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
ARO Liability, at beginning of period | 428 | 429 |
Incurred | 55 | 17 |
Settled | (37) | (40) |
Accretion | 21 | 22 |
Cash Flow Revisions | 7 | 0 |
ARO Liability, end of period | 474 | 428 |
Gas treating plant and gas wells | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
ARO Liability, at beginning of period | 1 | 1 |
Incurred | 0 | 0 |
Settled | (1) | 0 |
Accretion | 0 | 0 |
Cash Flow Revisions | 0 | 0 |
ARO Liability, end of period | 0 | 1 |
Coal ash disposal areas | Consumers Energy Company | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
ARO Liability, at beginning of period | 179 | 191 |
Incurred | 0 | 0 |
Settled | (27) | (20) |
Accretion | 7 | 8 |
Cash Flow Revisions | 7 | 0 |
ARO Liability, end of period | 166 | 179 |
Gas distribution cut, purge, and cap | Consumers Energy Company | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
ARO Liability, at beginning of period | 205 | 186 |
Incurred | 22 | 17 |
Settled | (8) | (9) |
Accretion | 12 | 11 |
Cash Flow Revisions | 0 | 0 |
ARO Liability, end of period | 231 | 205 |
Asbestos abatement | Consumers Energy Company | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
ARO Liability, at beginning of period | 33 | 42 |
Incurred | 0 | 0 |
Settled | (1) | (11) |
Accretion | 2 | 2 |
Cash Flow Revisions | 0 | 0 |
ARO Liability, end of period | 34 | 33 |
Renewable generation assets | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
ARO Liability, at beginning of period | 3 | 0 |
Incurred | 0 | 3 |
Settled | 0 | 0 |
Accretion | 0 | 0 |
Cash Flow Revisions | 0 | 0 |
ARO Liability, end of period | 3 | 3 |
Renewable generation assets | Consumers Energy Company | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
ARO Liability, at beginning of period | 11 | 10 |
Incurred | 10 | 0 |
Settled | 0 | 0 |
Accretion | 0 | 1 |
Cash Flow Revisions | 0 | 0 |
ARO Liability, end of period | 21 | 11 |
Gas wells plug and abandon | Consumers Energy Company | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
ARO Liability, at beginning of period | 0 | |
Incurred | 23 | |
Settled | (1) | |
Accretion | 0 | |
Cash Flow Revisions | 0 | |
ARO Liability, end of period | $ 22 | $ 0 |
Retirement Benefits (Narrative)
Retirement Benefits (Narrative) (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2020USD ($) | Jul. 31, 2018USD ($) | Dec. 31, 2019USD ($)year | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Union employees percentage | 35.00% | ||||
Consumers Energy Company | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Union employees percentage | 37.00% | ||||
DB Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan amendments | $ 0 | $ 0 | |||
Period for gains or losses to be included in market related value | 5 years | ||||
ABO | $ 2,600 | 2,200 | |||
Expected employer contributions 2020 | $ 0 | $ 240 | |||
DB Pension Plans | Consumers Energy Company | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Period for gains or losses to be included in market related value | 5 years | ||||
DB Pension Plans | Equity securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target allocation percentage | 53.00% | ||||
DB Pension Plans | Fixed-income securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target allocation percentage | 35.00% | ||||
DB Pension Plans | Multi-asset investments | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target allocation percentage | 12.00% | ||||
OPEB Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Retirement age requirement | year | 55 | ||||
Retirement years of service | 10 years | ||||
Retirement years of service with disability | 15 years | ||||
Ultimate health care cost trend rate | 4.75% | ||||
Year health care cost trend rate reaches ultimate trend rate | 2027 | ||||
Plan amendments | $ 26 | $ 0 | |||
Estimated time of amortization of gains losses | 10 years | 10 years | 11 years | ||
Estimated time of prior service cost | 9 years | ||||
Service cost discount rate | 4.63% | 3.93% | 4.89% | ||
Expected employer contributions 2020 | $ 0 | $ 0 | |||
OPEB Plan | Consumers Energy Company | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Retirement age requirement | year | 55 | ||||
Retirement years of service | 10 years | ||||
Retirement years of service with disability | 15 years | ||||
Ultimate health care cost trend rate | 4.75% | ||||
Plan amendments | $ 0 | 25 | |||
Expected employer contributions 2020 | $ 0 | 0 | |||
Pension And OPEB | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Amortized net gains and losses in excess of PBO or MRV | 10.00% | ||||
Postretirement Health Trusts | Equity securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target allocation percentage | 50.00% | ||||
Postretirement Health Trusts | Fixed-income securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target allocation percentage | 30.00% | ||||
Postretirement Health Trusts | Multi-asset investments | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target allocation percentage | 20.00% | ||||
Postretirement Life Trusts | Equity securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target allocation percentage | 42.00% | ||||
Postretirement Life Trusts | Fixed-income securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target allocation percentage | 28.00% | ||||
Postretirement Life Trusts | Multi-asset investments | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target allocation percentage | 30.00% | ||||
Defined Company Contribution Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan cost, defined contribution plan | $ 30 | 26 | $ 23 | ||
Defined Company Contribution Plan | Consumers Energy Company | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan cost, defined contribution plan | 28 | 25 | 22 | ||
DC SERP | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan cost, defined contribution plan | $ 2 | 1 | 1 | ||
Minimum years of participation before vesting | 5 years | ||||
Trust assets | $ 8 | 5 | |||
401 (K) Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer match of eligible wages | 3.00% | ||||
Plan cost, defined contribution plan | $ 28 | 27 | 26 | ||
Employer match of eligible contributions | 100.00% | ||||
Secondary employer match of eligible contributions | 50.00% | ||||
Secondary employer match of eligible wages | 2.00% | ||||
401 (K) Plan | Consumers Energy Company | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan cost, defined contribution plan | $ 27 | $ 26 | $ 25 | ||
Pension Plan A | DB Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Estimated time of amortization of gains losses | 9 years | 9 years | 10 years | ||
Service cost discount rate | 4.55% | 3.85% | |||
ABO | $ 1,398 | $ 1,091 | |||
Pension Plan B | DB Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Estimated time of amortization of gains (losses) life expectancy | 20 years | 20 years | 10 years | ||
Service cost discount rate | 4.53% | ||||
Minimum | Defined Company Contribution Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer match of eligible wages | 5.00% | ||||
Minimum | DC SERP | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan contribution percentage | 5.00% | ||||
Maximum | Defined Company Contribution Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer match of eligible wages | 7.00% | ||||
Maximum | DC SERP | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan contribution percentage | 15.00% | ||||
Under Age 65 | OPEB Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Health care cost trend rate assumed next fiscal year | 6.75% | 7.00% | |||
Under Age 65 | OPEB Plan | Consumers Energy Company | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Health care cost trend rate assumed next fiscal year | 6.75% | 7.00% | |||
Over Age 65 | OPEB Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Health care cost trend rate assumed next fiscal year | 7.25% | 7.75% | |||
Over Age 65 | OPEB Plan | Consumers Energy Company | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Health care cost trend rate assumed next fiscal year | 7.25% | 7.75% | |||
Subsequent Event | DB Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected employer contributions 2020 | $ 531 | ||||
Subsequent Event | DB Pension Plans | Consumers Energy Company | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected employer contributions 2020 | $ 518 |
Retirement Benefits (Schedule O
Retirement Benefits (Schedule Of SERP Trust Assets, ABO And Contributions) (Details) - DB SERP - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Trust assets | $ 0 | $ 0 | $ 0 |
ABO | 149 | 137 | |
Contributions | 0 | 8 | |
Consumers Energy Company | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Trust assets | 0 | 0 | $ 0 |
