Regulatory Matters (Tables) - Consumers Energy Company

12 Months Ended

Dec. 31, 2024

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	2024			2023
Regulatory assets
Current
2022 PSCR underrecovery1		$	126		$	126
Energy waste reduction plan incentive2		60			54
Retention incentive program3		18			12
Other		25			11
Total current regulatory assets		$	229		$	203
Non-current
Costs of coal-fueled electric generating units to be retired1		$	1,266		$	1,265
Postretirement benefits4		747			741
Securitized costs1		666			778
ARO3		366			328
Decommissioning costs3		158			83
Unamortized loss on reacquired debt1		92			96
MGP sites1		90			99
Energy waste reduction plan incentive2		64			58
Energy waste reduction plan3		31			19
Ludington overhaul contract dispute3		31			13
Postretirement benefits expense deferral mechanism3		21			24
Retention incentive program3		12			27
2022 PSCR underrecovery1		—			126
Other		25			26
Total non-current regulatory assets		$	3,569		$	3,683
Total regulatory assets		$	3,798		$	3,886
Regulatory liabilities
Current
Income taxes, net		$	53		$	49
ASP gain		47			—
Other		11			7
Total current regulatory liabilities		$	111		$	56
Non-current
Cost of removal		$	2,665		$	2,545
Income taxes, net		1,163			1,220
Renewable energy plan		51			29
ASP gain		46			—
Energy waste reduction plan		41			25
Renewable energy grant		40			43
Postretirement benefits expense deferral mechanism		37			12
Other		24			20
Total non-current regulatory liabilities		$	4,067		$	3,894
Total regulatory liabilities		$	4,178		$	3,950

1The MPSC has provided a specific return on these regulatory assets.

2These 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.

3These regulatory assets represent incurred costs for which the MPSC has provided recovery without a return on investment.

4This regulatory asset is included in rate base, thereby providing a return.

Schedule of Regulatory Liabilities

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

In Millions
December 31	2024			2023
Regulatory assets
Current
2022 PSCR underrecovery1		$	126		$	126
Energy waste reduction plan incentive2		60			54
Retention incentive program3		18			12
Other		25			11
Total current regulatory assets		$	229		$	203
Non-current
Costs of coal-fueled electric generating units to be retired1		$	1,266		$	1,265
Postretirement benefits4		747			741
Securitized costs1		666			778
ARO3		366			328
Decommissioning costs3		158			83
Unamortized loss on reacquired debt1		92			96
MGP sites1		90			99
Energy waste reduction plan incentive2		64			58
Energy waste reduction plan3		31			19
Ludington overhaul contract dispute3		31			13
Postretirement benefits expense deferral mechanism3		21			24
Retention incentive program3		12			27
2022 PSCR underrecovery1		—			126
Other		25			26
Total non-current regulatory assets		$	3,569		$	3,683
Total regulatory assets		$	3,798		$	3,886
Regulatory liabilities
Current
Income taxes, net		$	53		$	49
ASP gain		47			—
Other		11			7
Total current regulatory liabilities		$	111		$	56
Non-current
Cost of removal		$	2,665		$	2,545
Income taxes, net		1,163			1,220
Renewable energy plan		51			29
ASP gain		46			—
Energy waste reduction plan		41			25
Renewable energy grant		40			43
Postretirement benefits expense deferral mechanism		37			12
Other		24			20
Total non-current regulatory liabilities		$	4,067		$	3,894
Total regulatory liabilities		$	4,178		$	3,950

1The MPSC has provided a specific return on these regulatory assets.

2These 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.

3These regulatory assets represent incurred costs for which the MPSC has provided recovery without a return on investment.

4This regulatory asset is included in rate base, thereby providing a return.

Schedule of Liabilities for PSCR and GCR Overrecoveries

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

In Millions
December 31	2024			2023
Liabilities
PSCR overrecoveries		$	13		$	10
GCR overrecoveries		25			44
Accrued rate refunds		$	38		$	54