Retirement Benefits (Tables)

12 Months Ended

Dec. 31, 2011

Schedule of SERP trust assets, ABO and contributions

In Millions

Years Ended December 31		2011		2010
CMS ENERGY, INCLUDING CONSUMERS
Trust assets1	$	114	$	91
ABO		117		107
Contributions		27		17
CONSUMERS
Trust assets1	$	75	$	57
ABO		76		66
Contributions		20		11

¹  Trust assets are included in other non-current assets on CMS Energy's and Consumers' consolidated balance sheets.

Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

	One Percentage Point Increase		One Percentage Point Decrease
CMS ENERGY, INCLUDING CONSUMERS
Effect on total service and interest cost component		$            19		$            (16)
Effect on PBO		245		(213)
CONSUMERS
Effect on total service and interest cost component		$            18		$            (15)
Effect on PBO		238		(207)

Schedule of Assumptions Used

	Pension and SERP							OPEB
December 31		2011		2010		2009			2011		2010		2009
Weighted Average for Benefit Obligations
CMS ENERGY, INCLUDING CONSUMERS
Discount rate1		4.90	%	5.40	%	5.85	%		5.10	%	5.60	%	6.00	%
Mortality table2		2000		2000		2000			2000		2000		2000
Rate of compensation increase
Pension		3.50	%	4.00	%	4.00	%
SERP		5.50	%	5.50	%	5.50	%

	Pension and SERP							OPEB
December 31		2011		2010		2009			2011		2010		2009
Weighted Average for Net Periodic Benefit Cost
CMS ENERGY, INCLUDING CONSUMERS
Discount rate1		5.40	%	5.85	%	6.50	%		5.60	%	6.00	%	6.50	%
Expected long-term rate of return on plan assets3		8.00	%	8.00	%	8.25	%		7.50	%	7.50	%	7.75	%
Mortality table2		2000		2000		2000			2000		2000		2000
Rate of compensation increase
Pension		4.00	%	4.00	%	4.00	%
SERP		5.50	%	5.50	%	5.50	%

¹  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' Pension Plan and OPEB plan and the yields on high quality corporate bonds rated Aa or better.

²  The mortality assumption was based on the RP-2000 mortality tables with projection of future mortality improvements using Scale AA, which aligned with the IRS prescriptions for cash funding valuations under the Pension Protection Act of 2006.

³  CMS Energy and Consumers determined the long-term rate of return using the 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 Pension Plan assets was eight percent in 2011.  The actual return on Pension Plan assets was four percent in 2011, 13 percent in 2010, and 21 percent in 2009.

Schedule of Net Benefit Costs

In Millions

	Pension and SERP
Years Ended December 31		2011			2010			2009
CMS ENERGY, INCLUDING CONSUMERS
Net periodic pension cost
Service cost	$	49		$	45		$	41
Interest expense		106			104			102
Expected return on plan assets		(112	)		(92	)		(86	)
Amortization of:
Net loss		65			52			41
Prior service cost		5			5			6
Net periodic pension cost	$	113		$	114		$	104
Regulatory adjustment1		-			30			-
Net periodic pension cost after regulatory adjustment	$	113		$	144		$	104
CONSUMERS
Net periodic pension cost
Service cost	$	48		$	44		$	40
Interest expense		101			99			97
Expected return on plan assets		(109	)		(89	)		(83	)
Amortization of:
Net loss		63			50			40
Prior service cost		5			5			5
Net periodic pension cost	$	108		$	109		$	99
Regulatory adjustment1		-			30			-
Net periodic pension cost after regulatory adjustment	$	108		$	139		$	99

In Millions

	OPEB
Years Ended December 31		2011			2010			2009
CMS ENERGY, INCLUDING CONSUMERS
Net periodic OPEB cost
Service cost	$	27		$	26		$	24
Interest expense		77			80			80
Expected return on plan assets		(66	)		(60	)		(50	)
Amortization of:
Net loss		30			32			33
Prior service credit		(20	)		(17	)		(10	)
Net periodic OPEB cost	$	48		$	61		$	77
Regulatory adjustment1		-			5			-
Net periodic OPEB cost after regulatory adjustment	$	48		$	66		$	77
CONSUMERS
Net periodic OPEB cost
Service cost	$	26		$	25		$	24
Interest expense		74			77			77
Expected return on plan assets		(61	)		(56	)		(46	)
Amortization of:
Net loss		31			33			33
Prior service credit		(20	)		(16	)		(10	)
Net periodic OPEB cost	$	50		$	63		$	78
Regulatory adjustment1		-			5			-
Net periodic OPEB cost after regulatory adjustment	$	50		$	68		$	78

¹  Regulatory adjustments are the differences between amounts included in rates and the periodic benefit cost calculated. These regulatory adjustments were offset by surcharge revenues, which resulted in no impact to net income for the years presented. The pension and OPEB regulatory liability was less than $1 million at December 31, 2011 and 2010.

Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets

In Millions
Years Ended December 31	Pension Plan
		2011			2010
CMS ENERGY, INCLUDING CONSUMERS
Benefit obligation at beginning of period	$	1,896		$	1,717
Service cost		48			44
Interest cost		100			98
Actuarial loss		107			150
Benefits paid		(79	)		(113	)
Benefit obligation at end of period1	$	2,072		$	1,896
Plan assets at fair value at beginning of period	$	1,401		$	1,007
Actual return on plan assets		54			132
Company contribution		250			375
Actual benefits paid2		(79	)		(113	)
Plan assets at fair value at end of period	$	1,626		$	1,401
Funded status at December 313,4	$	(446	)	$	(495	)

In Millions
Years Ended December 31	SERP						OPEB
		2011			2010			2011			2010
CMS ENERGY, INCLUDING CONSUMERS
Benefit obligation at beginning of period	$	118		$	106		$	1,410		$	1,423
Service cost		1			1			27			26
Interest cost		6			6			77			80
Plan amendments5		-			-			-			(101	)
Actuarial loss		8			11			180			36
Benefits paid		(6	)		(6	)		(53	)		(54	)
Benefit obligation at end of period1	$	127		$	118		$	1,641		$	1,410
Plan assets at fair value at beginning of period	$	-		$	-		$	887		$	782
Actual return on plan assets		-			-			23			88
Company contribution		6			6			67			71
Actual benefits paid2		(6	)		(6	)		(53	)		(54	)
Plan assets at fair value at end of period	$	-		$	-		$	924		$	887
Funded status at December 313	$	(127	)	$	(118	)	$	(717	)	$	(523	)
CONSUMERS
Benefit obligation at beginning of period	$	77		$	67		$	1,358		$	1,373
Service cost		1			1			26			25
Interest cost		4			4			74			77
Plan amendments5		-			-			-			(100	)
Actuarial loss		6			8			178			34
Benefits paid		(3	)		(3	)		(51	)		(51	)
Benefit obligation at end of period1	$	85		$	77		$	1,585		$	1,358
Plan assets at fair value at beginning of period	$	-		$	-		$	825		$	725
Actual return on plan assets		-			-			21			81
Company contribution		3			3			66			70
Actual benefits paid2		(3	)		(3	)		(51	)		(51	)
Plan assets at fair value at end of period	$	-		$	-		$	861		$	825
Funded status at December 313	$	(85	)	$	(77	)	$	(724	)	$	(533	)

¹  The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 established a prescription drug benefit under Medicare (Medicare Part D) and a federal subsidy, which is tax-exempt, to sponsors of retiree health care benefit plans that provide a benefit that is actuarially equivalent to Medicare Part D. In 2010, the Health Care Acts repealed these tax-exempt deductions for years beginning after December 31, 2012. The Medicare Part D annualized reduction in net OPEB cost for CMS Energy was $26 million for 2011, $28 million for 2010, and $19 million for 2009. Consumers' Medicare Part D annualized reduction in net OPEB costs was $25 million for 2011, $26 million for 2010, and $18 million for 2009. The reduction for CMS Energy and Consumers included $9 million for 2011, $10 million for 2010, and $6 million for 2009 in capitalized OPEB costs.

²  CMS Energy received payments of $5 million in each of 2011 and 2010 and $4 million in 2009 for the Medicare Part D subsidies. Consumers received payments of $5 million in each of 2011 and 2010 and $4 million in 2009 for the Medicare Part D subsidies.

³  At December 31, 2011, CMS Energy classified $7 million as current liabilities and $1.3 billion as non-current liabilities on its consolidated balance sheets. At December 31, 2010, CMS Energy classified $7 million as current liabilities and $1.1 billion as non-current liabilities on its consolidated balance sheets. Current liabilities relate to SERP projected payments for the next year. 

At December 31, 2011, Consumers classified $4 million as current liabilities and $1.2 billion as non-current liabilities on its consolidated balance sheets. At December 31, 2010, Consumers classified $4 million as current liabilities and $1.1 billion as non-current liabilities on its consolidated balance sheets.

⁴  At December 31, 2011, $414 million of the total funded status of the Pension Plan was attributable to Consumers based on an allocation of expenses. At December 31, 2010, $463 million of the funded status of the Pension Plan was attributable to Consumers based on an allocation of expenses.