ABO | 107 | 98 | |
Contributions | 0 | 5 | |
Trust assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Trust assets | 143 | 147 | |
Trust assets | Consumers Energy Company | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Trust assets | $ 104 | $ 106 |
Retirement Benefits (Schedule_2
Retirement Benefits (Schedule Of Assumptions Used) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
DB Pension Plans | |||
Weighted average for net periodic benefit cost | |||
Expected long-term rate of return on plan assets | 7.00% | 7.00% | 7.25% |
Actual rate of return on plan assets | 21.00% | (6.70%) | 18.00% |
DB SERP | |||
Weighted average for benefit obligations | |||
Discount rate | 3.15% | 4.32% | 3.65% |
Rate of compensation increase | 5.50% | 5.50% | 5.50% |
Weighted average for net periodic benefit cost | |||
Service cost discount rate | 4.58% | 3.83% | 4.51% |
Interest cost discount rate | 3.94% | 3.26% | 3.51% |
Rate of compensation increase | 5.50% | 5.50% | 5.50% |
OPEB Plan | |||
Weighted average for benefit obligations | |||
Discount rate | 3.32% | 4.42% | 3.74% |
Weighted average for net periodic benefit cost | |||
Service cost discount rate | 4.63% | 3.93% | 4.89% |
Interest cost discount rate | 4.03% | 3.35% | 3.79% |
Expected long-term rate of return on plan assets | 7.00% | 7.00% | 7.25% |
Pension Plan A | DB Pension Plans | |||
Weighted average for benefit obligations | |||
Discount rate | 3.37% | 4.48% | 3.78% |
Rate of compensation increase | 3.50% | 3.50% | 3.50% |
Weighted average for net periodic benefit cost | |||
Service cost discount rate | 4.55% | 3.85% | |
Interest cost discount rate | 4.08% | 3.39% | |
Rate of compensation increase | 3.50% | 3.50% | |
Pension Plan B | DB Pension Plans | |||
Weighted average for benefit obligations | |||
Discount rate | 3.17% | 4.32% | 3.64% |
Weighted average for net periodic benefit cost | |||
Service cost discount rate | 4.53% | ||
Interest cost discount rate | 3.93% | 3.24% | 3.56% |
Rate of compensation increase | 3.60% |
Retirement Benefits (Schedule_3
Retirement Benefits (Schedule Of Net Benefit Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
DB Pension Plans and DB SERP | |||
Defined Benefit Plan, Roll Forwards [Abstract] | |||
Service cost | $ 41 | $ 48 | $ 45 |
Interest cost | 103 | 95 | 93 |
Expected return on plan assets | (162) | (149) | (153) |
Amortization of | |||
Net loss | 50 | 76 | 82 |
Prior service cost (credit) | 1 | 3 | 5 |
Net periodic cost (credit) | 33 | 73 | 72 |
DB Pension Plans and DB SERP | Consumers Energy Company | |||
Defined Benefit Plan, Roll Forwards [Abstract] | |||
Service cost | 40 | 47 | 44 |
Interest cost | 97 | 88 | 90 |
Expected return on plan assets | (153) | (139) | (149) |
Amortization of | |||
Net loss | 47 | 73 | 79 |
Prior service cost (credit) | 1 | 3 | 4 |
Net periodic cost (credit) | 32 | 72 | 68 |
OPEB Plan | |||
Defined Benefit Plan, Roll Forwards [Abstract] | |||
Service cost | 14 | 17 | 19 |
Interest cost | 41 | 34 | 51 |
Expected return on plan assets | (88) | (97) | (90) |
Amortization of | |||
Net loss | 26 | 15 | 29 |
Prior service cost (credit) | (62) | (67) | (40) |
Net periodic cost (credit) | (69) | (98) | (31) |
OPEB Plan | Consumers Energy Company | |||
Defined Benefit Plan, Roll Forwards [Abstract] | |||
Service cost | 13 | 16 | 19 |
Interest cost | 40 | 33 | 49 |
Expected return on plan assets | (82) | (91) | (84) |
Amortization of | |||
Net loss | 26 | 16 | 29 |
Prior service cost (credit) | (61) | (65) | (39) |
Net periodic cost (credit) | $ (64) | $ (91) | $ (26) |
Retirement Benefits (Schedule_4
Retirement Benefits (Schedule Of Benefit Obligations In Excess Of Fair Value Of Plan Assets) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
DB Pension Plans | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation at beginning of period | $ 2,512 | $ 2,780 | ||
Service cost | 41 | 48 | ||
Interest cost | 98 | 90 | ||
Plan amendments | 0 | 0 | ||
Actuarial loss (gain) | 476 | (258) | ||
Benefits paid | (154) | (148) | ||
Benefit obligation at end of period | 2,973 | 2,512 | $ 2,780 | |
Defined Benefit Plan, Roll Forwards [Abstract] | ||||
Plan assets at fair value at beginning of period | 2,247 | 2,305 | ||
Actual return on plan assets | 453 | (150) | ||
Company contribution | 0 | 240 | ||
Actual benefits paid | (154) | (148) | ||
Plan assets at fair value at end of period | 2,546 | 2,247 | 2,305 | |
Funded status | (427) | (265) | ||
DB Pension Plans | Consumers Energy Company | ||||
Defined Benefit Plan, Roll Forwards [Abstract] | ||||
Funded status | (408) | (246) | ||
DB SERP | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation at beginning of period | 140 | 154 | ||
Service cost | 0 | 0 | ||
Interest cost | 5 | 5 | ||
Plan amendments | 0 | 0 | ||
Actuarial loss (gain) | 15 | (10) | ||
Benefits paid | (10) | (9) | ||
Benefit obligation at end of period | 150 | 140 | 154 | |
Defined Benefit Plan, Roll Forwards [Abstract] | ||||
Plan assets at fair value at beginning of period | 0 | 0 | ||
Actual return on plan assets | 0 | 0 | ||
Company contribution | 10 | 9 | ||
Actual benefits paid | (10) | (9) | ||
Plan assets at fair value at end of period | 0 | 0 | 0 | |
Funded status | (150) | (140) | ||
DB SERP | Consumers Energy Company | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation at beginning of period | 101 | 112 | ||
Service cost | 0 | 0 | ||
Interest cost | 4 | 4 | ||
Plan amendments | 0 | 0 | ||
Actuarial loss (gain) | 11 | (8) | ||
Benefits paid | (7) | (7) | ||
Benefit obligation at end of period | 109 | 101 | 112 | |
Defined Benefit Plan, Roll Forwards [Abstract] | ||||
Plan assets at fair value at beginning of period | 0 | 0 | ||
Actual return on plan assets | 0 | 0 | ||
Company contribution | 7 | 7 | ||
Actual benefits paid | (7) | (7) | ||
Plan assets at fair value at end of period | 0 | 0 | 0 | |
Funded status | (109) | (101) | ||
OPEB Plan | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation at beginning of period | 1,045 | 1,097 | ||
Service cost | 14 | 17 | 19 | |
Interest cost | 41 | 34 | 51 | |
Plan amendments | $ 26 | 0 | ||
Actuarial loss (gain) | 110 | (74) | ||
Benefits paid | (45) | (55) | ||
Benefit obligation at end of period | 1,165 | 1,045 | 1,097 | |
Defined Benefit Plan, Roll Forwards [Abstract] | ||||
Plan assets at fair value at beginning of period | 1,280 | 1,420 | ||
Actual return on plan assets | 273 | (86) | ||
Company contribution | 0 | 0 | ||
Actual benefits paid | (44) | (54) | ||
Plan assets at fair value at end of period | 1,509 | 1,280 | 1,420 | |
Funded status | 344 | 235 | ||
OPEB Plan | Consumers Energy Company | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation at beginning of period | 1,004 | 1,053 | ||
Service cost | 13 | 16 | 19 | |
Interest cost | 40 | 33 | 49 | |
Plan amendments | 0 | 25 | ||
Actuarial loss (gain) | 106 | (70) | ||
Benefits paid | (43) | (53) | ||
Benefit obligation at end of period | 1,120 | 1,004 | 1,053 | |
Defined Benefit Plan, Roll Forwards [Abstract] | ||||
Plan assets at fair value at beginning of period | 1,197 | 1,329 | ||
Actual return on plan assets | 255 | (80) | ||
Company contribution | 0 | 0 | ||
Actual benefits paid | (42) | (52) | ||
Plan assets at fair value at end of period | 1,410 | 1,197 | $ 1,329 | |
Funded status | $ 290 | $ 193 |
Retirement Benefits (Schedule_5
Retirement Benefits (Schedule Of Retirement Benefit Plan Assets (Liabilities)) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current liabilities | $ 674 | $ 436 |
Consumers Energy Company | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current liabilities | 622 | 392 |
DB Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current assets | 104 | 38 |
Non-current liabilities | 531 | 303 |
DB Pension Plans | Consumers Energy Company | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current assets | 109 | 49 |
Non-current liabilities | 517 | 295 |
OPEB Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current assets | 344 | 235 |
OPEB Plan | Consumers Energy Company | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current assets | 290 | 193 |
DB SERP | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | 10 | 10 |
Non-current liabilities | 140 | 130 |
DB SERP | Consumers Energy Company | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | 7 | 7 |
Non-current liabilities | $ 102 | $ 94 |
Retirement Benefits (Schedule_6
Retirement Benefits (Schedule Of Accumulated And Projected Benefit Obligations) (Details) - DB Pension Plans - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
PBO | $ 2,973 | $ 2,512 | $ 2,780 |
ABO | 2,600 | 2,200 | |
