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Exit Activities
 3 Months Ended
Mar. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Asset Sales and Exit Activities Exit Activities
Under its Clean Energy Plan, Consumers plans to retire the D.E. Karn 1 & 2 coal-fueled electric generating units in 2023. In 2019, Consumers announced a retention incentive program to ensure necessary staffing at the D.E. Karn generating complex through the anticipated retirement of the coal-fueled generating units. Based on the number of employees that have chosen to participate, the aggregate cost of the program through 2023 is estimated to be $35 million. In its order in Consumers’ 2020 electric rate case, the MPSC approved deferred accounting treatment for these costs; Consumers began deferring these costs as a regulatory asset in 2021.
As of March 31, 2021, the cumulative cost incurred and charged to expense related to this program was $16 million. Additionally, an amount of $3 million has been capitalized as a cost of plant, property, and equipment and an amount of $2 million has been deferred as a regulatory asset. Presented in the following
table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets:
In Millions
Three Months Ended March 3120212020
Retention benefit liability at beginning of period$11 $4 
Costs incurred and charged to maintenance and other operating expenses— 4 
Costs deferred as a regulatory asset2 — 
Retention benefit liability at the end of the period1
$13 $8 
1Includes current portion of other liabilities of $4 million at March 31, 2021 and 2020.
Consumers Energy Company  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Asset Sales and Exit Activities Exit Activities
Under its Clean Energy Plan, Consumers plans to retire the D.E. Karn 1 & 2 coal-fueled electric generating units in 2023. In 2019, Consumers announced a retention incentive program to ensure necessary staffing at the D.E. Karn generating complex through the anticipated retirement of the coal-fueled generating units. Based on the number of employees that have chosen to participate, the aggregate cost of the program through 2023 is estimated to be $35 million. In its order in Consumers’ 2020 electric rate case, the MPSC approved deferred accounting treatment for these costs; Consumers began deferring these costs as a regulatory asset in 2021.
As of March 31, 2021, the cumulative cost incurred and charged to expense related to this program was $16 million. Additionally, an amount of $3 million has been capitalized as a cost of plant, property, and equipment and an amount of $2 million has been deferred as a regulatory asset. Presented in the following
table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets:
In Millions
Three Months Ended March 3120212020
Retention benefit liability at beginning of period$11 $4 
Costs incurred and charged to maintenance and other operating expenses— 4 
Costs deferred as a regulatory asset2 — 
Retention benefit liability at the end of the period1
$13 $8 
1Includes current portion of other liabilities of $4 million at March 31, 2021 and 2020.