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Financings And Capitalization (Tables)

12 Months Ended

Dec. 31, 2018

Presented in the following table is CMS Energy’s long-term debt at December 31:



In Millions
	Interest Rate (%)		Maturity		2018				2017
CMS Energy, including Consumers
CMS Energy, parent only
Senior notes	8.750		2019			$	—			$	100
	6.250		2020			—				300
	5.050		2022			300				300
	3.875		2024			250				250
	3.600		2025			250				250
	3.000		2026			300				300
	2.950		2027			275				275
	3.450		2027			350				350
	4.700		2043			250				250
	4.875		2044			300				300
Total senior notes						$	2,275			$	2,675

Term loans and revolving credit agreements	variable	¹	2019			180				405
	variable	²	2023			30				—
						$	210			$	405

Junior subordinated notes	5.625		2078			200				—
	5.875		2078			280				—
						$	480			$	—
Total CMS Energy, parent only						$	2,965			$	3,080
CMS Energy subsidiaries
CMS Enterprises, including subsidiaries
Term loan facility	variable	³	2025	³		$	98			$	—
EnerBank
Certificates of deposit	2.440	⁴	2019-2026			1,758				1,245
Consumers						6,862				5,940
Total principal amount outstanding						$	11,683			$	10,265
Current amounts						(974		)		(1,081		)
Net unamortized discounts						(21		)		(14		)
Unamortized issuance costs						(73		)		(47		)
Total long-term debt						$	10,615			$	9,123


¹	Outstanding borrowings bear interest at an annual interest rate of LIBOR plus 0.800 percent (3.322 percent at December 31, 2018).


²	Outstanding borrowings bear interest at an annual interest rate of LIBOR plus 0.125 percent (3.669 percent at December 31, 2018).

A subsidiary of CMS Enterprises issued non‑recourse debt to finance the acquisition of a wind generation project in northwest Ohio. The debt bears interest at an annual interest rate of LIBOR plus 1.500 percent through October 2022 (4.303 percent at December 31, 2018). Beginning in October 2022, the debt will bear interest at an annual interest rate of LIBOR plus 1.750 percent. The same subsidiary of CMS Enterprises entered into interest rate swaps with the lending banks to fix the interest charges associated with the debt, at a rate of 4.702 percent through October 2022 and 4.952 percent beginning in October 2022. Principal and interest payments are made quarterly.


⁴	The weighted-average interest rate for EnerBank’s certificates of deposit was 2.440 percent at December 31, 2018 and 1.758 percent at December 31, 2017. EnerBank’s primary deposit product consists of brokered certificates of deposit with varying maturities and having a face value of $1,000.

Major Long-Term Debt Transactions

Presented in the following table is a summary of major long-term debt transactions during the year ended December 31, 2018:



	Principal (In Millions)			Interest Rate (%)	Issue/Retirement Date	Maturity Date
Debt issuances
CMS Energy, parent only
Junior subordinated notes¹		$	200	5.625	March 2018	March 2078
Junior subordinated notes¹		250		5.875	September 2018	October 2078
Junior subordinated notes¹		30		5.875	October 2018	October 2078
Total CMS Energy, parent only		$	480
CMS Enterprises, including subsidiaries
Term loan facility		$	100	variable²	October 2018	September 2025
Total CMS Enterprises, including subsidiaries		$	100
Consumers
First mortgage bonds		$	550	4.050	May 2018	May 2048
First mortgage bonds		100		3.680	October 2018	October 2027
First mortgage bonds		215		4.010	October 2018	October 2038
First mortgage bonds		185		4.280	October 2018	October 2057
First mortgage bonds		300		3.800	November 2018	November 2028
First mortgage bonds		550		4.350	November 2018	April 2049
Total Consumers		$	1,900
Total CMS Energy		$	2,480
Debt retirements
CMS Energy, parent only
Term loan facility		$	180	variable	March 2018	December 2018
Senior notes³		100		8.750	June 2018	June 2019
Term loan facility		45		variable	August 2018	December 2018
Senior notes⁴		300		6.250	October 2018	February 2020
Total CMS Energy, parent only		$	625
Consumers
Tax-exempt pollution control revenue bonds		$	68	variable	April 2018	April 2018
First mortgage bonds		250		5.650	May 2018	September 2018
First mortgage bonds		350		6.125	November 2018	March 2019
First mortgage bonds		500		6.700	November 2018	September 2019
Total Consumers		$	1,168
Total CMS Energy		$	1,793


¹	These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness.