⁵  Plan amendments reflect changes resulting from an agreement reached with the UWUA in April 2010 on a new five-year contract for UWUA members.

Schedule of Accumulated and Projected Benefit Obligations

In Millions
Years Ended December 31	2011		2010
CMS ENERGY, INCLUDING CONSUMERS
Pension PBO	$	2,072	$	1,896
Pension ABO		1,765		1,517
Fair value of Pension Plan assets		1,626		1,401

Schedule of Net Periodic Benefit Cost Not yet Recognized including regulatory assets

In Millions
	Pension and SERP				OPEB
Years Ended December 31		2011		2010		2011			2010
CMS ENERGY, INCLUDING CONSUMERS
Regulatory assets
Net loss	$	1,014	$	914	$	766		$	579
Prior service cost (credit)		17		23		(132	)		(152	)
AOCI
Net loss (gain)		81		72		(5	)		(9	)
Prior service cost (credit)		2		2		(3	)		(4	)
Total amounts recognized in regulatory assets and AOCI	$	1,114	$	1,011	$	626		$	414
CONSUMERS
Regulatory assets
Net loss	$	1,014	$	914	$	766		$	579
Prior service cost (credit)		17		23		(132	)		(152	)
AOCI
Net loss		27		22		-			-
Prior service cost		-		1		-			-
Total amounts recognized in regulatory assets and AOCI	$	1,058	$	960	$	634		$	427

Schedule of Allocation of Plan Assets

	Pension Plan
December 31, 2011	Total		Level 1		Level 2
	In Millions
CMS ENERGY, INCLUDING CONSUMERS
Asset Category
Cash and short-term investments1	$	241	$	241	$	—
U.S. government and agencies securities2		24		—		24
Corporate debt3		236		—		236
State and municipal bonds5		10		—		10
Foreign corporate debt6		23		—		23
Mutual funds8		257		257		—
Pooled funds9		835		—		835
Total	$	1,626	$	498	$	1,128

	Pension Plan
December 31, 2010	Total		Level 1		Level 2
	In Millions
CMS ENERGY, INCLUDING CONSUMERS
Asset Category
Cash and short-term investments1	$	248	$	248	$	—
U.S. government and agencies securities2		57		—		57
Corporate debt3		161		—		161
State and municipal bonds5		8		—		8
Foreign corporate debt6		17		—		17
Mutual funds8		183		183		—
Pooled funds9		727		—		727
Total	$	1,401	$	431	$	970

	OPEB Plan
December 31, 2011	Total		Level 1		Level 2
	In Millions
CMS ENERGY, INCLUDING CONSUMERS
Asset Category
Cash and short-term investments1	$	64	$	64	$	—
U.S. government and agencies securities2		203		—		203
Corporate debt4		28		—		28
State and municipal bonds5		71		—		71
Foreign corporate debt6		3		—		3
Common stocks7		113		113		—
Mutual funds8		31		31		—
Pooled funds10		411		—		411
Total	$	924	$	208	$	716
CONSUMERS
Asset Category
Cash and short-term investments1	$	60	$	60	$	—
U.S. government and agencies securities2		189		—		189
Corporate debt4		26		—		26
State and municipal bonds5		66		—		66
Foreign corporate debt6		3		—		3
Common stocks7		105		105		—
Mutual funds8		29		29		—
Pooled funds10		383		—		383
Total	$	861	$	194	$	667

	OPEB Plan
December 31, 2010	Total		Level 1		Level 2
	In Millions
CMS ENERGY, INCLUDING CONSUMERS
Asset Category
Cash and short-term investments1	$	56	$	56	$	—
U.S. government and agencies securities2		181		—		181
Corporate debt4		20		—		20
State and municipal bonds5		36		—		36
Foreign corporate debt6		2		—		2
Common stocks7		154		154		—
Mutual funds8		23		23		—
Pooled funds10		415		—		415
Total	$	887	$	233	$	654
CONSUMERS
Asset Category
Cash and short-term investments1	$	52	$	52	$	—
U.S. government and agencies securities2		168		—		168
Corporate debt4		19		—		19
State and municipal bonds5		34		—		34
Foreign corporate debt6		2		—		2
Common stocks7		143		143		—
Mutual funds8		21		21		—
Pooled funds10		386		—		386
Total	$	825	$	216	$	609

1 Cash and short-term investments consist of money market funds with daily liquidity.

2 U.S. government and agencies securities consist of U.S. Treasury notes and other debt securities backed by the U.S. government and related agencies. These securities were valued based on quoted market prices.

