Contingencies and Commitments (Tables)

12 Months Ended

Dec. 31, 2020

Site Contingency [Line Items]

Guarantees

Presented in the following table are CMS Energy’s and Consumers’ guarantees at December 31, 2020:

In Millions
Guarantee Description	Issue Date	Expiration Date	Maximum Obligation			Carrying Amount
CMS Energy, including Consumers
Indemnity obligations from purchase of VIE1	September 2020	indefinite		$	349		$	—
Indemnity obligations from stock and asset sale agreements2	various	indefinite		153			2
Guarantee3	July 2011	indefinite		30			—
Consumers
Guarantee3	July 2011	indefinite		$	30		$	—

1In conjunction with the purchase of its interest in Aviator Wind Equity Holdings, CMS Enterprises assumed certain indemnity obligations that protect the associated tax equity investor against losses incurred as a result of breaches of representations and warranties provided by Aviator Wind Equity Holdings and its subsidiaries. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest in Aviator Wind. CMS Enterprises would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on CMS Enterprises’ ownership interest in Aviator Wind Equity Holdings, see Note 21, Variable Interest Entities.

2These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, primarily claims related to taxes. The maximum obligation amount is mostly related to the Equatorial Guinea tax claim discussed in the CMS Energy Contingencies section of this Note. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities.

3This obligation comprises a guarantee provided by Consumers to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers.

Purchase Obligations

Presented in the following table are CMS Energy’s and Consumers’ contractual purchase obligations at December 31, 2020 for each of the periods shown:

In Millions
	Payments Due
	Total			2021			2022			2023			2024			2025			Beyond 2025
CMS Energy, including Consumers
Total PPAs		$	8,898		$	1,057		$	791		$	731		$	784		$	732		$	4,803
Other		3,179			1,391			871			265			199			171			282
Consumers
PPAs
MCV PPA		$	2,815		$	349		$	340		$	358		$	376		$	329		$	1,063
Palisades PPA		517			398			119			—			—			—			—
Related-party PPAs		318			58			58			58			58			39			47
Other PPAs		5,248			252			274			315			350			364			3,693
Total PPAs		$	8,898		$	1,057		$	791		$	731		$	784		$	732		$	4,803
Other		2,605			1,333			777			207			154			130			4

Consumers Energy Company

Site Contingency [Line Items]

Guarantees

Presented in the following table are CMS Energy’s and Consumers’ guarantees at December 31, 2020:

In Millions
Guarantee Description	Issue Date	Expiration Date	Maximum Obligation			Carrying Amount
CMS Energy, including Consumers
Indemnity obligations from purchase of VIE1	September 2020	indefinite		$	349		$	—
Indemnity obligations from stock and asset sale agreements2	various	indefinite		153			2
Guarantee3	July 2011	indefinite		30			—
Consumers
Guarantee3	July 2011	indefinite		$	30		$	—

1In conjunction with the purchase of its interest in Aviator Wind Equity Holdings, CMS Enterprises assumed certain indemnity obligations that protect the associated tax equity investor against losses incurred as a result of breaches of representations and warranties provided by Aviator Wind Equity Holdings and its subsidiaries. These obligations are generally capped at an amount equal to the tax equity investor’s capital contributions plus a specified return, less any distributions and tax benefits it receives, in connection with its membership interest in Aviator Wind. CMS Enterprises would recover 49 percent of any amounts paid to the tax equity investor from the other owner of Aviator Wind Equity Holdings. Additionally, Aviator Wind holds insurance coverage that would partially protect against losses incurred as a result of certain failures to qualify for production tax credits. For further details on CMS Enterprises’ ownership interest in Aviator Wind Equity Holdings, see Note 21, Variable Interest Entities.

2These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, primarily claims related to taxes. The maximum obligation amount is mostly related to the Equatorial Guinea tax claim discussed in the CMS Energy Contingencies section of this Note. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities.

3This obligation comprises a guarantee provided by Consumers to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers.

Purchase Obligations

Presented in the following table are CMS Energy’s and Consumers’ contractual purchase obligations at December 31, 2020 for each of the periods shown:

In Millions
	Payments Due
	Total			2021			2022			2023			2024			2025			Beyond 2025
CMS Energy, including Consumers
Total PPAs		$	8,898		$	1,057		$	791		$	731		$	784		$	732		$	4,803
Other		3,179			1,391			871			265			199			171			282
Consumers
PPAs
MCV PPA		$	2,815		$	349		$	340		$	358		$	376		$	329		$	1,063
Palisades PPA		517			398			119			—			—			—			—
Related-party PPAs		318			58			58			58			58			39			47
Other PPAs		5,248			252			274			315			350			364			3,693
Total PPAs		$	8,898		$	1,057		$	791		$	731		$	784		$	732		$	4,803
Other		2,605			1,333			777			207			154			130			4

Bay Harbor

Site Contingency [Line Items]

Expected Remediation Costs By Year

. CMS Energy expects to pay the following amounts for long-term leachate disposal and operating and maintenance costs in each of the next five years:

In Millions
	2021			2022			2023			2024			2025
CMS Energy
Long-term leachate disposal and operating and maintenance costs		$	4		$	4		$	4		$	4		$	4

Manufactured Gas Plant | Consumers Energy Company

Site Contingency [Line Items]

Expected Remediation Costs By Year

Consumers expects to pay the following amounts for remediation and other response activity costs in each of the next five years:

In Millions
	2021			2022			2023			2024			2025
Consumers
Remediation and other response activity costs		$	3		$	9		$	23		$	10		$	1