Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2012

Assets and Liabilities Measured at Fair Value on a Recurring Basis

In Millions
June 30, 2012	Total		Level 1		Level 2		Level 3
CMS Energy, including Consumers
Assets
Cash equivalents		$    141		$    141		$        -		$        -
Restricted cash equivalents		14		14		-		-
Nonqualified deferred compensation plan assets		5		5		-		-
SERP
Mutual funds		127		127		-		-
Derivative instruments
Commodity contracts		7		1		1		5
Total		$    294		$    288		$        1		$        5
Liabilities
Nonqualified deferred compensation plan liabilities		$        5		$        5		$        -		$        -
Derivative instruments
Commodity contracts		6		-		4		2
Total		$      11		$        5		$       4		$        2
Consumers
Assets
Cash equivalents		$    122		$    122		$        -		$        -
Restricted cash equivalents		14		14		-		-
CMS Energy common stock		30		30		-		-
Nonqualified deferred compensation plan assets		3		3		-		-
SERP
Mutual funds		86		86		-		-
Derivative instruments
Commodity contracts		5		-		-		5
Total		$    260		$    255		$        -		$        5
Liabilities
Nonqualified deferred compensation plan liabilities		$        3		$        3		$        -		$        -
Total		$        3		$        3		$        -		$        -

In Millions
December 31, 2011	Total		Level 1		Level 2		Level 3
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	$	-	$	-

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

In Millions
	Three Months Ended						Six Months Ended
June 30	2012			2011			2012			2011
CMS Energy, including Consumers
Balance at beginning of period		$       (1	)		$       (2	)		$       (2	)		$       (3	)
Total gains included in earnings1		-			-			2			-
Total gains offset through regulatory accounting		9			2			7			2
Purchases		-			-			-			1
Settlements		(5	)		-			(4	)		-
Balance at end of period		$        3			$         -			$        3			$         -
Unrealized gains included in earnings relating to assets and liabilities still held at end of period1		$         -			$         -			$        2			$        1
Consumers
Balance at beginning of period		$        1			$         -			$        2			$        1
Total gains offset through regulatory accounting		9			2			7			2
Purchases		-			1			-			1
Settlements		(5	)		-			(4	)		(1	)
Balance at end of period		$        5			$        3			$        5			$        3

¹ CMS Energy records realized and unrealized gains and losses for Level 3 recurring fair value measurements in earnings as a

component of operating revenue or maintenance and other operating expenses on its consolidated statements of income.

Consumers Energy Company [Member]

Assets and Liabilities Measured at Fair Value on a Recurring Basis

In Millions
June 30, 2012	Total		Level 1		Level 2		Level 3
CMS Energy, including Consumers
Assets
Cash equivalents		$    141		$    141		$        -		$        -
Restricted cash equivalents		14		14		-		-
Nonqualified deferred compensation plan assets		5		5		-		-
SERP
Mutual funds		127		127		-		-
Derivative instruments
Commodity contracts		7		1		1		5
Total		$    294		$    288		$        1		$        5
Liabilities
Nonqualified deferred compensation plan liabilities		$5		$        5		$        -		$        -
Derivative instruments
Commodity contracts		6		-		4		2
Total		$      11		$        5		$       4		$        2
Consumers
Assets
Cash equivalents		$    122		$    122		$        -		$        -
Restricted cash equivalents		14		14		-		-
CMS Energy common stock		30		30		-		-
Nonqualified deferred compensation plan assets		3		3		-		-
SERP
Mutual funds		86		86		-		-
Derivative instruments
Commodity contracts		5		-		-		5
Total		$    260		$    255		$        -		$        5
Liabilities
Nonqualified deferred compensation plan liabilities		$        3		$        3		$        -		$        -
Total		$        3		$        3		$        -		$        -

In Millions
December 31, 2011	Total		Level 1		Level 2		Level 3
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	$	-	$	-

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

In Millions
	Three Months Ended						Six Months Ended
June 30	2012			2011			2012			2011
CMS Energy, including Consumers
Balance at beginning of period		$       (1	)		$       (2	)		$       (2	)		$       (3	)
Total gains included in earnings1		-			-			2			-
Total gains offset through regulatory accounting		9			2			7			2
Purchases		-			-			-			1
Settlements		(5	)		-			(4	)		-
Balance at end of period		$        3			$         -			$        3			$         -
Unrealized gains included in earnings relating to assets and liabilities still held at end of period1		$         -			$         -			$        2			$        1
Consumers
Balance at beginning of period		$        1			$         -			$        2			$        1
Total gains offset through regulatory accounting		9			2			7			2
Purchases		-			1			-			1
Settlements		(5	)		-			(4	)		(1	)
Balance at end of period		$        5			$        3			$        5			$        3

¹ CMS Energy records realized and unrealized gains and losses for Level 3 recurring fair value measurements in earnings as a

component of operating revenue or maintenance and other operating expenses on its consolidated statements of income.