Asset Retirement Obligations

9 Months Ended

Sep. 30, 2015

Asset Retirement Obligations

8:Asset Retirement Obligations

In September 2015, Consumers increased its ARO liability for coal ash disposal areas.  The increase was attributable to proposed changes in state regulations that provided Consumers with sufficient information to reasonably estimate an additional ARO liability associated with closure work at certain waste management facilities.  For additional details, see Note 3, Contingencies and Commitments – Consumers Electric Utility Contingencies, “Electric Environmental Matters.”  Presented in the following table are the changes in CMS Energy’s and Consumers’ ARO liabilities:

In Millions
	ARO															ARO
	Liability												Cash flow			Liability
Company and ARO Description	12/31/2014			Incurred			Settled			Accretion			Revisions			9/30/2015
CMS Energy, including Consumers
Gas treating plant and gas wells		$	1		$	-		$	-		$	-		$	-		$	1
Consumers			339			-			(3)			14			68			418
Total CMS Energy		$	340		$	-		$	(3)		$	14		$	68		$	419
Consumers
Coal ash disposal areas		$	120		$	-		$	-		$	4		$	68		$	192
Asbestos abatement			51			-			-			2			-			53
Gas distribution cut, purge, and cap			162			-			(3)			8			-			167
Wind parks			6			-			-			-			-			6
Total Consumers		$	339		$	-		$	(3)		$	14		$	68		$	418

Consumers Energy Company [Member]

Asset Retirement Obligations

8:Asset Retirement Obligations

In September 2015, Consumers increased its ARO liability for coal ash disposal areas.  The increase was attributable to proposed changes in state regulations that provided Consumers with sufficient information to reasonably estimate an additional ARO liability associated with closure work at certain waste management facilities.  For additional details, see Note 3, Contingencies and Commitments – Consumers Electric Utility Contingencies, “Electric Environmental Matters.”  Presented in the following table are the changes in CMS Energy’s and Consumers’ ARO liabilities:

In Millions
	ARO															ARO
	Liability												Cash flow			Liability
Company and ARO Description	12/31/2014			Incurred			Settled			Accretion			Revisions			9/30/2015
CMS Energy, including Consumers
Gas treating plant and gas wells		$	1		$	-		$	-		$	-		$	-		$	1
Consumers			339			-			(3)			14			68			418
Total CMS Energy		$	340		$	-		$	(3)		$	14		$	68		$	419
Consumers
Coal ash disposal areas		$	120		$	-		$	-		$	4		$	68		$	192
Asbestos abatement			51			-			-			2			-			53
Gas distribution cut, purge, and cap			162			-			(3)			8			-			167
Wind parks			6			-			-			-			-			6
Total Consumers		$	339		$	-		$	(3)		$	14		$	68		$	418