v3.25.4
Plant, Property, and Equipment
 12 Months Ended
Dec. 31, 2025
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, Except as Noted
December 31Estimated
Depreciable
Life in Years		20252024
CMS Energy, including Consumers
Plant, property, and equipment, gross
Consumers
3 – 125
$36,120 $33,434 
NorthStar Clean Energy
Independent power production1
3 – 40
1,585 1,452 
Assets under finance leases2
55 45 
Other
3 – 5
3 1 
Plant, property, and equipment, gross$37,763 $34,932 
Construction work in progress3,052 2,098 
Accumulated depreciation and amortization(10,135)(9,569)
Total plant, property, and equipment3
$30,680 $27,461 
Consumers
Plant, property, and equipment, gross
Electric
Generation4
15 – 125
$7,171 $6,576 
Distribution
15 – 75
13,360 12,135 
Other
5 – 55
1,209 1,307 
Assets under finance leases2
131 119 
Gas
Distribution
20 – 85
8,553 7,942 
Transmission
17 – 75
3,236 3,081 
Underground storage facilities5
29 – 75
1,535 1,405 
Other
5 – 55
886 828 
Assets under finance leases2
8 12 
Other non-utility property
3 – 51
31 29 
Plant, property, and equipment, gross$36,120 $33,434 
Construction work in progress6
2,354 1,766 
Accumulated depreciation and amortization(9,842)(9,310)
Total plant, property, and equipment3
$28,632 $25,890 
1A portion 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 9, Leases.
2For information regarding the amortization terms of CMS Energy’s and Consumers’ assets under finance leases, see Note 9, Leases.
3Consumers’ plant additions were $3.1 billion for the year ended December 31, 2025 and $2.1 billion for the year ended December 31, 2024. Consumers’ plant retirements were $387 million for the year ended December 31, 2025 and $390 million for the year ended December 31, 2024.
4Includes 13 hydroelectric dams that Consumers has agreed to sell, contingent upon MPSC and FERC approval. For more information, see Note 20, Exit Activities and Asset Sales.
5Underground storage includes base natural gas of $24 million at December 31, 2025 and $26 million for the year ended December 31, 2024. Base natural gas is not subject to depreciation.
6For the year ended December 31, 2025, Consumers fully impaired certain development assets totaling $20 million. Of this amount, $15 million relates to two early-phase renewable natural gas development projects that have been paused indefinitely. The remaining impairment charge was deferred as a regulatory asset and will be recovered through the Renewable Energy Plan.
Intangible Assets: Included in net plant, property, and equipment are intangible assets. Presented in the following table are details about Consumers’ intangible assets:
In Millions, Except as Noted
DescriptionAmortization Life in YearsDecember 31, 2025December 31, 2024
Gross Cost1
Accumulated Amortization
Gross Cost1
Accumulated Amortization
Consumers
Software development
3 – 15
$649 $492 $679 $481 
Rights of way
50 – 85
274 72 253 68 
Franchises and consents
5 – 50
16 12 16 11 
Leasehold improvements
various2
15 9 13 7 
Other intangiblesvarious33 17 28 16 
Total$987 $602 $989 $583 
1Consumers’ intangible asset additions were $62 million for the year ended December 31, 2025 and $90 million for the year ended December 31, 2024. Consumers’ intangible asset retirements were $64 million for the year ended December 31, 2025 and $153 million for the year ended December 31, 2024.
2Leasehold 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. 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 31202520242023
Electric6.9%6.9%6.5%
Gas5.95.85.8
Assets Under Finance Leases: Presented in the following table are further details about changes in CMS Energy’s and Consumers’ assets under finance leases:
In Millions
Years Ended December 3120252024
CMS Energy, including Consumers
Balance at beginning of period$176 $136 
Additions53 55 
Net retirements and other adjustments(36)(15)
Balance at end of period$193 $176 
Consumers
Balance at beginning of period$131 $112 
Additions22 34 
Net retirements and other adjustments(15)(15)
Balance at end of period$138 $131 
Assets under finance leases are presented as gross amounts. CMS Energy’s, including Consumers’, accumulated amortization of assets under finance leases was $53 million at December 31, 2025 and $57 million at December 31, 2024. Consumers’ accumulated amortization of assets under finance leases was $48 million at December 31, 2025 and $55 million at December 31, 2024.
