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Retirement Benefits (Tables)

12 Months Ended

Dec. 31, 2017

Defined Benefit Plan Disclosure [Line Items]

Schedule Of SERP Trust Assets, ABO And Contributions



In Millions
Years Ended December 31	2017			2016
CMS Energy, including Consumers
Trust assets		$	146		$	144
ABO			149			143
Contributions			7			-
Consumers
Trust assets		$	106		$	104
ABO			107			101
Contributions			6			-

Schedule Of Effect Of One-Percentage-Point Change In Assumed Health Care Cost Trend Rates



In Millions
	One Percentage			One Percentage
Year Ended December 31, 2017	Point Increase			Point Decrease
CMS Energy, including Consumers
Effect on total service and interest cost component		$	2		$	(2)
Effect on PBO			32			(28)
Consumers
Effect on total service and interest cost component		$	2		$	(2)
Effect on PBO			30			(27)

Schedule Of Assumptions Used



December 31	2017			2016			2015
CMS Energy, including Consumers
Weighted average for benefit obligations1
Discount rate2
DB Pension Plan A3		3.78	%
DB Pension Plan B3		3.64
DB SERP		3.65			4.16	%		4.43	%
OPEB Plan		3.74			4.49			4.70
Rate of compensation increase
DB Pension Plan A3		3.50
DB SERP		5.50			5.50			5.50
Weighted average for net periodic benefit cost1
Service cost discount rate2,4
DB Pension Plans		4.53			4.79			4.10
DB SERP		4.51			4.87			4.10
OPEB Plan		4.89			4.75			4.30
Interest cost discount rate2,4
DB Pension Plans		3.56			3.66			4.10
DB SERP		3.51			3.64			4.10
OPEB Plan		3.79			3.89			4.30
Expected long-term rate of return on plan assets5
DB Pension Plans		7.25			7.25			7.50
OPEB Plan		7.25			7.25			7.25
Rate of compensation increase
DB Pension Plans		3.60			3.00			3.00
DB SERP		5.50			5.50			5.50

1The mortality assumption for benefit obligations was based on the RP-2014 mortality table, with projection scales MP-2017 for 2017, MP-2016 for 2016, and MP-2015 for 2015. The mortality assumption for net periodic benefit cost for 2017, 2016, and 2015 was based on the RP-2014 mortality table, with projection scales MP-2016 for 2017, MP-2015 for 2016, and MP-2014 for 2015.

2The discount rate reflects the rate at which benefits could be effectively settled and is equal to the equivalent single rate resulting from a yield-curve analysis. This analysis incorporated the projected benefit payments specific to CMS Energy’s and Consumers’ DB Pension Plans and OPEB Plan and the yields on high-quality corporate bonds rated Aa or better.

3Effective December 31, 2017, CMS Energy’s and Consumers’ existing defined benefit pension plan was amended to include only retired or inactive employees; this amended plan is referred to as DB Pension Plan B. Active employees were moved to a newly created pension plan, referred to as DB Pension Plan A. The discount rate used to measure the existing plan was 4.30 percent at December 31, 2016 and 4.52 percent at December 31, 2015. The weighted-average rate of compensation increase used to measure the existing plan was 3.60 percent at December 31, 2016 and 3.00 percent at December 31, 2015.

4In January 2016, CMS Energy and Consumers changed the method they use to determine the discount rate used to calculate the service cost and interest cost components of net periodic benefit costs for the DB Pension and OPEB Plans. Historically, the discount rate used for this purpose represented a single weighted-average rate derived from the yield curve used to determine the benefit obligation. CMS Energy and Consumers have elected to use instead a full-yield-curve approach in the estimation of service cost and interest cost; this approach is more accurate in that it applies individual spot rates along the yield curve to future projected benefit payments based on the time of payment.

5CMS Energy and Consumers determined the long-term rate of return using historical market returns, the present and expected future economic environment, the capital market principles of risk and return, and the expert opinions of individuals and firms with financial market knowledge. CMS Energy and Consumers considered the asset allocation of the portfolio in forecasting the future expected total return of the portfolio. The goal was to determine a long-term rate of return that could be incorporated into the planning of future cash flow requirements in conjunction with the change in the liability. Annually, CMS Energy and Consumers review for reasonableness and appropriateness the forecasted returns for various classes of assets used to construct an expected return model. CMS Energy’s and Consumers’ expected long-term rate of return on the assets of the DB Pension Plans was 7.25 percent in 2017. The actual return (loss) on the assets of the DB Pension Plans was 18.0 percent in 2017, 8.0 percent in 2016, and (2.0) percent in 2015.

