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Revenue
 6 Months Ended
Jun. 30, 2023
Disaggregation of Revenue [Line Items]  
Revenue RevenuePresented in the following tables are the components of operating revenue:
In Millions
Three Months Ended June 30, 2023Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,115 $356 $— $1,471 
Other— — 43 43 
Revenue recognized from contracts with customers$1,115 $356 $43 $1,514 
Leasing income— — 27 27 
Financing income3 1 — 4 
Consumers alternative-revenue programs10 — — 10 
Total operating revenue – CMS Energy$1,128 $357 $70 $1,555 
Consumers
Consumers utility revenue
Residential$513 $229 $742 
Commercial393 68 461 
Industrial159 8 167 
Other50 51 101 
Revenue recognized from contracts with customers$1,115 $356 $1,471 
Financing income3 1 4 
Alternative-revenue programs10 — 10 
Total operating revenue – Consumers$1,128 $357 $1,485 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. Certain of NorthStar Clean Energy’s power sales agreements are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $16 million for the three months ended June 30, 2023.
In Millions
Three Months Ended June 30, 2022Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,322 $468 $— $1,790 
Other— — 52 52 
Revenue recognized from contracts with customers$1,322 $468 $52 $1,842 
Leasing income— — 66 66 
Financing income2 2 — 4 
Consumers alternative-revenue programs1 7 — 8 
Total operating revenue – CMS Energy$1,325 $477 $118 $1,920 
Consumers
Consumers utility revenue
Residential$597 $309 $906 
Commercial420 99 519 
Industrial207 15 222 
Other98 45 143 
Revenue recognized from contracts with customers$1,322 $468 $1,790 
Financing income2 2 4 
Alternative-revenue programs1 7 8 
Total operating revenue – Consumers$1,325 $477 $1,802 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. Certain of NorthStar Clean Energy’s power sales agreements are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $53 million for the three months ended June 30, 2022.
In Millions
Six Months Ended June 30, 2023Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$2,204 $1,472 $— $3,676 
Other— — 86 86 
Revenue recognized from contracts with customers$2,204 $1,472 $86 $3,762 
Leasing income— — 58 58 
Financing income5 4 — 9 
Consumers alternative-revenue programs10 — — 10 
Total operating revenue – CMS Energy$2,219 $1,476 $144 $3,839 
Consumers
Consumers utility revenue
Residential$1,041 $1,005 $2,046 
Commercial740 315 1,055 
Industrial320 39 359 
Other103 113 216 
Revenue recognized from contracts with customers$2,204 $1,472 $3,676 
Financing income5 4 9 
Alternative-revenue programs10 — 10 
Total operating revenue – Consumers$2,219 $1,476 $3,695 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. Certain of NorthStar Clean Energy’s power sales agreements are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $38 million for the six months ended June 30, 2023.
In Millions
Six Months Ended June 30, 2022Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$2,560 $1,515 $— $4,075 
Other— — 85 85 
Revenue recognized from contracts with customers$2,560 $1,515 $85 $4,160 
Leasing income— — 124 124 
Financing income5 4 — 9 
Consumers alternative-revenue programs1 — — 1 
Total operating revenue – CMS Energy$2,566 $1,519 $209 $4,294 
Consumers
Consumers utility revenue
Residential$1,188 $1,049 $2,237 
Commercial804 320 1,124 
Industrial375 43 418 
Other193 103 296 
Revenue recognized from contracts with customers$2,560 $1,515 $4,075 
Financing income5 4 9 
Alternative-revenue programs1 — 1 
Total operating revenue – Consumers$2,566 $1,519 $4,085 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. Certain of NorthStar Clean Energy’s power sales agreements are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $97 million for the six months ended June 30, 2022.
Electric and Gas Utilities
Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff-based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff-based sales performance obligations are described below.
•Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of Consumers’ service to stand ready to deliver.
•Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of a bundled
product comprising the commodity, electricity or natural gas, and the service of delivering such commodity.
In some instances, Consumers has specific fixed-term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature.
Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due.
CMS Energy and Consumers recorded uncollectible accounts expense of $8 million for the three months ended June 30, 2023 and $14 million for the three months ended June 30, 2022. CMS Energy and Consumers recorded uncollectible accounts expense of $17 million for the six months ended June 30, 2023 and $18 million for the six months ended June 30, 2022.
Consumers’ customers are billed monthly in cycles having billing dates that do not generally coincide with the end of a calendar month. This results in customers having received electricity or natural gas that they have not been billed for as of the month-end. Consumers estimates its unbilled revenues by applying an average billed rate to total unbilled deliveries for each customer class. Unbilled revenues, which are recorded as accounts receivable and accrued revenue on CMS Energy’s and Consumers’ consolidated balance sheets, were $339 million at June 30, 2023 and $663 million at December 31, 2022.
Alternative‑revenue Programs: Under a demand response incentive mechanism, Consumers earns a financial incentive when it meets demand response targets set by the MPSC. Consumers recognizes revenue related to this program once demand response incentive objectives are complete, the incentive amount is calculable, and the incentive revenue will be collected within a 24‑month period.
Under a gas revenue decoupling mechanism authorized by the MPSC, Consumers is allowed to adjust future gas rates for differences between Consumers’ actual weather‑normalized, non‑fuel revenues and the revenues approved by the MPSC. Consumers accounts for this program as an alternative‑revenue program that meets the criteria for recognizing the effects of decoupling adjustments on revenue as gas is delivered.
Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers.
