Regulatory Matters (Tables) - Consumers Energy Company

12 Months Ended

Dec. 31, 2022

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		2022			2021
Regulatory assets
Current
Energy waste reduction plan incentive1		2023		$	47		$	42
Other		2023		10			4
Total current regulatory assets				$	57		$	46
Non-current
Costs of coal-fueled electric generating units to be retired2		various		$	1,960		$	678
Postretirement benefits3		various		856			837
ARO4		various		281			247
Securitized costs2		2029		165			193
MGP sites4		various		108			112
Unamortized loss on reacquired debt4		various		100			104
Energy waste reduction plan incentive1		2024		55			46
Retention incentive program4		various		31			7
Demand response program4		various		12			10
Energy waste reduction plan4		various		10			13
Other		various		17			12
Total non-current regulatory assets				$	3,595		$	2,259
Total regulatory assets				$	3,652		$	2,305
Regulatory liabilities
Current
Income taxes, net		2023		$	48		$	138
Reserve for customer refunds		2023		47			2
Other		2023		9			6
Total current regulatory liabilities				$	104		$	146
Non-current
Cost of removal		various		$	2,426		$	2,375
Income taxes, net		various		1,267			1,297
Renewable energy grant		2043		45			47
Renewable energy plan		2028		32			13
Demand response program		various		12			7
Energy waste reduction plan		various		6			—
Postretirement benefits		various		—			54
Other		various		8			9
Total non-current regulatory liabilities				$	3,796		$	3,802
Total regulatory liabilities				$	3,900		$	3,948

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 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 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		2022			2021
Regulatory assets
Current
Energy waste reduction plan incentive1		2023		$	47		$	42
Other		2023		10			4
Total current regulatory assets				$	57		$	46
Non-current
Costs of coal-fueled electric generating units to be retired2		various		$	1,960		$	678
Postretirement benefits3		various		856			837
ARO4		various		281			247
Securitized costs2		2029		165			193
MGP sites4		various		108			112
Unamortized loss on reacquired debt4		various		100			104
Energy waste reduction plan incentive1		2024		55			46
Retention incentive program4		various		31			7
Demand response program4		various		12			10
Energy waste reduction plan4		various		10			13
Other		various		17			12
Total non-current regulatory assets				$	3,595		$	2,259
Total regulatory assets				$	3,652		$	2,305
Regulatory liabilities
Current
Income taxes, net		2023		$	48		$	138
Reserve for customer refunds		2023		47			2
Other		2023		9			6
Total current regulatory liabilities				$	104		$	146
Non-current
Cost of removal		various		$	2,426		$	2,375
Income taxes, net		various		1,267			1,297
Renewable energy grant		2043		45			47
Renewable energy plan		2028		32			13
Demand response program		various		12			7
Energy waste reduction plan		various		6			—
Postretirement benefits		various		—			54
Other		various		8			9
Total non-current regulatory liabilities				$	3,796		$	3,802
Total regulatory liabilities				$	3,900		$	3,948

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 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 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	2022			2021
Assets
PSCR underrecoveries		$	401		$	—
GCR underrecoveries		8			25
Accounts receivable and accrued revenue		$	409		$	25
Liabilities
PSCR overrecoveries		$	—		$	12
Accrued rate refunds		$	—		$	12