Schedule Of Net Benefit Costs



In Millions
	DB Pension Plans and DB SERP									OPEB Plan
Years Ended December 31	2017			2016			2015			2017			2016			2015
CMS Energy, including Consumers
Net periodic cost (credit)
Service cost		$	45		$	42		$	50		$	19		$	18		$	25
Interest cost			93			90			108			51			46			58
Expected return on plan assets			(153)			(147)			(138)			(90)			(85)			(91)
Amortization of:
Net loss			82			71			97			29			21			21
Prior service cost (credit)			5			4			1			(40)			(41)			(41)
Net periodic cost (credit)		$	72		$	60		$	118		$	(31)		$	(41)		$	(28)
Consumers
Net periodic cost (credit)
Service cost		$	44		$	41		$	49		$	19		$	17		$	25
Interest cost			90			87			103			49			45			56
Expected return on plan assets			(149)			(143)			(134)			(84)			(80)			(86)
Amortization of:
Net loss			79			68			93			29			22			22
Prior service cost (credit)			4			4			1			(39)			(40)			(40)
Net periodic cost (credit)		$	68		$	57		$	112		$	(26)		$	(36)		$	(23)

Schedule Of Net Loss And Prior Service Cost (Credit) That Will Be Amortized In Next Fiscal Year



In Millions
	DB Pension Plans			OPEB Plan
CMS Energy, including Consumers
Regulatory asset (liability)		$	75		$	(49)
AOCI			2			(2)
Consumers
Regulatory asset (liability)		$	75		$	(49)

Schedule Of Funded Status Of Retirement Benefit Plans



In Millions
	DB Pension Plans							DB SERP						OPEB Plan
Years Ended December 31	2017			2016				2017			2016			2017			2016
CMS Energy, including Consumers
Benefit obligation at beginning of period		$	2,562		$	2,403			$	151		$	150		$	1,408		$	1,227
Service cost			45			42				-			-			19			18
Interest cost			88			85				5			5			51			46
Plan amendments			-			-				-			-			(309)			-
Actuarial (gain) loss			241	1		196	1			7			4			(24)	1		171	1
Benefits paid			(156)			(164)				(9)			(8)			(48)			(54)
Benefit obligation at end of period		$	2,780		$	2,562			$	154		$	151		$	1,097		$	1,408
Plan assets at fair value at beginning of period		$	2,101		$	2,013			$	-		$	-		$	1,264		$	1,208
Actual return on plan assets			360			152				-			-			203			109
Company contribution			-			100				9			8			-			-
Actual benefits paid			(156)			(164)				(9)			(8)			(47)			(53)
Plan assets at fair value at end of period		$	2,305		$	2,101			$	-		$	-		$	1,420		$	1,264
Funded status		$	(475)	2	$	(461)	2		$	(154)		$	(151)		$	323		$	(144)
Consumers
Benefit obligation at beginning of period									$	109		$	106		$	1,365		$	1,188
Service cost										-			-			19			17
Interest cost										4			4			49			45
Plan amendments										-			-			(303)			-
Actuarial (gain) loss										5			4			(31)	1		167	1
Benefits paid										(6)			(5)			(46)			(52)
Benefit obligation at end of period									$	112		$	109		$	1,053		$	1,365
Plan assets at fair value at beginning of period									$	-		$	-		$	1,184		$	1,133
Actual return on plan assets										-			-			190			103
Company contribution										6			5			-			-
Actual benefits paid										(6)			(5)			(45)			(52)
Plan assets at fair value at end of period									$	-		$	-		$	1,329		$	1,184
Funded status									$	(112)		$	(109)		$	276		$	(181)

1The actuarial loss for 2017 for the DB Pension Plans was primarily the result of lowering the discount rates. The actuarial gain for 2017 for the OPEB Plan was primarily the result of better claim experience in calculating the plan’s funded status. The actuarial loss for 2016 was primarily the result of claims, experience, and lowering the discount rates used in calculating the plans’ funded status.

2At December 31, 2017, $455 million of the total funded status of the DB Pension Plans was attributable to Consumers, based on an allocation of expenses. At December 31, 2016, $441 million of the total funded status of the DB Pension Plans was attributable to Consumers, based on an allocation of expenses.

