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Leases (Tables) (Consumers Energy Company [Member])
 12 Months Ended
Dec. 31, 2011
Consumers Energy Company [Member]
  
Schedule of Rent Expense

Years Ended December 31

    2011      2010      2009  
     In Millions  

CONSUMERS

        

PPA operating lease expense

    $ 10       $ 5       $ 9   

Non-PPA operating lease expense

      22         22         23   

Contingent rental expense1

     11         14         9   
  

 

 

     

 

 

     

 

 

  

1 

Contingent rental expense comprises PPA energy and capacity payments and any other payments not associated with RECs. This expense is excluded from operating lease expense.

Schedule of Future Minimum Lease Payments for Leases

Presented in the following table are the minimum annual rental commitments under Consumers' non-cancelable leases at December 31, 2011. All of CMS Energy's non-cancelable leases at December 31, 2011 were attributable to Consumers.

     Capital
Leases 		     Finance
Lease1 		     Operating
Leases 		 
     In Millions  

CONSUMERS

        

2012

    $ 20       $ 20       $ 27   

2013

      13         20         24   

2014

      11         19         22   

2015

      12         18         22   

2016

      8         17         17   

2017 and thereafter

      39         79         68   
  

 

 

     

 

 

     

 

 

  

Total minimum lease payments

    $ 103       $ 173       $ 180   
        

Less imputed interest

      46         39      
  

 

 

     

 

 

     

Present value of net minimum lease payments

    $ 57       $ 134      

Less current portion

      11         13      
  

 

 

     

 

 

     

Non-current portion

    $ 46       $ 121      
  

 

 

     

 

 

     

 

1  In 2007, Consumers sold Palisades to Entergy and entered into a 15-year PPA to buy all of the capacity and energy then capable of being produced by Palisades. Consumers has continuing involvement with Palisades through security provided to Entergy for Consumers' PPA obligation and other arrangements. Because of these ongoing arrangements, Consumers accounted for the transaction as a financing of Palisades and not a sale. Accordingly, no gain on the sale of Palisades was recognized on the consolidated statements of income. Consumers accounted for the remaining non-real-estate assets and liabilities associated with the transaction as a sale.

Palisades remains on Consumers' consolidated balance sheets and Consumers continues to depreciate it. Consumers recorded the related proceeds as a finance obligation with payments recorded to interest expense and the finance obligation based on the amortization of the obligation over the life of the Palisades PPA. The value of the finance obligation was determined based on an allocation of the transaction proceeds to the fair values of the net assets sold and fair value of the plant asset under the financing. Total amortization and interest charges under the financing were $21 million, $22 million, and $23 million respectively, for the years ended December 31, 2011, 2010, and 2009.