Plant, Property, and Equipment (Tables)

12 Months Ended

Dec. 31, 2019

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			2019				2018
CMS Energy, including Consumers
Plant, property, and equipment, gross
Consumers	3	—	125		$	24,963			$	23,963
Enterprises
Independent power production1	3	—	40		403				410
Other	3	—	5		2				2
EnerBank	1	—	7		22				25
Plant, property, and equipment, gross					$	25,390			$	24,400
Construction work in progress					896				763
Accumulated depreciation and amortization					(7,360		)		(7,037		)
Total plant, property, and equipment					$	18,926			$	18,126
Consumers
Plant, property, and equipment, gross
Electric
Generation	22	—	125		$	5,942			$	6,305
Distribution	20	—	75		8,519				7,957
Transmission	46	—	75		113				154
Other	5	—	50		1,258				1,316
Assets under finance leases and other financing2					326				295
Gas
Distribution	20	—	85		5,235				4,651
Transmission	17	—	75		1,752				1,521
Underground storage facilities3	27	—	75		987				910
Other	5	—	50		797				823
Assets under finance leases2					14				14
Other non‑utility property	3	—	51		20				17
Plant, property, and equipment, gross					$	24,963			$	23,963
Construction work in progress					879				756
Accumulated depreciation and amortization					(7,272		)		(6,958		)
Total plant, property, and equipment4					$	18,570			$	17,761

¹  The majority of independent power production assets are leased to others under operating leases. For information regarding CMS Energy’s operating leases of owned assets, see Note 10, Leases and Palisades Financing.

²  For information regarding the amortization terms of Consumers’ assets under finance leases and other financing, see Note 10, Leases and Palisades Financing.

³  Underground storage includes base natural gas of $26 million at December 31, 2019 and 2018. Base natural gas is not subject to depreciation.

⁴ 

For the year ended December 31, 2019, Consumers’ plant additions were $2.0 billion and plant retirements were $380 million. For the year ended December 31, 2018, Consumers’ plant additions were $1.8 billion and plant retirements were $190 million. Consumers plans to retire the D.E. Karn 1 & 2 coal-fueled electric generating units in 2023. Accordingly, in 2019, Consumers removed from total plant, property, and equipment $667 million, representing the remaining book value of the two units upon their retirement, and recorded it as a regulatory asset. For additional details, see Note 3, Regulatory Matters.

Schedule of Finite-Lived Intangible Assets by Major Class Table

Presented in the following table are details about CMS Energy’s and Consumers’ intangible assets:

In Millions
				December 31, 2019						December 31, 2018
Description	Amortization Life in Years			Gross Cost¹			Accumulated Amortization			Gross Cost¹			Accumulated Amortization
CMS Energy, including Consumers
Software development	1	—	15		$	882		$	529		$	1,024		$	603
Rights of way	50	—	85		180			55			167			52
Franchises and consents	5	—	50		16			9			15			9
Leasehold improvements	various²				9			7			9			7
Other intangibles	various				27			15			27			15
Total					$	1,114		$	615		$	1,242		$	686
Consumers
Software development	3	—	15		$	869		$	521		$	1,009		$	595
Rights of way	50	—	85		180			55			167			52
Franchises and consents	5	—	50		16			9			15			9
Leasehold improvements	various²				9			7			9			7
Other intangibles	various				26			15			26			15
Total					$	1,100		$	607		$	1,226		$	678

¹  For the year ended December 31, 2019, Consumers’ intangible asset additions were $67 million and intangible asset retirements were $193 million. For the year ended December 31, 2018, Consumers’ intangible asset additions were $90 million and intangible asset retirements were $7 million.

² 

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

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	2019			2018
CMS Energy, including Consumers
Utility plant assets		$	7,269		$	6,956
Non‑utility plant assets		91			81
Consumers
Utility plant assets		$	7,269		$	6,956
Non‑utility plant assets		3			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	2019			2018			2017
CMS Energy, including Consumers
Depreciation expense – plant, property, and equipment		$	842		$	778		$	739
Amortization expense
Software		121			127			114
Other intangible assets		3			3			3
Securitized regulatory assets		26			25			25
Total depreciation and amortization expense		$	992		$	933		$	881
Consumers
Depreciation expense – plant, property, and equipment		$	827		$	768		$	732
Amortization expense
Software		119			125			112
Other intangible assets		3			3			3
Securitized regulatory assets		26			25			25
Total depreciation and amortization expense		$	975		$	921		$	872

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
	2020			2021			2022			2023			2024
CMS Energy, including Consumers
Intangible asset amortization expense		$	118		$	112		$	107		$	87		$	70
Consumers
Intangible asset amortization expense		$	116		$	110		$	106		$	87		$	70

Consumers Energy Company

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

Schedule Of Property, Plant And Equipment

Assets Under Finance Leases and Other Financing: Presented in the following table are further details about changes in Consumers’ assets under finance leases and other financing:

In Millions
Years Ended December 31	2019			2018
Consumers
Balance at beginning of period		$	309		$	312
Additions		26			—
Net retirements and other adjustments		5			(3		)
Balance at end of period		$	340		$	309

