Schedule I - Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2023

Condensed Financial Information Disclosure [Abstract]

Schedule I - Condensed Financial Information of Registrant

Condensed Statements of Income

In Millions
Years Ended December 31	2023			2022			2021
Operating Expenses
Other operating expenses		$	10		$	7		$	7
Total operating expenses		10			7			7
Operating Loss		(10)			(7)			(7)
Other Income (Expense)
Equity earnings of subsidiaries		929			980			1,482
Nonoperating retirement benefits, net		(1)			(1)			(1)
Other income		31			5			2
Other expense		—			(1)			—
Total other income		959			983			1,483
Interest Charges
Interest on long-term debt		201			181			183
Intercompany interest expense and other		10			8			7
Total interest charges		211			189			190
Income Before Income Taxes		738			787			1,286
Income Tax Benefit		(20)			(50)			(60)
Income From Continuing Operations		758			837			1,346
Income From Discontinued Operations, Net of Tax of $—, $—, and $(5)		—			—			7
Net Income Attributable to CMS Energy		758			837			1,353
Preferred Stock Dividends		10			10			5
Net Income Available to Common Stockholders		$	748		$	827		$	1,348

The accompanying notes are an integral part of these statements.

CMS Energy—Parent Company

Condensed Statements of Cash Flows

In Millions
Years Ended December 31	2023			2022			2021
Cash Flows from Operating Activities
Net cash provided by operating activities		$	595		$	565		$	1,549
Cash Flows from Investing Activities
Investment in subsidiaries		(630)			(796)			(581)
Investment in debt securities - intercompany		(293)			—			—
Decrease (increase) in notes receivable – intercompany		55			286			(83)
Net cash used in investing activities		(868)			(510)			(664)
Cash Flows from Financing Activities
Proceeds from issuance of debt		800			—			—
Issuance of common stock		192			69			26
Issuance of preferred stock		—			—			224
Retirement of long-term debt		—			—			(200)
Payment of dividends on common and preferred stock		(579)			(544)			(507)
Debt issuance costs and financing fees		(20)			(11)			(10)
Change in notes payable – intercompany		(7)			77			(28)
Net cash provided by (used in) financing activities		386			(409)			(495)
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts		113			(354)			390
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period		36			390			—
Cash and Cash Equivalents, Including Restricted Amounts, End of Period		$	149		$	36		$	390

The accompanying notes are an integral part of these statements.

CMS Energy—Parent Company

Condensed Balance Sheets

ASSETS
In Millions
December 31	2023			2022
Current Assets
Cash and cash equivalents		$	149		$	36
Notes and accrued interest receivable – intercompany		60			107
Accounts receivable – intercompany and related parties		9			8
Taxes receivable		11			45
Prepayments and other current assets		—			1
Total current assets		229			197
Other Non‑current Assets
Deferred income taxes		137			105
Investments in subsidiaries		11,701			10,881
Investment in debt securities – intercompany		296			—
Other investments		8			6
Other		24			11
Total other non‑current assets		12,166			11,003
Total Assets		$	12,395		$	11,200

LIABILITIES AND EQUITY
In Millions
December 31	2023			2022
Current Liabilities
Current portion of long-term debt		$	250		$	—
Accounts and notes payable – intercompany		75			74
Accrued interest, including intercompany		37			33
Other current liabilities		9			9
Total current liabilities		371			116
Non‑current Liabilities
Long-term debt		4,471			3,930
Notes payable – intercompany		105			109
Postretirement benefits		15			15
Other non‑current liabilities		18			15
Total non‑current liabilities		4,609			4,069
Equity
Common stock		3			3
Other stockholders' equity		7,188			6,788
Total common stockholders’ equity		7,191			6,791
Preferred stock		224			224
Total equity		7,415			7,015
Total Liabilities and Equity		$	12,395		$	11,200

The accompanying notes are an integral part of these statements.

Basis of Presentation

CMS Energy’s condensed financial statements have been prepared on a parent-only basis. In accordance with Rule 12‑04 of Regulation S‑X, these parent-only financial statements do not include all of the information and notes required by GAAP for annual financial statements, and therefore these parent-only financial statements and other information included should be read in conjunction with CMS Energy’s audited consolidated financial statements contained within Item 8. Financial Statements and Supplementary Data.

Guarantees

CMS Energy has issued guarantees with a maximum potential obligation of $886 million on behalf of some of its wholly owned subsidiaries and related parties. CMS Energy’s maximum potential obligation consists primarily of potential payments:

•to third parties under certain commodity purchase and sales agreements entered into by CMS ERM and other subsidiaries of NorthStar Clean Energy

•to tax equity investors that hold membership interests in certain VIEs held by NorthStar Clean Energy

•to EGLE on behalf of CMS Land and CMS Capital, for environmental remediation obligations at Bay Harbor

•to the U.S. Department of Energy on behalf of Consumers, in connection with Consumers’ 2011 settlement agreement with the U.S. Department of Energy regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers

The expiration dates of these guarantees vary, depending upon contractual provisions or upon the statute of limitations under the relevant governing law.