XML 44 R29.htm IDEA: XBRL DOCUMENT
v3.22.1

Exit Activities and Discontinued Operations | 3 Months Ended
--- | ---
Mar. 31, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] |
Exit Activities and Discontinued Operations | Exit Activities and Discontinued Operations Exit Activities: Under its Clean Energy Plan, Consumers plans to retire the D.E. Karn coal-fueled electric generating units in 2023. In 2019, Consumers announced a retention incentive program to ensure necessary staffing at the D.E. Karn generating complex through the anticipated retirement of the coal-fueled generating units. Based on the number of employees that have chosen to participate, the aggregate cost of the program through 2023 is estimated to be $35 million. In its order in Consumers’ 2020 electric rate case, the MPSC approved deferred accounting treatment for these costs; Consumers began deferring these costs as a regulatory asset in 2021. Under the settlement agreement resolving the 2021 IRP, Consumers would retire the J.H. Campbell coal-fueled generating units in 2025. Similar to the D.E. Karn program, Consumers would provide a retention incentive program to ensure necessary staffing at the J.H. Campbell generating complex through retirement. No retention incentive costs related to this program will be recognized unless the MPSC approves the settlement agreement, which provides deferred accounting treatment for these costs. As of March 31, 2022, the cumulative cost incurred and charged to expense related to the D.E. Karn retention incentive program was $16 million. Additionally, an amount of $4 million has been capitalized as a cost of plant, property, and equipment and an amount of $8 million has been deferred as a regulatory asset. Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets:
In Millions
Three Months Ended March 31 |  |  |  | 2022 | 2021
Retention benefit liability at beginning of period |  |  |  |  |  |  | $ | 14 |  |  | $ | 11 |
Costs deferred as a regulatory asset |  |  |  |  |  |  | 1 |  |  | 2 |
Retention benefit liability at the end of the period 1 |  |  |  |  |  |  | $ | 15 |  |  | $ | 13 |
1 Includes current portion of other liabilities of $5 million at March 31, 2022 and $4 million at March 31, 2021. Discontinued Operations: On October 1, 2021, EnerBank was acquired by Regions Bank. CMS Energy received proceeds of over $1 billion from the transaction and recognized a pre-tax gain of $657 million in 2021. In 2022, CMS Energy received $6 million of additional proceeds as the result of a post-closing adjustment. Net of related transaction costs, CMS Energy recognized a pre-tax gain of $5 million during the three months ended March 31, 2022. In December 2021, CMS Energy submitted a notice of disagreement to Regions Bank relating to a $36 million negative post-closing purchase price adjustment that it believes is inconsistent with the merger agreement. In accordance with the merger agreement, the disputed adjustment has been submitted to a mutually agreed upon independent accounting firm for final determination. While CMS Energy does not believe material loss is probable, it cannot predict the outcome of this matter. EnerBank’s results of operations through the date of the sale are presented as income from discontinued operations on CMS Energy’s consolidated statements of income for the three months ended March 31, 2021. The table below presents the financial results of EnerBank included in income from discontinued operations:
In Millions
Three Months Ended March 31 |  |  |  | 2022 | 2021 |
Operating revenue |  |  |  |  |  |  | $ | — |  |  | $ | 70 |  |  |
Expenses |  |  |  |  |  |  |  |  |  |  |
Operating expenses |  |  |  |  |  |  | — |  |  | 15 |  |  |
Interest expense |  |  |  |  |  |  | — |  |  | 12 |  |  |
Income before income taxes |  |  |  |  |  |  | $ | — |  |  | $ | 43 |  |  |
Gain on sale |  |  |  |  |  |  | 5 |  |  | — |  |  |
Income from discontinued operations before income taxes |  |  |  |  |  |  | $ | 5 |  |  | $ | 43 |  |  |
Income tax expense |  |  |  |  |  |  | 1 |  |  | 9 |  |  |
Income from discontinued operations, net of tax |  |  |  |  |  |  | $ | 4 |  |  | $ | 34 |  |  |
Consumers Energy Company |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] |
