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Schedule I - Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract]  
Schedule I - Condensed Financial Information of Registrant
Condensed Statements of Income

In Millions
Years Ended December 31202120202019
Operating Expenses
Other operating expenses$(7)$(6)$(38)
Total operating expenses(7)(6)(38)
Operating Loss(7)(6)(38)
Other Income (Expense)
Equity earnings of subsidiaries1,482 909 826 
Nonoperating retirement benefits, net(1)(1)(1)
Interest income1 1 1 
Other income1 1 1 
Other expense— (19)— 
Total other income1,483 891 827 
Interest Charges
Interest on long-term debt183 178 156 
Intercompany interest expense and other7 7 10 
Total interest charges190 185 166 
Income Before Income Taxes1,286 700 623 
Income Tax Benefit(60)(55)(57)
Income From Continuing Operations1,346 755 680 
Income From Discontinued Operations, Net of Tax of $(5), $—, and $—
7 — — 
Net Income Attributable to CMS Energy1,353 755 680 
Preferred Stock Dividends5 — — 
Net Income Available to Common Stockholders$1,348 $755 $680 
The accompanying notes are an integral part of these statements.
(Continued)
CMS Energy—Parent Company
Condensed Statements of Cash Flows
In Millions
Years Ended December 31202120202019
Cash Flows from Operating Activities
Net cash provided by operating activities$1,549 $507 $697 
Cash Flows from Investing Activities
Investment in subsidiaries(581)(657)(683)
Increase in notes receivable – intercompany(83)(307)— 
Net cash used in investing activities(664)(964)(683)
Cash Flows from Financing Activities
Proceeds from issuance of debt— 1,225 1,158 
Issuance of common stock26 253 12 
Issuance of preferred stock224 — — 
Retirement of long-term debt(200)(425)(738)
Debt prepayment costs— (16)— 
Payment of dividends on common and preferred stock(507)(465)(434)
Debt issuance costs and financing fees(10)(10)(18)
Change in notes payable – intercompany(28)(105)6 
Net cash provided by (used in) financing activities(495)457 (14)
Net Increase in Cash and Cash Equivalents, Including Restricted Amounts390 — — 
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period— — — 
Cash and Cash Equivalents, Including Restricted Amounts, End of Period$390 $— $— 
The accompanying notes are an integral part of these statements.
(Continued)
CMS Energy—Parent Company
Condensed Balance Sheets
ASSETS
In Millions
December 3120212020
Current Assets
Cash and cash equivalents$390 $— 
Notes and accrued interest receivable – intercompany463 358 
Accounts receivable – intercompany and related parties5 3 
Accrued taxes— 48 
Prepayments and other current assets1 1 
Total current assets859 410 
Other Non‑current Assets
Deferred income taxes147 91 
Investments in subsidiaries9,870 9,372 
Other investments 6 5 
Other8 5 
Total other non‑current assets10,031 9,473 
Total Assets$10,890 $9,883 
LIABILITIES AND EQUITY
In Millions
December 3120212020
Current Liabilities
Current portion of long-term debt$— $200 
Accounts and notes payable – intercompany61 69 
Accrued interest, including intercompany33 33 
Accrued taxes83 — 
Other current liabilities8 9 
Total current liabilities185 311 
Non‑current Liabilities
Long-term debt3,928 3,926 
Notes payable – intercompany112 116 
Postretirement benefits19 21 
Other non‑current liabilities15 13 
Total non‑current liabilities4,074 4,076 
Equity
Common stockholders’ equity6,407 5,496 
Preferred stock224 — 
Total equity6,631 5,496 
Total Liabilities and Equity$10,890 $9,883 
The accompanying notes are an integral part of these statements.
Basis of PresentationCMS Energy’s condensed financial statements have been prepared on a parent-only basis. In accordance with Rule 12-04 of Regulation S-X, these parent-only financial statements do not include all of the information and notes required by GAAP for annual financial statements, and therefore these parent-only financial statements and other information included should be read in conjunction with CMS Energy’s audited consolidated financial statements contained within Item 8. Financial Statements and Supplementary Data.Guarantees
CMS Energy has issued guarantees with a maximum potential obligation of $633 million on behalf of some of its wholly owned subsidiaries and related parties. CMS Energy’s maximum potential obligation consists primarily of potential payments:
•to third parties under certain commodity purchase and swap agreements entered into with CMS ERM
•to third parties under certain agreements entered into with Grand River Wind, LLC, a wholly owned subsidiary of CMS Enterprises
•to EGLE on behalf of CMS Land and CMS Capital, for environmental remediation obligations at Bay Harbor
•to the U.S. Department of Energy on behalf of Consumers, in connection with Consumers’ 2011 settlement agreement with the U.S. Department of Energy regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers
•to a tax equity investor under certain agreements in connection with the purchase of a VIE
•to Regions Bank related to the sale of EnerBank
The expiry dates of these guarantees vary, depending upon contractual provisions or upon the statute of limitations under the relevant governing law.
Note Payable—IntercompanyCMS Energy has a demand note payable to the DB SERP rabbi trust. The demand note bears interest at an annual rate of 4.10 percent and has a maturity date of 2028. This note payable is not recorded at fair value; however, its carrying value approximates fair value at December 31, 2021. This fair value measurement is classified in Level 3 within the fair value hierarchy.Preferred Stock
In 2021, CMS Energy issued 9.2 million depositary shares, each representing a 1/1,000th interest in a share of its cumulative Series C preferred stock, traded on the New York Stock Exchange under the symbol CMS PRC, at a price of $25.00 per depositary share. The transaction resulted in net proceeds of $224 million, which was used for general corporate purposes. Dividends on the preferred stock accumulate at an annual rate of 4.200 percent and are payable quarterly.
The Series C preferred stock has no maturity or mandatory redemption date and is not redeemable at the option of the holders. CMS Energy may, at its option, redeem the Series C preferred stock, in whole or in part, at a price equal to $25,000 per share (equivalent to $25.00 per depositary share), plus accumulated and unpaid dividends, at any time on or after July 15, 2026. The Series C preferred stock ranks senior to CMS Energy’s common stock with respect to dividend rights and distribution rights upon liquidation.