Schedule I - Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2024

Condensed Financial Information Disclosure [Abstract]

Schedule I - Condensed Financial Information of Registrant

Condensed Statements of Income

In Millions
Years Ended December 31	2024			2023			2022
Operating Expenses
Other operating expenses		$	10		$	10		$	7
Total operating expenses		10			10			7
Operating Loss		(10)			(10)			(7)
Other Income (Expense)
Equity earnings of subsidiaries		1,061			929			980
Nonoperating retirement benefits, net		(1)			(1)			(1)
Other income		45			31			5
Other expense		—			—			(1)
Total other income		1,105			959			983
Interest Charges
Interest on long-term debt		205			201			181
Intercompany interest expense and other		10			10			8
Total interest charges		215			211			189
Income Before Income Taxes		880			738			787
Income Tax Benefit		(19)			(20)			(50)
Net Income Attributable to CMS Energy		899			758			837
Preferred Stock Dividends		10			10			10
Net Income Available to Common Stockholders		$	889		$	748		$	827

The accompanying notes are an integral part of these statements.

CMS Energy—Parent Company

Condensed Statements of Cash Flows

In Millions
Years Ended December 31	2024			2023			2022
Cash Flows from Operating Activities
Net cash provided by operating activities		$	774		$	595		$	565
Cash Flows from Investing Activities
Capital expenditures		(1)			—			—
Investment in subsidiaries		(535)			(630)			(796)
Investment in debt securities – intercompany		(288)			(293)			—
Decrease (increase) in notes receivable – intercompany		21			55			286
Net cash used in investing activities		(803)			(868)			(510)
Cash Flows from Financing Activities
Proceeds from issuance of debt		490			800			—
Issuance of common stock		286			192			69
Retirement of long-term debt		(250)			—			—
Payment of dividends on common and preferred stock		(626)			(579)			(544)
Debt issuance costs and financing fees		(10)			(20)			(11)
Change in notes payable – intercompany		(6)			(7)			77
Net cash provided by (used in) financing activities		(116)			386			(409)
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts		(145)			113			(354)
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period		149			36			390
Cash and Cash Equivalents, Including Restricted Amounts, End of Period		$	4		$	149		$	36

The accompanying notes are an integral part of these statements.

CMS Energy—Parent Company

Condensed Balance Sheets

ASSETS
In Millions
December 31	2024			2023
Current Assets
Cash and cash equivalents		$	4		$	149
Notes and accrued interest receivable – intercompany		40			60
Accounts receivable – intercompany and related parties		8			9
Taxes receivable		—			11
Prepayments and other current assets		1			—
Total current assets		53			229
Other Non‑current Assets
Construction work in progress		1			—
Deferred income taxes		150			137
Investments in subsidiaries		12,400			11,701
Investment in debt securities – intercompany		591			296
Other investments		9			8
Other		21			24
Total other non‑current assets		13,172			12,166
Total Assets		$	13,225		$	12,395

LIABILITIES AND EQUITY
In Millions
December 31	2024			2023
Current Liabilities
Current portion of long-term debt		$	740		$	250
Accounts and notes payable – intercompany		74			75
Accrued interest, including intercompany		34			37
Accrued taxes		16			—
Other current liabilities		6			9
Total current liabilities		870			371
Non‑current Liabilities
Long-term debt		4,226			4,471
Notes payable – intercompany		100			105
Postretirement benefits		14			15
Other non‑current liabilities		17			18
Total non‑current liabilities		4,357			4,609
Equity
Common stock		3			3
Other stockholders’ equity		7,771			7,188
Total common stockholders’ equity		7,774			7,191
Preferred stock		224			224
Total equity		7,998			7,415
Total Liabilities and Equity		$	13,225		$	12,395

The accompanying notes are an integral part of these statements.

Basis of Presentation

CMS 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 $1.1 billion 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 sales agreements entered into by CMS ERM and other subsidiaries of NorthStar Clean Energy

•to tax equity investors that hold membership interests in certain VIEs held by NorthStar Clean Energy

•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

The expiration dates of these guarantees vary, depending upon contractual provisions or upon the statute of limitations under the relevant governing law.