Fair value of plan assets | 2,546 | 2,247 | $ 2,305 |
Pension Plan A | |||
Defined Benefit Plan Disclosure [Line Items] | |||
PBO | 1,736 | 1,363 | |
ABO | 1,398 | 1,091 | |
Fair value of plan assets | $ 1,205 | $ 1,059 |
Retirement Benefits (Schedule_7
Retirement Benefits (Schedule Of Net Periodic Benefit Cost Not yet Recognized) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Consumers Energy Company | ||
Regulatory assets | ||
Total regulatory assets | $ 2,522 | $ 1,780 |
DB Pension Plans and DB SERP | ||
Regulatory assets | ||
Net loss | 1,114 | 978 |
Prior service cost (credit) | 8 | 9 |
Total regulatory assets | 1,122 | 987 |
AOCI | ||
Net loss (gain) | 105 | 90 |
Prior service credit | 0 | 0 |
Total amounts recognized in regulatory assets and AOCI | 1,227 | 1,077 |
DB Pension Plans and DB SERP | Consumers Energy Company | ||
Regulatory assets | ||
Net loss | 1,114 | 978 |
Prior service cost (credit) | 8 | 9 |
Total regulatory assets | 1,122 | 987 |
AOCI | ||
Net loss (gain) | 36 | 27 |
Total amounts recognized in regulatory assets and AOCI | 1,158 | 1,014 |
OPEB Plan | ||
Regulatory assets | ||
Net loss | 308 | 402 |
Prior service cost (credit) | (300) | (361) |
Total regulatory assets | 8 | 41 |
AOCI | ||
Net loss (gain) | (6) | 2 |
Prior service credit | (8) | (9) |
Total amounts recognized in regulatory assets and AOCI | (6) | 34 |
OPEB Plan | Consumers Energy Company | ||
Regulatory assets | ||
Net loss | 308 | 402 |
Prior service cost (credit) | (300) | (361) |
Total regulatory assets | 8 | 41 |
AOCI | ||
Net loss (gain) | 0 | 0 |
Total amounts recognized in regulatory assets and AOCI | $ 8 | $ 41 |
Retirement Benefits (Schedule_8
Retirement Benefits (Schedule Of Allocation Of Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
DB Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 2,546 | $ 2,247 | $ 2,305 |
DB Pension Plans | Plan Assets Excluding Pooled Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,293 | 1,246 | |
DB Pension Plans | Plan Assets Excluding Pooled Funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 684 | 794 | |
DB Pension Plans | Plan Assets Excluding Pooled Funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 609 | 452 | |
DB Pension Plans | Cash and short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 44 | 242 | |
DB Pension Plans | Cash and short-term investments | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 44 | 242 | |
DB Pension Plans | U.S. government and agencies securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 66 | 11 | |
DB Pension Plans | U.S. government and agencies securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 66 | 11 | |
DB Pension Plans | Corporate debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 493 | 400 | |
DB Pension Plans | Corporate debt | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 493 | 400 | |
DB Pension Plans | State and municipal bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 17 | 6 | |
DB Pension Plans | State and municipal bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 17 | 6 | |
DB Pension Plans | Foreign corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 33 | 35 | |
DB Pension Plans | Foreign corporate bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 33 | 35 | |
DB Pension Plans | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 640 | 552 | |
DB Pension Plans | Mutual funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 640 | 552 | |
DB Pension Plans | Pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,253 | 1,001 | |
OPEB Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,509 | 1,280 | $ 1,420 |
OPEB Plan | Plan Assets Excluding Pooled Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 865 | 734 | |
OPEB Plan | Plan Assets Excluding Pooled Funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 777 | 671 | |
OPEB Plan | Plan Assets Excluding Pooled Funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 88 | 63 | |
OPEB Plan | Cash and short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9 | 36 | |
OPEB Plan | Cash and short-term investments | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9 | 36 | |
OPEB Plan | U.S. government and agencies securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10 | 2 | |
OPEB Plan | U.S. government and agencies securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10 | 2 | |
OPEB Plan | Corporate debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 71 | 55 | |
OPEB Plan | Corporate debt | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 71 | 55 | |
OPEB Plan | State and municipal bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 1 | |
OPEB Plan | State and municipal bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 1 | |
OPEB Plan | Foreign corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5 | 5 | |
OPEB Plan | Foreign corporate bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5 | 5 | |
OPEB Plan | Common stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 55 | 41 | |
OPEB Plan | Common stocks | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 55 | 41 | |
OPEB Plan | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 713 | 594 | |
OPEB Plan | Mutual funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 713 | 594 | |
OPEB Plan | Pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 644 | $ 546 |
Retirement Benefits (Schedule_9
Retirement Benefits (Schedule Of Asset Allocations) (Details) | Dec. 31, 2019 |
DB Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation | 100.00% |
DB Pension Plans | Equity securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation | 55.00% |
DB Pension Plans | Fixed-income securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation | 39.00% |
DB Pension Plans | Multi-asset investments | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation | 6.00% |
OPEB Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation | 100.00% |
OPEB Plan | Equity securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation | 48.00% |
OPEB Plan | Fixed-income securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation | 33.00% |
OPEB Plan | Multi-asset investments | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation | 19.00% |
Retirement Benefits (Schedul_10
Retirement Benefits (Schedule Of Plan Contributions) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Postretirement benefits contributions | $ 10 | $ 252 | $ 12 |
Consumers Energy Company | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Postretirement benefits contributions | 7 | 242 | $ 8 |
DB Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Postretirement benefits contributions | 0 | 240 | |
DB Pension Plans | Consumers Energy Company | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Postretirement benefits contributions | $ 0 | $ 234 |
Retirement Benefits (Schedul_11
Retirement Benefits (Schedule Of Expected Benefit Payments) (Details) $ in Millions | Dec. 31, 2019USD ($) |
DB Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 174 |
2021 | 176 |
2022 | 177 |
2023 | 177 |
2024 | 175 |
2025-2029 | 870 |
DB Pension Plans | Consumers Energy Company | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 165 |
2021 | 166 |
2022 | 167 |
2023 | 167 |
2024 | 166 |
2025-2029 | 825 |
DB SERP | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 10 |
2021 | 10 |
2022 | 10 |
2023 | 10 |
2024 | 10 |
2025-2029 | 46 |
DB SERP | Consumers Energy Company | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 7 |
2021 | 7 |
2022 | 7 |
2023 | 7 |
2024 | 7 |
2025-2029 | 32 |
OPEB Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 58 |
2021 | 60 |
2022 | 62 |
2023 | 63 |
2024 | 64 |
2025-2029 | 319 |
OPEB Plan | Consumers Energy Company | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 56 |
2021 | 58 |
2022 | 59 |
2023 | 60 |
2024 | 61 |
2025-2029 | $ 305 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Deferred compensation arrangements plan term | 10 years |
Number of shares authorized (in shares) | 6,500,000 |
Maximum shares issuable per employee (in shares) | 500,000 |
Shares available for grant (in shares) | 3,258,000 |
Consumers Energy Company | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Deferred compensation arrangements plan term | 10 years |
Number of shares authorized (in shares) | 6,500,000 |
Maximum shares issuable per employee (in shares) | 500,000 |
Shares available for grant (in shares) | 3,714,544 |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percent of initial grant issued on vesting date | 0.00% |
Minimum | Consumers Energy Company | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percent of initial grant issued on vesting date | 0.00% |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percent of initial grant issued on vesting date | 200.00% |