3 At December 31, 2011, corporate debt investments in the Pension Plan comprised investment grade bonds (69 percent) and non-investment grade, high-yield bonds (31 percent) of U.S. issuers from diverse industries. At December 31, 2010, corporate debt investments in the Pension Plan comprised investment grade bonds (61 percent) and non-investment grade, high-yield bonds (39 percent) of U.S. issuers from diverse industries. These securities are valued based on quoted market prices, when available, or yields presently available on comparable securities of issuers with similar credit ratings.

4 At December 31, 2011, corporate debt investments in the OPEB plan comprised investment grade bonds (69 percent) and non-investment grade, high-yield bonds (31 percent) of U.S. issuers from diverse industries. At December 31, 2010, corporate debt investments in the OPEB plan comprised investment grade bonds (61 percent) and non-investment grade, high-yield bonds (39 percent) of U.S. issuers from diverse industries. These securities are valued based on quoted market prices, when available, or yields presently available on comparable securities of issuers with similar credit ratings.

5 State and municipal bonds were valued using a matrix-pricing model that incorporates Level 2 market-based information. The fair value of the bonds was derived from various observable inputs, including benchmark yields, reported securities trades, broker/dealer quotes, bond ratings, and general information on market movements for investment grade state and municipal securities normally considered by market participants when pricing such debt securities.

6 Foreign corporate debt securities were valued based on quoted market prices, when available, or on yields available on comparable securities of issuers with similar credit ratings.

7 Common stocks in the OPEB plan consist of equity securities with low transaction costs that were actively managed and tracked by the S&P 500 Index. These securities were valued at their quoted closing prices.

8 Mutual funds represent shares in registered investment companies that are priced based on the quoted NAV that is the basis for transactions to buy or sell shares in the funds.

9 Pooled funds in the Pension Plan include both common and collective trust funds as well as special funds that contain only employee benefit plan assets from two or more unrelated benefit plans. At December 31, 2011, these funds comprised investments in U.S. equity securities (53 percent), foreign equity securities (22 percent), foreign fixed-income securities (16 percent), U.S. fixed-income securities (five percent), and alternative investments (four percent). At December 31, 2010, these funds comprised investments in U.S. equity securities (55 percent), foreign equity securities (24 percent), foreign fixed-income securities (14 percent), U.S. fixed-income securities (four percent), and alternative investments (three percent). These investments were valued at the quoted NAV provided by the fund managers that is the basis for transactions to buy or sell shares in the funds.

10 Pooled funds in the OPEB plan include both common and collective trust funds as well as special funds that contain only employee benefit plan assets from two or more unrelated benefit plans. At December 31, 2011, these funds comprised investments in U.S. equity securities (88 percent), foreign equity securities (six percent), foreign fixed-income securities (four percent), U.S. fixed-income securities (one percent), and alternative investments (one percent). At December 31, 2010, these funds comprised investments in U.S. equity securities (89 percent), foreign equity securities (six percent), foreign fixed-income securities (three percent), U.S. fixed-income securities (one percent), and alternative investments (one percent). These investments are valued at the quoted NAV provided by the fund managers that is the basis for transactions to buy or sell shares in the funds.

Schedule of Plan Contributions

In Millions
Years Ended December 31		2011		2010
CMS ENERGY, INCLUDING CONSUMERS
OPEB1
VEBA trust	$	48	$	57
401(h) component		19		14
	$	67	$	71
Pension2	$	250	$	375
CONSUMERS
OPEB1
VEBA trust	$	47	$	57
401(h) component		19		13
	$	66	$	70
Pension2	$	245	$	366

¹  CMS Energy, including Consumers, plans to contribute $65 million to the OPEB plan in 2012 and Consumers plans to contribute $64 million to the OPEB plan in 2012.

²  CMS Energy, including Consumers, does not plan to contribute to the Pension Plan in 2012.

Schedule of Expected Benefit Payments

In Millions
		Pension		SERP		OPEB	1
CMS ENERGY, INCLUDING CONSUMERS
2012	$	111	$	7	$	70
2013		120		7		73
2014		129		7		76
2015		138		8		80
2016		144		8		83
2017-2021		777		44		466
CONSUMERS
2012	$	108	$	4	$	67
2013		117		4		70
2014		126		4		73
2015		134		4		76
2016		140		4		80
2017-2021		757		23		445

¹  CMS Energy's and Consumers' OPEB benefit payments are net of employee contributions and expected Medicare Part D prescription drug subsidy payments. For CMS Energy, subsidies to be received are estimated to be $6 million for 2012, $7 million for each of 2013 and 2014, $8 million for each of 2015 and 2016, and $49 million combined for 2017 through 2021. For Consumers, subsidies to be received are estimated to be $6 million for each of 2012 and 2013, $7 million for each of 2014 and 2015, $8 million for 2016, and $47 million combined for 2017 through 2021.

