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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2023
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 |  | 2023 |  | 2022 | 2021
CMS Energy, including Consumers |  |  |  |  |  |  |  |  |  |
Income from continuing operations before income taxes |  |  |  | $ | 954 |  |  |  |  | $ | 902 |  |  | $ | 823 |
Income tax expense at statutory rate |  |  |  | 200 |  |  |  |  | 189 |  |  | 173 |
Increase (decrease) in income taxes from: |  |  |  |  |  |  |  |  |  |
State and local income taxes, net of federal effect 1 |  |  |  | 31 |  |  |  |  | 51 |  |  | 39 |
Renewable energy tax credits |  |  |  | (58) |  |  |  |  | (51) |  |  | (44) |
TCJA excess deferred taxes 2 |  |  |  | (40) |  |  |  |  | (65) |  |  | (50) |
Taxes attributable to noncontrolling interests |  |  |  | 17 |  |  |  |  | 5 |  |  | 5 |
Accelerated flow-through of regulatory tax benefits 3 |  |  |  | — |  |  |  |  | (39) |  |  | (28) |
Other, net |  |  |  | (3) |  |  |  |  | 3 |  |  | — |
Income tax expense |  |  |  | $ | 147 |  |  |  |  | $ | 93 |  |  | $ | 95 |
Effective tax rate |  |  |  | 15.4 | % |  |  |  | 10.3 | % |  | 11.5 | %
Consumers |  |  |  |  |  |  |  |  |  |
Income from continuing operations before income taxes |  |  |  | $ | 1,028 |  |  |  |  | $ | 1,085 |  |  | $ | 1,024 |
Income tax expense at statutory rate |  |  |  | 216 |  |  |  |  | 228 |  |  | 215 |
Increase (decrease) in income taxes from: |  |  |  |  |  |  |  |  |  |
State and local income taxes, net of federal effect 1 |  |  |  | 36 |  |  |  |  | 59 |  |  | 54 |
Renewable energy tax credits |  |  |  | (46) |  |  |  |  | (46) |  |  | (37) |
TCJA excess deferred taxes 2 |  |  |  | (40) |  |  |  |  | (65) |  |  | (50) |
Accelerated flow-through of regulatory tax benefits 3 |  |  |  | — |  |  |  |  | (39) |  |  | (28) |
Other, net |  |  |  | (5) |  |  |  |  | 3 |  |  | 2 |
Income tax expense |  |  |  | $ | 161 |  |  |  |  | $ | 140 |  |  | $ | 156 |
Effective tax rate |  |  |  | 15.7 | % |  |  |  | 12.9 | % |  | 15.2 | %
1 CMS Energy initiated a plan to divest immaterial business activities in a non‑Michigan jurisdiction and will no longer have a taxable presence within that jurisdiction after 2023. As a result of these actions, CMS Energy reversed a $13 million non‑Michigan reserve, all of which was recognized at Consumers. 2 In 2020, the MPSC authorized Consumers to accelerate the amortization of the gas portion of its regulatory liability associated with unprotected, non-property-related excess deferred income taxes resulting from the TCJA. This portion of the regulatory liability was fully amortized in 2022. 3 In 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits were fully amortized in 2022.
Summary of 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 | 2023 | 2022 | 2021
CMS Energy, including Consumers |  |  |  |  |  |
Current income taxes |  |  |  |  |  |
Federal |  | $ | 5 |  |  | $ | 6 |  |  | $ | (1) |
State and local |  | 1 |  |  | — |  |  | 1 |
|  | $ | 6 |  |  | $ | 6 |  |  | $ | — |
Deferred income taxes |  |  |  |  |  |
Federal |  | 107 |  |  | 4 |  |  | 49 |
State and local |  | 38 |  |  | 65 |  |  | 49 |
|  | $ | 145 |  |  | $ | 69 |  |  | $ | 98 |
Deferred income tax credit |  | (4) |  |  | 18 |  |  | (3) |
Tax expense |  | $ | 147 |  |  | $ | 93 |  |  | $ | 95 |
Consumers |  |  |  |  |  |
Current income taxes |  |  |  |  |  |
Federal |  | $ | 3 |  |  | $ | (2) |  |  | $ | (13) |
State and local |  | 2 |  |  | 8 |  |  | 15 |
|  | $ | 5 |  |  | $ | 6 |  |  | $ | 2 |
Deferred income taxes |  |  |  |  |  |
Federal |  | 117 |  |  | 50 |  |  | 103 |
State and local |  | 43 |  |  | 66 |  |  | 54 |
|  | $ | 160 |  |  | $ | 116 |  |  | $ | 157 |
Deferred income tax credit |  | (4) |  |  | 18 |  |  | (3) |
