Schedule I - Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]

Schedule I - Condensed Financial Information of Registrant

Condensed Statements of Income

In Millions
Years Ended December 31	2022			2021			2020
Operating Expenses
Other operating expenses		$	(7)		$	(7)		$	(6)
Total operating expenses		(7)			(7)			(6)
Operating Loss		(7)			(7)			(6)
Other Income (Expense)
Equity earnings of subsidiaries		980			1,482			909
Nonoperating retirement benefits, net		(1)			(1)			(1)
Interest income		2			—			—
Interest income - intercompany		2			1			1
Other income		1			1			1
Other expense		(1)			—			(19)
Total other income		983			1,483			891
Interest Charges
Interest on long-term debt		181			183			178
Intercompany interest expense and other		8			7			7
Total interest charges		189			190			185
Income Before Income Taxes		787			1,286			700
Income Tax Benefit		(50)			(60)			(55)
Income From Continuing Operations		837			1,346			755
Income From Discontinued Operations, Net of Tax of $—, $(5), and $—		—			7			—
Net Income Attributable to CMS Energy		837			1,353			755
Preferred Stock Dividends		10			5			—
Net Income Available to Common Stockholders		$	827		$	1,348		$	755

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	2022			2021			2020
Cash Flows from Operating Activities
Net cash provided by operating activities		$	565		$	1,549		$	507
Cash Flows from Investing Activities
Investment in subsidiaries		(796)			(581)			(657)
Decrease (increase) in notes receivable – intercompany		286			(83)			(307)
Net cash used in investing activities		(510)			(664)			(964)
Cash Flows from Financing Activities
Proceeds from issuance of debt		—			—			1,225
Issuance of common stock		69			26			253
Issuance of preferred stock		—			224			—
Retirement of long-term debt		—			(200)			(425)
Debt prepayment costs		—			—			(16)
Payment of dividends on common and preferred stock		(544)			(507)			(465)
Debt issuance costs and financing fees		(11)			(10)			(10)
Change in notes payable – intercompany		77			(28)			(105)
Net cash provided by (used in) financing activities		(409)			(495)			457
Net Increase (Decrease) in Cash and Cash Equivalents, Including Restricted Amounts		(354)			390			—
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period		390			—			—
Cash and Cash Equivalents, Including Restricted Amounts, End of Period		$	36		$	390		$	—

The accompanying notes are an integral part of these statements.

CMS Energy—Parent Company

Condensed Balance Sheets

ASSETS
In Millions
December 31	2022			2021
Current Assets
Cash and cash equivalents		$	36		$	390
Notes and accrued interest receivable – intercompany		107			463
Accounts receivable – intercompany and related parties		8			5
Accrued taxes		45			—
Prepayments and other current assets		1			1
Total current assets		197			859
Other Non‑current Assets
Deferred income taxes		105			147
Investments in subsidiaries		10,881			9,870
Other investments		6			6
Other		11			8
Total other non‑current assets		11,003			10,031
Total Assets		$	11,200		$	10,890

LIABILITIES AND EQUITY
In Millions
December 31	2022			2021
Current Liabilities
Accounts and notes payable – intercompany		$	74		$	61
Accrued interest, including intercompany		33			33
Accrued taxes		—			83
Other current liabilities		9			8
Total current liabilities		116			185
Non‑current Liabilities
Long-term debt		3,930			3,928
Notes payable – intercompany		109			112
Postretirement benefits		15			19
Other non‑current liabilities		15			15
Total non‑current liabilities		4,069			4,074
Equity
Common stockholders’ equity		6,791			6,407
Preferred stock		224			224
Total equity		7,015			6,631
Total Liabilities and Equity		$	11,200		$	10,890

The accompanying notes are an integral part of these statements.

Basis of PresentationCMS 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 $1.0 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 third parties under a credit agreement entered into by a subsidiary of NorthStar Clean Energy

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

•to Regions Bank related to the sale of EnerBank

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