Depreciation and Amortization: Presented in the following table are further details about CMS Energy’s and Consumers’ accumulated depreciation and amortization:
In Millions
Years Ended December 3120252024
CMS Energy, including Consumers
Utility plant assets$9,838 $9,307 
Non-utility plant assets297 262 
Consumers
Utility plant assets$9,838 $9,307 
Non-utility plant assets4 3 
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 31202520242023
Electric utility property3.6%3.6%3.8%
Gas utility property2.52.52.8
Other property7.07.17.8
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 31202520242023
CMS Energy, including Consumers
Depreciation expense – plant, property, and equipment$1,099 $1,041 $1,050 
Amortization expense
Software75 81 92 
Other intangible assets7 5 5 
Other regulatory assets8 2 — 
Securitized regulatory assets117 111 33 
Total depreciation and amortization expense$1,306 $1,240 $1,180 
Consumers
Depreciation expense – plant, property, and equipment$1,047 $992 $1,007 
Amortization expense
Software75 81 92 
Other intangible assets7 5 5 
Other regulatory assets8 2 — 
Securitized regulatory assets117 111 33 
Total depreciation and amortization expense$1,254 $1,191 $1,137 
Presented in the following table is Consumers’ estimated amortization expense on intangible assets for each of the next five years:
In Millions
20262027202820292030
Consumers
Intangible asset amortization expense$77 $66 $55 $50 $49 
Jointly Owned Regulated Utility Facilities
Presented in the following table are Consumers’ investments in jointly owned regulated utility facilities at December 31, 2025:
In Millions, Except Ownership Share
J.H. Campbell Unit 3LudingtonOther
Ownership share93.3%51.0%various
Utility plant in service$1,726$620$481
Accumulated provision for depreciation(916)(253)(97)
Plant under construction—3717
Net investment$810$404$401
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 plans to retire J.H. Campbell and, in 2022, removed an amount representing the projected remaining book value of the electric generating units upon their retirement from total plant, property, and equipment and recorded it as a regulatory asset on its consolidated balance sheets. The retirement of J.H. Campbell is subject to temporary extensions under emergency orders issued by the U.S. Secretary of Energy. For additional details, see Note 3, Regulatory Matters.
Consumers and DTE Electric engaged in litigation with TAES and Toshiba related to TAES’ incomplete, defective, and nonconforming work during a major overhaul and upgrade of Ludington. For additional details on this dispute, see Note 4, Contingencies and Commitments—Ludington Overhaul Contract Dispute.
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, Except as Noted
December 31Estimated
Depreciable
Life in Years		20252024
CMS Energy, including Consumers
Plant, property, and equipment, gross
Consumers
3 – 125
$36,120 $33,434 
NorthStar Clean Energy
Independent power production1
3 – 40
1,585 1,452 
Assets under finance leases2
55 45 
Other
3 – 5
3 1 
Plant, property, and equipment, gross$37,763 $34,932 
Construction work in progress3,052 2,098 
Accumulated depreciation and amortization(10,135)(9,569)
Total plant, property, and equipment3
$30,680 $27,461 
Consumers
Plant, property, and equipment, gross
Electric
Generation4
15 – 125
$7,171 $6,576 
Distribution
15 – 75
13,360 12,135 
Other
5 – 55
1,209 1,307 
Assets under finance leases2
131 119 
Gas
Distribution
20 – 85
8,553 7,942 
Transmission
17 – 75
3,236 3,081 
Underground storage facilities5
29 – 75
1,535 1,405 
Other
5 – 55
886 828 
Assets under finance leases2
8 12 
Other non-utility property
3 – 51
31 29 
Plant, property, and equipment, gross$36,120 $33,434 
Construction work in progress6
2,354 1,766 
Accumulated depreciation and amortization(9,842)(9,310)
Total plant, property, and equipment3
$28,632 $25,890 
1A portion 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 9, Leases.
2For information regarding the amortization terms of CMS Energy’s and Consumers’ assets under finance leases, see Note 9, Leases.
3Consumers’ plant additions were $3.1 billion for the year ended December 31, 2025 and $2.1 billion for the year ended December 31, 2024. Consumers’ plant retirements were $387 million for the year ended December 31, 2025 and $390 million for the year ended December 31, 2024.
4Includes 13 hydroelectric dams that Consumers has agreed to sell, contingent upon MPSC and FERC approval. For more information, see Note 20, Exit Activities and Asset Sales.
5Underground storage includes base natural gas of $24 million at December 31, 2025 and $26 million for the year ended December 31, 2024. Base natural gas is not subject to depreciation.
