Leases (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Rent Expense

In Millions
Years Ended December 31	2013			2012			2011
Consumers
Minimum operating lease expense
PPAs		$	6		$	6		$	10
Other agreements			21			23			22
Contingent rental expense1			77			33			11

1Contingent rental expense is related to capital and operating lease PPAs and is based on delivery of energy and capacity in excess of minimum lease payments.

Schedule of Future Minimum Lease Payments for Leases

In Millions
	Capital Leases			Financing1			Operating Leases
Consumers
2014		$	14		$	19		$	26
2015			14			18			25
2016			11			17			20
2017			10			17			20
2018			10			16			17
2019 and thereafter			31			46			56
Total minimum lease payments		$	90		$	133		$	164
Less imputed interest			39			25
Present value of net minimum lease payments		$	51		$	108
Less current portion			8			13
Non-current portion		$	43		$	95

¹ In 2007, Consumers sold Palisades to Entergy and entered into a 15-year PPA to buy all of the capacity and energy then capable of being produced by Palisades.  Consumers has continuing involvement with Palisades through security provided to Entergy for Consumers’ PPA obligation and other arrangements.  Because of these ongoing arrangements, Consumers accounted for the transaction as a financing of Palisades and not a sale.  Accordingly, no gain on the sale of Palisades was recognized on the consolidated statements of income.  Consumers accounted for the remaining non-real-estate assets and liabilities associated with the transaction as a sale.

Consumers Energy Company [Member]

Schedule of Rent Expense

In Millions
Years Ended December 31	2013			2012			2011
Consumers
Minimum operating lease expense
PPAs		$	6		$	6		$	10
Other agreements			21			23			22
Contingent rental expense1			77			33			11

1Contingent rental expense is related to capital and operating lease PPAs and is based on delivery of energy and capacity in excess of minimum lease payments.

Schedule of Future Minimum Lease Payments for Leases

In Millions
	Capital Leases			Financing1			Operating Leases
Consumers
2014		$	14		$	19		$	26
2015			14			18			25
2016			11			17			20
2017			10			17			20
2018			10			16			17
2019 and thereafter			31			46			56
Total minimum lease payments		$	90		$	133		$	164
Less imputed interest			39			25
Present value of net minimum lease payments		$	51		$	108
Less current portion			8			13
Non-current portion		$	43		$	95

¹ In 2007, Consumers sold Palisades to Entergy and entered into a 15-year PPA to buy all of the capacity and energy then capable of being produced by Palisades.  Consumers has continuing involvement with Palisades through security provided to Entergy for Consumers’ PPA obligation and other arrangements.  Because of these ongoing arrangements, Consumers accounted for the transaction as a financing of Palisades and not a sale.  Accordingly, no gain on the sale of Palisades was recognized on the consolidated statements of income.  Consumers accounted for the remaining non-real-estate assets and liabilities associated with the transaction as a sale.