Exit Activities

3 Months Ended

Mar. 31, 2023

Restructuring Cost and Reserve [Line Items]

Exit Activities

Exit Activities

Under its Clean Energy Plan, Consumers will retire the D.E. Karn coal-fueled electric generating units in May 2023 and the J.H. Campbell coal-fueled generating units in 2025. Consumers has announced retention incentive programs to ensure necessary staffing at both locations through the anticipated retirements. The aggregate cost of the D.E. Karn program through 2022 was $31 million, and Consumers expects to recognize an additional $2 million of retention benefit costs in the first half of 2023. The aggregate cost of the J.H. Campbell program through 2025 is estimated to be $50 million. The MPSC has approved deferred accounting treatment for these costs; this expense will be deferred as a regulatory asset.

As of March 31, 2023, the cumulative cost incurred and charged to expense related to the D.E. Karn retention incentive program was $16 million. Additionally, an amount of $4 million has been capitalized as a cost of plant, property, and equipment and an amount of $12 million has been deferred as a regulatory asset. The cumulative cost incurred and deferred as a regulatory asset related to the J.H. Campbell retention incentive program was $24 million.

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 31	2023			2022
Retention benefit liability at beginning of period		$	21		$	14
Costs deferred as a regulatory asset		5			1
Retention benefit liability at the end of the period1		$	26		$	15

1Includes current portion of other liabilities of $16 million at March 31, 2023 and $5 million at March 31, 2022.

Consumers Energy Company

Restructuring Cost and Reserve [Line Items]

Exit Activities

Exit Activities

Under its Clean Energy Plan, Consumers will retire the D.E. Karn coal-fueled electric generating units in May 2023 and the J.H. Campbell coal-fueled generating units in 2025. Consumers has announced retention incentive programs to ensure necessary staffing at both locations through the anticipated retirements. The aggregate cost of the D.E. Karn program through 2022 was $31 million, and Consumers expects to recognize an additional $2 million of retention benefit costs in the first half of 2023. The aggregate cost of the J.H. Campbell program through 2025 is estimated to be $50 million. The MPSC has approved deferred accounting treatment for these costs; this expense will be deferred as a regulatory asset.

As of March 31, 2023, the cumulative cost incurred and charged to expense related to the D.E. Karn retention incentive program was $16 million. Additionally, an amount of $4 million has been capitalized as a cost of plant, property, and equipment and an amount of $12 million has been deferred as a regulatory asset. The cumulative cost incurred and deferred as a regulatory asset related to the J.H. Campbell retention incentive program was $24 million.

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 31	2023			2022
Retention benefit liability at beginning of period		$	21		$	14
Costs deferred as a regulatory asset		5			1
Retention benefit liability at the end of the period1		$	26		$	15

1Includes current portion of other liabilities of $16 million at March 31, 2023 and $5 million at March 31, 2022.