Maximum | Consumers Energy Company | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percent of initial grant issued on vesting date | 200.00% |
Performance-based awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Service period | 38 months |
Vesting period | 3 years |
Performance-based awards | Consumers Energy Company | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Service period | 38 months |
Vesting period | 3 years |
Performance-based awards | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Service period | 36 months |
Performance-based awards | Minimum | Consumers Energy Company | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Service period | 36 months |
Market-based awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Service period | 3 years |
Vesting period | 3 years |
Market-based awards | Consumers Energy Company | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Service period | 3 years |
Vesting period | 3 years |
Time-lapse awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Service period | 3 years |
Time-lapse awards | Consumers Energy Company | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Service period | 3 years |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Service period | 1 year |
Shares forfeited (in shares) | 0 |
Restricted stock units | Consumers Energy Company | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Service period | 1 year |
Shares forfeited (in shares) | 0 |
Restricted stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares forfeited (in shares) | 46,949 |
Unrecognized compensation cost | $ | $ 21.7 |
Unrecognized compensation cost recognition period | 2 years |
Restricted stock | Consumers Energy Company | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares forfeited (in shares) | 40,139 |
Unrecognized compensation cost | $ | $ 20.8 |
Unrecognized compensation cost recognition period | 2 years |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule Of Restricted Stock Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Shares | |||
Granted (in shares) | 503,493 | ||
Consumers Energy Company | |||
Number of Shares | |||
Granted (in shares) | 478,535 | ||
Restricted stock | |||
Number of Shares | |||
Granted (in shares) | 488,594 | ||
Vested (in shares) | (468,308) | ||
Forfeited (in share) | (46,949) | ||
Weighted-Average Grant Date Fair Value per Share | |||
Granted (in dollars per share) | $ 43.57 | $ 26.49 | $ 28.61 |
Vested (in dollars per share) | 31.09 | ||
Forfeitured (in dollars per share) | $ 45.81 | ||
Restricted stock | Consumers Energy Company | |||
Number of Shares | |||
Granted (in shares) | 464,485 | ||
Vested (in shares) | (447,214) | ||
Forfeited (in share) | (40,139) | ||
Weighted-Average Grant Date Fair Value per Share | |||
Granted (in dollars per share) | $ 43.57 | 26.51 | 28.67 |
Vested (in dollars per share) | 31.11 | ||
Forfeitured (in dollars per share) | $ 45.69 | ||
Restricted stock units | |||
Number of Shares | |||
Granted (in shares) | 14,899 | ||
Vested (in shares) | (12,503) | ||
Forfeited (in share) | 0 | ||
Weighted-Average Grant Date Fair Value per Share | |||
Granted (in dollars per share) | $ 50.35 | 41.77 | 41.98 |
Vested (in dollars per share) | $ 41.59 | ||
Restricted stock units | Consumers Energy Company | |||
Number of Shares | |||
Granted (in shares) | 14,050 | ||
Vested (in shares) | (11,836) | ||
Forfeited (in share) | 0 | ||
Weighted-Average Grant Date Fair Value per Share | |||
Granted (in dollars per share) | $ 51.15 | $ 42.01 | $ 41.97 |
Vested (in dollars per share) | $ 42.35 | ||
Restricted Stock and Restricted Stock Units | |||
Number of Shares | |||
Nonvested, at beginning of period (in shares) | 1,211,229 | ||
Nonvested, at end of period (in shares) | 1,186,962 | 1,211,229 | |
Weighted-Average Grant Date Fair Value per Share | |||
Weighted-average grant date fair value per share, at beginning of period (in dollars per share) | $ 39.70 | ||
Weighted-average grant date fair value per share, at end of period (in dollars per share) | $ 44.56 | $ 39.70 | |
Restricted Stock and Restricted Stock Units | Consumers Energy Company | |||
Number of Shares | |||
Nonvested, at beginning of period (in shares) | 1,158,836 | ||
Nonvested, at end of period (in shares) | 1,138,182 | 1,158,836 | |
Weighted-Average Grant Date Fair Value per Share | |||
Weighted-average grant date fair value per share, at beginning of period (in dollars per share) | $ 39.71 | ||
Weighted-average grant date fair value per share, at end of period (in dollars per share) | $ 44.57 | $ 39.71 |
Stock-Based Compensation (Sch_2
Stock-Based Compensation (Schedule Of Restricted Stock Granted) (Details) | 12 Months Ended |
Dec. 31, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 503,493 |
Consumers Energy Company | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 478,535 |
Time-lapse awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 119,167 |
Time-lapse awards | Consumers Energy Company | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 113,627 |
Market-based awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 144,963 |
Market-based awards | Consumers Energy Company | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 137,636 |
Performance-based awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 144,963 |
Performance-based awards | Consumers Energy Company | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 137,636 |
Director restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 13,575 |
Director restricted stock units | Consumers Energy Company | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 13,005 |
Dividend equivalents on market-based awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 12,779 |
Dividend equivalents on market-based awards | Consumers Energy Company | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 12,176 |
Dividend equivalents on performance-based awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 15,899 |
Dividend equivalents on performance-based awards | Consumers Energy Company | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 15,145 |
Dividend equivalents on restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 1,324 |
Dividend equivalents on restricted stock units | Consumers Energy Company | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 1,045 |
Additional market-based shares based on achievement of condition | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 15,320 |
Additional market-based shares based on achievement of condition | Consumers Energy Company | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 14,550 |
Additional performance-based shares based on achievement of condition | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 35,503 |
Additional performance-based shares based on achievement of condition | Consumers Energy Company | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 33,715 |
Stock-Based Compensation (Sch_3
Stock-Based Compensation (Schedule Of Share-Based Payment Award, Restricted Stock, Valuation Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |||
Expected volatility | 14.90% | 16.70% | 18.00% |
Expected dividend yield | 2.80% | 2.80% | 3.00% |
Risk-free rate | 2.50% | 2.10% | 1.50% |
Stock-Based Compensation (Share
Stock-Based Compensation (Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Weighted Average Grant Date Fair Value) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in dollars per share) | $ 43.57 | $ 26.49 | $ 28.61 |
Restricted stock | Consumers Energy Company | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in dollars per share) | 43.57 | 26.51 | 28.67 |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in dollars per share) | 50.35 | 41.77 | 41.98 |
Restricted stock units | Consumers Energy Company | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in dollars per share) | $ 51.15 | $ 42.01 | $ 41.97 |
Stock-Based Compensation (Sch_4
Stock-Based Compensation (Schedule Of Compensation Cost For Share-Based Payment Arrangements, Allocation Of Share-Based Compensation Costs By Plan) (Details) - Restricted stock - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of shares that vested during the year | $ 26 | $ 27 | $ 37 |
Compensation expense recognized | 22 | 17 | 17 |
Income tax benefit recognized | 1 | 1 | 7 |
Consumers Energy Company | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of shares that vested during the year | 25 | 26 | 35 |
Compensation expense recognized | 21 | 16 | 16 |
Income tax benefit recognized | $ 1 | $ 1 | $ 7 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2018 | |
