Regulatory Matters (Tables) - Consumers Energy Company

12 Months Ended

Dec. 31, 2023

Public Utility, Property, Plant and Equipment [Line Items]

Schedule of Regulatory Assets

Presented in the following table are the regulatory assets and liabilities on Consumers’ consolidated balance sheets:

In Millions
December 31	2023			2022
Regulatory assets
Current
2022 PSCR underrecovery1		$	126		$	—
Energy waste reduction plan incentive2		54			47
Retention incentive program3		12			2
Other		11			8
Total current regulatory assets		$	203		$	57
Non-current
Costs of coal-fueled electric generating units to be retired1		$	1,265		$	1,258
Securitized costs1		778			843
Postretirement benefits4		741			856
ARO3		328			281
2022 PSCR underrecovery1		126			—
MGP sites1		99			108
Unamortized loss on reacquired debt1		96			100
Decommissioning costs3		83			24
Energy waste reduction plan incentive2		58			55
Retention incentive program3		27			31
Postretirement benefits expense deferral mechanism3		24			—
Energy waste reduction plan3		19			10
Ludington overhaul contract dispute3		13			—
Other		26			29
Total non-current regulatory assets		$	3,683		$	3,595
Total regulatory assets		$	3,886		$	3,652
Regulatory liabilities
Current
Income taxes, net		$	49		$	48
Reserve for customer refunds		2			47
Other		5			9
Total current regulatory liabilities		$	56		$	104
Non-current
Cost of removal		$	2,545		$	2,426
Income taxes, net		1,220			1,267
Renewable energy grant		43			45
Renewable energy plan		29			32
Energy waste reduction plan		25			6
Postretirement benefits expense deferral mechanism		12			—
Other		20			20
Total non-current regulatory liabilities		$	3,894		$	3,796
Total regulatory liabilities		$	3,950		$	3,900

1The MPSC has provided a specific return on these regulatory assets.

2These regulatory assets have arisen from an alternative revenue program and are not associated with incurred costs or capital investments. Therefore, the MPSC has provided for recovery without a return.

3These regulatory assets represent incurred costs for which the MPSC has provided recovery without a return on investment.

4This regulatory asset is included in rate base, thereby providing a return.

Schedule of Regulatory Liabilities

Presented in the following table are the regulatory assets and liabilities on Consumers’ consolidated balance sheets:

In Millions
December 31	2023			2022
Regulatory assets
Current
2022 PSCR underrecovery1		$	126		$	—
Energy waste reduction plan incentive2		54			47
Retention incentive program3		12			2
Other		11			8
Total current regulatory assets		$	203		$	57
Non-current
Costs of coal-fueled electric generating units to be retired1		$	1,265		$	1,258
Securitized costs1		778			843
Postretirement benefits4		741			856
ARO3		328			281
2022 PSCR underrecovery1		126			—
MGP sites1		99			108
Unamortized loss on reacquired debt1		96			100
Decommissioning costs3		83			24
Energy waste reduction plan incentive2		58			55
Retention incentive program3		27			31
Postretirement benefits expense deferral mechanism3		24			—
Energy waste reduction plan3		19			10
Ludington overhaul contract dispute3		13			—
Other		26			29
Total non-current regulatory assets		$	3,683		$	3,595
Total regulatory assets		$	3,886		$	3,652
Regulatory liabilities
Current
Income taxes, net		$	49		$	48
Reserve for customer refunds		2			47
Other		5			9
Total current regulatory liabilities		$	56		$	104
Non-current
Cost of removal		$	2,545		$	2,426
Income taxes, net		1,220			1,267
Renewable energy grant		43			45
Renewable energy plan		29			32
Energy waste reduction plan		25			6
Postretirement benefits expense deferral mechanism		12			—
Other		20			20
Total non-current regulatory liabilities		$	3,894		$	3,796
Total regulatory liabilities		$	3,950		$	3,900

1The MPSC has provided a specific return on these regulatory assets.

2These regulatory assets have arisen from an alternative revenue program and are not associated with incurred costs or capital investments. Therefore, the MPSC has provided for recovery without a return.

3These regulatory assets represent incurred costs for which the MPSC has provided recovery without a return on investment.

4This regulatory asset is included in rate base, thereby providing a return.

Schedule of Assets and Liabilities for PSCR and GCR Underrecoveries and Overrecoveries

Presented in the following table are the assets and liabilities for PSCR and GCR underrecoveries and overrecoveries reflected on Consumers’ consolidated balance sheets:

In Millions
December 31	2023			2022
Assets
PSCR underrecoveries		$	—		$	401
GCR underrecoveries		—			8
Accounts receivable and accrued revenue		$	—		$	409
Liabilities
PSCR overrecoveries		$	10		$	—
GCR overrecoveries		44			—
Accrued rate refunds		$	54		$	—