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Retirement Benefits (Tables)

12 Months Ended

Dec. 31, 2016

Defined Benefit Plan Disclosure [Line Items]

Schedule Of SERP Trust Assets, ABO And Contributions



In Millions
Years Ended December 31	2016			2015
CMS Energy, including Consumers
Trust assets		$	144		$	148
ABO			143			140
Contributions			-			25
Consumers
Trust assets		$	104		$	106
ABO			101			97
Contributions			-			17

Schedule Of Effect Of One-Percentage-Point Change In Assumed Health Care Cost Trend Rates



In Millions
	One Percentage			One Percentage
Year Ended December 31, 2016	Point Increase			Point Decrease
CMS Energy, including Consumers
Effect on total service and interest cost component		$	13		$	(10)
Effect on PBO			201			(163)
Consumers
Effect on total service and interest cost component		$	13		$	(10)
Effect on PBO			196			(159)

Schedule Of Assumptions Used



December 31	2016			2015			2014
CMS Energy, including Consumers
Weighted average for benefit obligations1
Discount rate2,3
DB Pension Plan		4.30	%		4.52	%		4.10	%
DB SERP		4.16			4.43			4.10
OPEB Plan		4.49			4.70			4.30
Rate of compensation increase
DB Pension Plan		3.60			3.00			3.00
DB SERP		5.50			5.50			5.50
Weighted average for net periodic benefit cost1
Service cost discount rate2,3
DB Pension Plan		4.79			4.10			4.90
DB SERP		4.87			4.10			4.90
OPEB Plan		4.75			4.30			5.10
Interest cost discount rate2,3
DB Pension Plan		3.66			4.10			4.90
DB SERP		3.64			4.10			4.90
OPEB Plan		3.89			4.30			5.10
Expected long-term rate of return on plan assets4
DB Pension Plan		7.25			7.50			7.50
OPEB Plan		7.25			7.25			7.25
Rate of compensation increase
DB Pension Plan		3.00			3.00			3.00
DB SERP		5.50			5.50			5.50

The mortality assumption for benefit obligations was based on the RP-2014 mortality table, with projection scales MP-2016 for 2016, MP-2015 for 2015, and MP-2014 for 2014. The mortality assumption for net periodic benefit cost for 2016 and 2015 was based on the RP-2014 mortality table, with projection scales MP-2015 for 2016 and MP-2014 for 2015, and for 2014 was based on the RP-2000 mortality table.

The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plan and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.

In January 2016, CMS Energy and Consumers changed the method they use to determine the discount rate used to calculate the service cost and interest cost components of net periodic benefit costs for the DB Pension and OPEB Plans. Historically, the discount rate used for this purpose represented a single weighted-average rate derived from the yield curve used to determine the benefit obligation. CMS Energy and Consumers have elected to use instead a full-yield-curve approach in the estimation of service cost and interest cost; this approach is more accurate in that it applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment. This change represented a change in accounting estimate and did not impact years prior to 2016. As a result of changing to the full-yield-curve approach to determine the discount rate, for the year ended December 31, 2016, the service cost and interest cost components of net periodic benefit costs were reduced by $23 million for the DB Pension Plan and $12 million for the OPEB Plan for CMS Energy and by $22 million for the DB Pension Plan and $11 million for the OPEB Plan for Consumers.

⁴

CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on DB Pension Plan assets was 7.25 percent in 2016. The actual return (loss) on DB Pension Plan assets was 8.0 percent in 2016, (2.0) percent in 2015, and 7.4 percent in 2014.

