Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2011

Assets and Liabilities Measured at Fair Value on a Recurring Basis

December 31, 2011	Total		Level 1		Level 2		Level 3
	In Millions
CMS ENERGY, INCLUDING CONSUMERS
Assets
Cash equivalents	$	109	$	109	$	—	$	—
Restricted cash equivalents		15		15		—		—
Nonqualified deferred compensation plan assets		4		4		—		—
SERP
Cash equivalents		1		1		—		—
Mutual funds		113		113		—		—
Derivative instruments
Commodity contracts		3		1		—		2
Total	$	245	$	243	$	—	$	2
Liabilities
Nonqualified deferred compensation plan liabilities	$	4	$	4	$	—	$	—
Derivative instruments
Commodity contracts		7		—		3		4
Total	$	11	$	4	$	3	$	4
CONSUMERS
Assets
Cash equivalents	$	56	$	56	$	—	$	—
Restricted cash equivalents		14		14		—		—
CMS Energy common stock		35		35		—		—
Nonqualified deferred compensation plan assets		3		3		—		—
SERP
Cash equivalents		1		1		—		—
Mutual funds		74		74		—		—
Derivative instruments
Commodity contracts		2		—		—		2
Total	$	185	$	183	$	—	$	2
Liabilities
Nonqualified deferred compensation plan liabilities	$	3	$	3	$	—	$	—
Total	$	3	$	3	$	—	$	—

December 31, 2010	Total		Level 1		Level 2		Level 3
			In Millions
CMS ENERGY, INCLUDING CONSUMERS
Assets
Cash equivalents	$	183	$	183	$	—	$	—
Restricted cash equivalents		6		6		—		—
Nonqualified deferred compensation plan assets		6		6		—		—
SERP
Cash equivalents		1		1		—		—
Mutual fund		62		62		—		—
State and municipal bonds		28		—		28		—
Derivative instruments
Commodity contracts		1		—		—		1
Total	$	287	$	258	$	28	$	1
Liabilities
Nonqualified deferred compensation plan liabilities	$	6	$	6	$	—	$	—
Derivative instruments
Commodity contracts		4		—		—		4
Total	$	10	$	6	$	—	$	4
CONSUMERS
Assets
Cash equivalents	$	19	$	19	$	—	$	—
Restricted cash equivalents		6		6		—		—
CMS Energy common stock		34		34		—		—
Nonqualified deferred compensation plan assets		4		4		—		—
SERP
Cash equivalents		1		1		—		—
Mutual fund		39		39		—		—
State and municipal bonds		17		—		17		—
Derivative instruments
Commodity contracts		1		—		—		1
Total	$	121	$	103	$	17	$	1
Liabilities
Nonqualified deferred compensation plan liabilities	$	4	$	4	$	—	$	—
Total	$	4	$	4	$	—	$	—

Assets and Liabilities Measured at Fair Value on a Recurring Basis using Significant Level 3 Inputs

Years Ended December 31	2011			2010			2009
				In Millions
CMS ENERGY, INCLUDING CONSUMERS
Balance at beginning of period	$	(3	)	$	(8	)	$	(16	)
Total gains included in earnings1		2			5			7
Total gains offset through regulatory accounting		2			3			9
Purchases		1			1			1
Sales		(4	)		(1	)		—
Settlements		—			(3	)		(9	)
Balance at end of period	$	(2	)	$	(3	)	$	(8	)
Unrealized gains included in earnings relating to assets and liabilities still held at end of period1	$	2		$	4		$	6
CONSUMERS
Balance at beginning of period	$	1		$	—		$	—
Total gains offset through regulatory accounting		2			3			9
Purchases		1			1			1
Settlements		(2	)		(3	)		(10	)
Balance at end of period	$	2		$	1		$	—

¹  CMS Energy records realized and unrealized gains and losses for Level 3 recurring fair values in earnings as a component of operating revenue or maintenance and other operating expenses on its consolidated statements of income.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

In Millions
		Level 1		Level 2		Level 3		Losses
CMS ENERGY, INCLUDING CONSUMERS
Assets held for sale	$	-	$	5	$	-	$	(6	)

