Financial Instruments

12 Months Ended

Dec. 31, 2025

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, 2025															December 31, 2024
	Carrying Amount			Fair Value												Carrying Amount			Fair Value
				Total			Level												Total			Level
							1			2			3									1			2			3
CMS Energy, including Consumers
Assets
Long-term receivables1		$	7		$	6		$	—		$	—		$	6		$	9		$	8		$	—		$	—		$	8

Liabilities
Long-term debt2		18,757			17,645			2,042			13,663			1,940			16,386			14,876			1,018			11,952			1,906
Long-term payables3		7			7			—			—			7			9			9			—			—			9
Consumers
Assets
Long-term receivables1		$	7		$	6		$	—		$	—		$	6		$	9		$	8		$	—		$	—		$	8

Notes receivable – related party4		90			90			—			—			90			94			94			—			—			94
Liabilities
Long-term debt5		12,097			11,031			—			9,091			1,940			11,270			9,940			—			8,034			1,906
Long-term debt – related party6		1,005			657			—			657			—			823			549			—			549			—
Long-term payables		2			2			—			—			2			4			4			—			—			4

1Includes current portion of long-term accounts receivable and notes receivable of $3 million at December 31, 2025 and $4 million at December 31, 2024.

2Includes current portion of long-term debt of $950 million at December 31, 2025 and $1.2 billion at December 31, 2024.

3Includes current portion of long-term payables of $2 million at December 31, 2025 and 2024.

4Includes current portion of notes receivable – related party of $7 million at December 31, 2025 and 2024. For more information on notes receivable – related party, see Note 18, Related-party Transactions—Consumers

5Includes current portion of long-term debt of $573 million at December 31, 2025 and $452 million at December 31, 2024.

6For more information on CMS Energy’s repurchases of Consumers’ first mortgage bonds, see Note 5, Financings and Capitalization—CMS Energy’s Purchase of Consumers’ First Mortgage Bonds.

Notes receivable – related party represents Consumers’ portion of the DB SERP 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

Financial Instruments [Line Items]

Financial Instruments


In Millions
	December 31, 2025															December 31, 2024
	Carrying Amount			Fair Value												Carrying Amount			Fair Value
				Total			Level												Total			Level
							1			2			3									1			2			3
CMS Energy, including Consumers
Assets
Long-term receivables1		$	7		$	6		$	—		$	—		$	6		$	9		$	8		$	—		$	—		$	8

Liabilities
Long-term debt2		18,757			17,645			2,042			13,663			1,940			16,386			14,876			1,018			11,952			1,906
Long-term payables3		7			7			—			—			7			9			9			—			—			9
Consumers
Assets
Long-term receivables1		$	7		$	6		$	—		$	—		$	6		$	9		$	8		$	—		$	—		$	8

Notes receivable – related party4		90			90			—			—			90			94			94			—			—			94
Liabilities
Long-term debt5		12,097			11,031			—			9,091			1,940			11,270			9,940			—			8,034			1,906
Long-term debt – related party6		1,005			657			—			657			—			823			549			—			549			—
Long-term payables		2			2			—			—			2			4			4			—			—			4

1Includes current portion of long-term accounts receivable and notes receivable of $3 million at December 31, 2025 and $4 million at December 31, 2024.

2Includes current portion of long-term debt of $950 million at December 31, 2025 and $1.2 billion at December 31, 2024.

3Includes current portion of long-term payables of $2 million at December 31, 2025 and 2024.

5Includes current portion of long-term debt of $573 million at December 31, 2025 and $452 million at December 31, 2024.

6For more information on CMS Energy’s repurchases of Consumers’ first mortgage bonds, see Note 5, Financings and Capitalization—CMS Energy’s Purchase of Consumers’ First Mortgage Bonds.