6For the year ended December 31, 2025, Consumers fully impaired certain development assets totaling $20 million. Of this amount, $15 million relates to two early-phase renewable natural gas development projects that have been paused indefinitely. The remaining impairment charge was deferred as a regulatory asset and will be recovered through the Renewable Energy Plan.
Intangible Assets: Included in net plant, property, and equipment are intangible assets. Presented in the following table are details about Consumers’ intangible assets:
In Millions, Except as Noted
DescriptionAmortization Life in YearsDecember 31, 2025December 31, 2024
Gross Cost1
Accumulated Amortization
Gross Cost1
Accumulated Amortization
Consumers
Software development
3 – 15
$649 $492 $679 $481 
Rights of way
50 – 85
274 72 253 68 
Franchises and consents
5 – 50
16 12 16 11 
Leasehold improvements
various2
15 9 13 7 
Other intangiblesvarious33 17 28 16 
Total$987 $602 $989 $583 
1Consumers’ intangible asset additions were $62 million for the year ended December 31, 2025 and $90 million for the year ended December 31, 2024. Consumers’ intangible asset retirements were $64 million for the year ended December 31, 2025 and $153 million for the year ended December 31, 2024.
2Leasehold 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. 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 31202520242023
Electric6.9%6.9%6.5%
Gas5.95.85.8
Assets Under Finance Leases: Presented in the following table are further details about changes in CMS Energy’s and Consumers’ assets under finance leases:
In Millions
Years Ended December 3120252024
CMS Energy, including Consumers
Balance at beginning of period$176 $136 
Additions53 55 
Net retirements and other adjustments(36)(15)
Balance at end of period$193 $176 
Consumers
Balance at beginning of period$131 $112 
Additions22 34 
Net retirements and other adjustments(15)(15)
Balance at end of period$138 $131 
Assets under finance leases are presented as gross amounts. CMS Energy’s, including Consumers’, accumulated amortization of assets under finance leases was $53 million at December 31, 2025 and $57 million at December 31, 2024. Consumers’ accumulated amortization of assets under finance leases was $48 million at December 31, 2025 and $55 million at December 31, 2024.
Depreciation and Amortization: Presented in the following table are further details about CMS Energy’s and Consumers’ accumulated depreciation and amortization:
In Millions
Years Ended December 3120252024
CMS Energy, including Consumers
Utility plant assets$9,838 $9,307 
Non-utility plant assets297 262 
Consumers
Utility plant assets$9,838 $9,307 
Non-utility plant assets4 3 
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 31202520242023
Electric utility property3.6%3.6%3.8%
Gas utility property2.52.52.8
Other property7.07.17.8
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 31202520242023
CMS Energy, including Consumers
Depreciation expense – plant, property, and equipment$1,099 $1,041 $1,050 
Amortization expense
Software75 81 92 
Other intangible assets7 5 5 
Other regulatory assets8 2 — 
Securitized regulatory assets117 111 33 
Total depreciation and amortization expense$1,306 $1,240 $1,180 
Consumers
Depreciation expense – plant, property, and equipment$1,047 $992 $1,007 
Amortization expense
Software75 81 92 
Other intangible assets7 5 5 
Other regulatory assets8 2 — 
Securitized regulatory assets117 111 33 
Total depreciation and amortization expense$1,254 $1,191 $1,137 
Presented in the following table is Consumers’ estimated amortization expense on intangible assets for each of the next five years:
In Millions
20262027202820292030
Consumers
Intangible asset amortization expense$77 $66 $55 $50 $49 
Jointly Owned Regulated Utility Facilities
Presented in the following table are Consumers’ investments in jointly owned regulated utility facilities at December 31, 2025:
In Millions, Except Ownership Share
J.H. Campbell Unit 3LudingtonOther
Ownership share93.3%51.0%various
Utility plant in service$1,726$620$481
Accumulated provision for depreciation(916)(253)(97)
Plant under construction—3717
Net investment$810$404$401
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 plans to retire J.H. Campbell and, in 2022, removed an amount representing the projected remaining book value of the electric generating units upon their retirement from total plant, property, and equipment and recorded it as a regulatory asset on its consolidated balance sheets. The retirement of J.H. Campbell is subject to temporary extensions under emergency orders issued by the U.S. Secretary of Energy. For additional details, see Note 3, Regulatory Matters.
Consumers and DTE Electric engaged in litigation with TAES and Toshiba related to TAES’ incomplete, defective, and nonconforming work during a major overhaul and upgrade of Ludington. For additional details on this dispute, see Note 4, Contingencies and Commitments—Ludington Overhaul Contract Dispute.