Schedule Of Retirement Benefit Plan Assets (Liabilities)



In Millions
December 31	2017			2016
CMS Energy, including Consumers
Non-current assets
DB Pension Plans		$	143		$	-
OPEB Plan			323			-
Current liabilities
DB SERP			9			8
Non-current liabilities
DB Pension Plans			618			461
DB SERP			145			143
OPEB Plan			-			144
Consumers
Non-current assets
DB Pension Plans		$	147		$	-
OPEB Plan			276			-
Current liabilities
DB SERP			7			5
Non-current liabilities
DB Pension Plans			602			441
DB SERP			105			104
OPEB Plan			-			181

Schedule Of Accumulated And Projected Benefit Obligations



In Millions
December 31	2017			2016
CMS Energy, including Consumers
PBO		$	1,511		$	2,562
ABO			1,164			2,250
Fair value of plan assets			893			2,101

Schedule Of Net Periodic Benefit Cost Not Yet Recognized



In Millions
	DB Pension Plans and DB SERP						OPEB Plan
Years Ended December 31	2017			2016			2017			2016
CMS Energy, including Consumers
Regulatory assets (liabilities)
Net loss		$	1,017		$	1,062		$	316		$	483
Prior service cost (credit)			11			15			(451)			(187)
Regulatory assets (liabilities)		$	1,028		$	1,077		$	(135)		$	296
AOCI
Net loss (gain)			97			93			(6)			(8)
Prior service cost (credit)			1			1			(12)			(6)
Total amounts recognized in regulatory assets (liabilities) and AOCI		$	1,126		$	1,171		$	(153)		$	282
Consumers
Regulatory assets (liabilities)
Net loss		$	1,017		$	1,062		$	316		$	483
Prior service cost (credit)			11			15			(451)			(187)
Regulatory assets (liabilities)		$	1,028		$	1,077		$	(135)		$	296
AOCI
Net loss			36			33			-			-
Total amounts recognized in regulatory assets (liabilities) and AOCI		$	1,064		$	1,110		$	(135)		$	296

Schedule Of Allocation Of Plan Assets



In Millions
	DB Pension Plans
	December 31, 2017									December 31, 2016
	Total			Level 1			Level 2			Total			Level 1			Level 2
CMS Energy, including Consumers
Cash and short-term investments		$	21		$	21		$	-		$	110		$	110		$	-
U.S. government and agencies securities			4			-			4			1			-			1
Corporate debt			336			-			336			266			-			266
State and municipal bonds			9			-			9			9			-			9
Foreign corporate bonds			31			-			31			25			-			25
Mutual funds			662			662			-			571			571			-
		$	1,063		$	683		$	380		$	982		$	681		$	301
Pooled funds			1,242									1,119
Total		$	2,305								$	2,101



In Millions
	OPEB Plan
	December 31, 2017									December 31, 2016
	Total			Level 1			Level 2			Total			Level 1			Level 2
CMS Energy, including Consumers
Cash and short-term investments		$	16		$	16		$	-		$	39		$	39		$	-
U.S. government and agencies securities			1			-			1			-			-			-
Corporate debt			50			-			50			38			-			38
State and municipal bonds			1			-			1			1			-			1
Foreign corporate bonds			4			-			4			4			-			4
Common stocks			40			40			-			44			44			-
Mutual funds			647			647			-			563			563			-
		$	759		$	703		$	56		$	689		$	646		$	43
Pooled funds			661									575
Total		$	1,420								$	1,264

Schedule Of Asset Allocation



	DB Pension Plans			OPEB Plan
Equity securities		55	%		52	%
Fixed-income securities		30			25
Alternative-strategy investments		15			23
		100	%		100	%

Schedule Of Plan Contributions



In Millions
Years Ended December 31	2017			2016
CMS Energy, including Consumers
OPEB Plan		$	-		$	-
DB Pension Plans			-			100
Consumers
OPEB Plan		$	-		$	-
DB Pension Plans			-			93

Schedule Of Expected Benefit Payments



In Millions
	DB Pension Plans			DB SERP			OPEB Plan
CMS Energy, including Consumers
2018		$	157		$	10		$	56
2019			163			10			58
2020			168			10			60
2021			169			10			62
2022			170			10			62
2023-2027			457			47			312
Consumers
2018		$	153		$	7		$	54
2019			159			7			55
2020			163			7			57
2021			164			7			59
2022			166			7			60
2023-2027			457			32			298

Consumers Energy Company [Member]