Tax expense |  | $ | 161 |  |  | $ | 140 |  |  | $ | 156 |
Summary of Principal Components of Deferred Income Tax Assets and Liabilities | Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized:
In Millions
December 31 | 2023 | 2022
CMS Energy, including Consumers |  |  |  |
Deferred income tax assets |  |  |  |
Tax loss and credit carryforwards |  | $ | 428 |  |  | $ | 385 |
Net regulatory tax liability |  | 305 |  |  | 318 |
Reserves and accruals |  | 28 |  |  | 35 |
Total deferred income tax assets |  | $ | 761 |  |  | $ | 738 |
Valuation allowance |  | (2) |  |  | (2) |
Total deferred income tax assets, net of valuation allowance |  | $ | 759 |  |  | $ | 736 |
Deferred income tax liabilities |  |  |  |
Plant, property, and equipment |  | $ | (2,520) |  |  | $ | (2,515) |
Employee benefits |  | (473) |  |  | (433) |
Gas inventory |  | (66) |  |  | (53) |
Securitized costs |  | (194) |  |  | (39) |
Other |  | (121) |  |  | (103) |
Total deferred income tax liabilities |  | $ | (3,374) |  |  | $ | (3,143) |
Total net deferred income tax liabilities |  | $ | (2,615) |  |  | $ | (2,407) |
Consumers |  |  |  |
Deferred income tax assets |  |  |  |
Net regulatory tax liability |  | $ | 305 |  |  | $ | 318 |
Tax loss and credit carryforwards |  | 175 |  |  | 145 |
Reserves and accruals |  | 27 |  |  | 28 |
Total deferred income tax assets |  | $ | 507 |  |  | $ | 491 |
Deferred income tax liabilities |  |  |  |
Plant, property, and equipment |  | $ | (2,498) |  |  | $ | (2,458) |
Employee benefits |  | (459) |  |  | (423) |
Gas inventory |  | (66) |  |  | (53) |
Securitized costs |  | (194) |  |  | (39) |
Other |  | (79) |  |  | (103) |
Total deferred income tax liabilities |  | $ | (3,296) |  |  | $ | (3,076) |
Total net deferred income tax liabilities |  | $ | (2,789) |  |  | $ | (2,585) |
Summary of Loss And Credit Carryforwards | Presented in the following table are the tax loss and credit carryforwards at December 31, 2023:
In Millions
|  | Tax Attribute | Expiration
CMS Energy, including Consumers |  |  |  |  |
State net operating loss carryforwards |  |  |  | $ | 69 |  | 2030 – 2033
Local net operating loss carryforwards |  |  |  | 3 |  | 2024 – 2040
General business credits |  |  |  | 356 |  | 2035 – 2043
Total tax attributes |  |  |  | $ | 428 |  |
Consumers |  |  |  |  |
State net operating loss carryforwards |  |  |  | $ | 53 |  | 2030 – 2033
General business credits |  |  |  | 122 |  | 2035 – 2043
Total tax attributes |  |  |  | $ | 175 |  |
Schedule of Reconciliation of 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 | 2023 | 2022 | 2021
CMS Energy, including Consumers |  |  |  |  |  |
Balance at beginning of period |  | $ | 28 |  |  | $ | 27 |  |  | $ | 25 |
Additions for current-year tax positions |  | 1 |  |  | 1 |  |  | 2 |
Additions for prior-year tax positions |  | — |  |  | 1 |  |  | — |
Reductions for prior-year tax positions |  | (3) |  |  | (1) |  |  | — |
Balance at end of period |  | $ | 26 |  |  | $ | 28 |  |  | $ | 27 |
Consumers |  |  |  |  |  |
Balance at beginning of period |  | $ | 36 |  |  | $ | 34 |  |  | $ | 31 |
Additions for current-year tax positions |  | 1 |  |  | 3 |  |  | 3 |
Additions for prior-year tax positions |  | 2 |  |  | 1 |  |  | — |
Reductions for prior-year tax positions |  | (3) |  |  | (2) |  |  | — |
Balance at end of period |  | $ | 36 |  |  | $ | 36 |  |  | $ | 34 |
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 |  | 2023 |  | 2022 | 2021
CMS Energy, including Consumers |  |  |  |  |  |  |  |  |  |
Income from continuing operations before income taxes |  |  |  | $ | 954 |  |  |  |  | $ | 902 |  |  | $ | 823 |
Income tax expense at statutory rate |  |  |  | 200 |  |  |  |  | 189 |  |  | 173 |
Increase (decrease) in income taxes from: |  |  |  |  |  |  |  |  |  |
