XML 68 R50.htm IDEA: XBRL DOCUMENT v3.10.0.1
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) - USD ($)
$ in Millions
1 Months Ended 6 Months Ended
Mar. 31, 2018
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Income Taxes [Line Items]        
U.S. federal income tax rate   21.00% 35.00%  
Increase (decrease) in income taxes from:        
State and local income taxes, net of federal effect   5.60% 4.70%  
Accelerated flow-through of regulatory tax benefits [1]   (5.00%) (4.20%)  
TCJA excess deferred taxes [2]   (3.40%) 0.00%  
Research and development tax credits, net [3]   (2.20%) (0.10%)  
Production tax credits   (1.70%) (1.00%)  
Employee share-based awards   (0.30%) (1.40%)  
Other, net   0.60% (0.10%)  
Effective tax rate   14.60% 32.90%  
Consumers Energy Company        
Income Taxes [Line Items]        
U.S. federal income tax rate   21.00% 35.00%  
Increase (decrease) in income taxes from:        
State and local income taxes, net of federal effect   5.80% 4.60%  
Accelerated flow-through of regulatory tax benefits [1]   (4.70%) (4.00%)  
TCJA excess deferred taxes [2]   (3.20%) 0.00%  
Research and development tax credits, net [3]   (2.10%) (0.10%)  
Production tax credits   (1.50%) (0.90%)  
Employee share-based awards   (0.30%) (1.20%)  
Other, net   0.30% (0.60%)  
Effective tax rate   15.30% 32.80%  
Reduction of income tax expense   $ 22 $ 19  
Research Tax Credit Carryforward | Consumers Energy Company        
Increase (decrease) in income taxes from:        
Increase in credit $ 8      
Revenue Subject to Refund - Tax Reform DFIT Change | Consumers Energy Company        
Increase (decrease) in income taxes from:        
Regulatory liabilities   $ 18    
Plant, Property, And Equipment (Subject To Normalization) | Consumers Energy Company        
Increase (decrease) in income taxes from:        
Regulatory liabilities       $ 1,800
[1] In 2013, the MPSC issued an order authorizing Consumers to accelerate the flow-through to electric and gas customers of certain income tax benefits associated primarily with the cost of removal of plant placed in service before 1993. Consumers implemented this regulatory treatment beginning in 2014. This change, which also accelerates Consumers’ recognition of the income tax benefits, reduced Consumers’ income tax expense by $22 million for the six months ended June 30, 2018 and by $19 million for the six months ended June 30, 2017.
[2] In December 2017, Consumers remeasured its deferred tax assets and liabilities at the new federal tax rate enacted by the TCJA and recorded a $1.8 billion regulatory liability. This regulatory liability relates to the excess deferred taxes arising from accelerated tax depreciation on assets in rate base that are governed by normalization provisions of the U.S. Internal Revenue Code. The normalization provisions require that the excess deferred taxes be refunded to customers over the remaining average service life of the associated assets. In January 2018, Consumers began to reduce this regulatory liability by crediting income tax expense. Consumers has fully reserved for the eventual refund of these excess deferred taxes that it has credited to income tax expense in a separate regulatory liability established by reducing revenue, and will continue to do so until these benefits are passed on to customers in accordance with an MPSC order, expected to be issued in 2019. At June 30, 2018, this reserve for refund of these excess deferred taxes totaled $18 million.
[3] In March 2018, Consumers finalized a study of research and development tax credits for the tax years 2012 through 2016. As a result, Consumers recognized an $8 million increase in the credit, net of reserves for uncertain tax positions