Income Taxes (Tables)

9 Months Ended

Sep. 30, 2016

Schedule Of Effective Income Tax Rate Reconciliation

Nine Months Ended September 30	2016			2015
CMS Energy, including Consumers
U.S. federal income tax rate		35.0	%		35.0	%
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect		4.2			4.8
Accelerated flow-through of regulatory tax benefits1		(4.7)			(4.9)
Employee share-based awards2		(0.8)			-
Other, net		(1.4)			(1.4)
Effective tax rate		32.3	%		33.5	%
Consumers
U.S. federal income tax rate		35.0	%		35.0	%
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect		4.6			4.8
Accelerated flow-through of regulatory tax benefits1		(4.0)			(4.2)
Employee share-based awards2		(0.7)			-
Other, net		(1.2)			(1.5)
Effective tax rate		33.7	%		34.1	%

¹ Since 2014, Consumers has followed anew regulatory treatment ordered by the MPSC that accelerates the return of certain income tax benefits to customers. This change, which also accelerates Consumers’ recognition of the income tax benefits, reduced Consumers’ income tax expense by $30 million for the nine months ended September 30, 2016 and by $29 million for the nine months ended September 30, 2015.

² CMS Energy and Consumers elected to adopt ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, as of January 1, 2016. For further details on the implementation of this standard, see Note 1, New Accounting Standards.

Consumers Energy Company [Member]

Schedule Of Effective Income Tax Rate Reconciliation

Nine Months Ended September 30	2016			2015
CMS Energy, including Consumers
U.S. federal income tax rate		35.0	%		35.0	%
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect		4.2			4.8
Accelerated flow-through of regulatory tax benefits1		(4.7)			(4.9)
Employee share-based awards2		(0.8)			-
Other, net		(1.4)			(1.4)
Effective tax rate		32.3	%		33.5	%
Consumers
U.S. federal income tax rate		35.0	%		35.0	%
Increase (decrease) in income taxes from:
State and local income taxes, net of federal effect		4.6			4.8
Accelerated flow-through of regulatory tax benefits1		(4.0)			(4.2)
Employee share-based awards2		(0.7)			-
Other, net		(1.2)			(1.5)
Effective tax rate		33.7	%		34.1	%

¹ Since 2014, Consumers has followed anew regulatory treatment ordered by the MPSC that accelerates the return of certain income tax benefits to customers. This change, which also accelerates Consumers’ recognition of the income tax benefits, reduced Consumers’ income tax expense by $30 million for the nine months ended September 30, 2016 and by $29 million for the nine months ended September 30, 2015.

² CMS Energy and Consumers elected to adopt ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, as of January 1, 2016. For further details on the implementation of this standard, see Note 1, New Accounting Standards.