State and local income taxes, net of federal effect 1 |  |  |  | 31 |  |  |  |  | 51 |  |  | 39 |
Renewable energy tax credits |  |  |  | (58) |  |  |  |  | (51) |  |  | (44) |
TCJA excess deferred taxes 2 |  |  |  | (40) |  |  |  |  | (65) |  |  | (50) |
Taxes attributable to noncontrolling interests |  |  |  | 17 |  |  |  |  | 5 |  |  | 5 |
Accelerated flow-through of regulatory tax benefits 3 |  |  |  | — |  |  |  |  | (39) |  |  | (28) |
Other, net |  |  |  | (3) |  |  |  |  | 3 |  |  | — |
Income tax expense |  |  |  | $ | 147 |  |  |  |  | $ | 93 |  |  | $ | 95 |
Effective tax rate |  |  |  | 15.4 | % |  |  |  | 10.3 | % |  | 11.5 | %
Consumers |  |  |  |  |  |  |  |  |  |
Income from continuing operations before income taxes |  |  |  | $ | 1,028 |  |  |  |  | $ | 1,085 |  |  | $ | 1,024 |
Income tax expense at statutory rate |  |  |  | 216 |  |  |  |  | 228 |  |  | 215 |
Increase (decrease) in income taxes from: |  |  |  |  |  |  |  |  |  |
State and local income taxes, net of federal effect 1 |  |  |  | 36 |  |  |  |  | 59 |  |  | 54 |
Renewable energy tax credits |  |  |  | (46) |  |  |  |  | (46) |  |  | (37) |
TCJA excess deferred taxes 2 |  |  |  | (40) |  |  |  |  | (65) |  |  | (50) |
Accelerated flow-through of regulatory tax benefits 3 |  |  |  | — |  |  |  |  | (39) |  |  | (28) |
Other, net |  |  |  | (5) |  |  |  |  | 3 |  |  | 2 |
Income tax expense |  |  |  | $ | 161 |  |  |  |  | $ | 140 |  |  | $ | 156 |
Effective tax rate |  |  |  | 15.7 | % |  |  |  | 12.9 | % |  | 15.2 | %
1 CMS Energy initiated a plan to divest immaterial business activities in a non‑Michigan jurisdiction and will no longer have a taxable presence within that jurisdiction after 2023. As a result of these actions, CMS Energy reversed a $13 million non‑Michigan reserve, all of which was recognized at Consumers. 2 In 2020, the MPSC authorized Consumers to accelerate the amortization of the gas portion of its regulatory liability associated with unprotected, non-property-related excess deferred income taxes resulting from the TCJA. This portion of the regulatory liability was fully amortized in 2022. 3 In 2020, the MPSC authorized Consumers to accelerate the amortization of income tax benefits associated with the cost to remove gas plant assets. These tax benefits were fully amortized in 2022.
Summary of 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 | 2023 | 2022 | 2021
CMS Energy, including Consumers |  |  |  |  |  |
Current income taxes |  |  |  |  |  |
Federal |  | $ | 5 |  |  | $ | 6 |  |  | $ | (1) |
State and local |  | 1 |  |  | — |  |  | 1 |
|  | $ | 6 |  |  | $ | 6 |  |  | $ | — |
Deferred income taxes |  |  |  |  |  |
Federal |  | 107 |  |  | 4 |  |  | 49 |
State and local |  | 38 |  |  | 65 |  |  | 49 |
|  | $ | 145 |  |  | $ | 69 |  |  | $ | 98 |
Deferred income tax credit |  | (4) |  |  | 18 |  |  | (3) |
Tax expense |  | $ | 147 |  |  | $ | 93 |  |  | $ | 95 |
Consumers |  |  |  |  |  |
Current income taxes |  |  |  |  |  |
Federal |  | $ | 3 |  |  | $ | (2) |  |  | $ | (13) |
State and local |  | 2 |  |  | 8 |  |  | 15 |
|  | $ | 5 |  |  | $ | 6 |  |  | $ | 2 |
Deferred income taxes |  |  |  |  |  |
Federal |  | 117 |  |  | 50 |  |  | 103 |
State and local |  | 43 |  |  | 66 |  |  | 54 |
|  | $ | 160 |  |  | $ | 116 |  |  | $ | 157 |
Deferred income tax credit |  | (4) |  |  | 18 |  |  | (3) |
Tax expense |  | $ | 161 |  |  | $ | 140 |  |  | $ | 156 |
Summary of Principal Components of Deferred Income Tax Assets and Liabilities | Presented in the following table are the principal components of deferred income tax assets (liabilities) recognized:
In Millions
December 31 | 2023 | 2022
CMS Energy, including Consumers |  |  |  |
Deferred income tax assets |  |  |  |
