Leases (Tables)

12 Months Ended

Dec. 31, 2023

Leases [Line Items]

Summary of Lease Right-of-Use Assets and Liabilities

Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities:

In Millions, Except as Noted
	CMS Energy, including Consumers								Consumers
December 31	2023				2022				2023				2022
Operating leases
Right-of-use assets1		$	26			$	31			$	23			$	27
Lease liabilities
Current lease liabilities2		4				4				4				4
Non-current lease liabilities3		22				27				19				23
Finance leases
Right-of-use assets		71				82				48				58
Lease liabilities4
Current lease liabilities		5				9				5				9
Non-current lease liabilities		62				68				39				45
Weighted-average remaining lease term (in years)
Operating leases		19				20				18				18
Finance leases		19				18				11				10
Weighted-average discount rate
Operating leases		5.2		%		4.0		%		5.3		%		3.9		%
Finance leases5		5.3				5.2				1.5				1.6

1CMS Energy’s and Consumers’ operating right-of-use lease assets are reported as other non‑current assets on their consolidated balance sheets.

2The current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other current liabilities on their consolidated balance sheets.

3The non‑current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other non‑current liabilities on their consolidated balance sheets.

4Includes related-party lease liabilities of $24 million, of which less than $1 million was current, at December 31, 2023 and 2022.

5This rate excludes the impact of Consumers’ pipeline agreements and long-term PPAs accounted for as finance leases. The required capacity payments under these agreements, when compared to the underlying fair value of the leased assets, result in effective interest rates that exceed market rates for leases with similar terms.

Schedule of Lease Cost

Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs:

In Millions
Years Ended December 31	2023			2022
CMS Energy, including Consumers
Operating lease costs		$	6		$	6
Finance lease costs
Amortization of right-of-use assets		9			12
Interest on lease liabilities		15			14
Variable lease costs		107			93
Short-term lease costs		14			23
Total lease costs		$	151		$	148
Consumers
Operating lease costs		$	5		$	6
Finance lease costs
Amortization of right-of-use assets		8			12
Interest on lease liabilities		13			14
Variable lease costs		107			93
Short-term lease costs		14			22
Total lease costs		$	147		$	147

Presented in the following table is supplemental cash flow information related to CMS Energy’s and Consumers’ lease liabilities:

In Millions
Years Ended December 31	2023			2022
CMS Energy, including Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases		$	6		$	6
Cash used in operating activities for finance leases		15			14
Cash used in financing activities for finance leases		8			13
Lease liabilities arising from obtaining right-of-use assets
Operating leases		1			10
Finance leases		—			36
Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases		$	6		$	6
Cash used in operating activities for finance leases		13			14
Cash used in financing activities for finance leases		8			12
Lease liabilities arising from obtaining right-of-use assets
Operating leases		1			10
Finance leases		—			12

Summary of Minimum Annual Rental Commitments

Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases:

In Millions
				Finance Leases
December 31, 2023	Operating Leases			Pipelines and PPAs			Other			Total
CMS Energy, including Consumers
2024		$	5		$	13		$	6		$	19
2025		4			13			3			16
2026		3			13			4			17
2027		2			13			1			14
2028		1			13			1			14
2029 and thereafter		30			26			66			92
Total minimum lease payments		$	45		$	91		$	81		$	172
Less discount		19			62			43			105
Present value of minimum lease payments		$	26		$	29		$	38		$	67
Consumers
2024		$	5		$	13		$	5		$	18
2025		4			13			2			15
2026		2			13			2			15
2027		2			13			—			13
2028		1			13			—			13
2029 and thereafter		24			26			8			34
Total minimum lease payments		$	38		$	91		$	17		$	108
Less discount		15			62			2			64
Present value of minimum lease payments		$	23		$	29		$	15		$	44

Summary of Future Payments to be Received

Presented in the following table are the minimum rental payments to be received under CMS Energy’s non‑cancelable operating leases:

