Plant, Property, and Equipment (Tables)

12 Months Ended

Dec. 31, 2023

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

Schedule of Property, Plant and Equipment

Presented in the following table are details of CMS Energy’s and Consumers’ plant, property, and equipment:

In Millions
December 31	Estimated Depreciable Life in Years	2023			2022
CMS Energy, including Consumers
Plant, property, and equipment, gross
Consumers	3 – 125		$	31,723		$	29,342
NorthStar Clean Energy
Independent power production1	3 – 40		1,387			1,124
Assets under finance leases2			24			24
Other	3 – 5		1			1
Plant, property, and equipment, gross			$	33,135		$	30,491
Construction work in progress			944			1,182
Accumulated depreciation and amortization			(9,007)			(8,960)
Total plant, property, and equipment3			$	25,072		$	22,713
Consumers
Plant, property, and equipment, gross
Electric
Generation	15 – 125		$	6,511		$	5,780
Distribution	15 – 75		11,339			10,590
Other	5 – 55		1,355			1,374
Assets under finance leases2			97			126
Gas
Distribution	20 – 85		7,452			6,951
Transmission	17 – 75		2,806			2,440
Underground storage facilities4	27 – 75		1,295			1,197
Other	5 – 55		815			835
Assets under finance leases2			15			20
Other non-utility property	3 – 51		38			29
Plant, property, and equipment, gross			$	31,723		$	29,342
Construction work in progress			845			994
Accumulated depreciation and amortization			(8,796)			(8,791)
Total plant, property, and equipment2			$	23,772		$	21,545

1A portion of independent power production assets are leased to others under operating leases. For information regarding CMS Energy’s operating leases of owned assets, see Note 8, Leases.

2For information regarding the amortization terms of CMS Energy’s and Consumers’ assets under finance leases, see Note 8, Leases.

3Consumers’ plant additions were $3.1 billion for the year ended December 31, 2023 and $2.3 billion for the year ended December 31, 2022. Consumers’ plant retirements, which include the impact of transfers to held for sale, were $856 million for the year ended December 31, 2023 and $290 million for the year ended December 31, 2022. Consumers plans to retire the J.H. Campbell coal-fueled generating units in 2025. Accordingly, in 2022, Consumers removed from total plant, property, and equipment an amount of $1.3 billion, representing the projected remaining book value of the electric generating units upon their retirement, and recorded it as a regulatory asset. For additional details, see Note 2, Regulatory Matters.

4Underground storage includes base natural gas of $26 million at December 31, 2023 and 2022. Base natural gas is not subject to depreciation.

Summary of Finite-Lived Intangible Assets by Major Class

Presented in the following table are details about Consumers’ intangible assets:

In Millions
Description	Amortization Life in Years	December 31, 2023						December 31, 2022
		Gross Cost1			Accumulated Amortization			Gross Cost1			Accumulated Amortization
Consumers
Software development	3 – 15		$	772		$	543		$	846		$	593
Rights of way	50 – 85		229			64			218			61
Franchises and consents	5 – 50		16			11			16			10
Leasehold improvements	various2		11			7			9			6
Other intangibles	various		24			15			25			16
Total			$	1,052		$	640		$	1,114		$	686

1Consumers’ intangible asset additions were $80 million for the year ended December 31, 2023 and $116 million for the year ended December 31, 2022. Consumers’ intangible asset retirements were $142 million for the year ended December 31, 2023 and $104 million for the year ended December 31, 2022.

2Leasehold improvements are amortized over the life of the lease, which may change whenever the lease is renewed or extended.

