Regulatory Matters (Tables) (Consumers Energy Company [Member])

12 Months Ended

Dec. 31, 2012

Schedule of Regulatory Assets and Liabilities

In Millions
December 31	End of Recovery  or Refund Period	2012			2011
Regulatory assets
Current
Gas revenue decoupling mechanism	2013		$	16		$	-
Energy optimization plan incentive	2013			15			-
Cancelled coal-fueled plant costs1	2013			4			-
Other1	2012			-			1
Total current regulatory assets			$	35		$	1
Non-current
Postretirement benefits2	various		$	1,700		$	1,665
Securitized costs3	2016			192			252
MGP sites3	various			152			156
ARO4	various			123			114
Unamortized debt costs3	various			55			44
Gas revenue decoupling mechanism	2014			17			21
Energy optimization plan incentive	2014			17			26
Gas storage inventory adjustments3	various			15			14
Cancelled coal-fueled plant costs1	2015			7			-
Major maintenance1	various			5			-
Big Rock nuclear decommissioning3	2012			-			85
Electric revenue decoupling mechanism	n/a			-			59
Stranded costs1	2012			-			23
Other1	various			4			7
Total non-current regulatory assets			$	2,287		$	2,466
Total regulatory assets			$	2,322		$	2,467
Regulatory liabilities
Current
DOE settlement	2013		$	23		$	120
Other	2013			2			5
Total current regulatory liabilities			$	25		$	125
Non-current
Cost of removal	various		$	1,441		$	1,364
Income taxes, net	various			336			181
Renewable energy plan	2028			175			161
ARO	various			103			113
Energy optimization plan	2014			34			45
Other	various			12			11
Total non-current regulatory liabilities			$	2,101		$	1,875
Total regulatory liabilities			$	2,126		$	2,000

¹These regulatory assets either are included in rate base (or are expected to be included, for costs incurred subsequent to the most recently approved rate case), thereby providing a return on expenditures, or provide a specific return on investment authorized by the MPSC.

²This regulatory asset is offset partially by liabilities.  The net amount is included in rate base, thereby providing a return.

³These regulatory assets represent expenditures for which the MPSC has provided, or Consumers expects, recovery without a return on investment.

⁴Consumers records a regulatory asset and a regulatory liability for timing differences between the recognition of AROs for financial reporting purposes and the recovery of these costs from customers.  Although the regulatory asset for AROs does not provide a return on investment, the underlying asset retirement costs are capitalized as part of the carrying amount of the related asset and included in rate base, thereby providing a return.

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

In Millions
December 31	2012			2011
Accrued power supply revenue		$	32		$	-
Accrued rate refunds			6			30

Power Supply Cost Recover (PSCR) [Member]

Schedule of Reconciliation Filings Pending with MPSC

PSCR Year	Date Filed	Net  Overrecovery  (In Millions)			PSCR Cost of  Power Sold  (In Billions)
2011	March 2012		$	8		$	1.8

Gas Cost Recover (GCR) [Member]

Schedule of Reconciliation Filings Pending with MPSC

GCR Year	Date Filed	Net  Overrecovery  (In Millions)			GCR Cost of  Gas Sold  (In Billions)
2011-2012	June 2012		$	2		$	0.9