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			2019				2018
CMS Energy, including Consumers
Plant, property, and equipment, gross
Consumers	3	—	125		$	24,963			$	23,963
Enterprises
Independent power production1	3	—	40		403				410
Other	3	—	5		2				2
EnerBank	1	—	7		22				25
Plant, property, and equipment, gross					$	25,390			$	24,400
Construction work in progress					896				763
Accumulated depreciation and amortization					(7,360		)		(7,037		)
Total plant, property, and equipment					$	18,926			$	18,126
Consumers
Plant, property, and equipment, gross
Electric
Generation	22	—	125		$	5,942			$	6,305
Distribution	20	—	75		8,519				7,957
Transmission	46	—	75		113				154
Other	5	—	50		1,258				1,316
Assets under finance leases and other financing2					326				295
Gas
Distribution	20	—	85		5,235				4,651
Transmission	17	—	75		1,752				1,521
Underground storage facilities3	27	—	75		987				910
Other	5	—	50		797				823
Assets under finance leases2					14				14
Other non‑utility property	3	—	51		20				17
Plant, property, and equipment, gross					$	24,963			$	23,963
Construction work in progress					879				756
Accumulated depreciation and amortization					(7,272		)		(6,958		)
Total plant, property, and equipment4					$	18,570			$	17,761

¹  The majority of independent power production assets are leased to others under operating leases. For information regarding CMS Energy’s operating leases of owned assets, see Note 10, Leases and Palisades Financing.

²  For information regarding the amortization terms of Consumers’ assets under finance leases and other financing, see Note 10, Leases and Palisades Financing.

³  Underground storage includes base natural gas of $26 million at December 31, 2019 and 2018. Base natural gas is not subject to depreciation.

⁴ 

For the year ended December 31, 2019, Consumers’ plant additions were $2.0 billion and plant retirements were $380 million. For the year ended December 31, 2018, Consumers’ plant additions were $1.8 billion and plant retirements were $190 million. Consumers plans to retire the D.E. Karn 1 & 2 coal-fueled electric generating units in 2023. Accordingly, in 2019, Consumers removed from total plant, property, and equipment $667 million, representing the remaining book value of the two units upon their retirement, and recorded it as a regulatory asset. For additional details, see Note 3, Regulatory Matters.

Schedule of Finite-Lived Intangible Assets by Major Class Table

Presented in the following table are details about CMS Energy’s and Consumers’ intangible assets:

In Millions
				December 31, 2019						December 31, 2018
Description	Amortization Life in Years			Gross Cost¹			Accumulated Amortization			Gross Cost¹			Accumulated Amortization
CMS Energy, including Consumers
Software development	1	—	15		$	882		$	529		$	1,024		$	603
Rights of way	50	—	85		180			55			167			52
Franchises and consents	5	—	50		16			9			15			9
Leasehold improvements	various²				9			7			9			7
Other intangibles	various				27			15			27			15
Total					$	1,114		$	615		$	1,242		$	686
Consumers
Software development	3	—	15		$	869		$	521		$	1,009		$	595
Rights of way	50	—	85		180			55			167			52
Franchises and consents	5	—	50		16			9			15			9
Leasehold improvements	various²				9			7			9			7
Other intangibles	various				26			15			26			15
Total					$	1,100		$	607		$	1,226		$	678

¹  For the year ended December 31, 2019, Consumers’ intangible asset additions were $67 million and intangible asset retirements were $193 million. For the year ended December 31, 2018, Consumers’ intangible asset additions were $90 million and intangible asset retirements were $7 million.

² 

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

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	2019		2018		2017
Electric	6.4	%	6.9	%	6.8	%
Gas	5.8		5.9		6.0

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	2019			2018
CMS Energy, including Consumers
Utility plant assets		$	7,269		$	6,956
Non‑utility plant assets		91			81
Consumers
Utility plant assets		$	7,269		$	6,956
Non‑utility plant assets		3			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	2019			2018			2017
Electric utility property		3.9	%		3.9	%		3.9	%
Gas utility property		2.9			2.9			2.9
Other property		10.0			10.1			10.0

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	2019			2018			2017
CMS Energy, including Consumers
Depreciation expense – plant, property, and equipment		$	842		$	778		$	739
Amortization expense
Software		121			127			114
Other intangible assets		3			3			3
Securitized regulatory assets		26			25			25
Total depreciation and amortization expense		$	992		$	933		$	881
Consumers
Depreciation expense – plant, property, and equipment		$	827		$	768		$	732
Amortization expense
Software		119			125			112
Other intangible assets		3			3			3
Securitized regulatory assets		26			25			25
Total depreciation and amortization expense		$	975		$	921		$	872

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
	2020			2021			2022			2023			2024
CMS Energy, including Consumers
Intangible asset amortization expense		$	118		$	112		$	107		$	87		$	70
Consumers
Intangible asset amortization expense		$	116		$	110		$	106		$	87		$	70

Jointly Owned Regulated Utility Facilities

Presented in the following table are Consumers’ investments in jointly owned regulated utility facilities at December 31, 2019:

In Millions, Except Ownership Share
J.H. Campbell Unit 3				Ludington				Other
Ownership share	93.3		%		51.0		%	various
Utility plant in service	$	1,731			$	486		$	233
Accumulated depreciation	(753		)		(166		)	(68		)
Construction work in progress	16				64			15
Net investment	$	994			$	384		$	180