Summary of Accumulated Depreciation and Amortization

Presented in the following table are further details about CMS Energy’s and Consumers’ accumulated depreciation and amortization:

In Millions
Years Ended December 31	2023			2022
CMS Energy, including Consumers
Utility plant assets		$	8,790		$	8,785
Non-utility plant assets		217			175
Consumers
Utility plant assets		$	8,790		$	8,785
Non-utility plant assets		6			6

Summary of Depreciation and Amortization

Presented in the following table are the components of CMS Energy’s and Consumers’ depreciation and amortization expense:

In Millions
Years Ended December 31	2023			2022			2021
CMS Energy, including Consumers
Depreciation expense – plant, property, and equipment		$	1,050		$	990		$	975
Amortization expense
Software		92			103			108
Other intangible assets		5			5			4
Securitized regulatory assets		33			28			27
Total depreciation and amortization expense		$	1,180		$	1,126		$	1,114
Consumers
Depreciation expense – plant, property, and equipment		$	1,007		$	952		$	938
Amortization expense
Software		92			103			108
Other intangible assets		5			5			4
Securitized regulatory assets		33			28			27
Total depreciation and amortization expense		$	1,137		$	1,088		$	1,077

Schedule of Estimated Amortization Expense for Intangibles

Presented in the following table is Consumers’ estimated amortization expense on intangible assets for each of the next five years:

In Millions
	2024			2025			2026			2027			2028
Consumers
Intangible asset amortization expense		$	89		$	88		$	87		$	81		$	73

Consumers Energy Company

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

Schedule of Property, Plant and Equipment

Presented in the following table are details of CMS Energy’s and Consumers’ plant, property, and equipment:

In Millions
December 31	Estimated Depreciable Life in Years	2023			2022
CMS Energy, including Consumers
Plant, property, and equipment, gross
Consumers	3 – 125		$	31,723		$	29,342
NorthStar Clean Energy
Independent power production1	3 – 40		1,387			1,124
Assets under finance leases2			24			24
Other	3 – 5		1			1
Plant, property, and equipment, gross			$	33,135		$	30,491
Construction work in progress			944			1,182
Accumulated depreciation and amortization			(9,007)			(8,960)
Total plant, property, and equipment3			$	25,072		$	22,713
Consumers
Plant, property, and equipment, gross
Electric
Generation	15 – 125		$	6,511		$	5,780
Distribution	15 – 75		11,339			10,590
Other	5 – 55		1,355			1,374
Assets under finance leases2			97			126
Gas
Distribution	20 – 85		7,452			6,951
Transmission	17 – 75		2,806			2,440
Underground storage facilities4	27 – 75		1,295			1,197
Other	5 – 55		815			835
Assets under finance leases2			15			20
Other non-utility property	3 – 51		38			29
Plant, property, and equipment, gross			$	31,723		$	29,342
Construction work in progress			845			994
Accumulated depreciation and amortization			(8,796)			(8,791)
Total plant, property, and equipment2			$	23,772		$	21,545

1A portion of independent power production assets are leased to others under operating leases. For information regarding CMS Energy’s operating leases of owned assets, see Note 8, Leases.

2For information regarding the amortization terms of CMS Energy’s and Consumers’ assets under finance leases, see Note 8, Leases.

3Consumers’ plant additions were $3.1 billion for the year ended December 31, 2023 and $2.3 billion for the year ended December 31, 2022. Consumers’ plant retirements, which include the impact of transfers to held for sale, were $856 million for the year ended December 31, 2023 and $290 million for the year ended December 31, 2022. Consumers plans to retire the J.H. Campbell coal-fueled generating units in 2025. Accordingly, in 2022, Consumers removed from total plant, property, and equipment an amount of $1.3 billion, representing the projected remaining book value of the electric generating units upon their retirement, and recorded it as a regulatory asset. For additional details, see Note 2, Regulatory Matters.

4Underground storage includes base natural gas of $26 million at December 31, 2023 and 2022. Base natural gas is not subject to depreciation.