Income Tax Benefits [Line Items] | |||
Increase (decrease) to deferred income tax expense related to tax rate changes | $ 148,000,000 | ||
Alternative minimum tax, recovery period | 4 years | ||
Valuation allowance | $ 2,000,000 | $ 8,000,000 | |
Alternative minimum tax credit reclassification | 31,000,000 | ||
Interest and penalties | 0 | 0 | 0 |
Consumers Energy Company | |||
Income Tax Benefits [Line Items] | |||
Net regulatory tax liability | 3,829,000,000 | 3,836,000,000 | |
Increase (decrease) to deferred income tax expense related to tax rate changes | 33,000,000 | ||
Interest and penalties | 0 | $ 0 | $ 0 |
Local Tax Authority | |||
Income Tax Benefits [Line Items] | |||
Valuation allowance - loss carryforward | $ 2,000,000 |
Income Taxes (Schedule Of Effec
Income Taxes (Schedule Of Effective Income Rate Reconciliation) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | ||||
Income from continuing operations before income taxes | $ 829 | $ 774 | $ 886 | |
Income tax expense at statutory rate | 174 | 163 | 310 | |
Increase (decrease) in income taxes from: | ||||
State and local income taxes, net of federal effect | 48 | 46 | 26 | |
TCJA excess deferred taxes | (31) | (26) | 0 | |
Production tax credits | (20) | (14) | (8) | |
Accelerated flow-through of regulatory tax benefits2 | (13) | (39) | (39) | |
Research and development tax credits, net | (2) | (11) | (1) | |
Impact of the TCJA | 0 | (4) | 148 | |
Other, net | (9) | 0 | (12) | |
Tax expense | $ 147 | $ 115 | $ 424 | |
Effective tax rate | 17.70% | 14.90% | 47.90% | |
Income tax benefit | $ 14 | |||
Valuation allowance | $ 2 | $ 8 | ||
Consumers Energy Company | ||||
Income Taxes [Line Items] | ||||
Income from continuing operations before income taxes | 928 | 847 | 971 | |
Income tax expense at statutory rate | 195 | 178 | 340 | |
Increase (decrease) in income taxes from: | ||||
State and local income taxes, net of federal effect | 53 | 51 | 30 | |
TCJA excess deferred taxes | (31) | (26) | 0 | |
Production tax credits | (12) | (12) | (8) | |
Accelerated flow-through of regulatory tax benefits2 | (13) | (39) | (39) | |
Research and development tax credits, net | (2) | (11) | (1) | |
Impact of the TCJA | 0 | 1 | 33 | |
Other, net | (5) | 0 | (16) | |
Tax expense | $ 185 | $ 142 | $ 339 | |
Effective tax rate | 19.90% | 16.80% | 34.90% | |
Reduction of income tax expense | $ 14 | |||
Net regulatory tax liability | $ 3,829 | $ 3,836 | ||
Plant, property, and equipment (subject to normalization) | Consumers Energy Company | ||||
Increase (decrease) in income taxes from: | ||||
Net regulatory tax liability | $ 1,600 | |||
Research Tax Credit Carryforward | Consumers Energy Company | ||||
Increase (decrease) in income taxes from: | ||||
Increase in tax credit carryforward | $ 8 | |||
Eliminate Write Off of Alternative Minimum Tax Credits | ||||
Increase (decrease) in income taxes from: | ||||
Valuation allowance | $ 9 |
Income Taxes (Significant Compo
Income Taxes (Significant Components Of Income Tax Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current income taxes | |||
Federal | $ (31) | $ (67) | $ 0 |
State and local | 28 | 0 | 6 |
Total Current Income Tax Expense | (3) | (67) | 6 |
Deferred income taxes | |||
Federal | 97 | 112 | 368 |
State and local | 32 | 58 | 36 |
Total Deferred Income Tax Expense | 129 | 170 | 404 |
Deferred income tax credit | 21 | 12 | 14 |
Tax expense | 147 | 115 | 424 |
Consumers Energy Company | |||
Current income taxes | |||
Federal | 107 | 6 | 159 |
State and local | 41 | 13 | 17 |
Total Current Income Tax Expense | 148 | 19 | 176 |
Deferred income taxes | |||
Federal | (10) | 60 | 120 |
State and local | 26 | 51 | 29 |
Total Deferred Income Tax Expense | 16 | 111 | 149 |
Deferred income tax credit | 21 | 12 | 14 |
Tax expense | $ 185 | $ 142 | $ 339 |
Income Taxes (Principal Compone
Income Taxes (Principal Components Of Deferred Income Tax Assets And Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred income tax assets | ||
Tax loss and credit carryforwards | $ 239 | $ 385 |
Net regulatory tax liability | 385 | 395 |
Reserves and accruals | 43 | 39 |
Total deferred income tax assets | 667 | 819 |
Valuation allowance | (2) | (8) |
Total deferred income tax assets, net of valuation allowance | 665 | 811 |
Deferred income tax liabilities | ||
Plant, property, and equipment | (2,033) | (1,955) |
Employee benefits | (172) | (165) |
Securitized costs | (59) | (65) |
Gas inventory | (32) | (35) |
Other | (24) | (78) |
Total deferred income tax liabilities | (2,320) | (2,298) |
Total net deferred income tax liabilities | (1,655) | (1,487) |
Consumers Energy Company | ||
Deferred income tax assets | ||
Tax loss and credit carryforwards | 20 | 64 |
Net regulatory tax liability | 385 | 395 |
Reserves and accruals | 24 | 21 |
Total deferred income tax assets, net of valuation allowance | 429 | 480 |
Deferred income tax liabilities | ||
Plant, property, and equipment | (1,995) | (1,943) |
Employee benefits | (178) | (172) |
Securitized costs | (59) | (65) |
Gas inventory | (32) | (35) |
Other | (29) | (74) |
Total deferred income tax liabilities | (2,293) | (2,289) |
Total net deferred income tax liabilities | $ (1,864) | $ (1,809) |
Income Taxes (Loss And Credit C
Income Taxes (Loss And Credit Carryforwards) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Operating Loss Carryforwards [Line Items] | |
General business credits | $ 206 |
Alternative minimum tax credits | 29 |
Total tax attributes | 239 |
Consumers Energy Company | |
Operating Loss Carryforwards [Line Items] | |
Total tax attributes | 20 |
Local Tax Authority | |
Operating Loss Carryforwards [Line Items] | |
Local net operating loss carryforwards | 389 |
Local net operating loss carryforwards | 4 |
General business credits | |
Operating Loss Carryforwards [Line Items] | |
Tax credits | 206 |
General business credits | Consumers Energy Company | |
Operating Loss Carryforwards [Line Items] | |
Tax credits | 20 |
General business credits | 20 |
Alternative minimum tax credits | |
Operating Loss Carryforwards [Line Items] | |
Tax credits | $ 29 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Beginning And Ending Uncertain Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of period | $ 19 | $ 14 | $ 5 |
Additions for current-year tax positions | 1 | 1 | 10 |
Additions for prior-year tax positions | 3 | 4 | 0 |
Reductions for prior-year tax positions | 0 | 0 | (1) |
Balance at end of period | 23 | 19 | 14 |
Consumers Energy Company | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of period | 28 | 21 | 5 |
Additions for current-year tax positions | 1 | 2 | 17 |
Additions for prior-year tax positions | 5 | 5 | 0 |
Reductions for prior-year tax positions | 0 | 0 | (1) |
Balance at end of period | $ 34 | $ 28 | $ 21 |
Earnings Per Share - CMS Ener_3
Earnings Per Share - CMS Energy (Basic And Diluted EPS Computations) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income available to common stockholders | |||||||||||
Net Income | $ 168 | $ 207 | $ 94 | $ 213 | $ 109 | $ 169 | $ 140 | $ 241 | $ 682 | $ 659 | $ 462 |
Income attributable to noncontrolling interests | 1 | 0 | 1 | 0 | 1 | 0 | 1 | 0 | 2 | 2 | 2 |
Net Income Available to Common Stockholders | $ 167 | $ 207 | $ 93 | $ 213 | $ 108 | $ 169 | $ 139 | $ 241 | $ 680 | $ 657 | $ 460 |
Average common shares outstanding | |||||||||||
Weighted average shares - basic (in shares) | 283 | 282.2 | 280 | ||||||||
Dilutive nonvested stock awards (in shares) | 0.7 | 0.7 | 0.8 | ||||||||
Dilutive forward equity sale contracts | 0.6 | 0 | 0 | ||||||||
Weighted average shares - diluted (in shares) | 284.3 | 282.9 | 280.8 | ||||||||
Basic net income per average common share available to common stockholders (in dollars per share) | $ 0.59 | $ 0.73 | $ 0.33 | $ 0.75 | $ 0.38 | $ 0.60 | $ 0.49 | $ 0.86 | $ 2.40 | $ 2.33 | $ 1.64 |
Diluted net income per average common share available to common stockholders (in dollars per share) | $ 0.58 | $ 0.73 | $ 0.33 | $ 0.75 | $ 0.38 | $ 0.59 | $ 0.49 | $ 0.86 | $ 2.39 | $ 2.32 | $ 1.64 |
Revenue (Components of Operatin
Revenue (Components of Operating Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized from contracts with customers | $ 6,403 | $ 6,502 | |||||||||
Leasing income | 174 | ||||||||||
Leasing income | 160 | ||||||||||
Financing income | 235 | 172 | |||||||||
Consumers alternative-revenue programs | 33 | 39 | |||||||||
Total operating revenue | $ 1,795 | $ 1,546 | $ 1,445 | $ 2,059 | $ 1,829 | $ 1,599 | $ 1,492 | $ 1,953 | 6,845 | 6,873 | $ 6,583 |
Electric Utility | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized from contracts with customers | 4,407 | 4,528 | |||||||||