Exit Activities and Discontinued Operations | Exit Activities and Discontinued Operations Exit Activities: Under its Clean Energy Plan, Consumers plans to retire the D.E. Karn coal-fueled electric generating units in 2023. In 2019, Consumers announced a retention incentive program to ensure necessary staffing at the D.E. Karn generating complex through the anticipated retirement of the coal-fueled generating units. Based on the number of employees that have chosen to participate, the aggregate cost of the program through 2023 is estimated to be $35 million. In its order in Consumers’ 2020 electric rate case, the MPSC approved deferred accounting treatment for these costs; Consumers began deferring these costs as a regulatory asset in 2021. Under the settlement agreement resolving the 2021 IRP, Consumers would retire the J.H. Campbell coal-fueled generating units in 2025. Similar to the D.E. Karn program, Consumers would provide a retention incentive program to ensure necessary staffing at the J.H. Campbell generating complex through retirement. No retention incentive costs related to this program will be recognized unless the MPSC approves the settlement agreement, which provides deferred accounting treatment for these costs. As of March 31, 2022, the cumulative cost incurred and charged to expense related to the D.E. Karn retention incentive program was $16 million. Additionally, an amount of $4 million has been capitalized as a cost of plant, property, and equipment and an amount of $8 million has been deferred as a regulatory asset. Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets:
In Millions
Three Months Ended March 31 |  |  |  | 2022 | 2021
Retention benefit liability at beginning of period |  |  |  |  |  |  | $ | 14 |  |  | $ | 11 |
Costs deferred as a regulatory asset |  |  |  |  |  |  | 1 |  |  | 2 |
Retention benefit liability at the end of the period 1 |  |  |  |  |  |  | $ | 15 |  |  | $ | 13 |
1 Includes current portion of other liabilities of $5 million at March 31, 2022 and $4 million at March 31, 2021. Discontinued Operations: On October 1, 2021, EnerBank was acquired by Regions Bank. CMS Energy received proceeds of over $1 billion from the transaction and recognized a pre-tax gain of $657 million in 2021. In 2022, CMS Energy received $6 million of additional proceeds as the result of a post-closing adjustment. Net of related transaction costs, CMS Energy recognized a pre-tax gain of $5 million during the three months ended March 31, 2022. In December 2021, CMS Energy submitted a notice of disagreement to Regions Bank relating to a $36 million negative post-closing purchase price adjustment that it believes is inconsistent with the merger agreement. In accordance with the merger agreement, the disputed adjustment has been submitted to a mutually agreed upon independent accounting firm for final determination. While CMS Energy does not believe material loss is probable, it cannot predict the outcome of this matter. EnerBank’s results of operations through the date of the sale are presented as income from discontinued operations on CMS Energy’s consolidated statements of income for the three months ended March 31, 2021. The table below presents the financial results of EnerBank included in income from discontinued operations:
In Millions
Three Months Ended March 31 |  |  |  | 2022 | 2021 |
Operating revenue |  |  |  |  |  |  | $ | — |  |  | $ | 70 |  |  |
Expenses |  |  |  |  |  |  |  |  |  |  |
Operating expenses |  |  |  |  |  |  | — |  |  | 15 |  |  |
Interest expense |  |  |  |  |  |  | — |  |  | 12 |  |  |
Income before income taxes |  |  |  |  |  |  | $ | — |  |  | $ | 43 |  |  |
Gain on sale |  |  |  |  |  |  | 5 |  |  | — |  |  |
Income from discontinued operations before income taxes |  |  |  |  |  |  | $ | 5 |  |  | $ | 43 |  |  |
Income tax expense |  |  |  |  |  |  | 1 |  |  | 9 |  |  |
Income from discontinued operations, net of tax |  |  |  |  |  |  | $ | 4 |  |  | $ | 34 |  |  |

X
- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
Name: | us-gaap_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. + References No definition available. + Details
Name: | us-gaap_IncomeStatementBalanceSheetAndAdditionalDisclosuresByDisposalGroupsIncludingDiscontinuedOperationsLineItems
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | dei_LegalEntityAxis=cms_ConsumersEnergyCompanyMember
Namespace Prefix: |
Data Type: | na
Balance Type: |
Period Type: |