Regulatory Matters (Tables) - Consumers Energy Company

12 Months Ended

Dec. 31, 2021

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

Schedule of Regulatory Assets

Presented in the following table are the regulatory assets and liabilities on Consumers’ consolidated balance sheets:

In Millions
December 31	End of Recovery or Refund Period		2021			2020
Regulatory assets
Current
Energy waste reduction plan incentive1		2022		$	42		$	34
Deferred capital spending2		2021		—			6
Other		2022		4			2
Total current regulatory assets				$	46		$	42
Non-current
Postretirement benefits3		various		$	837		$	1,231
Costs of coal-fueled electric generating units to be retired2		various		678			678
ARO4		various		247			216
Securitized costs2		2029		193			221
MGP sites4		various		112			120
Unamortized loss on reacquired debt4		various		104			108
Energy waste reduction plan incentive1		2023		46			42
Energy waste reduction plan4		various		13			16
Demand response program4		various		10			10
Other		various		19			11
Total non-current regulatory assets				$	2,259		$	2,653
Total regulatory assets				$	2,305		$	2,695
Regulatory liabilities
Current
Income taxes, net		2022		$	138		$	105
Reserve for customer refunds		2022		2			28
Voluntary transmission asset sale gain share		2021		—			14
Other		2022		6			4
Total current regulatory liabilities				$	146		$	151
Non-current
Cost of removal		various		$	2,375		$	2,245
Income taxes, net		various		1,297			1,419
Postretirement benefits		various		54			—
Renewable energy grant		2043		47			49
Renewable energy plan		2028		13			9
ARO		various		—			11
Other		various		16			11
Total non-current regulatory liabilities				$	3,802		$	3,744
Total regulatory liabilities				$	3,948		$	3,895

1These regulatory assets have arisen from an alternative revenue program and are not associated with incurred costs or capital investments. Therefore, the MPSC has provided for recovery without a return.

2The MPSC has provided, or Consumers expects, a specific return on these regulatory assets.

3This regulatory asset is included in rate base, thereby providing a return.

4These regulatory assets represent incurred costs for which the MPSC has provided, or Consumers expects, recovery without a return on investment.

Schedule of Regulatory Liabilities

Presented in the following table are the regulatory assets and liabilities on Consumers’ consolidated balance sheets:

In Millions
December 31	End of Recovery or Refund Period		2021			2020
Regulatory assets
Current
Energy waste reduction plan incentive1		2022		$	42		$	34
Deferred capital spending2		2021		—			6
Other		2022		4			2
Total current regulatory assets				$	46		$	42
Non-current
Postretirement benefits3		various		$	837		$	1,231
Costs of coal-fueled electric generating units to be retired2		various		678			678
ARO4		various		247			216
Securitized costs2		2029		193			221
MGP sites4		various		112			120
Unamortized loss on reacquired debt4		various		104			108
Energy waste reduction plan incentive1		2023		46			42
Energy waste reduction plan4		various		13			16
Demand response program4		various		10			10
Other		various		19			11
Total non-current regulatory assets				$	2,259		$	2,653
Total regulatory assets				$	2,305		$	2,695
Regulatory liabilities
Current
Income taxes, net		2022		$	138		$	105
Reserve for customer refunds		2022		2			28
Voluntary transmission asset sale gain share		2021		—			14
Other		2022		6			4
Total current regulatory liabilities				$	146		$	151
Non-current
Cost of removal		various		$	2,375		$	2,245
Income taxes, net		various		1,297			1,419
Postretirement benefits		various		54			—
Renewable energy grant		2043		47			49
Renewable energy plan		2028		13			9
ARO		various		—			11
Other		various		16			11
Total non-current regulatory liabilities				$	3,802		$	3,744
Total regulatory liabilities				$	3,948		$	3,895

1These regulatory assets have arisen from an alternative revenue program and are not associated with incurred costs or capital investments. Therefore, the MPSC has provided for recovery without a return.

2The MPSC has provided, or Consumers expects, a specific return on these regulatory assets.

3This regulatory asset is included in rate base, thereby providing a return.4These regulatory assets represent incurred costs for which the MPSC has provided, or Consumers expects, recovery without a return on investment

Schedule of Assets and Liabilities for PSCR and GCR Underrecoveries and Overrecoveries

Presented in the following table are the assets and liabilities for PSCR and GCR underrecoveries and overrecoveries reflected on Consumers’ consolidated balance sheets:

In Millions
December 31	2021			2020
Assets
GCR underrecoveries		$	25		$	—
Accounts receivable and accrued revenue		$	25		$	—
Liabilities
PSCR overrecoveries		$	12		$	5
GCR overrecoveries		—			15
Accrued rate refunds		$	12		$	20