Schedule Of Net Benefit Costs



In Millions
	DB Pension Plan and DB SERP									OPEB Plan
Years Ended December 31	2016			2015			2014			2016			2015			2014
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost		$	42		$	50		$	42		$	18		$	25		$	20
Interest cost			90			108			105			46			58			56
Expected return on plan assets			(147)			(138)			(135)			(85)			(91)			(88)
Amortization of:
Net loss			71			97			60			21			21			2
Prior service cost (credit)			4			1			1			(41)			(41)			(41)
Net periodic cost (credit)		$	60		$	118		$	73		$	(41)		$	(28)		$	(51)
Consumers
Net periodic cost (credit)
Service cost		$	41		$	49		$	41		$	17		$	25		$	20
Interest cost			87			103			100			45			56			54
Expected return on plan assets			(143)			(134)			(131)			(80)			(86)			(83)
Amortization of:
Net loss			68			93			59			22			22			3
Prior service cost (credit)			4			1			1			(40)			(40)			(40)
Net periodic cost (credit)		$	57		$	112		$	70		$	(36)		$	(23)		$	(46)

Schedule Of Net Loss And Prior Service Cost (Credit) That Will Be Amortized In Next Fiscal Year



In Millions
	DB Pension Plan			OPEB Plan
CMS Energy, including Consumers
Regulatory asset		$	82		$	(2)
AOCI			2			(2)
Consumers
Regulatory asset		$	82		$	(2)

Schedule Of Benefit Obligations In Excess Of Fair Value Of Plan Assets



In Millions
	DB Pension Plan							DB SERP						OPEB Plan
Years Ended December 31	2016			2015				2016			2015			2016			2015
CMS Energy, including Consumers
Benefit obligation at beginning of period		$	2,403		$	2,547			$	150		$	156		$	1,227		$	1,378
Service cost			42			49				-			1			18			25
Interest cost			85			102				5			6			46			58
Plan amendments			-			13				-			-			-			(25)
Actuarial (gain) loss			196	1		(153)	1			4			(5)			171	1		(152)	1
Benefits paid			(164)			(155)				(8)			(8)			(54)			(57)
Benefit obligation at end of period		$	2,562		$	2,403			$	151		$	150		$	1,408		$	1,227
Plan assets at fair value at beginning of period		$	2,013		$	1,979			$	-		$	-		$	1,208		$	1,265
Actual return on plan assets			152			(36)				-			-			109			(29)
Company contribution			100			225				8			8			-			29
Actual benefits paid			(164)			(155)				(8)			(8)			(53)			(57)
Plan assets at fair value at end of period		$	2,101		$	2,013			$	-		$	-		$	1,264		$	1,208
Funded status		$	(461)	2	$	(390)	2		$	(151)		$	(150)		$	(144)		$	(19)
Consumers
Benefit obligation at beginning of period									$	106		$	111		$	1,188		$	1,336
Service cost										-			1			17			25
Interest cost										4			4			45			56
Plan amendments										-			-			-			(24)
Actuarial (gain) loss										4			(5)			167	1		(150)	1
Benefits paid										(5)			(5)			(52)			(55)
Benefit obligation at end of period									$	109		$	106		$	1,365		$	1,188
Plan assets at fair value at beginning of period									$	-		$	-		$	1,133		$	1,186
Actual return on plan assets										-			-			103			(27)
Company contribution										5			5			-			29
Actual benefits paid										(5)			(5)			(52)			(55)
Plan assets at fair value at end of period									$	-		$	-		$	1,184		$	1,133
Funded status									$	(109)		$	(106)		$	(181)		$	(55)

The actuarial loss for 2016 was primarily the result of claims, experience, and lowering the discount rates used in calculating the plans’ obligations. The actuarial gain for 2015 was primarily the result of increasing the discount rates used in calculating the plans’ obligations.

At December 31, 2016, $441 million of the total funded status of the DB Pension Plan was attributable to Consumers, based on an allocation of expenses. At December 31, 2015, $368 million of the total funded status of the DB Pension Plan was attributable to Consumers, based on an allocation of expenses.