Assets Under Finance Leases: Presented in the following table are further details about changes in CMS Energy’s and Consumers’ assets under finance leases:

In Millions
Years Ended December 31	2023			2022
CMS Energy, including Consumers
Balance at beginning of period		$	170		$	332
Additions		—			44
Net retirements and other adjustments		(34)			(206)
Balance at end of period		$	136		$	170
Consumers
Balance at beginning of period		$	146		$	332
Additions		—			20
Net retirements and other adjustments		(34)			(206)
Balance at end of period		$	112		$	146

Summary of Finite-Lived Intangible Assets by Major Class

Presented in the following table are details about Consumers’ intangible assets:

In Millions
Description	Amortization Life in Years	December 31, 2023						December 31, 2022
		Gross Cost1			Accumulated Amortization			Gross Cost1			Accumulated Amortization
Consumers
Software development	3 – 15		$	772		$	543		$	846		$	593
Rights of way	50 – 85		229			64			218			61
Franchises and consents	5 – 50		16			11			16			10
Leasehold improvements	various2		11			7			9			6
Other intangibles	various		24			15			25			16
Total			$	1,052		$	640		$	1,114		$	686

1Consumers’ intangible asset additions were $80 million for the year ended December 31, 2023 and $116 million for the year ended December 31, 2022. Consumers’ intangible asset retirements were $142 million for the year ended December 31, 2023 and $104 million for the year ended December 31, 2022.

2Leasehold improvements are amortized over the life of the lease, which may change whenever the lease is renewed or extended.

Summary of Average Capitalization Rates

Presented in the following table are Consumers’ average AFUDC capitalization rates:

Years Ended December 31	2023		2022		2021
Electric	6.5	%	6.2	%	6.2	%
Gas	5.8		5.6		5.6

Summary of Accumulated Depreciation and Amortization

Presented in the following table are further details about CMS Energy’s and Consumers’ accumulated depreciation and amortization:

In Millions
Years Ended December 31	2023			2022
CMS Energy, including Consumers
Utility plant assets		$	8,790		$	8,785
Non-utility plant assets		217			175
Consumers
Utility plant assets		$	8,790		$	8,785
Non-utility plant assets		6			6

Summary of Composite Depreciation Rates for Properties

Presented in the following table are the composite depreciation rates for Consumers’ segment properties:

Years Ended December 31	2023		2022		2021
Electric utility property	3.8	%	3.7	%	3.9	%
Gas utility property	2.8		2.9		2.9
Other property	7.8		8.9		9.4

Summary of Depreciation and Amortization

Presented in the following table are the components of CMS Energy’s and Consumers’ depreciation and amortization expense:

In Millions
Years Ended December 31	2023			2022			2021
CMS Energy, including Consumers
Depreciation expense – plant, property, and equipment		$	1,050		$	990		$	975
Amortization expense
Software		92			103			108
Other intangible assets		5			5			4
Securitized regulatory assets		33			28			27
Total depreciation and amortization expense		$	1,180		$	1,126		$	1,114
Consumers
Depreciation expense – plant, property, and equipment		$	1,007		$	952		$	938
Amortization expense
Software		92			103			108
Other intangible assets		5			5			4
Securitized regulatory assets		33			28			27
Total depreciation and amortization expense		$	1,137		$	1,088		$	1,077

Schedule of Estimated Amortization Expense for Intangibles

Presented in the following table is Consumers’ estimated amortization expense on intangible assets for each of the next five years:

In Millions
	2024			2025			2026			2027			2028
Consumers
Intangible asset amortization expense		$	89		$	88		$	87		$	81		$	73

Summary of Jointly Owned Regulated Utility Facilities

Presented in the following table are Consumers’ investments in jointly owned regulated utility facilities at December 31, 2023:

In Millions, Except Ownership Share
	J.H. Campbell Unit 3				Ludington				Other
Ownership share		93.3		%		51.0		%		various
Utility plant in service		$	1,752			$	619			$	443
Accumulated provision for depreciation		(812)				(227)				(97)
Plant under construction		1				5				11
Net investment		$	941			$	397			$	357