Regulatory Matters (Tables) - Consumers Energy Company

12 Months Ended

Dec. 31, 2019

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		2019			2018
Regulatory assets
Current
Energy waste reduction plan incentive1		2020		$	33		$	32
Other		2019		—			5
Total current regulatory assets				$	33		$	37
Non-current
Postretirement benefits2		various		$	1,130		$	1,028
Costs of coal-fueled electric generating units to be retired3		various		667			—
Securitized costs3		2029		247			273
ARO4		various		191			175
MGP sites4		various		130			133
Unamortized loss on reacquired debt4		various		70			68
Energy waste reduction plan incentive1		2021		34			34
Energy waste reduction plan4		various		10			26
Deferred capital spending4		various		3			—
Gas storage inventory adjustments4		various		3			4
Other		various		4			2
Total non-current regulatory assets				$	2,489		$	1,743
Total regulatory assets				$	2,522		$	1,780
Regulatory liabilities
Current
Income taxes, net		2020		$	65		$	18
Gain to be shared with customers		2020		17			—
Reserve for customer refunds		2019		2			36
TCJA reserve for refund		2019		—			98
Other		2020		3			3
Total current regulatory liabilities				$	87		$	155
Non-current
Cost of removal		various		$	2,126		$	1,966
Income taxes, net		various		1,510			1,537
Renewable energy grant		2043		52			54
ARO		various		26			38
Renewable energy plan		2028		17			42
TCJA reserve for refund		various		—			35
Other		various		11			9
Total non-current regulatory liabilities				$	3,742		$	3,681
Total regulatory liabilities				$	3,829		$	3,836

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 included in rate base, thereby providing a return.

³  The MPSC has historically authorized and Consumers expects the MPSC to authorize a specific return on these regulatory assets.

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	2019			2018
Assets
GCR underrecoveries		$	—		$	16
Accrued gas revenue		$	—		$	16
Liabilities
PSCR overrecoveries		$	33		$	4
GCR overrecoveries		2			—
Accrued rate refunds		$	35		$	4