Plant, Property, and Equipment (Tables)

12 Months Ended

Dec. 31, 2018

Public Utility, Property, Plant and Equipment [Line Items]

Schedule Of Property, Plant And Equipment

Presented in the following table are details of CMS Energy’s and Consumers’ plant, property, and equipment:

In Millions
December 31	Estimated Depreciable Life in Years			2018				2017
CMS Energy, including Consumers
Plant, property, and equipment, gross
Consumers	3	—	125		$	23,963			$	22,318
Enterprises
Independent power production	3	—	35		410				163
Other	3	—	5		2				4
Other	1	—	7		25				21
Plant, property, and equipment, gross					$	24,400			$	22,506
Construction work in progress					763				765
Accumulated depreciation and amortization					(7,037		)		(6,510		)
Total plant, property, and equipment					$	18,126			$	16,761
Consumers
Plant, property, and equipment, gross
Electric
Generation	22	—	125		$	6,305			$	6,025
Distribution	20	—	75		7,957				7,603
Transmission	46	—	75		154				66
Other	5	—	50		1,316				1,229
Assets under capital leases and financing obligation1					295				298
Gas
Distribution	20	—	85		4,651				4,182
Transmission	17	—	75		1,521				1,278
Underground storage facilities2	27	—	75		910				842
Other	5	—	50		823				764
Capital leases1					14				14
Other non‑utility property	3	—	51		17				17
Plant, property, and equipment, gross					$	23,963			$	22,318
Construction work in progress					756				753
Accumulated depreciation and amortization					(6,958		)		(6,441		)
Total plant, property, and equipment3					$	17,761			$	16,630

¹  For information regarding the amortization terms of Consumers’ assets under capital leases and financing obligation, see Note 10, Leases and Palisades Financing.

²  Underground storage includes base natural gas of $26 million at December 31, 2018 and 2017. Base natural gas is not subject to depreciation.

³  For the year ended December 31, 2018, Consumers’ plant additions were $1.8 billion and plant retirements were $190 million. For the year ended December 31, 2017, Consumers’ plant additions were $1.7 billion and plant retirements were $214 million

Public Utilities Property Plant and Equipment Schedule of Accumulated Depreciation and Amortization Table

Presented in the following table are further details about CMS Energy’s and Consumers’ accumulated depreciation and amortization:

In Millions
December 31	2018			2017
CMS Energy, including Consumers
Utility plant assets		$	6,956		$	6,439
Non-utility plant assets		81			71
Consumers
Utility plant assets		$	6,956		$	6,439
Non-utility plant assets		2			2

Schedule Of Depreciation And Amortization

Presented in the following table are the components of CMS Energy’s and Consumers’ depreciation and amortization expense:

In Millions
Years Ended December 31	2018			2017			2016
CMS Energy, including Consumers
Depreciation expense – plant, property, and equipment		$	778		$	739		$	687
Amortization expense
Software		127			114			96
Other intangible assets		3			3			3
Securitized regulatory assets		25			25			25
Total depreciation and amortization expense		$	933		$	881		$	811
Consumers
Depreciation expense – plant, property, and equipment		$	768		$	732		$	680
Amortization expense
Software		125			112			95
Other intangible assets		3			3			3
Securitized regulatory assets		25			25			25
Total depreciation and amortization expense		$	921		$	872		$	803

Schedule Of Estimated Amortization Expense For Intangibles

Presented in the following table is CMS Energy’s and Consumers’ estimated amortization expense on intangible assets for each of the next five years:

In Millions
	2019			2020			2021			2022			2023
CMS Energy, including Consumers
Intangible asset amortization expense		$	132		$	122		$	108		$	95		$	74
Consumers
Intangible asset amortization expense		$	130		$	120		$	106		$	94		$	74

Schedule of Finite-Lived Intangible Assets by Major Class Table

Included in net plant, property, and equipment are intangible assets. Presented in the following table are details about CMS Energy’s and Consumers’ intangible assets:

