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Energy Corporation Consumers Energy Company cms 509000000 490000000 456000000 444000000 948000000 935000000 672000000 661000000 51000000 51000000 48000000 48000000 4540000000 4386000000 4616000000 4565000000 -33000000 2000000 -31000000 6000000 4560000000 2582000000 4581000000 2832000000 -9000000 -29000000 -17000000 -13000000 11000000 0 0 0 23000000 21000000 23000000 21000000 6000000 5000000 31000000 19000000 30000000 19000000 229000000 228000000 237000000 237000000 15256000000 14622000000 15571000000 14574000000 2742000000 2636000000 3086000000 2573000000 2000000 2000000 9000000 6000000 2832000000 2515000000 2567000000 2154000000 197000000 197000000 190000000 190000000 207000000 69000000 181000000 98000000 90000000 39000000 696000000 233000000 -26000000 29000000 606000000 194000000 0 10000000 <div> <div style="font-family: 'Times New Roman', serif;" class="WordSection1"> <div> <div style="margin-top: 12pt;"> <p class="MsoNormal"><b><font style="font-size: 10pt;" class="_mt">3: CONTINGENCIES AND COMMITMENTS</font></b><font style="font-size: 10pt;" class="_mt"> </font></p></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><b><font style="font-size: 10pt;" class="_mt">CMS ENERGY CONTINGENCIES</font></b><font style="font-size: 10pt;" class="_mt"> </font></p></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><b><font style="font-size: 10pt;" class="_mt">Gas Index Price Reporting Investigation: </font></b><font style="font-size: 10pt;" class="_mt">In 2002, CMS Energy notified appropriate regulatory and governmental agencies that some employees at CMS MST and CMS Field Services appeared to have provided inaccurate information regarding natural gas trades to various energy industry publications, which compile and report index prices. CMS Energy cooperated with an investigation by the DOJ regarding this matter. Although CMS Energy has not received any formal notification that the DOJ has completed its investigation, the DOJ's last request for information occurred in 2003, and CMS Energy completed its response to this request in 2004. CMS Energy is unable to predict the outcome of the DOJ investigation and what effect, if any, the investigation will have on CMS Energy. </font></p></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><b><font style="font-size: 10pt;" class="_mt">Gas Index Price Reporting Litigation: </font></b><font style="font-size: 10pt;" class="_mt">CMS Energy, along with CMS MST, CMS Field Services, Cantera Natural Gas, Inc., and Cantera Gas Company, are named as defendants in various class action and individual lawsuits arising as a result of alleged inaccurate natural gas price reporting to publications that report trade information. Allegations include manipulation of NYMEX natural gas futures and options prices, price-fixing conspiracies, restraint of trade, and artificial inflation of natural gas retail prices in Colorado, Kansas, Missouri, Tennessee, and Wisconsin. The following provides more detail on these proceedings: </font></p></div></div> <div> <div style="margin-top: 6pt;"> <table style="width: 100%;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="background-attachment: scroll; background-position: 0% 0%;"><td style="padding-bottom: 0in; padding-left: 0in; width: 2%; background-attachment: scroll; padding-right: 0in; background-position: 0% 0%; padding-top: 0in;" valign="top" width="2%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" valign="top" width="3%" nowrap="nowrap"> <p class="MsoNormal"><b><font style="color: black; font-size: 10pt;" class="_mt">&bull;</font></b><font style="color: black; font-size: 10pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="top" width="1%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="color: black; font-size: 10pt;" class="_mt">In 2005, CMS MST was served with a summons and complaint that named CMS Energy, CMS MST, and CMS Field Services as defendants in a putative class action filed in Kansas state court, Learjet, Inc., et al. v. Oneok, Inc., et al. The complaint alleges that during the putative class period, January&nbsp;1, 2000 through October&nbsp;31, 2002, the defendants engaged in a scheme to violate the Kansas Restraint of Trade Act. The plaintiffs, who allege they purchased natural gas from the defendants and others for their facilities, are seeking statutory full consideration damages consisting of the full consideration paid by plaintiffs for natural gas.</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td></tr> <tr style="background-attachment: scroll; background-position: 0% 0%;"><td style="padding-bottom: 0in; padding-left: 0in; width: 2%; background-attachment: scroll; padding-right: 0in; background-position: 0% 0%; padding-top: 0in;" valign="top" width="2%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" valign="top" width="3%" nowrap="nowrap"> <p class="MsoNormal"><b><font style="color: black; font-size: 10pt;" class="_mt">&bull;</font></b><font style="color: black; font-size: 10pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="top" width="1%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="color: black; font-size: 10pt;" class="_mt">In 2007, a class action complaint, Heartland Regional Medical Center, et al. v. Oneok, Inc. et al., was filed in Missouri state court alleging violations of Missouri antitrust laws. Defendants, including CMS Energy, CMS Field Services, and CMS MST, are alleged to have violated the Missouri antitrust law in connection with their natural gas price reporting activities.