Consumers Energy Company [Member]

Assets and Liabilities Measured at Fair Value on a Recurring Basis

December 31, 2011	Total		Level 1		Level 2		Level 3
	In Millions
CMS ENERGY, INCLUDING CONSUMERS
Assets
Cash equivalents	$	109	$	109	$	—	$	—
Restricted cash equivalents		15		15		—		—
Nonqualified deferred compensation plan assets		4		4		—		—
SERP
Cash equivalents		1		1		—		—
Mutual funds		113		113		—		—
Derivative instruments
Commodity contracts		3		1		—		2
Total	$	245	$	243	$	—	$	2
Liabilities
Nonqualified deferred compensation plan liabilities	$	4	$	4	$	—	$	—
Derivative instruments
Commodity contracts		7		—		3		4
Total	$	11	$	4	$	3	$	4
CONSUMERS
Assets
Cash equivalents	$	56	$	56	$	—	$	—
Restricted cash equivalents		14		14		—		—
CMS Energy common stock		35		35		—		—
Nonqualified deferred compensation plan assets		3		3		—		—
SERP
Cash equivalents		1		1		—		—
Mutual funds		74		74		—		—
Derivative instruments
Commodity contracts		2		—		—		2
Total	$	185	$	183	$	—	$	2
Liabilities
Nonqualified deferred compensation plan liabilities	$	3	$	3	$	—	$	—
Total	$	3	$	3	$	—	$	—

December 31, 2010	Total		Level 1		Level 2		Level 3
			In Millions
CMS ENERGY, INCLUDING CONSUMERS
Assets
Cash equivalents	$	183	$	183	$	—	$	—
Restricted cash equivalents		6		6		—		—
Nonqualified deferred compensation plan assets		6		6		—		—
SERP
Cash equivalents		1		1		—		—
Mutual fund		62		62		—		—
State and municipal bonds		28		—		28		—
Derivative instruments
Commodity contracts		1		—		—		1
Total	$	287	$	258	$	28	$	1
Liabilities
Nonqualified deferred compensation plan liabilities	$	6	$	6	$	—	$	—
Derivative instruments
Commodity contracts		4		—		—		4
Total	$	10	$	6	$	—	$	4
CONSUMERS
Assets
Cash equivalents	$	19	$	19	$	—	$	—
Restricted cash equivalents		6		6		—		—
CMS Energy common stock		34		34		—		—
Nonqualified deferred compensation plan assets		4		4		—		—
SERP
Cash equivalents		1		1		—		—
Mutual fund		39		39		—		—
State and municipal bonds		17		—		17		—
Derivative instruments
Commodity contracts		1		—		—		1
Total	$	121	$	103	$	17	$	1
Liabilities
Nonqualified deferred compensation plan liabilities	$	4	$	4	$	—	$	—
Total	$	4	$	4	$	—	$	—

Assets and Liabilities Measured at Fair Value on a Recurring Basis using Significant Level 3 Inputs

Years Ended December 31	2011			2010			2009
				In Millions
CMS ENERGY, INCLUDING CONSUMERS
Balance at beginning of period	$	(3	)	$	(8	)	$	(16	)
Total gains included in earnings1		2			5			7
Total gains offset through regulatory accounting		2			3			9
Purchases		1			1			1
Sales		(4	)		(1	)		—
Settlements		—			(3	)		(9	)
Balance at end of period	$	(2	)	$	(3	)	$	(8	)
Unrealized gains included in earnings relating to assets and liabilities still held at end of period1	$	2		$	4		$	6
CONSUMERS
Balance at beginning of period	$	1		$	—		$	—
Total gains offset through regulatory accounting		2			3			9
Purchases		1			1			1
Settlements		(2	)		(3	)		(10	)
Balance at end of period	$	2		$	1		$	—

¹  CMS Energy records realized and unrealized gains and losses for Level 3 recurring fair values in earnings as a component of operating revenue or maintenance and other operating expenses on its consolidated statements of income.