Consumers Energy Company [Member]

Schedule of SERP trust assets, ABO and contributions

In Millions

Years Ended December 31		2011		2010
CMS ENERGY, INCLUDING CONSUMERS
Trust assets1	$	114	$	91
ABO		117		107
Contributions		27		17
CONSUMERS
Trust assets1	$	75	$	57
ABO		76		66
Contributions		20		11

¹  Trust assets are included in other non-current assets on CMS Energy's and Consumers' consolidated balance sheets.

Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

	One Percentage Point Increase		One Percentage Point Decrease
CMS ENERGY, INCLUDING CONSUMERS
Effect on total service and interest cost component		$            19		$            (16)
Effect on PBO		245		(213)
CONSUMERS
Effect on total service and interest cost component		$            18		$            (15)
Effect on PBO		238		(207)

Schedule of Assumptions Used

Weighted Average for Benefit Obligations

	Pension and SERP									OPEB
December 31	2011			2010			2009			2011			2010			2009
CMS ENERGY, INCLUDING CONSUMERS
Discount rate1		4.90	%		5.40	%		5.85	%		5.10	%		5.60	%		6.00	%
Mortality table2		2000			2000			2000			2000			2000			2000
Rate of compensation increase
Pension		3.50	%		4.00	%		4.00	%
SERP		5.50	%		5.50	%		5.50	%

Weighted Average for Net Periodic Benefit Cost

December 31	Pension and SERP									OPEB
	2011			2010			2009			2011			2010			2009
CMS ENERGY, INCLUDING CONSUMERS
Discount rate1		5.40	%		5.85	%		6.50	%		5.60	%		6.00	%		6.50	%
Expected long-term rate of return on plan assets3		8.00	%		8.00	%		8.25	%		7.50	%		7.50	%		7.75	%
Mortality table2		2000			2000			2000			2000			2000			2000
Rate of compensation increase
Pension		4.00	%		4.00	%		4.00	%
SERP		5.50	%		5.50	%		5.50	%

¹  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' Pension Plan and OPEB plan and the yields on high quality corporate bonds rated Aa or better.

²  The mortality assumption was based on the RP-2000 mortality tables with projection of future mortality improvements using Scale AA, which aligned with the IRS prescriptions for cash funding valuations under the Pension Protection Act of 2006.

³  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 Pension Plan assets was eight percent in 2011. The actual return on Pension Plan assets was four percent in 2011, 13 percent in 2010, and 21 percent in 2009.

Schedule of Net Benefit Costs

In Millions

	Pension and SERP
Years Ended December 31		2011			2010			2009
CMS ENERGY, INCLUDING CONSUMERS
Net periodic pension cost
Service cost	$	49		$	45		$	41
Interest expense		106			104			102
Expected return on plan assets		(112	)		(92	)		(86	)
Amortization of:
Net loss		65			52			41
Prior service cost		5			5			6
Net periodic pension cost	$	113		$	114		$	104
Regulatory adjustment1		-			30			-
Net periodic pension cost after regulatory adjustment	$	113		$	144		$	104
CONSUMERS
Net periodic pension cost
Service cost	$	48		$	44		$	40
Interest expense		101			99			97
Expected return on plan assets		(109	)		(89	)		(83	)
Amortization of:
Net loss		63			50			40
Prior service cost		5			5			5
Net periodic pension cost	$	108		$	109		$	99
Regulatory adjustment1		-			30			-
Net periodic pension cost after regulatory adjustment	$	108		$	139		$	99

In Millions

	OPEB
Years Ended December 31		2011			2010			2009
CMS ENERGY, INCLUDING CONSUMERS
Net periodic OPEB cost
Service cost	$	27		$	26		$	24
Interest expense		77			80			80
Expected return on plan assets		(66	)		(60	)		(50	)
Amortization of:
Net loss		30			32			33
Prior service credit		(20	)		(17	)		(10	)
Net periodic OPEB cost	$	48		$	61		$	77
Regulatory adjustment1		-			5			-
Net periodic OPEB cost after regulatory adjustment	$	48		$	66		$	77
CONSUMERS
Net periodic OPEB cost
Service cost	$	26		$	25		$	24
Interest expense		74			77			77
Expected return on plan assets		(61	)		(56	)		(46	)
Amortization of:
Net loss		31			33			33
Prior service credit		(20	)		(16	)		(10	)
Net periodic OPEB cost	$	50		$	63		$	78
Regulatory adjustment1		-			5			-
Net periodic OPEB cost after regulatory adjustment	$	50		$	68		$	78

¹  Regulatory adjustments are the differences between amounts included in rates and the periodic benefit cost calculated. These regulatory adjustments were offset by surcharge revenues, which resulted in no impact to net income for the years presented. The pension and OPEB regulatory liability was less than $1 million at December 31, 2011 and 2010.

Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets

In Millions
Years Ended December 31	Pension Plan
		2011			2010
CMS ENERGY, INCLUDING CONSUMERS
Benefit obligation at beginning of period	$	1,896		$	1,717
Service cost		48			44
Interest cost		100			98
Actuarial loss		107			150
Benefits paid		(79	)		(113	)
Benefit obligation at end of period1	$	2,072		$	1,896
Plan assets at fair value at beginning of period	$	1,401		$	1,007
Actual return on plan assets		54			132
Company contribution		250			375
Actual benefits paid2		(79	)		(113	)
Plan assets at fair value at end of period	$	1,626		$	1,401
Funded status at December 313,4	$	(446	)	$	(495	)

In Millions
Years Ended December 31	SERP						OPEB
		2011			2010			2011			2010
CMS ENERGY, INCLUDING CONSUMERS
Benefit obligation at beginning of period	$	118		$	106		$	1,410		$	1,423
Service cost		1			1			27			26
Interest cost		6			6			77			80
Plan amendments5		-			-			-			(101	)
Actuarial loss		8			11			180			36
Benefits paid		(6	)		(6	)		(53	)		(54	)
Benefit obligation at end of period1	$	127		$	118		$	1,641		$	1,410
Plan assets at fair value at beginning of period	$	-		$	-		$	887		$	782
Actual return on plan assets		-			-			23			88
Company contribution		6			6			67			71
Actual benefits paid2		(6	)		(6	)		(53	)		(54	)
Plan assets at fair value at end of period	$	-		$	-		$	924		$	887
Funded status at December 313	$	(127	)	$	(118	)	$	(717	)	$	(523	)
CONSUMERS
Benefit obligation at beginning of period	$	77		$	67		$	1,358		$	1,373
Service cost		1			1			26			25
Interest cost		4			4			74			77
Plan amendments5		-			-			-			(100	)
Actuarial loss		6			8			178			34
Benefits paid		(3	)		(3	)		(51	)		(51	)
Benefit obligation at end of period1	$	85		$	77		$	1,585		$	1,358
Plan assets at fair value at beginning of period	$	-		$	-		$	825		$	725
Actual return on plan assets		-			-			21			81
Company contribution		3			3			66			70
Actual benefits paid2		(3	)		(3	)		(51	)		(51	)
Plan assets at fair value at end of period	$	-		$	-		$	861		$	825
Funded status at December 313	$	(85	)	$	(77	)	$	(724	)	$	(533	)

¹  The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 established a prescription drug benefit under Medicare (Medicare Part D) and a federal subsidy, which is tax-exempt, to sponsors of retiree health care benefit plans that provide a benefit that is actuarially equivalent to Medicare Part D. In 2010, the Health Care Acts repealed these tax-exempt deductions for years beginning after December 31, 2012. The Medicare Part D annualized reduction in net OPEB cost for CMS Energy was $26 million for 2011, $28 million for 2010, and $19 million for 2009. Consumers' Medicare Part D annualized reduction in net OPEB costs was $25 million for 2011, $26 million for 2010, and $18 million for 2009. The reduction for CMS Energy and Consumers included $9 million for 2011, $10 million for 2010, and $6 million for 2009 in capitalized OPEB costs.

²  CMS Energy received payments of $5 million in each of 2011 and 2010 and $4 million in 2009 for the Medicare Part D subsidies. Consumers received payments of $5 million in each of 2011 and 2010 and $4 million in 2009 for the Medicare Part D subsidies.

³  At December 31, 2011, CMS Energy classified $7 million as current liabilities and $1.3 billion as non-current liabilities on its consolidated balance sheets. At December 31, 2010, CMS Energy classified $7 million as current liabilities and $1.1 billion as non-current liabilities on its consolidated balance sheets. Current liabilities relate to SERP projected payments for the next year.

At December 31, 2011, Consumers classified $4 million as current liabilities and $1.2 billion as non-current liabilities on its consolidated balance sheets. At December 31, 2010, Consumers classified $4 million as current liabilities and $1.1 billion as non-current liabilities on its consolidated balance sheets.