Tax loss and credit carryforwards |  | $ | 428 |  |  | $ | 385 |
Net regulatory tax liability |  | 305 |  |  | 318 |
Reserves and accruals |  | 28 |  |  | 35 |
Total deferred income tax assets |  | $ | 761 |  |  | $ | 738 |
Valuation allowance |  | (2) |  |  | (2) |
Total deferred income tax assets, net of valuation allowance |  | $ | 759 |  |  | $ | 736 |
Deferred income tax liabilities |  |  |  |
Plant, property, and equipment |  | $ | (2,520) |  |  | $ | (2,515) |
Employee benefits |  | (473) |  |  | (433) |
Gas inventory |  | (66) |  |  | (53) |
Securitized costs |  | (194) |  |  | (39) |
Other |  | (121) |  |  | (103) |
Total deferred income tax liabilities |  | $ | (3,374) |  |  | $ | (3,143) |
Total net deferred income tax liabilities |  | $ | (2,615) |  |  | $ | (2,407) |
Consumers |  |  |  |
Deferred income tax assets |  |  |  |
Net regulatory tax liability |  | $ | 305 |  |  | $ | 318 |
Tax loss and credit carryforwards |  | 175 |  |  | 145 |
Reserves and accruals |  | 27 |  |  | 28 |
Total deferred income tax assets |  | $ | 507 |  |  | $ | 491 |
Deferred income tax liabilities |  |  |  |
Plant, property, and equipment |  | $ | (2,498) |  |  | $ | (2,458) |
Employee benefits |  | (459) |  |  | (423) |
Gas inventory |  | (66) |  |  | (53) |
Securitized costs |  | (194) |  |  | (39) |
Other |  | (79) |  |  | (103) |
Total deferred income tax liabilities |  | $ | (3,296) |  |  | $ | (3,076) |
Total net deferred income tax liabilities |  | $ | (2,789) |  |  | $ | (2,585) |
Summary of Loss And Credit Carryforwards | Presented in the following table are the tax loss and credit carryforwards at December 31, 2023:
In Millions
|  | Tax Attribute | Expiration
CMS Energy, including Consumers |  |  |  |  |
State net operating loss carryforwards |  |  |  | $ | 69 |  | 2030 – 2033
Local net operating loss carryforwards |  |  |  | 3 |  | 2024 – 2040
General business credits |  |  |  | 356 |  | 2035 – 2043
Total tax attributes |  |  |  | $ | 428 |  |
Consumers |  |  |  |  |
State net operating loss carryforwards |  |  |  | $ | 53 |  | 2030 – 2033
General business credits |  |  |  | 122 |  | 2035 – 2043
Total tax attributes |  |  |  | $ | 175 |  |
Schedule of Reconciliation of 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 | 2023 | 2022 | 2021
CMS Energy, including Consumers |  |  |  |  |  |
Balance at beginning of period |  | $ | 28 |  |  | $ | 27 |  |  | $ | 25 |
Additions for current-year tax positions |  | 1 |  |  | 1 |  |  | 2 |
Additions for prior-year tax positions |  | — |  |  | 1 |  |  | — |
Reductions for prior-year tax positions |  | (3) |  |  | (1) |  |  | — |
Balance at end of period |  | $ | 26 |  |  | $ | 28 |  |  | $ | 27 |
Consumers |  |  |  |  |  |
Balance at beginning of period |  | $ | 36 |  |  | $ | 34 |  |  | $ | 31 |
Additions for current-year tax positions |  | 1 |  |  | 3 |  |  | 3 |
Additions for prior-year tax positions |  | 2 |  |  | 1 |  |  | — |
Reductions for prior-year tax positions |  | (3) |  |  | (2) |  |  | — |
Balance at end of period |  | $ | 36 |  |  | $ | 36 |  |  | $ | 34 |

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- Definition Tabular disclosure of (1) pertinent information, such as tax authority, amounts, and expiration dates, of net operating loss carryforwards, including an assessment of the likelihood of utilization and (2) tax credit carryforwards available to reduce future taxable income, including amounts, expiration dates, limitations on use and the related deferred tax assets and valuation allowances. + References No definition available. + Details
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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 9 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-9 + Details
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