Financing income | 9 | 10 | |||||||||
Consumers alternative-revenue programs | 23 | 23 | |||||||||
Total operating revenue | 4,439 | 4,561 | 4,448 | ||||||||
Gas Utility | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized from contracts with customers | 1,922 | 1,882 | |||||||||
Financing income | 5 | 5 | |||||||||
Consumers alternative-revenue programs | 10 | 16 | |||||||||
Total operating revenue | 1,937 | 1,903 | 1,774 | ||||||||
Enterprises | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized from contracts with customers | 74 | 92 | |||||||||
Leasing income | 174 | ||||||||||
Leasing income | 160 | ||||||||||
Total operating revenue | 248 | 252 | 229 | ||||||||
EnerBank | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Financing income | 221 | 157 | |||||||||
Total operating revenue | 221 | 157 | 132 | ||||||||
Consumers Energy Company | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized from contracts with customers | 6,329 | 6,410 | |||||||||
Financing income | 14 | 15 | |||||||||
Consumers alternative-revenue programs | 33 | 39 | |||||||||
Total operating revenue | $ 1,670 | $ 1,429 | $ 1,334 | $ 1,943 | $ 1,712 | $ 1,502 | $ 1,395 | $ 1,855 | 6,376 | 6,464 | 6,222 |
Consumers Energy Company | Electric Utility | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized from contracts with customers | 4,407 | 4,528 | |||||||||
Financing income | 9 | 10 | |||||||||
Consumers alternative-revenue programs | 23 | 23 | |||||||||
Total operating revenue | 4,439 | 4,561 | 4,448 | ||||||||
Consumers Energy Company | Gas Utility | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized from contracts with customers | 1,922 | 1,882 | |||||||||
Financing income | 5 | 5 | |||||||||
Consumers alternative-revenue programs | 10 | 16 | |||||||||
Total operating revenue | 1,937 | 1,903 | $ 1,774 | ||||||||
Consumers Energy Company | Enterprises | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total operating revenue | 0 | 0 | |||||||||
Consumers Energy Company | EnerBank | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total operating revenue | 0 | 0 | |||||||||
Residential | Consumers Energy Company | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized from contracts with customers | 3,304 | 3,333 | |||||||||
Residential | Consumers Energy Company | Electric Utility | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized from contracts with customers | 1,988 | 2,049 | |||||||||
Residential | Consumers Energy Company | Gas Utility | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized from contracts with customers | 1,316 | 1,284 | |||||||||
Commercial | Consumers Energy Company | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized from contracts with customers | 1,874 | 1,912 | |||||||||
Commercial | Consumers Energy Company | Electric Utility | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized from contracts with customers | 1,502 | 1,545 | |||||||||
Commercial | Consumers Energy Company | Gas Utility | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized from contracts with customers | 372 | 367 | |||||||||
Industrial | Consumers Energy Company | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized from contracts with customers | 720 | 729 | |||||||||
Industrial | Consumers Energy Company | Electric Utility | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized from contracts with customers | 669 | 674 | |||||||||
Industrial | Consumers Energy Company | Gas Utility | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized from contracts with customers | 51 | 55 | |||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized from contracts with customers | 74 | 92 | |||||||||
Other | Enterprises | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized from contracts with customers | 74 | 92 | |||||||||
Other | Consumers Energy Company | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized from contracts with customers | 431 | 436 | |||||||||
Other | Consumers Energy Company | Electric Utility | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized from contracts with customers | 248 | 260 | |||||||||
Other | Consumers Energy Company | Gas Utility | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue recognized from contracts with customers | $ 183 | $ 176 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Bad debt expense | $ 67 | $ 54 | $ 49 |
Unbilled receivables | 426 | 409 | |
Consumers Energy Company | |||
Disaggregation of Revenue [Line Items] | |||
Bad debt expense | $ 29 | ||
Unbilled receivables | 426 | 409 | |
Accounts Receivable | |||
Disaggregation of Revenue [Line Items] | |||
Bad debt expense | 29 | 29 | |
Accounts Receivable | Consumers Energy Company | |||
Disaggregation of Revenue [Line Items] | |||
Bad debt expense | $ 29 | $ 29 |
Other Income and Other Expens_2
Other Income and Other Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income and Expenses [Line Items] | |||
Donations | $ (3) | $ (13) | $ (31) |
Civic and political expenditures | (6) | (6) | (27) |
Loss on reacquired and extinguished debt | 0 | (16) | (18) |
All other | (4) | (13) | 0 |
Total other expense | (13) | (48) | (76) |
Consumers Energy Company | |||
Other Income and Expenses [Line Items] | |||
Gain on CMS Energy common stock | 14 | ||
Donations | (3) | (13) | (31) |
Civic and political expenditures | (6) | (6) | (27) |
All other | (4) | (11) | 0 |
Total other expense | $ (13) | $ (30) | $ (58) |
Cash And Cash Equivalents (Sche
Cash And Cash Equivalents (Schedule Of Cash And Cash Equivalents, Including Restricted Amounts) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 140 | $ 153 | ||
Restricted cash and cash equivalents | 17 | 21 | ||
Other non‑current assets | 0 | 1 | ||
Cash and cash equivalents, including restricted amounts | 157 | 175 | $ 204 | $ 257 |
Consumers Energy Company | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 11 | 39 | ||
Restricted cash and cash equivalents | 17 | 17 | ||
Cash and cash equivalents, including restricted amounts | $ 28 | $ 56 | $ 65 | $ 152 |
Reportable Segments (Details)
Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenue | $ 1,795 | $ 1,546 | $ 1,445 | $ 2,059 | $ 1,829 | $ 1,599 | $ 1,492 | $ 1,953 | $ 6,845 | $ 6,873 | $ 6,583 |
Depreciation and amortization | 992 | 933 | 881 | ||||||||
Income from equity method investees | 10 | 9 | 15 | ||||||||
Interest charges | 519 | 458 | 438 | ||||||||
Income tax expense (benefit) | 147 | 115 | 424 | ||||||||
Net income (loss) available to common stockholders | 167 | 207 | 93 | 213 | 108 | 169 | 139 | 241 | 680 | 657 | 460 |
Plant, property, and equipment, gross | 25,390 | 24,400 | 25,390 | 24,400 | 22,506 | ||||||
Investments in equity method investees | 71 | 69 | 71 | 69 | 64 | ||||||
Total assets | 26,837 | 24,529 | 26,837 | 24,529 | 23,050 | ||||||
Capital expenditures | 2,147 | 2,081 | 1,722 | ||||||||
Consumers Energy Company | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenue | 1,670 | 1,429 | 1,334 | 1,943 | 1,712 | 1,502 | 1,395 | 1,855 | 6,376 | 6,464 | 6,222 |
Depreciation and amortization | 975 | 921 | 872 | ||||||||
Interest charges | 297 | 289 | 276 | ||||||||
Income tax expense (benefit) | 185 | 142 | 339 | ||||||||
Net income (loss) available to common stockholder | 205 | $ 213 | $ 97 | $ 226 | 130 | $ 180 | $ 151 | $ 242 | 741 | 703 | 630 |
Plant, property, and equipment, gross | 24,963 | 23,963 | 24,963 | 23,963 | 22,318 | ||||||
Total assets | 23,699 | 22,025 | 23,699 | 22,025 | 21,099 | ||||||
Capital expenditures | 2,134 | 1,825 | 1,683 | ||||||||
Other reconciling items | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 1 | 0 | 0 | ||||||||
Interest charges | 157 | 136 | 144 | ||||||||
Income tax expense (benefit) | (56) | (41) | (11) | ||||||||
Net income (loss) available to common stockholders | (144) | (119) | (169) | ||||||||
Plant, property, and equipment, gross | 20 | 17 | 20 | 17 | 17 | ||||||
Total assets | 48 | 98 | 48 | 98 | 210 | ||||||
Capital expenditures | 1 | 2 | 1 | ||||||||
Other reconciling items | Consumers Energy Company | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 1 | 0 | 0 | ||||||||
Interest charges | 1 | 1 | 1 | ||||||||
Income tax expense (benefit) | 0 | 0 | (2) | ||||||||
Net income (loss) available to common stockholder | (1) | (1) | 2 | ||||||||
Plant, property, and equipment, gross | 20 | 17 | 20 | 17 | 17 | ||||||
Total assets | 20 | 29 | 20 | 29 | 53 | ||||||
Capital expenditures | 1 | 2 | 1 | ||||||||
Electric Utility | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenue | 4,439 | 4,561 | 4,448 | ||||||||
Depreciation and amortization | 713 | 682 | 654 | ||||||||
