Regulatory Matters (Tables) - Consumers Energy Company

12 Months Ended

Dec. 31, 2018

Public Utility, Property, Plant and Equipment [Line Items]

Schedule of Regulatory Assets and Liabilities

Presented in the following table are the regulatory assets and liabilities on Consumers’ consolidated balance sheets:



In Millions
December 31	End of Recovery or Refund Period		2018			2017
Regulatory assets
Current
Energy waste reduction plan incentive¹		2019		$	32		$	18
Other		2019		5			2
Total current regulatory assets				$	37		$	20
Non-current
Postretirement benefits²		various		$	1,028		$	1,028
Securitized costs³		2029		273			298
ARO⁴		various		175			161
MGP sites⁴		various		133			142
Unamortized loss on reacquired debt⁴		various		68			53
Energy waste reduction plan incentive¹		2020		34			31
Energy waste reduction plan⁴		various		26			39
Gas storage inventory adjustments⁴		various		4			10
Other		various		2			2
Total non-current regulatory assets				$	1,743		$	1,764
Total regulatory assets				$	1,780		$	1,784
Regulatory liabilities
Current
TCJA reserve for refund		2019		$	98		$	—
Reserve for customer refunds		2019		36			25
Income taxes, net		2019		18			52
Other		2019		3			3
Total current regulatory liabilities				$	155		$	80
Non-current
Cost of removal		various		$	1,966		$	1,844
Income taxes, net		various		1,537			1,564
Renewable energy grant		2043		54			56
Renewable energy plan		2028		42			56
ARO		various		38			50
TCJA reserve for refund		various		35			—
Postretirement benefits		various		—			135
Other		various		9			10
Total non-current regulatory liabilities				$	3,681		$	3,715
Total regulatory liabilities				$	3,836		$	3,795


¹	These regulatory assets have arisen from an alternative revenue program and are not associated with incurred costs or capital investments. Therefore, the MPSC has provided for recovery without a return.


²	This regulatory asset is offset partially by liabilities. The net amount is included in rate base, thereby providing a return.


³	The MPSC has authorized a specific return on this regulatory asset.


⁴	These regulatory assets represent incurred costs for which the MPSC has provided, or Consumers expects, recovery without a return on investment.

Schedule of Assets and Liabilities for PSCR and GCR Underrecoveries and Overrecoveries

Presented in the following table are the assets and liabilities for PSCR and GCR underrecoveries and overrecoveries reflected on Consumers’ consolidated balance sheets:



In Millions
December 31	2018			2017
Assets
GCR underrecoveries		16			—
Accrued gas revenue		$	16		$	—
Liabilities
PSCR overrecoveries		$	4		$	27
GCR overrecoveries		—			6
Accrued rate refunds		$	4		$	33