Regulatory Matters (Tables) - Consumers Energy Company

12 Months Ended

Dec. 31, 2025

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	2025			2024
Regulatory assets
Current
Energy waste reduction plan incentive1		$	66		$	60
Retention incentive program2		10			18
2022 PSCR underrecovery3		—			126
Other		28			25
Total current regulatory assets		$	104		$	229
Non-current
Costs of coal-fueled electric generating units to be retired3		$	1,179		$	1,266
Postretirement benefits2		589			747
Securitized costs3		549			666
ARO4		379			366
Decommissioning costs2		197			158
Unamortized loss on reacquired debt3		89			92
MGP sites3		82			90
Energy waste reduction plan incentive1		64			64
Ludington overhaul contract dispute2		60			31
Service restoration cost deferral4		52			—
Energy waste reduction plan3		26			31
Postretirement benefits expense deferral mechanism2		22			21
Renewable Energy Plan3		7			—
Retention incentive program2		6			12
Other		54			25
Total non-current regulatory assets		$	3,355		$	3,569
Total regulatory assets		$	3,459		$	3,798
Regulatory liabilities
Current
Income taxes, net		$	47		$	53
ASP gain		28			47
Other		10			11
Total current regulatory liabilities		$	85		$	111
Non-current
Cost of removal		$	2,727		$	2,665
Income taxes, net		1,118			1,163
Energy waste reduction plan		68			41
Green giving program		41			—
Postretirement benefits expense deferral mechanism		40			37
Renewable energy grant		38			40
ASP gain		19			46
Renewable Energy Plan		—			51
Other		40			24
Total non-current regulatory liabilities		$	4,091		$	4,067
Total regulatory liabilities		$	4,176		$	4,178

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.

2This regulatory asset is included in rate base, thereby providing a return.

3The MPSC has provided a specific return on these regulatory assets.

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	2025			2024
Regulatory assets
Current
Energy waste reduction plan incentive1		$	66		$	60
Retention incentive program2		10			18
2022 PSCR underrecovery3		—			126
Other		28			25
Total current regulatory assets		$	104		$	229
Non-current
Costs of coal-fueled electric generating units to be retired3		$	1,179		$	1,266
Postretirement benefits2		589			747
Securitized costs3		549			666
ARO4		379			366
Decommissioning costs2		197			158
Unamortized loss on reacquired debt3		89			92
MGP sites3		82			90
Energy waste reduction plan incentive1		64			64
Ludington overhaul contract dispute2		60			31
Service restoration cost deferral4		52			—
Energy waste reduction plan3		26			31
Postretirement benefits expense deferral mechanism2		22			21
Renewable Energy Plan3		7			—
Retention incentive program2		6			12
Other		54			25
Total non-current regulatory assets		$	3,355		$	3,569
Total regulatory assets		$	3,459		$	3,798
Regulatory liabilities
Current
Income taxes, net		$	47		$	53
ASP gain		28			47
Other		10			11
Total current regulatory liabilities		$	85		$	111
Non-current
Cost of removal		$	2,727		$	2,665
Income taxes, net		1,118			1,163
Energy waste reduction plan		68			41
Green giving program		41			—
Postretirement benefits expense deferral mechanism		40			37
Renewable energy grant		38			40
ASP gain		19			46
Renewable Energy Plan		—			51
Other		40			24
Total non-current regulatory liabilities		$	4,091		$	4,067
Total regulatory liabilities		$	4,176		$	4,178

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.

2This regulatory asset is included in rate base, thereby providing a return.

3The MPSC has provided a specific return on these regulatory assets.

4These regulatory assets represent incurred costs for which the MPSC has provided recovery without a return on investment.

Schedule of Liabilities for PSCR and GCR Overrecoveries

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

In Millions
December 31	2025			2024
Assets
PSCR underrecoveries		$	38		$	—
Accounts receivable and accrued revenue		$	38		$	—
Liabilities
PSCR overrecoveries		$	—		$	13
GCR overrecoveries		28			25
Accrued rate refunds		$	28		$	38