XML 60 R25.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Asset Retirement Obligations | 12 Months Ended
--- | ---
Dec. 31, 2011
Asset Retirement Obligations | 17: ASSET RETIREMENT OBLIGATIONS CMS Energy and Consumers record the fair value of the cost to remove assets at the end of their useful lives, if there is a legal obligation to remove them. No market risk premiums were included in CMS Energy's and Consumers' ARO fair value estimates since reasonable estimates could not be made. If a five percent market risk premium were assumed, CMS Energy's and Consumers' ARO liabilities at December 31, 2011 would increase by $13 million and at December 31, 2010 would increase by $12 million. If a reasonable estimate of fair value cannot be made in the period in which the ARO is incurred, such as for assets with indeterminate lives, the liability is recognized when a reasonable estimate of fair value can be made. CMS Energy and Consumers have not recorded liabilities for assets that have insignificant cumulative disposal costs, such as substation batteries. Presented below are the categories of assets that CMS Energy and Consumers have legal obligations to remove at the end of their useful lives and for which they have an ARO liability recorded:
Company and ARO Description |  | In-Service Date |  | Long-Lived Assets
CMS ENERGY, INCLUDING CONSUMERS |  |  |  |
Close gas treating plant and gas wells |  | Various |  | Gas transmission and storage
Closure of coal ash disposal areas |  | Various |  | Generating plants coal ash areas
Closure of wells at gas storage fields |  | Various |  | Gas storage fields
Indoor gas services equipment relocations |  | Various |  | Gas meters located inside structures
Asbestos abatement |  | 1973 |  | Electric and gas utility plant
Gas distribution cut, purge, and cap |  | Various |  | Gas distribution mains and services
CONSUMERS |  |  |  |
Closure of coal ash disposal areas |  | Various |  | Generating plants coal ash areas
Closure of wells at gas storage fields |  | Various |  | Gas storage fields
Indoor gas services equipment relocations |  | Various |  | Gas meters located inside structures
Asbestos abatement |  | 1973 |  | Electric and gas utility plant
Gas distribution cut, purge, and cap |  | Various |  | Gas distribution mains and services
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 12/31/10 |  |  |  | Incurred |  |  |  | Settled |  |  |  | Accretion |  |  |  | Cash flow Revisions |  |  |  | ARO Liability 12/31/11 |
CMS ENERGY, INCLUDING CONSUMERS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Close gas treating plant and gas wells |  | $ | 1 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 1 |
Consumers |  |  | 244 |  |  |  | (2 | ) |  |  | (7 | ) |  |  | 18 |  |  |  | - |  |  |  | 253 |
Total CMS Energy |  | $ | 245 |  |  | $ | (2 | ) |  | $ | (7 | ) |  | $ | 18 |  |  | $ | - |  |  | $ | 254 |
CONSUMERS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Coal ash disposal areas |  | $ | 66 |  |  | $ | - |  |  | $ | (2 | ) |  | $ | 6 |  |  | $ | - |  |  | $ | 70 |
Wells at gas storage fields |  |  | 1 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1 |
Indoor gas services relocations |  |  | 1 |  |  |  | - |  |  |  | (1 | ) |  |  | - |  |  |  | - |  |  |  | - |
Asbestos abatement |  |  | 40 |  |  |  | - |  |  |  | (1 | ) |  |  | 3 |  |  |  | - |  |  |  | 42 |
Gas distribution cut, purge, and cap |  |  | 136 |  |  |  | (2 | ) |  |  | (3 | ) |  |  | 9 |  |  |  | - |  |  |  | 140 |
Total Consumers |  | $ | 244 |  |  | $ | (2 | ) |  | $ | (7 | ) |  | $ | 18 |  |  | $ | - |  |  | $ | 253 |
In Millions |
Company and ARO Description |  |  | ARO Liability 12/31/09 |  |  |  | Incurred |  |  |  | Settled |  |  |  | Accretion |  |  |  | Cash flow Revisions |  |  |  | ARO Liability 12/31/10 |
CMS ENERGY, INCLUDING CONSUMERS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Close gas treating plant and gas wells |  | $ | 1 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 1 |
Consumers |  |  | 228 |  |  |  | 6 |  |  |  | (7 | ) |  |  | 17 |  |  |  | - |  |  |  | 244 |
Total CMS Energy |  | $ | 229 |  |  | $ | 6 |  |  | $ | (7 | ) |  | $ | 17 |  |  | $ | - |  |  | $ | 245 |
CONSUMERS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Coal ash disposal areas |  | $ | 64 |  |  | $ | - |  |  | $ | (4 | ) |  | $ | 6 |  |  | $ | - |  |  | $ | 66 |
Wells at gas storage fields |  |  | 1 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1 |
Indoor gas services relocations |  |  | 1 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1 |
Asbestos abatement |  |  | 38 |  |  |  | - |  |  |  | (1 | ) |  |  | 3 |  |  |  | - |  |  |  | 40 |
Gas distribution cut, purge, and cap |  |  | 124 |  |  |  | 6 |  |  |  | (2 | ) |  |  | 8 |  |  |  | - |  |  |  | 136 |
Total Consumers |  | $ | 228 |  |  | $ | 6 |  |  | $ | (7 | ) |  | $ | 17 |  |  | $ | - |  |  | $ | 244 |
Consumers Energy Company [Member] |