In Millions
				December 31, 2018						December 31, 2017
Description	Amortization Life in Years			Gross Cost1			Accumulated  Amortization			Gross Cost1			Accumulated Amortization
CMS Energy, including Consumers
Software development	1	—	15		$	1,024		$	603		$	950		$	481
Rights of way	50	—	85		167			52			162			50
Franchises and consents	5	—	30		15			9			14			8
Leasehold improvements	various2				9			7			9			7
Other intangibles	various				27			15			23			15
Total					$	1,242		$	686		$	1,158		$	561
Consumers
Software development	3	—	15		$	1,009		$	595		$	937		$	475
Rights of way	50	—	85		167			52			162			50
Franchises and consents	5	—	30		15			9			14			8
Leasehold improvements	various2				9			7			9			7
Other intangibles	various				26			15			21			15
Total					$	1,226		$	678		$	1,143		$	555

¹  For the year ended December 31, 2018, Consumers’ intangible asset additions were $90 million and intangible asset retirements were $7 million. For the year ended December 31, 2017, Consumers’ intangible asset additions were $100 million and there were no intangible asset retirements.

²  Leasehold improvements are amortized over the life of the lease, which may change whenever the lease is renewed or extended.

Consumers Energy Company

Public Utility, Property, Plant and Equipment [Line Items]

Schedule Of Property, Plant And Equipment

Presented in the following table are details of CMS Energy’s and Consumers’ plant, property, and equipment:

In Millions
December 31	Estimated Depreciable Life in Years			2018				2017
CMS Energy, including Consumers
Plant, property, and equipment, gross
Consumers	3	—	125		$	23,963			$	22,318
Enterprises
Independent power production	3	—	35		410				163
Other	3	—	5		2				4
Other	1	—	7		25				21
Plant, property, and equipment, gross					$	24,400			$	22,506
Construction work in progress					763				765
Accumulated depreciation and amortization					(7,037		)		(6,510		)
Total plant, property, and equipment					$	18,126			$	16,761
Consumers
Plant, property, and equipment, gross
Electric
Generation	22	—	125		$	6,305			$	6,025
Distribution	20	—	75		7,957				7,603
Transmission	46	—	75		154				66
Other	5	—	50		1,316				1,229
Assets under capital leases and financing obligation1					295				298
Gas
Distribution	20	—	85		4,651				4,182
Transmission	17	—	75		1,521				1,278
Underground storage facilities2	27	—	75		910				842
Other	5	—	50		823				764
Capital leases1					14				14
Other non‑utility property	3	—	51		17				17
Plant, property, and equipment, gross					$	23,963			$	22,318
Construction work in progress					756				753
Accumulated depreciation and amortization					(6,958		)		(6,441		)
Total plant, property, and equipment3					$	17,761			$	16,630

¹  For information regarding the amortization terms of Consumers’ assets under capital leases and financing obligation, see Note 10, Leases and Palisades Financing.

²  Underground storage includes base natural gas of $26 million at December 31, 2018 and 2017. Base natural gas is not subject to depreciation.

³  For the year ended December 31, 2018, Consumers’ plant additions were $1.8 billion and plant retirements were $190 million. For the year ended December 31, 2017, Consumers’ plant additions were $1.7 billion and plant retirements were $214 million.

Public Utilities, Allowance For Funds Used During Construction Average Rate

Presented in the following table are Consumers’ average AFUDC capitalization rates:

Years Ended December 31	2018		2017		2016
Electric	6.9	%	6.8	%	7.3	%
Gas	5.9		6.0		6.2

Schedule of Capital Leased Asssets

Assets Under Capital Leases and Financing Obligation: Presented in the following table are further details about changes in Consumers’ assets under capital leases and financing obligation:

In Millions
Years Ended December 31	2018				2017
Consumers
Balance at beginning of period		$	312			$	310
Additions		—				3
Net retirements and other adjustments		(3		)		(1		)
Balance at end of period		$	309			$	312