⁴  At December 31, 2011, $414 million of the total funded status of the Pension Plan was attributable to Consumers based on an allocation of expenses. At December 31, 2010, $463 million of the funded status of the Pension Plan was attributable to Consumers based on an allocation of expenses.

⁵  Plan amendments reflect changes resulting from an agreement reached with the UWUA in April 2010 on a new five-year contract for UWUA members.

Schedule of Net Periodic Benefit Cost Not yet Recognized including regulatory assets

In Millions
	Pension and SERP				OPEB
Years Ended December 31		2011		2010		2011			2010
CMS ENERGY, INCLUDING CONSUMERS
Regulatory assets
Net loss	$	1,014	$	914	$	766		$	579
Prior service cost (credit)		17		23		(132	)		(152	)
AOCI
Net loss (gain)		81		72		(5	)		(9	)
Prior service cost (credit)		2		2		(3	)		(4	)
Total amounts recognized in regulatory assets and AOCI	$	1,114	$	1,011	$	626		$	414
CONSUMERS
Regulatory assets
Net loss	$	1,014	$	914	$	766		$	579
Prior service cost (credit)		17		23		(132	)		(152	)
AOCI
Net loss		27		22		-			-
Prior service cost		-		1		-			-
Total amounts recognized in regulatory assets and AOCI	$	1,058	$	960	$	634		$	427

Schedule of Allocation of Plan Assets

	Pension Plan
December 31, 2011	Total		Level 1		Level 2
	In Millions
CMS ENERGY, INCLUDING CONSUMERS
Asset Category
Cash and short-term investments1	$	241	$	241	$	—
U.S. government and agencies securities2		24		—		24
Corporate debt3		236		—		236
State and municipal bonds5		10		—		10
Foreign corporate debt6		23		—		23
Mutual funds8		257		257		—
Pooled funds9		835		—		835
Total	$	1,626	$	498	$	1,128

	Pension Plan
December 31, 2010	Total		Level 1		Level 2
	In Millions
CMS ENERGY, INCLUDING CONSUMERS
Asset Category
Cash and short-term investments1	$	248	$	248	$	—
U.S. government and agencies securities2		57		—		57
Corporate debt3		161		—		161
State and municipal bonds5		8		—		8
Foreign corporate debt6		17		—		17
Mutual funds8		183		183		—
Pooled funds9		727		—		727
Total	$	1,401	$	431	$	970

	OPEB Plan
December 31, 2011	Total		Level 1		Level 2
	In Millions
CMS ENERGY, INCLUDING CONSUMERS
Asset Category
Cash and short-term investments1	$	64	$	64	$	—
U.S. government and agencies securities2		203		—		203
Corporate debt4		28		—		28
State and municipal bonds5		71		—		71
Foreign corporate debt6		3		—		3
Common stocks7		113		113		—
Mutual funds8		31		31		—
Pooled funds10		411		—		411
Total	$	924	$	208	$	716
CONSUMERS
Asset Category
Cash and short-term investments1	$	60	$	60	$	—
U.S. government and agencies securities2		189		—		189
Corporate debt4		26		—		26
State and municipal bonds5		66		—		66
Foreign corporate debt6		3		—		3
Common stocks7		105		105		—
Mutual funds8		29		29		—
Pooled funds10		383		—		383
Total	$	861	$	194	$	667

	OPEB Plan
December 31, 2010	Total		Level 1		Level 2
	In Millions
CMS ENERGY, INCLUDING CONSUMERS
Asset Category
Cash and short-term investments1	$	56	$	56	$	—
U.S. government and agencies securities2		181		—		181
Corporate debt4		20		—		20
State and municipal bonds5		36		—		36
Foreign corporate debt6		2		—		2
Common stocks7		154		154		—
Mutual funds8		23		23		—
Pooled funds10		415		—		415
Total	$	887	$	233	$	654
CONSUMERS
Asset Category
Cash and short-term investments1	$	52	$	52	$	—
U.S. government and agencies securities2		168		—		168
Corporate debt4		19		—		19
State and municipal bonds5		34		—		34
Foreign corporate debt6		2		—		2
Common stocks7		143		143		—
Mutual funds8		21		21		—
Pooled funds10		386		—		386
Total	$	825	$	216	$	609

1 Cash and short-term investments consist of money market funds with daily liquidity.

2 U.S. government and agencies securities consist of U.S. Treasury notes and other debt securities backed by the U.S. government and related agencies. These securities were valued based on quoted market prices.

3 At December 31, 2011, corporate debt investments in the Pension Plan comprised investment grade bonds (69 percent) and non-investment grade, high-yield bonds (31 percent) of U.S. issuers from diverse industries. At December 31, 2010, corporate debt investments in the Pension Plan comprised investment grade bonds (61 percent) and non-investment grade, high-yield bonds (39 percent) of U.S. issuers from diverse industries. These securities are valued based on quoted market prices, when available, or yields presently available on comparable securities of issuers with similar credit ratings.

