Exit Activities

3 Months Ended

Mar. 31, 2025

Restructuring Cost and Reserve [Line Items]

Exit Activities and Asset Sales

Exit Activities

In accordance with its Clean Energy Plan, Consumers plans to retire the J.H. Campbell coal-fueled generating units in 2025. In order to ensure necessary staffing at J.H. Campbell through retirement, Consumers has implemented a retention incentive program. The aggregate cost of the J.H. Campbell program through 2025 is estimated to be less than $50 million. The MPSC has approved deferred accounting treatment for these costs; these expenses are deferred as a regulatory asset.

As of March 31, 2025, the cumulative cost incurred and deferred as a regulatory asset related to the J.H. Campbell retention incentive program was $45 million. Amounts deferred under the program are subsequently collected from customers over three years.

Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets:

In Millions
Three Months Ended March 31	2025			2024
Retention benefit liability at beginning of period		$	14		$	16
Costs deferred as a regulatory asset		2			3
Retention benefit liability at the end of the period1		$	16		$	19

1Includes current portion of other liabilities of $16 million at March 31, 2025 and $8 million at March 31, 2024.

Consumers Energy Company

Restructuring Cost and Reserve [Line Items]

Exit Activities and Asset Sales

Exit Activities

In accordance with its Clean Energy Plan, Consumers plans to retire the J.H. Campbell coal-fueled generating units in 2025. In order to ensure necessary staffing at J.H. Campbell through retirement, Consumers has implemented a retention incentive program. The aggregate cost of the J.H. Campbell program through 2025 is estimated to be less than $50 million. The MPSC has approved deferred accounting treatment for these costs; these expenses are deferred as a regulatory asset.

As of March 31, 2025, the cumulative cost incurred and deferred as a regulatory asset related to the J.H. Campbell retention incentive program was $45 million. Amounts deferred under the program are subsequently collected from customers over three years.

Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets:

In Millions
Three Months Ended March 31	2025			2024
Retention benefit liability at beginning of period		$	14		$	16
Costs deferred as a regulatory asset		2			3
Retention benefit liability at the end of the period1		$	16		$	19

1Includes current portion of other liabilities of $16 million at March 31, 2025 and $8 million at March 31, 2024.