Interest charges | 213 | 209 | 201 | ||||||||
Income tax expense (benefit) | 134 | 109 | 245 | ||||||||
Net income (loss) available to common stockholders | 509 | 535 | 455 | ||||||||
Plant, property, and equipment, gross | 16,158 | 16,027 | 16,158 | 16,027 | 15,221 | ||||||
Total assets | 14,911 | 14,079 | 14,911 | 14,079 | 13,906 | ||||||
Capital expenditures | 1,162 | 865 | 882 | ||||||||
Electric Utility | Operating Segments | Consumers Energy Company | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenue | 4,439 | 4,561 | 4,448 | ||||||||
Depreciation and amortization | 713 | 682 | 654 | ||||||||
Interest charges | 213 | 209 | 201 | ||||||||
Income tax expense (benefit) | 134 | 109 | 245 | ||||||||
Net income (loss) available to common stockholder | 509 | 535 | 455 | ||||||||
Plant, property, and equipment, gross | 16,158 | 16,027 | 16,158 | 16,027 | 15,221 | ||||||
Total assets | 14,973 | 14,143 | 14,973 | 14,143 | 13,907 | ||||||
Capital expenditures | 1,162 | 865 | 882 | ||||||||
Gas Utility | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenue | 1,937 | 1,903 | 1,774 | ||||||||
Depreciation and amortization | 261 | 239 | 218 | ||||||||
Interest charges | 83 | 79 | 74 | ||||||||
Income tax expense (benefit) | 51 | 33 | 96 | ||||||||
Net income (loss) available to common stockholders | 233 | 169 | 173 | ||||||||
Plant, property, and equipment, gross | 8,785 | 7,919 | 8,785 | 7,919 | 7,080 | ||||||
Total assets | 8,659 | 7,806 | 8,659 | 7,806 | 7,139 | ||||||
Capital expenditures | 971 | 958 | 800 | ||||||||
Gas Utility | Operating Segments | Consumers Energy Company | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenue | 1,937 | 1,903 | 1,774 | ||||||||
Depreciation and amortization | 261 | 239 | 218 | ||||||||
Interest charges | 83 | 79 | 74 | ||||||||
Income tax expense (benefit) | 51 | 33 | 96 | ||||||||
Net income (loss) available to common stockholder | 233 | 169 | 173 | ||||||||
Plant, property, and equipment, gross | 8,785 | 7,919 | 8,785 | 7,919 | 7,080 | ||||||
Total assets | 8,706 | 7,853 | 8,706 | 7,853 | 7,139 | ||||||
Capital expenditures | 971 | 958 | 800 | ||||||||
Enterprises | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenue | 248 | 252 | 229 | ||||||||
Depreciation and amortization | 14 | 8 | 6 | ||||||||
Income from equity method investees | 10 | 9 | 15 | ||||||||
Interest charges | 7 | 2 | 0 | ||||||||
Income tax expense (benefit) | 2 | 2 | 72 | ||||||||
Net income (loss) available to common stockholders | 33 | 34 | (27) | ||||||||
Plant, property, and equipment, gross | 405 | 412 | 405 | 412 | 167 | ||||||
Investments in equity method investees | 71 | 69 | 71 | 69 | 64 | ||||||
Total assets | 527 | 540 | 527 | 540 | 342 | ||||||
Capital expenditures | 5 | 246 | 33 | ||||||||
Enterprises | Operating Segments | Consumers Energy Company | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenue | 0 | 0 | |||||||||
EnerBank | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenue | 221 | 157 | 132 | ||||||||
Depreciation and amortization | 3 | 4 | 3 | ||||||||
Interest charges | 59 | 32 | 19 | ||||||||
Income tax expense (benefit) | 16 | 12 | 22 | ||||||||
Net income (loss) available to common stockholders | 49 | 38 | 28 | ||||||||
Plant, property, and equipment, gross | 22 | 25 | 22 | 25 | 21 | ||||||
Total assets | $ 2,692 | $ 2,006 | 2,692 | 2,006 | 1,453 | ||||||
Capital expenditures | 8 | 10 | $ 6 | ||||||||
EnerBank | Operating Segments | Consumers Energy Company | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenue | $ 0 | $ 0 |
Related Party Transactions - _3
Related Party Transactions - Consumers (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 31, 2019 | |
Consumers Energy Company | ||||
Related Party Transaction [Line Items] | ||||
Purchased power – related parties | $ 75,000,000 | $ 83,000,000 | $ 90,000,000 | |
Due to related parties | 26,000,000 | 20,000,000 | ||
Accounts receivable - related parties | 8,000,000 | 13,000,000 | ||
Investments | 1,000,000 | 1,000,000 | ||
Consumers Energy Company | Credit Agreement | ||||
Related Party Transaction [Line Items] | ||||
Maximum borrowing capacity | $ 300,000,000 | |||
Amount outstanding | $ 0 | |||
CMS Energy Note Payable | ||||
Related Party Transaction [Line Items] | ||||
Notes payable | $ 146,000,000 | |||
Natural Gas Transportation Agreement | CMS Energy Subsidiary | Consumers Energy Company | ||||
Related Party Transaction [Line Items] | ||||
Direct financing lease term | 20 years |
Variable Interest Entities (Sch
Variable Interest Entities (Schedule Of Variable Interest Entities) (Details) - Genesee (50%) $ in Millions | Dec. 31, 2019USD ($) |
Variable Interest Entity [Line Items] | |
Maximum loss exposure | $ 10 |
Guarantee of Indebtedness of Others | |
Variable Interest Entity [Line Items] | |
Maximum loss exposure | $ 3 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | ||
Investment in VIE | $ 71 | $ 69 |
T.E.S. Filer City (50%) | ||
Variable Interest Entity [Line Items] | ||
Ownership interest | 50.00% | |
Grayling (50%) | ||
Variable Interest Entity [Line Items] | ||
Ownership interest | 50.00% | |
Genesee (50%) | ||
Variable Interest Entity [Line Items] | ||
Ownership interest | 50.00% | |
Craven (50%) | ||
Variable Interest Entity [Line Items] | ||
Ownership interest | 50.00% |
Asset Sales and Exit Activiti_2
Asset Sales and Exit Activities - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | |||
Sep. 30, 2019USD ($) | Apr. 30, 2019USD ($) | Dec. 31, 2019USD ($)coal_fueled_electric_generating_unit | Oct. 24, 2019USD ($) | Dec. 31, 2018USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Regulatory liabilities | $ 87 | $ 155 | |||
Other current liabilities | 186 | 147 | |||
DIG's High-Voltage Equipment to ITC | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on disposition of assets | $ 16 | ||||
Electric Utility | Gain shared with customers | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on disposition of assets | $ 17 | ||||
Consumers Energy Company | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Regulatory liabilities | 87 | 155 | |||
Other current liabilities | $ 118 | 120 | |||
Consumers Energy Company | Costs of coal-fueled electric generating units to be retired | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of units | coal_fueled_electric_generating_unit | 2 | ||||
D.E. Karn Generating Complex | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Expected cost | $ 35 | ||||
Retention and Severance Benefits | D.E. Karn Generating Complex | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Retention and severance costs | $ 6 | ||||
Other current liabilities | 2 | ||||
Gain shared with customers | Consumers Energy Company | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Regulatory liabilities | $ 17 | $ 0 |
Quarterly Financial And Commo_3
Quarterly Financial And Common Stock Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Operating Revenue | $ 1,795 | $ 1,546 | $ 1,445 | $ 2,059 | $ 1,829 | $ 1,599 | $ 1,492 | $ 1,953 | $ 6,845 | $ 6,873 | $ 6,583 |
Operating income | 311 | 351 | 218 | 359 | 250 | 294 | 255 | 363 | 1,239 | 1,162 | 1,338 |
Net Income | 168 | 207 | 94 | 213 | 109 | 169 | 140 | 241 | 682 | 659 | 462 |
Income attributable to noncontrolling interests | 1 | 0 | 1 | 0 | 1 | 0 | 1 | 0 | 2 | 2 | 2 |
Net income (loss) available to common stockholders | $ 167 | $ 207 | $ 93 | $ 213 | $ 108 | $ 169 | $ 139 | $ 241 | $ 680 | $ 657 | $ 460 |
Basic earnings per average common share (in dollars per share) | $ 0.59 | $ 0.73 | $ 0.33 | $ 0.75 | $ 0.38 | $ 0.60 | $ 0.49 | $ 0.86 | $ 2.40 | $ 2.33 | $ 1.64 |
Diluted earnings per average common share (in dollars per share) | $ 0.58 | $ 0.73 | $ 0.33 | $ 0.75 | $ 0.38 | $ 0.59 | $ 0.49 | $ 0.86 | $ 2.39 | $ 2.32 | $ 1.64 |
Consumers Energy Company | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Operating Revenue | $ 1,670 | $ 1,429 | $ 1,334 | $ 1,943 | $ 1,712 | $ 1,502 | $ 1,395 | $ 1,855 | $ 6,376 | $ 6,464 | $ 6,222 |
Operating income | 308 | 319 | 175 | 328 | 231 | 271 | 229 | 334 | 1,130 | 1,065 | 1,252 |
Net Income | 206 | 213 | 98 | 226 | 131 | 180 | 152 | 242 | 743 | 705 | 632 |
Preferred stock dividends | 1 | 0 | 1 | 0 | 1 | 0 | 1 | 0 | 2 | 2 | 2 |
Net income (loss) available to common stockholder | $ 205 | $ 213 | $ 97 | $ 226 | $ 130 | $ 180 | $ 151 | $ 242 | $ 741 | $ 703 | $ 630 |
Schedule I - Condensed Financ_2
Schedule I - Condensed Financial Information of Registrant (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)lawsuit | Dec. 31, 2018USD ($) | Jul. 31, 2018USD ($) | |
CMS Energy | |||
Condensed Financial Statements, Captions [Line Items] | |||
Maximum potential obligation | $ 430 | ||
CMS Energy Note Payable | |||