In Millions
December 31, 2023
2024	$	43
2025	44
2026	18
Total minimum lease payments	$	105

Consumers Energy Company

Leases [Line Items]

Summary of Lease Right-of-Use Assets and Liabilities

Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities:

In Millions, Except as Noted
	CMS Energy, including Consumers								Consumers
December 31	2023				2022				2023				2022
Operating leases
Right-of-use assets1		$	26			$	31			$	23			$	27
Lease liabilities
Current lease liabilities2		4				4				4				4
Non-current lease liabilities3		22				27				19				23
Finance leases
Right-of-use assets		71				82				48				58
Lease liabilities4
Current lease liabilities		5				9				5				9
Non-current lease liabilities		62				68				39				45
Weighted-average remaining lease term (in years)
Operating leases		19				20				18				18
Finance leases		19				18				11				10
Weighted-average discount rate
Operating leases		5.2		%		4.0		%		5.3		%		3.9		%
Finance leases5		5.3				5.2				1.5				1.6

1CMS Energy’s and Consumers’ operating right-of-use lease assets are reported as other non‑current assets on their consolidated balance sheets.

2The current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other current liabilities on their consolidated balance sheets.

3The non‑current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other non‑current liabilities on their consolidated balance sheets.

4Includes related-party lease liabilities of $24 million, of which less than $1 million was current, at December 31, 2023 and 2022.

5This rate excludes the impact of Consumers’ pipeline agreements and long-term PPAs accounted for as finance leases. The required capacity payments under these agreements, when compared to the underlying fair value of the leased assets, result in effective interest rates that exceed market rates for leases with similar terms.

Schedule of Lease Cost

Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs:

In Millions
Years Ended December 31	2023			2022
CMS Energy, including Consumers
Operating lease costs		$	6		$	6
Finance lease costs
Amortization of right-of-use assets		9			12
Interest on lease liabilities		15			14
Variable lease costs		107			93
Short-term lease costs		14			23
Total lease costs		$	151		$	148
Consumers
Operating lease costs		$	5		$	6
Finance lease costs
Amortization of right-of-use assets		8			12
Interest on lease liabilities		13			14
Variable lease costs		107			93
Short-term lease costs		14			22
Total lease costs		$	147		$	147

Presented in the following table is supplemental cash flow information related to CMS Energy’s and Consumers’ lease liabilities:

In Millions
Years Ended December 31	2023			2022
CMS Energy, including Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases		$	6		$	6
Cash used in operating activities for finance leases		15			14
Cash used in financing activities for finance leases		8			13
Lease liabilities arising from obtaining right-of-use assets
Operating leases		1			10
Finance leases		—			36
Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases		$	6		$	6
Cash used in operating activities for finance leases		13			14
Cash used in financing activities for finance leases		8			12
Lease liabilities arising from obtaining right-of-use assets
Operating leases		1			10
Finance leases		—			12

Summary of Minimum Annual Rental Commitments

Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases:

In Millions
				Finance Leases
December 31, 2023	Operating Leases			Pipelines and PPAs			Other			Total
CMS Energy, including Consumers
2024		$	5		$	13		$	6		$	19
2025		4			13			3			16
2026		3			13			4			17
2027		2			13			1			14
2028		1			13			1			14
2029 and thereafter		30			26			66			92
Total minimum lease payments		$	45		$	91		$	81		$	172
Less discount		19			62			43			105
Present value of minimum lease payments		$	26		$	29		$	38		$	67
Consumers
2024		$	5		$	13		$	5		$	18
2025		4			13			2			15
2026		2			13			2			15
2027		2			13			—			13
2028		1			13			—			13
2029 and thereafter		24			26			8			34
Total minimum lease payments		$	38		$	91		$	17		$	108
Less discount		15			62			2			64
Present value of minimum lease payments		$	23		$	29		$	15		$	44