²	A subsidiary of CMS Enterprises entered into interest rate swaps with the lending banks to fix the interest charges associated with the debt.


³	CMS Energy retired these senior notes at a premium and recorded a loss on extinguishment of $5 million in other expense on its consolidated statements of income.


⁴	CMS Energy retired these senior notes at a premium and recorded a loss on extinguishment of $11 million in other expense on its consolidated statements of income.

Debt Maturities

At December 31, 2018, the aggregate annual contractual maturities for long-term debt for the next five years were:



In Millions
	2019			2020			2021			2022			2023
CMS Energy, including Consumers
Long-term debt		$	974		$	1,007		$	310		$	1,146		$	546
Consumers
Long-term debt		$	26		$	626		$	27		$	653		$	369

Revolving Credit Facilities

The following revolving credit facilities with banks were available at December 31, 2018:



In Millions
Expiration Date	Amount of Facility			Amount Borrowed			Letters of Credit Outstanding			Amount Available
CMS Energy, parent only
June 5, 2023^1,2		$	550		$	30		$	1		$	519
CMS Enterprises, including subsidiaries
September 30, 2025³		$	18		$	—		$	8		$	10
Consumers⁴
June 5, 2023⁵		$	850		$	15		$	7		$	828
November 19, 2020⁶		250			200			35			15
September 9, 2019		30			—			30			—


¹	During the year ended December 31, 2018, CMS Energy’s average borrowings totaled $15 million with a weighted-average interest rate of 2.997 percent. In January 2019, CMS Energy increased its borrowings under this facility to $73 million.


²	In June 2018, CMS Energy amended its $550 million revolving credit facility, eliminating the security provided by Consumers common stock, and extending the expiration date to June 2023.


³	Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank.


⁴	Obligations under these facilities are secured by first mortgage bonds of Consumers. During the year ended December 31, 2018, Consumers’ average borrowings totaled $3 million with a weighted-average interest rate of 3.505 percent.


⁵	In June 2018, Consumers amended this revolving credit facility by increasing its borrowing capacity to $850 million and extending the expiration date to June 2023. In January 2019, Consumers repaid $15 million of borrowings under this facility.


⁶	In November 2018, Consumers amended this revolving credit facility by extending the expiration date to November 2020. In January 2019, Consumers repaid $200 million of borrowings under this facility.

Schedule of Stock by Class

Presented in the following table are the transactions that CMS Energy entered into under the program:

Schedule of Forward Contracts

Presented in the following table are the details of the forward equity sale contracts:

Consumers Energy Company

Debt Instrument [Line Items]

Summary Of Long-Term Debt Outstanding

Presented in the following table is Consumers’ long-term debt at December 31:



In Millions
	Interest Rate (%)		Maturity		2018				2017
Consumers
First mortgage bonds	5.650		2018			$	—			$	250
	6.125		2019			—				350
	6.700		2019			—				500
	5.650		2020			300				300
	3.770		2020			100				100
	2.850		2022			375				375
	5.300		2022			250				250
	3.375		2023			325				325
	3.125		2024			250				250
	3.190		2024			52				52
	3.680		2027			100				—
	3.390		2027			35				35
	3.800		2028			300				—
	3.180		2032			100				100
	5.800		2035			175				175
	3.520		2037			335				335
	4.010		2038			215				—
	6.170		2040			50				50
	4.970		2040			50				50
	4.310		2042			263				263
	3.950		2043			425				425
	4.100		2045			250				250
	3.250		2046			450				450
	3.950		2047			350				350
	4.050		2048			550				—
	4.350		2049			550				—
	3.860		2052			50				50
	4.280		2057			185				—
	4.350		2064			250				250
Total first mortgage bonds						$	6,335			$	5,535
Securitization bonds	3.057	¹	2020-2029	²		277				302
Revolving credit agreements	variable	³	2020-2023			215				—
Tax-exempt pollution control revenue bond	variable		2035			35				103
Total principal amount outstanding						$	6,862			$	5,940
Current amounts						(26		)		(343		)
Net unamortized discounts						(16		)		(8		)
Unamortized issuance costs						(41		)		(28		)
Total long-term debt						$	6,779			$	5,561


¹	The weighted-average interest rate for Consumers’ securitization bonds issued through its subsidiary Consumers 2014 Securitization Funding was 3.057 percent at December 31, 2018 and 2.913 percent at December 31, 2017.


²	Principal and interest payments are made semiannually.


³	The weighted-average interest rate for Consumers’ revolving credit facilities was 3.331 percent at December 31, 2018. There were no outstanding borrowings at December 31, 2017.