Condensed Financial Statements, Captions [Line Items] | |||
Notes payable | $ 146 | ||
Interest rate | 4.10% | ||
CMS Energy Note Payable | Subsidiaries | |||
Condensed Financial Statements, Captions [Line Items] | |||
Notes payable | $ 124 | ||
Class Action Lawsuits | |||
Condensed Financial Statements, Captions [Line Items] | |||
Number of lawsuits | lawsuit | 4 | ||
Individual Lawsuits | |||
Condensed Financial Statements, Captions [Line Items] | |||
Number of lawsuits | lawsuit | 1 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for uncollectible accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 20 | $ 20 | $ 24 |
Charged to Expense | 29 | 29 | 29 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 29 | 29 | 33 |
Balance at End of Period | 20 | 20 | 20 |
Allowance for uncollectible accounts | Consumers Energy Company | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 20 | 20 | 24 |
Charged to Expense | 29 | 29 | 29 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 29 | 29 | 33 |
Balance at End of Period | 20 | 20 | 20 |
Deferred tax valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 8 | 15 | 5 |
Charged to Expense | 0 | 2 | 10 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 6 | 9 | 0 |
Balance at End of Period | 2 | 8 | 15 |
Allowance for notes receivable | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 24 | 20 | 16 |
Charged to Expense | 38 | 25 | 20 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 29 | 21 | 16 |
Balance at End of Period | $ 33 | $ 24 | $ 20 |
Schedule I - Condensed Financ_3
Schedule I - Condensed Financial Information of Registrant (Condensed Statements of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Expenses | |||||||||||
Other operating expense | $ (1,448) | $ (1,417) | $ (1,236) | ||||||||
Total operating expenses | (5,606) | (5,711) | (5,245) | ||||||||
Operating Loss | $ 311 | $ 351 | $ 218 | $ 359 | $ 250 | $ 294 | $ 255 | $ 363 | 1,239 | 1,162 | 1,338 |
Other Income and Expenses [Abstract] | |||||||||||
Nonoperating retirement benefits, net | 91 | 90 | 24 | ||||||||
Interest income | 7 | 11 | 12 | ||||||||
Other income | 4 | 2 | 6 | ||||||||
Other expense | (13) | (48) | (76) | ||||||||
Total other income (expense) | 109 | 70 | (14) | ||||||||
Interest Charges | |||||||||||
Interest on long-term debt | 439 | 412 | 406 | ||||||||
Interest on long-term debt | 75 | 49 | 34 | ||||||||
Total interest charges | 519 | 458 | 438 | ||||||||
Income Before Income Taxes | 829 | 774 | 886 | ||||||||
Income tax expense (benefit) | 147 | 115 | 424 | ||||||||
Net income (loss) available to common stockholders | $ 167 | $ 207 | $ 93 | $ 213 | $ 108 | $ 169 | $ 139 | $ 241 | 680 | 657 | 460 |
CMS Energy | |||||||||||
Operating Expenses | |||||||||||
Other operating expense | (38) | (7) | (9) | ||||||||
Total operating expenses | (38) | (7) | (9) | ||||||||
Operating Loss | (38) | (7) | (9) | ||||||||
Other Income and Expenses [Abstract] | |||||||||||
Equity earnings of subsidiaries | 826 | 780 | 633 | ||||||||
Nonoperating retirement benefits, net | (1) | (1) | (1) | ||||||||
Interest income | 1 | 2 | 1 | ||||||||
Other income | 1 | 0 | 2 | ||||||||
Other expense | 0 | 17 | 31 | ||||||||
Total other income (expense) | 827 | 764 | 604 | ||||||||
Interest Charges | |||||||||||
Interest on long-term debt | 156 | 135 | 143 | ||||||||
Interest on long-term debt | 10 | 7 | 3 | ||||||||
Total interest charges | 166 | 142 | 146 | ||||||||
Income Before Income Taxes | 623 | 615 | 449 | ||||||||
Income tax expense (benefit) | (57) | (42) | (11) | ||||||||
Net income (loss) available to common stockholders | $ 680 | $ 657 | $ 460 |
Schedule I - Condensed Financ_4
Schedule I - Condensed Financial Information of Registrant (Condensed Statements Of Cash Flows) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | |||
Net cash provided by operating activities | $ 1,790 | $ 1,703 | $ 1,705 |
Cash Flows from Investing Activities | |||
Proceeds from DB SERP investments | 0 | 146 | 0 |
Net cash used in investing activities | (2,816) | (2,606) | (1,868) |
Cash Flows from Financing Activities | |||
Proceeds from issuance of debt | 2,151 | 2,767 | 1,633 |
Issuance of common stock | 12 | 41 | 83 |
Retirement of long-term debt | (1,285) | (1,870) | (980) |
Debt prepayment costs | (8) | (36) | (22) |
Payment of dividends on common stock | (436) | (407) | (377) |
Net cash provided by financing activities | 1,008 | 874 | 110 |
Net Decrease in Cash and Cash Equivalents, Including Restricted Amounts | (18) | (29) | (53) |
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period | 175 | 204 | 257 |
Cash and Cash Equivalents, Including Restricted Amounts, End of Period | 157 | 175 | 204 |
CMS Energy | |||
Cash Flows from Operating Activities | |||
Net cash provided by operating activities | 697 | 702 | 433 |
Cash Flows from Investing Activities | |||
Investment in subsidiaries | (683) | (363) | (447) |
Proceeds from DB SERP investments | 0 | 22 | 0 |
Net cash used in investing activities | (683) | (341) | (447) |
Cash Flows from Financing Activities | |||
Proceeds from issuance of debt | 1,158 | 560 | 799 |
Issuance of common stock | 12 | 41 | 83 |
Retirement of long-term debt | (738) | (675) | (425) |
Debt prepayment costs | 0 | (16) | (18) |
Payment of dividends on common stock | (434) | (405) | (375) |
Debt issuance costs and financing fees | (18) | (8) | (3) |
Change in notes payable – intercompany | 6 | 142 | (47) |
Net cash provided by financing activities | (14) | (361) | 14 |
Net Decrease in Cash and Cash Equivalents, Including Restricted Amounts | 0 | 0 | 0 |
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period | 0 | 0 | 0 |
Cash and Cash Equivalents, Including Restricted Amounts, End of Period | $ 0 | $ 0 | $ 0 |
Schedule I - Condensed Financ_5
Schedule I - Condensed Financial Information of Registrant (Condensed Balance Sheets) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets | |||
Notes and accrued interest receivable | $ 223 | $ 233 | |
Accounts receivable – intercompany and related parties | 17 | 14 | |
Prepayments and other current assets | 86 | 101 | |
Total current assets | 2,331 | 2,468 | |
Other Non‑current Assets | |||
Other | 739 | 478 | |
Total other non‑current assets | 5,580 | 3,935 | |
Total Assets | 26,837 | 24,529 | $ 23,050 |
Current Liabilities | |||
Accounts and notes payable – intercompany | 13 | 10 | |
Accrued interest, including intercompany | 104 | 94 | |
Accrued taxes | 437 | 398 | |
Other current liabilities | 186 | 147 | |
Total current liabilities | 2,704 | 2,624 | |
Non‑current Liabilities | |||
Long-term debt | 11,951 | 10,615 | |
Postretirement benefits | 674 | 436 | |
Other non‑current liabilities | 383 | 294 | |
Total non‑current liabilities | 19,078 | 17,113 | |
Equity | |||
Common stockholders’ equity | 5,018 | 4,755 | |
Total Liabilities and Equity | 26,837 | 24,529 | |
CMS Energy | |||
Current Assets | |||
Notes and accrued interest receivable | 2 | 2 | |
Accounts receivable – intercompany and related parties | 9 | 7 | |
Federal income tax receivable | 18 | 44 | |
Accrued taxes | 0 | 26 | |
Prepayments and other current assets | 1 | 1 | |
Total current assets | 30 | 80 | |
Other Non‑current Assets | |||
Deferred income taxes | 126 | 180 | |
Investments in subsidiaries | 8,526 | 7,706 | |
Other investments | 4 | 3 | |
Other | 16 | 10 | |
Total other non‑current assets | 8,672 | 7,899 | |
Total Assets | 8,702 | 7,979 | |
Current Liabilities | |||
Current portion of long-term debt | 0 | 180 | |
Accounts and notes payable – intercompany | 123 | 113 | |
Accrued interest, including intercompany | 34 | 32 | |
Accrued taxes | 5 | 0 | |
Other current liabilities | 38 | 7 | |
Total current liabilities | 200 | 332 | |
Non‑current Liabilities | |||
Long-term debt | 3,334 | 2,750 | |
Notes payable – intercompany | 112 | 116 | |
Postretirement benefits | 21 | 17 | |
Other non‑current liabilities | 17 | 9 | |
Total non‑current liabilities | 3,484 | 2,892 | |
Equity | |||
Total Liabilities and Equity | $ 8,702 | $ 7,979 |
Uncategorized Items - a2019form
Label | Element | Value |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | Consumers Energy Company [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (12,000,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 8,000,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Retained Earnings [Member] | Consumers Energy Company [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 19,000,000 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (11,000,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | Consumers Energy Company [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (5,000,000) |