Regulatory Matters (Tables) - Consumers Energy Company

12 Months Ended

Dec. 31, 2020

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		2020			2019
Regulatory assets
Current
Energy waste reduction plan incentive1		2021		$	34		$	33
Deferred capital spending2		2021		6			—
Other		2021		2			—
Total current regulatory assets				$	42		$	33
Non-current
Postretirement benefits3		various		$	1,231		$	1,130
Costs of coal-fueled electric generating units to be retired2		various		678			667
Securitized costs2		2029		221			247
ARO4		various		216			191
MGP sites4		various		120			130
Unamortized loss on reacquired debt4		various		108			70
Energy waste reduction plan incentive1		2022		42			34
Energy waste reduction plan4		various		16			10
Demand response program4		various		10			1
COVID-19 costs accounting deferral4		various		4			—
Other		various		7			9
Total non-current regulatory assets				$	2,653		$	2,489
Total regulatory assets				$	2,695		$	2,522
Regulatory liabilities
Current
Income taxes, net		2021		$	105		$	65
Reserve for customer refunds		2021		28			2
Voluntary transmission asset sale gain share		2021		14			17
Other		2021		4			3
Total current regulatory liabilities				$	151		$	87
Non-current
Cost of removal		various		$	2,245		$	2,126
Income taxes, net		various		1,419			1,510
Renewable energy grant		2043		49			52
ARO		various		11			26
Renewable energy plan		2028		9			17
Other		various		11			11
Total non-current regulatory liabilities				$	3,744		$	3,742
Total regulatory liabilities				$	3,895		$	3,829

1These 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.

2The MPSC has historically authorized and Consumers expects the MPSC to authorize a specific return on these regulatory assets.

3This regulatory asset is included in rate base, thereby providing a return.

4These 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 liabilities for PSCR and GCR overrecoveries reflected on Consumers’ consolidated balance sheets:

In Millions
December 31	2020			2019
Liabilities
PSCR overrecoveries		$	5		$	33
GCR overrecoveries		15			2
Accrued rate refunds		$	20		$	35