Major Long-Term Debt Transactions

Presented in the following table is a summary of major long-term debt transactions during the year ended December 31, 2018:



	Principal (In Millions)			Interest Rate (%)	Issue/Retirement Date	Maturity Date
Debt issuances
CMS Energy, parent only
Junior subordinated notes¹		$	200	5.625	March 2018	March 2078
Junior subordinated notes¹		250		5.875	September 2018	October 2078
Junior subordinated notes¹		30		5.875	October 2018	October 2078
Total CMS Energy, parent only		$	480
CMS Enterprises, including subsidiaries
Term loan facility		$	100	variable²	October 2018	September 2025
Total CMS Enterprises, including subsidiaries		$	100
Consumers
First mortgage bonds		$	550	4.050	May 2018	May 2048
First mortgage bonds		100		3.680	October 2018	October 2027
First mortgage bonds		215		4.010	October 2018	October 2038
First mortgage bonds		185		4.280	October 2018	October 2057
First mortgage bonds		300		3.800	November 2018	November 2028
First mortgage bonds		550		4.350	November 2018	April 2049
Total Consumers		$	1,900
Total CMS Energy		$	2,480
Debt retirements
CMS Energy, parent only
Term loan facility		$	180	variable	March 2018	December 2018
Senior notes³		100		8.750	June 2018	June 2019
Term loan facility		45		variable	August 2018	December 2018
Senior notes⁴		300		6.250	October 2018	February 2020
Total CMS Energy, parent only		$	625
Consumers
Tax-exempt pollution control revenue bonds		$	68	variable	April 2018	April 2018
First mortgage bonds		250		5.650	May 2018	September 2018
First mortgage bonds		350		6.125	November 2018	March 2019
First mortgage bonds		500		6.700	November 2018	September 2019
Total Consumers		$	1,168
Total CMS Energy		$	1,793


¹	These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness.


²	A subsidiary of CMS Enterprises entered into interest rate swaps with the lending banks to fix the interest charges associated with the debt.


³	CMS Energy retired these senior notes at a premium and recorded a loss on extinguishment of $5 million in other expense on its consolidated statements of income.


⁴	CMS Energy retired these senior notes at a premium and recorded a loss on extinguishment of $11 million in other expense on its consolidated statements of income.

Debt Maturities

At December 31, 2018, the aggregate annual contractual maturities for long-term debt for the next five years were:



In Millions
	2019			2020			2021			2022			2023
CMS Energy, including Consumers
Long-term debt		$	974		$	1,007		$	310		$	1,146		$	546
Consumers
Long-term debt		$	26		$	626		$	27		$	653		$	369

Revolving Credit Facilities

The following revolving credit facilities with banks were available at December 31, 2018:



In Millions
Expiration Date	Amount of Facility			Amount Borrowed			Letters of Credit Outstanding			Amount Available
CMS Energy, parent only
June 5, 2023^1,2		$	550		$	30		$	1		$	519
CMS Enterprises, including subsidiaries
September 30, 2025³		$	18		$	—		$	8		$	10
Consumers⁴
June 5, 2023⁵		$	850		$	15		$	7		$	828
November 19, 2020⁶		250			200			35			15
September 9, 2019		30			—			30			—


¹	During the year ended December 31, 2018, CMS Energy’s average borrowings totaled $15 million with a weighted-average interest rate of 2.997 percent. In January 2019, CMS Energy increased its borrowings under this facility to $73 million.


²	In June 2018, CMS Energy amended its $550 million revolving credit facility, eliminating the security provided by Consumers common stock, and extending the expiration date to June 2023.


³	Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank.


⁴	Obligations under these facilities are secured by first mortgage bonds of Consumers. During the year ended December 31, 2018, Consumers’ average borrowings totaled $3 million with a weighted-average interest rate of 3.505 percent.


⁵	In June 2018, Consumers amended this revolving credit facility by increasing its borrowing capacity to $850 million and extending the expiration date to June 2023. In January 2019, Consumers repaid $15 million of borrowings under this facility.


⁶	In November 2018, Consumers amended this revolving credit facility by extending the expiration date to November 2020. In January 2019, Consumers repaid $200 million of borrowings under this facility.

Preferred Stock

Presented in the following table are details of Consumers’ preferred stock at December 31, 2018 and 2017:



	Par Value			Optional Redemption Price			Number of Shares Authorized	Number of Shares Outstanding
Cumulative, with no mandatory redemption		$	100		$	110	7,500,000	373,148

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details

Number of Shares Issued

Net Proceeds
(In Millions)