Public Utilities Property Plant and Equipment Schedule of Accumulated Depreciation and Amortization Table

Presented in the following table are further details about CMS Energy’s and Consumers’ accumulated depreciation and amortization:

In Millions
December 31	2018			2017
CMS Energy, including Consumers
Utility plant assets		$	6,956		$	6,439
Non-utility plant assets		81			71
Consumers
Utility plant assets		$	6,956		$	6,439
Non-utility plant assets		2			2

Public Utilities Property Plant and Equipment Schedule of Composite Depreciation Rate Table

Presented in the following table are the composite depreciation rates for Consumers’ segment properties:

Years Ended December 31	2018			2017			2016
Electric utility property		3.9	%		3.9	%		3.9	%
Gas utility property		2.9			2.9			2.9
Other property		10.1			10.0			9.8

Schedule Of Depreciation And Amortization

Presented in the following table are the components of CMS Energy’s and Consumers’ depreciation and amortization expense:

In Millions
Years Ended December 31	2018			2017			2016
CMS Energy, including Consumers
Depreciation expense – plant, property, and equipment		$	778		$	739		$	687
Amortization expense
Software		127			114			96
Other intangible assets		3			3			3
Securitized regulatory assets		25			25			25
Total depreciation and amortization expense		$	933		$	881		$	811
Consumers
Depreciation expense – plant, property, and equipment		$	768		$	732		$	680
Amortization expense
Software		125			112			95
Other intangible assets		3			3			3
Securitized regulatory assets		25			25			25
Total depreciation and amortization expense		$	921		$	872		$	803

Schedule Of Estimated Amortization Expense For Intangibles

Presented in the following table is CMS Energy’s and Consumers’ estimated amortization expense on intangible assets for each of the next five years:

In Millions
	2019			2020			2021			2022			2023
CMS Energy, including Consumers
Intangible asset amortization expense		$	132		$	122		$	108		$	95		$	74
Consumers
Intangible asset amortization expense		$	130		$	120		$	106		$	94		$	74

Schedule of Finite-Lived Intangible Assets by Major Class Table

Included in net plant, property, and equipment are intangible assets. Presented in the following table are details about CMS Energy’s and Consumers’ intangible assets:

In Millions
				December 31, 2018						December 31, 2017
Description	Amortization Life in Years			Gross Cost1			Accumulated  Amortization			Gross Cost1			Accumulated Amortization
CMS Energy, including Consumers
Software development	1	—	15		$	1,024		$	603		$	950		$	481
Rights of way	50	—	85		167			52			162			50
Franchises and consents	5	—	30		15			9			14			8
Leasehold improvements	various2				9			7			9			7
Other intangibles	various				27			15			23			15
Total					$	1,242		$	686		$	1,158		$	561
Consumers
Software development	3	—	15		$	1,009		$	595		$	937		$	475
Rights of way	50	—	85		167			52			162			50
Franchises and consents	5	—	30		15			9			14			8
Leasehold improvements	various2				9			7			9			7
Other intangibles	various				26			15			21			15
Total					$	1,226		$	678		$	1,143		$	555

¹  For the year ended December 31, 2018, Consumers’ intangible asset additions were $90 million and intangible asset retirements were $7 million. For the year ended December 31, 2017, Consumers’ intangible asset additions were $100 million and there were no intangible asset retirements.

²  Leasehold improvements are amortized over the life of the lease, which may change whenever the lease is renewed or extended.

Jointly Owned Regulated Utility Facilities

Presented in the following table are Consumers’ investments in jointly owned regulated utility facilities at December 31, 2018:

In Millions, Except Ownership Share
J.H. Campbell Unit 3				Ludington				Other
Ownership share	93.3		%		51.0		%	various
Utility plant in service	$	1,688			$	411		$	226
Accumulated depreciation	(670		)		(155		)	(70		)
Construction work in progress	23				110			16
Net investment	$	1,041			$	366		$	172