Consumers Energy Company  
Disaggregation of Revenue [Line Items]  
Revenue RevenuePresented in the following tables are the components of operating revenue:
In Millions
Three Months Ended June 30, 2023Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,115 $356 $— $1,471 
Other— — 43 43 
Revenue recognized from contracts with customers$1,115 $356 $43 $1,514 
Leasing income— — 27 27 
Financing income3 1 — 4 
Consumers alternative-revenue programs10 — — 10 
Total operating revenue – CMS Energy$1,128 $357 $70 $1,555 
Consumers
Consumers utility revenue
Residential$513 $229 $742 
Commercial393 68 461 
Industrial159 8 167 
Other50 51 101 
Revenue recognized from contracts with customers$1,115 $356 $1,471 
Financing income3 1 4 
Alternative-revenue programs10 — 10 
Total operating revenue – Consumers$1,128 $357 $1,485 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. Certain of NorthStar Clean Energy’s power sales agreements are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $16 million for the three months ended June 30, 2023.
In Millions
Three Months Ended June 30, 2022Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$1,322 $468 $— $1,790 
Other— — 52 52 
Revenue recognized from contracts with customers$1,322 $468 $52 $1,842 
Leasing income— — 66 66 
Financing income2 2 — 4 
Consumers alternative-revenue programs1 7 — 8 
Total operating revenue – CMS Energy$1,325 $477 $118 $1,920 
Consumers
Consumers utility revenue
Residential$597 $309 $906 
Commercial420 99 519 
Industrial207 15 222 
Other98 45 143 
Revenue recognized from contracts with customers$1,322 $468 $1,790 
Financing income2 2 4 
Alternative-revenue programs1 7 8 
Total operating revenue – Consumers$1,325 $477 $1,802 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. Certain of NorthStar Clean Energy’s power sales agreements are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $53 million for the three months ended June 30, 2022.
In Millions
Six Months Ended June 30, 2023Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$2,204 $1,472 $— $3,676 
Other— — 86 86 
Revenue recognized from contracts with customers$2,204 $1,472 $86 $3,762 
Leasing income— — 58 58 
Financing income5 4 — 9 
Consumers alternative-revenue programs10 — — 10 
Total operating revenue – CMS Energy$2,219 $1,476 $144 $3,839 
Consumers
Consumers utility revenue
Residential$1,041 $1,005 $2,046 
Commercial740 315 1,055 
Industrial320 39 359 
Other103 113 216 
Revenue recognized from contracts with customers$2,204 $1,472 $3,676 
Financing income5 4 9 
Alternative-revenue programs10 — 10 
Total operating revenue – Consumers$2,219 $1,476 $3,695 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. Certain of NorthStar Clean Energy’s power sales agreements are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $38 million for the six months ended June 30, 2023.
In Millions
Six Months Ended June 30, 2022Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$2,560 $1,515 $— $4,075 
Other— — 85 85 
Revenue recognized from contracts with customers$2,560 $1,515 $85 $4,160 
Leasing income— — 124 124 
Financing income5 4 — 9 
Consumers alternative-revenue programs1 — — 1 
Total operating revenue – CMS Energy$2,566 $1,519 $209 $4,294 
Consumers
Consumers utility revenue
Residential$1,188 $1,049 $2,237 
Commercial804 320 1,124 
Industrial375 43 418 
Other193 103 296 
Revenue recognized from contracts with customers$2,560 $1,515 $4,075 
Financing income5 4 9 
Alternative-revenue programs1 — 1 
Total operating revenue – Consumers$2,566 $1,519 $4,085 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities. Certain of NorthStar Clean Energy’s power sales agreements are accounted for as operating leases. In addition to fixed payments, these agreements have variable payments based on energy delivered. NorthStar Clean Energy’s leasing income included variable lease payments of $97 million for the six months ended June 30, 2022.
Electric and Gas Utilities
Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff-based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff-based sales performance obligations are described below.
•Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of Consumers’ service to stand ready to deliver.
•Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of a bundled
product comprising the commodity, electricity or natural gas, and the service of delivering such commodity.
In some instances, Consumers has specific fixed-term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature.
Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due.
CMS Energy and Consumers recorded uncollectible accounts expense of $8 million for the three months ended June 30, 2023 and $14 million for the three months ended June 30, 2022. CMS Energy and Consumers recorded uncollectible accounts expense of $17 million for the six months ended June 30, 2023 and $18 million for the six months ended June 30, 2022.
Consumers’ customers are billed monthly in cycles having billing dates that do not generally coincide with the end of a calendar month. This results in customers having received electricity or natural gas that they have not been billed for as of the month-end. Consumers estimates its unbilled revenues by applying an average billed rate to total unbilled deliveries for each customer class. Unbilled revenues, which are recorded as accounts receivable and accrued revenue on CMS Energy’s and Consumers’ consolidated balance sheets, were $339 million at June 30, 2023 and $663 million at December 31, 2022.
Alternative‑revenue Programs: Under a demand response incentive mechanism, Consumers earns a financial incentive when it meets demand response targets set by the MPSC. Consumers recognizes revenue related to this program once demand response incentive objectives are complete, the incentive amount is calculable, and the incentive revenue will be collected within a 24‑month period.
Under a gas revenue decoupling mechanism authorized by the MPSC, Consumers is allowed to adjust future gas rates for differences between Consumers’ actual weather‑normalized, non‑fuel revenues and the revenues approved by the MPSC. Consumers accounts for this program as an alternative‑revenue program that meets the criteria for recognizing the effects of decoupling adjustments on revenue as gas is delivered.
Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers.