XML 86 R19.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Asset Retirement Obligations
12 Months Ended
Dec. 31, 2019
Asset Retirement Obligations [Line Items]  
Asset Retirement Obligations
Asset Retirement Obligations
CMS Energy and Consumers record the fair value of the cost to remove assets at the end of their useful lives, if there is a legal obligation to remove them. If a reasonable estimate of fair value cannot be made in the period in which the ARO is incurred, such as for assets with indeterminate lives, the liability is recognized when a reasonable estimate of fair value can be made. CMS Energy and Consumers have not recorded liabilities for assets that have immaterial cumulative disposal costs, such as substation batteries.
CMS Energy and Consumers calculate the fair value of ARO liabilities using an expected present-value technique that reflects assumptions about costs and inflation, and uses a credit-adjusted risk-free rate to discount the expected cash flows. CMS Energy’s ARO liabilities are primarily at Consumers.
Presented below are the categories of assets that CMS Energy and Consumers have legal obligations to remove at the end of their useful lives and for which they have an ARO liability recorded:
Company and ARO Description
In-Service Date
Long-Lived Assets
CMS Energy, including Consumers
 
 
Closure of gas treating plant and gas wells
various
Gas transmission and storage
Closure of coal ash disposal areas
various
Generating plants coal ash areas
Gas distribution cut, purge, and cap
various
Gas distribution mains and services
Asbestos abatement
1973
Electric and gas utility plant
Closure of renewable generation assets
various
Wind and solar generation facilities
Gas wells plug and abandon
various
Gas transmission and storage
Consumers
 
 
Closure of coal ash disposal areas
various
Generating plants coal ash areas
Gas distribution cut, purge, and cap
various
Gas distribution mains and services
Asbestos abatement
1973
Electric and gas utility plant
Closure of renewable generation assets
various
Wind and solar generation facilities
Gas wells plug and abandon
various
Gas transmission and storage

No assets have been restricted for purposes of settling AROs.
Presented in the following tables are the changes in CMS Energy’s and Consumers’ ARO liabilities:
In Millions
 
Company and ARO Description
ARO Liability 12/31/2018
 
Incurred
 
Settled
 
Accretion
 
Cash Flow Revisions
 
ARO Liability 12/31/2019
 
CMS Energy, including Consumers
Consumers
 
$
428

 
$
55

 
$
(37
)
 
$
21

 
$
7

 
$
474

Gas treating plant and gas wells
 
1

 

 
(1
)
 

 

 

Renewable generation assets
 
3

 

 

 

 

 
3

Total CMS Energy
 
$
432

 
$
55

 
$
(38
)
 
$
21

 
$
7

 
$
477

Consumers
 
 
 
 
 
 
 
 
 
 
 
 
Coal ash disposal areas
 
$
179

 
$

 
$
(27
)
 
$
7

 
$
7

 
$
166

Gas distribution cut, purge, and cap
 
205

 
22

 
(8
)
 
12

 

 
231

Asbestos abatement
 
33

 

 
(1
)
 
2

 

 
34

Renewable generation assets
 
11

 
10

 

 

 

 
21

Gas wells plug and abandon
 

 
23

 
(1
)
 

 

 
22

Total Consumers
 
$
428

 
$
55

 
$
(37
)
 
$
21

 
$
7

 
$
474

In Millions
 
Company and ARO Description
ARO Liability 12/31/2017
 
Incurred
 
Settled
 
Accretion
 
Cash Flow Revisions
 
ARO Liability 12/31/2018
 
CMS Energy, including Consumers
Consumers
 
$
429

 
$
17

 
$
(40
)
 
$
22

 
$

 
$
428

Gas treating plant and gas wells
 
1

 

 

 

 

 
1

Renewable generation assets
 

 
3

 

 

 

 
3

Total CMS Energy
 
$
430

 
$
20

 
$
(40
)
 
$
22

 
$

 
$
432

Consumers
 
 
 
 
 
 
 
 
 
 
 
 
Coal ash disposal areas
 
$
191

 
$

 
$
(20
)
 
$
8

 
$

 
$
179

Gas distribution cut, purge, and cap
 
186

 
17

 
(9
)
 
11

 

 
205

Asbestos abatement
 
42

 

 
(11
)
 
2

 

 
33

Renewable generation assets
 
10

 

 

 
1

 

 
11

Total Consumers
 
$
429

 
$
17

 
$
(40
)
 
$
22

 
$

 
$
428


Consumers Energy Company  
Asset Retirement Obligations [Line Items]  
Asset Retirement Obligations
Asset Retirement Obligations
CMS Energy and Consumers record the fair value of the cost to remove assets at the end of their useful lives, if there is a legal obligation to remove them. If a reasonable estimate of fair value cannot be made in the period in which the ARO is incurred, such as for assets with indeterminate lives, the liability is recognized when a reasonable estimate of fair value can be made. CMS Energy and Consumers have not recorded liabilities for assets that have immaterial cumulative disposal costs, such as substation batteries.
CMS Energy and Consumers calculate the fair value of ARO liabilities using an expected present-value technique that reflects assumptions about costs and inflation, and uses a credit-adjusted risk-free rate to discount the expected cash flows. CMS Energy’s ARO liabilities are primarily at Consumers.
Presented below are the categories of assets that CMS Energy and Consumers have legal obligations to remove at the end of their useful lives and for which they have an ARO liability recorded:
Company and ARO Description
In-Service Date
Long-Lived Assets
CMS Energy, including Consumers
 
 
Closure of gas treating plant and gas wells
various
Gas transmission and storage
Closure of coal ash disposal areas
various
Generating plants coal ash areas
Gas distribution cut, purge, and cap
various
Gas distribution mains and services
Asbestos abatement
1973
Electric and gas utility plant
Closure of renewable generation assets
various
Wind and solar generation facilities
Gas wells plug and abandon
various
Gas transmission and storage
Consumers
 
 
Closure of coal ash disposal areas
various
Generating plants coal ash areas
Gas distribution cut, purge, and cap
various
Gas distribution mains and services
Asbestos abatement
1973
Electric and gas utility plant
Closure of renewable generation assets
various
Wind and solar generation facilities
Gas wells plug and abandon
various
Gas transmission and storage

No assets have been restricted for purposes of settling AROs.
Presented in the following tables are the changes in CMS Energy’s and Consumers’ ARO liabilities:
In Millions
 
Company and ARO Description
ARO Liability 12/31/2018
 
Incurred
 
Settled
 
Accretion
 
Cash Flow Revisions
 
ARO Liability 12/31/2019
 
CMS Energy, including Consumers
Consumers
 
$
428

 
$
55

 
$
(37
)
 
$
21

 
$
7

 
$
474

Gas treating plant and gas wells
 
1

 

 
(1
)
 

 

 

Renewable generation assets
 
3

 

 

 

 

 
3

Total CMS Energy
 
$
432

 
$
55

 
$
(38
)
 
$
21

 
$
7

 
$
477

Consumers
 
 
 
 
 
 
 
 
 
 
 
 
Coal ash disposal areas
 
$
179

 
$

 
$
(27
)
 
$
7

 
$
7

 
$
166

Gas distribution cut, purge, and cap
 
205

 
22

 
(8
)
 
12

 

 
231

Asbestos abatement
 
33

 

 
(1
)
 
2

 

 
34

Renewable generation assets
 
11

 
10

 

 

 

 
21

Gas wells plug and abandon
 

 
23

 
(1
)
 

 

 
22

Total Consumers
 
$
428

 
$
55

 
$
(37
)
 
$
21

 
$
7

 
$
474

In Millions
 
Company and ARO Description
ARO Liability 12/31/2017
 
Incurred
 
Settled
 
Accretion
 
Cash Flow Revisions
 
ARO Liability 12/31/2018
 
CMS Energy, including Consumers
Consumers
 
$
429

 
$
17

 
$
(40
)
 
$
22

 
$

 
$
428

Gas treating plant and gas wells
 
1

 

 

 

 

 
1

Renewable generation assets
 

 
3

 

 

 

 
3

Total CMS Energy
 
$
430

 
$
20

 
$
(40
)
 
$
22

 
$

 
$
432

Consumers
 
 
 
 
 
 
 
 
 
 
 
 
Coal ash disposal areas
 
$
191

 
$

 
$
(20
)
 
$
8

 
$

 
$
179

Gas distribution cut, purge, and cap
 
186

 
17

 
(9
)
 
11

 

 
205

Asbestos abatement
 
42

 

 
(11
)
 
2

 

 
33

Renewable generation assets
 
10

 

 

 
1

 

 
11

Total Consumers
 
$
429

 
$
17

 
$
(40
)
 
$
22

 
$

 
$
428