Schedule Of Retirement Benefit Plan Assets (Liabilities)



In Millions
December 31	2016			2015
CMS Energy, including Consumers
Current liabilities
DB SERP		$	8		$	8
Non-current liabilities
DB Pension Plan			461			390
DB SERP			143			142
OPEB Plan			144			19
Consumers
Current liabilities
DB SERP		$	5		$	5
Non-current liabilities
DB Pension Plan			441			368
DB SERP			104			101
OPEB Plan			181			55

Schedule Of Accumulated And Projected Benefit Obligations



In Millions
December 31	2016			2015
CMS Energy, including Consumers
DB Pension Plan PBO		$	2,562		$	2,403
DB Pension Plan ABO			2,250			2,140
Fair value of DB Pension Plan assets			2,101			2,013

Schedule Of Net Periodic Benefit Cost Not Yet Recognized



In Millions
	DB Pension Plan and DB SERP						OPEB Plan
Years Ended December 31	2016			2015			2016			2015
CMS Energy, including Consumers
Regulatory assets
Net loss		$	1,062		$	944		$	483		$	360
Prior service cost (credit)			15			19			(187)			(227)
Regulatory assets		$	1,077		$	963		$	296		$	133
AOCI
Net loss (gain)			93			86			(8)			(11)
Prior service cost (credit)			1			1			(6)			(8)
Total amounts recognized in regulatory assets and AOCI		$	1,171		$	1,050		$	282		$	114
Consumers
Regulatory assets
Net loss		$	1,062		$	944		$	483		$	360
Prior service cost (credit)			15			19			(187)			(227)
Regulatory assets		$	1,077		$	963		$	296		$	133
AOCI
Net loss			33			29			-			-
Total amounts recognized in regulatory assets and AOCI		$	1,110		$	992		$	296		$	133

Schedule Of Allocation Of Plan Assets



In Millions
	DB Pension Plan
	December 31, 2016									December 31, 2015
	Total			Level 1			Level 2			Total			Level 1			Level 2
CMS Energy, including Consumers
Cash and short-term investments		$	110		$	110		$	-		$	215		$	215		$	-
U.S. government and agencies securities			1			-			1			19			-			19
Corporate debt			266			-			266			243			-			243
State and municipal bonds			9			-			9			8			-			8
Foreign corporate bonds			25			-			25			16			-			16
Mutual funds			571			571			-			538			538			-
		$	982		$	681		$	301		$	1,039		$	753		$	286
Pooled funds			1,119									974
Total		$	2,101								$	2,013



In Millions
	OPEB Plan
	December 31, 2016									December 31, 2015
	Total			Level 1			Level 2			Total			Level 1			Level 2
CMS Energy, including Consumers
Cash and short-term investments		$	39		$	39		$	-		$	51		$	51		$	-
U.S. government and agencies securities			-			-			-			3			-			3
Corporate debt			38			-			38			34			-			34
State and municipal bonds			1			-			1			1			-			1
Foreign corporate bonds			4			-			4			2			-			2
Common stocks			44			44			-			54			54			-
Mutual funds			563			563			-			456			456			-
		$	689		$	646		$	43		$	601		$	561		$	40
Pooled funds			575									607
Total		$	1,264								$	1,208

Schedule Of Pooled Funds Components



	DB Pension Plan						OPEB Plan
December 31	2016			2015			2016			2015
U.S. equity securities		67	%		62	%		72	%		58	%
Foreign equity securities		16			18			13			13
U.S. fixed-income securities		9			11			8			22
Foreign fixed-income securities		4			6			4			5
Alternative investments		4			3			3			2
		100	%		100	%		100	%		100	%

Schedule Of Plan Contributions



In Millions
Years Ended December 31	2016			2015
CMS Energy, including Consumers
OPEB Plan		$	-		$	29
DB Pension Plan			100			225
Consumers
OPEB Plan		$	-		$	29
DB Pension Plan			93			209

Schedule Of Expected Benefit Payments



In Millions
	DB Pension Plan			DB SERP			OPEB Plan
CMS Energy, including Consumers
2017		$	153		$	8		$	59
2018			159			8			63
2019			163			9			66
2020			165			11			69
2021			166			10			72
2022-2026			827			50			385
Consumers
2017		$	149		$	5		$	57
2018			155			5			61
2019			159			6			64
2020			161			7			67
2021			161			7			70
2022-2026			803			32			371

Consumers Energy Company [Member]