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Schedule I - Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2020
Condensed Financial Information Disclosure [Abstract]  
Schedule I - Condensed Financial Information of Registrant
Condensed Statements of Income
In Millions
Years Ended December 31202020192018
Operating Expenses
Other operating expenses$(6)$(38)$(7)
Total operating expenses(6)(38)(7)
Operating Loss(6)(38)(7)
Other Income (Expense)
Equity earnings of subsidiaries909 826 780 
Nonoperating retirement benefits, net(1)(1)(1)
Interest income1 1 2 
Other income1 1 — 
Other expense(19)— (17)
Total other income891 827 764 
Interest Charges
Interest on long-term debt178 156 135 
Intercompany interest expense and other7 10 7 
Total interest charges185 166 142 
Income Before Income Taxes700 623 615 
Income Tax Benefit(55)(57)(42)
Net Income Available to Common Stockholders$755 $680 $657 
The accompanying notes are an integral part of these statements.
(Continued)
CMS Energy—Parent Company
Condensed Statements of Cash Flows
In Millions
Years Ended December 31202020192018
Cash Flows from Operating Activities
Net cash provided by operating activities$507 $697 $702 
Cash Flows from Investing Activities
Investment in subsidiaries(657)(683)(363)
Increase in notes receivable – intercompany(307)— — 
Proceeds from DB SERP investments— — 22 
Net cash used in investing activities(964)(683)(341)
Cash Flows from Financing Activities
Proceeds from issuance of debt1,225 1,158 560 
Issuance of common stock253 12 41 
Retirement of long-term debt(425)(738)(675)
Debt prepayment costs(16)— (16)
Payment of dividends on common stock(465)(434)(405)
Debt issuance costs and financing fees(10)(18)(8)
Change in notes payable – intercompany(105)6 142 
Net cash provided by (used in) financing activities457 (14)(361)
Net Increase in Cash and Cash Equivalents, Including Restricted Amounts— — — 
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period— — — 
Cash and Cash Equivalents, Including Restricted Amounts, End of Period$— $— $— 
The accompanying notes are an integral part of these statements.
(Continued)
CMS Energy—Parent Company
Condensed Balance Sheets
ASSETS
In Millions
December 3120202019
Current Assets
Notes and accrued interest receivable – intercompany$358 $2 
Accounts receivable – intercompany and related parties3 9 
Federal income tax receivable— 18 
Accrued taxes48 — 
Prepayments and other current assets1 1 
Total current assets410 30 
Other Non‑current Assets
Deferred income taxes91 126 
Investments in subsidiaries9,372 8,526 
Other investments 5 4 
Other5 16 
Total other non‑current assets9,473 8,672 
Total Assets$9,883 $8,702 
LIABILITIES AND EQUITY
In Millions
December 3120202019
Current Liabilities
Current portion of long-term debt$200 $— 
Accounts and notes payable – intercompany69 123 
Accrued interest, including intercompany33 34 
Accrued taxes— 5 
Other current liabilities9 38 
Total current liabilities311 200 
Non‑current Liabilities
Long-term debt3,926 3,334 
Notes payable – intercompany116 112 
Postretirement benefits21 21 
Other non‑current liabilities13 17 
Total non‑current liabilities4,076 3,484 
Equity
Common stockholders’ equity5,496 5,018 
Total Liabilities and Equity$9,883 $8,702 
The accompanying notes are an integral part of these statements.
Basis of PresentationCMS Energy’s condensed financial statements have been prepared on a parent-only basis. In accordance with Rule 12-04 of Regulation S-X, these parent-only financial statements do not include all of the information and notes required by GAAP for annual financial statements, and therefore these parent-only financial statements and other information included should be read in conjunction with CMS Energy’s audited consolidated financial statements contained within Item 8. Financial Statements and Supplementary Data.Contingencies
Gas Index Price Reporting Litigation: CMS Energy, along with CMS MST, CMS Field Services, Cantera Natural Gas, Inc., and Cantera Gas Company, were named as defendants in four class action lawsuits filed in Kansas, Missouri, and Wisconsin and one individual lawsuit filed in Kansas; these lawsuits arose as a result of alleged inaccurate natural gas price reporting to publications that report trade information. Allegations included price-fixing conspiracies, restraint of trade, and artificial inflation of natural gas retail prices. In 2016, CMS Energy entities reached a settlement with the plaintiffs in the Kansas and Missouri class action cases for an amount that was not material to CMS Energy. In 2017, the federal district court approved the settlement.
In 2019, CMS Energy and the plaintiffs in the remaining Kansas individual lawsuit and the Wisconsin class action lawsuit engaged in settlement discussions and CMS Energy recorded a $30 million liability at December 31, 2019 as the probable estimate to settle the two cases. The parties executed a settlement agreement in the Kansas case in February 2020, and that case is now complete. In the Wisconsin case, a settlement agreement was approved in August 2020 and that case is now complete.
Guarantees
CMS Energy has issued guarantees with a maximum potential obligation of $596 million on behalf of some of its wholly owned subsidiaries and related parties. CMS Energy’s maximum potential obligation consists primarily of potential payments:
•to third parties under certain commodity purchase and swap agreements entered into with CMS ERM
•to third parties under certain agreements entered into with Grand River Wind, LLC, a wholly owned subsidiary of CMS Enterprises
•to EGLE on behalf of CMS Land and CMS Capital, for environmental remediation obligations at Bay Harbor
•to the U.S. Department of Energy on behalf of Consumers, in connection with Consumers’ 2011 settlement agreement with the U.S. Department of Energy regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers
•to a tax equity investor under certain agreements in connection with the purchase of a VIE
The expiry dates of these guarantees vary, depending upon contractual provisions or upon the statute of limitations under the relevant governing law.
Note Payable—IntercompanyIn 2018, CMS Energy issued a demand note payable to the DB SERP rabbi trust, of which $124 million was attributable to CMS Energy’s subsidiaries. The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028. This note payable is not recorded at fair value; however, its carrying value approximates fair value at December 31, 2020. This fair value measurement is classified in Level 3 within the fair value hierarchy.