Asset Retirement Obligations | 17: ASSET RETIREMENT OBLIGATIONS CMS Energy and Consumers record the fair value of the cost to remove assets at the end of their useful lives, if there is a legal obligation to remove them. No market risk premiums were included in CMS Energy's and Consumers' ARO fair value estimates since reasonable estimates could not be made. If a five percent market risk premium were assumed, CMS Energy's and Consumers' ARO liabilities at December 31, 2011 would increase by $13 million and at December 31, 2010 would increase by $12 million. If a reasonable estimate of fair value cannot be made in the period in which the ARO is incurred, such as for assets with indeterminate lives, the liability is recognized when a reasonable estimate of fair value can be made. CMS Energy and Consumers have not recorded liabilities for assets that have insignificant cumulative disposal costs, such as substation batteries. Presented below are the categories of assets that CMS Energy and Consumers have legal obligations to remove at the end of their useful lives and for which they have an ARO liability recorded:
Company and ARO Description |  | In-Service Date |  | Long-Lived Assets
CMS ENERGY, INCLUDING CONSUMERS |  |  |  |
Close gas treating plant and gas wells |  | Various |  | Gas transmission and storage
Closure of coal ash disposal areas |  | Various |  | Generating plants coal ash areas
Closure of wells at gas storage fields |  | Various |  | Gas storage fields
Indoor gas services equipment relocations |  | Various |  | Gas meters located inside structures
Asbestos abatement |  | 1973 |  | Electric and gas utility plant
Gas distribution cut, purge, and cap |  | Various |  | Gas distribution mains and services
CONSUMERS |  |  |  |
Closure of coal ash disposal areas |  | Various |  | Generating plants coal ash areas
Closure of wells at gas storage fields |  | Various |  | Gas storage fields
Indoor gas services equipment relocations |  | Various |  | Gas meters located inside structures
Asbestos abatement |  | 1973 |  | Electric and gas utility plant
Gas distribution cut, purge, and cap |  | Various |  | Gas distribution mains and services
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 12/31/10 |  |  |  | Incurred |  |  |  | Settled |  |  |  | Accretion |  |  |  | Cash flow Revisions |  |  |  | ARO Liability 12/31/11 |
CMS ENERGY, INCLUDING CONSUMERS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Close gas treating plant and gas wells |  | $ | 1 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 1 |
Consumers |  |  | 244 |  |  |  | (2 | ) |  |  | (7 | ) |  |  | 18 |  |  |  | - |  |  |  | 253 |
Total CMS Energy |  | $ | 245 |  |  | $ | (2 | ) |  | $ | (7 | ) |  | $ | 18 |  |  | $ | - |  |  | $ | 254 |
CONSUMERS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Coal ash disposal areas |  | $ | 66 |  |  | $ | - |  |  | $ | (2 | ) |  | $ | 6 |  |  | $ | - |  |  | $ | 70 |
Wells at gas storage fields |  |  | 1 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1 |
Indoor gas services relocations |  |  | 1 |  |  |  | - |  |  |  | (1 | ) |  |  | - |  |  |  | - |  |  |  | - |
Asbestos abatement |  |  | 40 |  |  |  | - |  |  |  | (1 | ) |  |  | 3 |  |  |  | - |  |  |  | 42 |
Gas distribution cut, purge, and cap |  |  | 136 |  |  |  | (2 | ) |  |  | (3 | ) |  |  | 9 |  |  |  | - |  |  |  | 140 |
Total Consumers |  | $ | 244 |  |  | $ | (2 | ) |  | $ | (7 | ) |  | $ | 18 |  |  | $ | - |  |  | $ | 253 |
In Millions |
Company and ARO Description |  |  | ARO Liability 12/31/09 |  |  |  | Incurred |  |  |  | Settled |  |  |  | Accretion |  |  |  | Cash flow Revisions |  |  |  | ARO Liability 12/31/10 |
CMS ENERGY, INCLUDING CONSUMERS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Close gas treating plant and gas wells |  | $ | 1 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 1 |
Consumers |  |  | 228 |  |  |  | 6 |  |  |  | (7 | ) |  |  | 17 |  |  |  | - |  |  |  | 244 |
Total CMS Energy |  | $ | 229 |  |  | $ | 6 |  |  | $ | (7 | ) |  | $ | 17 |  |  | $ | - |  |  | $ | 245 |
CONSUMERS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Coal ash disposal areas |  | $ | 64 |  |  | $ | - |  |  | $ | (4 | ) |  | $ | 6 |  |  | $ | - |  |  | $ | 66 |
Wells at gas storage fields |  |  | 1 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1 |
Indoor gas services relocations |  |  | 1 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1 |
Asbestos abatement |  |  | 38 |  |  |  | - |  |  |  | (1 | ) |  |  | 3 |  |  |  | - |  |  |  | 40 |
Gas distribution cut, purge, and cap |  |  | 124 |  |  |  | 6 |  |  |  | (2 | ) |  |  | 8 |  |  |  | - |  |  |  | 136 |
Total Consumers |  | $ | 228 |  |  | $ | 6 |  |  | $ | (7 | ) |  | $ | 17 |  |  | $ | - |  |  | $ | 244 |

X
- Definition The entire disclosure for an asset retirement obligation and the associated long-lived asset. An asset retirement obligation is a legal obligation associated with the disposal or retirement from service of a tangible long-lived asset that results from the acquisition, construction or development, or the normal operations of a long-lived asset, except for certain obligations of lessees. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 143 -Paragraph 22 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6392692&loc=d3e7569-110849 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6392692&loc=d3e7535-110849 + Details
Name: | us-gaap_AssetRetirementObligationDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration