Leases (Tables)

12 Months Ended

Dec. 31, 2024

Leases [Line Items]

Summary of Lease Right-of-Use Assets and Liabilities

Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities:

In Millions, Except as Noted
	CMS Energy, including Consumers								Consumers
December 31	2024				2023				2024				2023
Operating leases
Right-of-use assets1		$	24			$	26			$	20			$	23
Lease liabilities
Current lease liabilities2		3				4				3				4
Non-current lease liabilities3		21				22				17				19
Finance leases
Right-of-use assets		119				71				76				48
Lease liabilities4
Current lease liabilities		4				5				4				5
Non-current lease liabilities		112				62				69				39
Weighted-average remaining lease term (in years)
Operating leases		20				19				19				18
Finance leases		26				19				22				11
Weighted-average discount rate
Operating leases		5.3		%		5.2		%		5.4		%		5.3		%
Finance leases5		5.8				5.3				4.8				1.5

1CMS Energy’s and Consumers’ operating right-of-use lease assets are reported as other non‑current assets on their consolidated balance sheets.

2The current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other current liabilities on their consolidated balance sheets.

3The non‑current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other non‑current liabilities on their consolidated balance sheets.

4Includes related-party lease liabilities of $23 million, of which less than $1 million was current, at December 31, 2024 and 2023.

5This rate excludes the impact of Consumers’ pipeline agreements and long-term PPAs accounted for as finance leases. The required capacity payments under these agreements, when compared to the underlying fair value of the leased assets, result in effective interest rates that exceed market rates for leases with similar terms.

Schedule of Lease Cost

Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs:

In Millions
Years Ended December 31	2024			2023
CMS Energy, including Consumers
Operating lease costs		$	6		$	6
Finance lease costs
Amortization of right-of-use assets		6			9
Interest on lease liabilities		16			15
Variable lease costs		107			107
Short-term lease costs		13			14
Total lease costs		$	148		$	151
Consumers
Operating lease costs		$	5		$	5
Finance lease costs
Amortization of right-of-use assets		5			8
Interest on lease liabilities		13			13
Variable lease costs		107			107
Short-term lease costs		12			14
Total lease costs		$	142		$	147

Presented in the following table is supplemental cash flow information related to CMS Energy’s and Consumers’ lease liabilities:

In Millions
Years Ended December 31	2024			2023
CMS Energy, including Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases		$	6		$	6
Cash used in operating activities for finance leases		15			15
Cash used in financing activities for finance leases		6			8
Lease liabilities arising from obtaining right-of-use assets
Operating leases		3			1
Finance leases		55			—
Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases		$	5		$	6
Cash used in operating activities for finance leases		13			13
Cash used in financing activities for finance leases		5			8
Lease liabilities arising from obtaining right-of-use assets
Operating leases		1			1
Finance leases		34			—

Summary of Minimum Annual Rental Commitments

Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases:

In Millions
				Finance Leases
December 31, 2024	Operating Leases			Pipelines and PPAs			Land and Other			Total
CMS Energy, including Consumers
2025		$	4		$	13		$	7		$	20
2026		3			13			7			20
2027		2			13			5			18
2028		2			13			5			18
2029		2			13			5			18
2030 and thereafter		29			13			177			190
Total minimum lease payments		$	42		$	78		$	206		$	284
Less discount		18			50			118			168
Present value of minimum lease payments		$	24		$	28		$	88		$	116
Consumers
2025		$	4		$	13		$	4		$	17
2026		3			13			4			17
2027		2			13			3			16
2028		2			13			2			15
2029		1			13			2			15
2030 and thereafter		23			13			71			84
Total minimum lease payments		$	35		$	78		$	86		$	164
Less discount		15			50			41			91
Present value of minimum lease payments		$	20		$	28		$	45		$	73

Summary of Future Payments to be Received

Presented in the following table are the minimum rental payments to be received under CMS Energy’s non‑cancelable operating leases:

In Millions
December 31, 2024
2025	$	44
2026	18
Total minimum lease payments	$	62

Consumers Energy Company

Leases [Line Items]

Summary of Lease Right-of-Use Assets and Liabilities

Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities:

In Millions, Except as Noted
	CMS Energy, including Consumers								Consumers
December 31	2024				2023				2024				2023
Operating leases
Right-of-use assets1		$	24			$	26			$	20			$	23
Lease liabilities
Current lease liabilities2		3				4				3				4
Non-current lease liabilities3		21				22				17				19
Finance leases
Right-of-use assets		119				71				76				48
Lease liabilities4
Current lease liabilities		4				5				4				5
Non-current lease liabilities		112				62				69				39
Weighted-average remaining lease term (in years)
Operating leases		20				19				19				18
Finance leases		26				19				22				11
Weighted-average discount rate
Operating leases		5.3		%		5.2		%		5.4		%		5.3		%
Finance leases5		5.8				5.3				4.8				1.5

1CMS Energy’s and Consumers’ operating right-of-use lease assets are reported as other non‑current assets on their consolidated balance sheets.

2The current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other current liabilities on their consolidated balance sheets.

3The non‑current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other non‑current liabilities on their consolidated balance sheets.

4Includes related-party lease liabilities of $23 million, of which less than $1 million was current, at December 31, 2024 and 2023.

5This rate excludes the impact of Consumers’ pipeline agreements and long-term PPAs accounted for as finance leases. The required capacity payments under these agreements, when compared to the underlying fair value of the leased assets, result in effective interest rates that exceed market rates for leases with similar terms.

Schedule of Lease Cost

Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs:

In Millions
Years Ended December 31	2024			2023
CMS Energy, including Consumers
Operating lease costs		$	6		$	6
Finance lease costs
Amortization of right-of-use assets		6			9
Interest on lease liabilities		16			15
Variable lease costs		107			107
Short-term lease costs		13			14
Total lease costs		$	148		$	151
Consumers
Operating lease costs		$	5		$	5
Finance lease costs
Amortization of right-of-use assets		5			8
Interest on lease liabilities		13			13
Variable lease costs		107			107
Short-term lease costs		12			14
Total lease costs		$	142		$	147

Presented in the following table is supplemental cash flow information related to CMS Energy’s and Consumers’ lease liabilities:

In Millions
Years Ended December 31	2024			2023
CMS Energy, including Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases		$	6		$	6
Cash used in operating activities for finance leases		15			15
Cash used in financing activities for finance leases		6			8
Lease liabilities arising from obtaining right-of-use assets
Operating leases		3			1
Finance leases		55			—
Consumers
Cash paid for amounts included in the measurement of lease liabilities
Cash used in operating activities for operating leases		$	5		$	6
Cash used in operating activities for finance leases		13			13
Cash used in financing activities for finance leases		5			8
Lease liabilities arising from obtaining right-of-use assets
Operating leases		1			1
Finance leases		34			—

Summary of Minimum Annual Rental Commitments

Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases:

In Millions
				Finance Leases
December 31, 2024	Operating Leases			Pipelines and PPAs			Land and Other			Total
CMS Energy, including Consumers
2025		$	4		$	13		$	7		$	20
2026		3			13			7			20
2027		2			13			5			18
2028		2			13			5			18
2029		2			13			5			18
2030 and thereafter		29			13			177			190
Total minimum lease payments		$	42		$	78		$	206		$	284
Less discount		18			50			118			168
Present value of minimum lease payments		$	24		$	28		$	88		$	116
Consumers
2025		$	4		$	13		$	4		$	17
2026		3			13			4			17
2027		2			13			3			16
2028		2			13			2			15
2029		1			13			2			15
2030 and thereafter		23			13			71			84
Total minimum lease payments		$	35		$	78		$	86		$	164
Less discount		15			50			41			91
Present value of minimum lease payments		$	20		$	28		$	45		$	73