4 At December 31, 2011, corporate debt investments in the OPEB plan comprised investment grade bonds (69 percent) and non-investment grade, high-yield bonds (31 percent) of U.S. issuers from diverse industries. At December 31, 2010, corporate debt investments in the OPEB plan comprised investment grade bonds (61 percent) and non-investment grade, high-yield bonds (39 percent) of U.S. issuers from diverse industries. These securities are valued based on quoted market prices, when available, or yields presently available on comparable securities of issuers with similar credit ratings.

5 State and municipal bonds were valued using a matrix-pricing model that incorporates Level 2 market-based information. The fair value of the bonds was derived from various observable inputs, including benchmark yields, reported securities trades, broker/dealer quotes, bond ratings, and general information on market movements for investment grade state and municipal securities normally considered by market participants when pricing such debt securities.

6 Foreign corporate debt securities were valued based on quoted market prices, when available, or on yields available on comparable securities of issuers with similar credit ratings.

7 Common stocks in the OPEB plan consist of equity securities with low transaction costs that were actively managed and tracked by the S&P 500 Index. These securities were valued at their quoted closing prices.

8 Mutual funds represent shares in registered investment companies that are priced based on the quoted NAV that is the basis for transactions to buy or sell shares in the funds.

9 Pooled funds in the Pension Plan include both common and collective trust funds as well as special funds that contain only employee benefit plan assets from two or more unrelated benefit plans. At December 31, 2011, these funds comprised investments in U.S. equity securities (53 percent), foreign equity securities (22 percent), foreign fixed-income securities (16 percent), U.S. fixed-income securities (five percent), and alternative investments (four percent). At December 31, 2010, these funds comprised investments in U.S. equity securities (55 percent), foreign equity securities (24 percent), foreign fixed-income securities (14 percent), U.S. fixed-income securities (four percent), and alternative investments (three percent). These investments were valued at the quoted NAV provided by the fund managers that is the basis for transactions to buy or sell shares in the funds.

10 Pooled funds in the OPEB plan include both common and collective trust funds as well as special funds that contain only employee benefit plan assets from two or more unrelated benefit plans. At December 31, 2011, these funds comprised investments in U.S. equity securities (88 percent), foreign equity securities (six percent), foreign fixed-income securities (four percent), U.S. fixed-income securities (one percent), and alternative investments (one percent). At December 31, 2010, these funds comprised investments in U.S. equity securities (89 percent), foreign equity securities (six percent), foreign fixed-income securities (three percent), U.S. fixed-income securities (one percent), and alternative investments (one percent). These investments are valued at the quoted NAV provided by the fund managers that is the basis for transactions to buy or sell shares in the funds.

Schedule of Plan Contributions

In Millions
Years Ended December 31		2011		2010
CMS ENERGY, INCLUDING CONSUMERS
OPEB1
VEBA trust	$	48	$	57
401(h) component		19		14
	$	67	$	71
Pension2	$	250	$	375
CONSUMERS
OPEB1
VEBA trust	$	47	$	57
401(h) component		19		13
	$	66	$	70
Pension2	$	245	$	366

¹  CMS Energy, including Consumers, plans to contribute $65 million to the OPEB plan in 2012 and Consumers plans to contribute $64 million to the OPEB plan in 2012.

²  CMS Energy, including Consumers, does not plan to contribute to the Pension Plan in 2012.

Schedule of Expected Benefit Payments

In Millions
		Pension		SERP		OPEB	1
CMS ENERGY, INCLUDING CONSUMERS
2012	$	111	$	7	$	70
2013		120		7		73
2014		129		7		76
2015		138		8		80
2016		144		8		83
2017-2021		777		44		466
CONSUMERS
2012	$	108	$	4	$	67
2013		117		4		70
2014		126		4		73
2015		134		4		76
2016		140		4		80
2017-2021		757		23		445

¹  CMS Energy's and Consumers' OPEB benefit payments are net of employee contributions and expected Medicare Part D prescription drug subsidy payments. For CMS Energy, subsidies to be received are estimated to be $6 million for 2012, $7 million for each of 2013 and 2014, $8 million for each of 2015 and 2016, and $49 million combined for 2017 through 2021. For Consumers, subsidies to be received are estimated to be $6 million for each of 2012 and 2013, $7 million for each of 2014 and 2015, $8 million for 2016, and $47 million combined for 2017 through 2021.