</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td></tr> <tr style="background-attachment: scroll; background-position: 0% 0%;"><td style="padding-bottom: 0in; padding-left: 0in; width: 2%; background-attachment: scroll; padding-right: 0in; background-position: 0% 0%; padding-top: 0in;" valign="top" width="2%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" valign="top" width="3%" nowrap="nowrap"> <p class="MsoNormal"><b><font style="color: black; font-size: 10pt;" class="_mt">&bull;</font></b><font style="color: black; font-size: 10pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="top" width="1%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="color: black; font-size: 10pt;" class="_mt">Breckenridge Brewery of Colorado, LLC and BBD Acquisition Co. v. Oneok, Inc., et al., a class action complaint brought on behalf of retail direct purchasers of natural gas in Colorado, was filed in Colorado state court in May&nbsp;2006. Defendants, including CMS Energy, CMS Field Services, and CMS MST, are alleged to have violated the Colorado Antitrust Act of 1992 in connection with their natural gas price reporting activities. Plaintiffs are seeking full refund damages.</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td></tr> <tr style="background-attachment: scroll; background-position: 0% 0%;"><td style="padding-bottom: 0in; padding-left: 0in; width: 2%; background-attachment: scroll; padding-right: 0in; background-position: 0% 0%; padding-top: 0in;" valign="top" width="2%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" valign="top" width="3%" nowrap="nowrap"> <p class="MsoNormal"><b><font style="color: black; font-size: 10pt;" class="_mt">&bull;</font></b><font style="color: black; font-size: 10pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="top" width="1%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="color: black; font-size: 10pt;" class="_mt">A class action complaint, Arandell Corp., et al. v. XCEL Energy Inc., et al., was filed in 2006 in Wisconsin state court on behalf of Wisconsin commercial entities that purchased natural gas between January&nbsp;1, 2000 and October&nbsp;31, 2002. The defendants, including CMS Energy, CMS ERM, and Cantera Gas Company, are alleged to have violated Wisconsin's antitrust statute. The plaintiffs are seeking full consideration damages, plus exemplary damages, and attorneys' fees. After dismissal on jurisdictional grounds in 2009, plaintiffs filed a new Arandell case in Michigan. The CMS Energy defendants filed a motion to dismiss the new Michigan case on statute-of-limitations grounds and that motion remains pending.</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td></tr> <tr style="background-attachment: scroll; background-position: 0% 0%;"><td style="padding-bottom: 0in; padding-left: 0in; width: 2%; background-attachment: scroll; padding-right: 0in; background-position: 0% 0%; padding-top: 0in;" valign="top" width="2%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" valign="top" width="3%" nowrap="nowrap"> <p class="MsoNormal"><b><font style="color: black; font-size: 10pt;" class="_mt">&bull;</font></b><font style="color: black; font-size: 10pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="top" width="1%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="color: black; font-size: 10pt;" class="_mt">Another class action complaint, Newpage Wisconsin System v. CMS ERM, CMS Energy, and Cantera Gas Company, was filed in 2009 in circuit court in Wood County, Wisconsin, against CMS Energy defendants and 19 other non-CMS Energy companies. The plaintiff is seeking full consideration damages, treble damages, costs, interest, and attorneys' fees.</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td></tr> <tr style="background-attachment: scroll; background-position: 0% 0%;"><td style="padding-bottom: 0in; padding-left: 0in; width: 2%; background-attachment: scroll; padding-right: 0in; background-position: 0% 0%; padding-top: 0in;" valign="top" width="2%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" valign="top" width="3%" nowrap="nowrap"> <p class="MsoNormal"><b><font style="color: black; font-size: 10pt;" class="_mt">&bull;</font></b><font style="color: black; font-size: 10pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="top" width="1%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="color: black; font-size: 10pt;" class="_mt">In 2005, J.P. Morgan Trust Company, in its capacity as Trustee of the FLI Liquidating Trust, filed an action in Kansas state court against a number of energy companies, including CMS Energy, CMS MST, and CMS Field Services. The complaint alleges various claims under the Kansas Restraint of Trade Act. The plaintiff is seeking statutory full consideration damages for its purchases of natural gas between January&nbsp;1, 2000 and December 31, 2001. This case is part of the MDL proceeding, but is not a class action.</font></p></td></tr></table></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">After removal to federal court, the Learjet, Heartland, Breckenridge, both Arandell cases, Newpage, and J.P. Morgan cases were transferred to the MDL case. CMS Energy was dismissed from the Learjet, Heartland, and J.P. Morgan cases in 2009, but other CMS Energy defendants remain parties. All CMS Energy defendants were dismissed from the Breckenridge case in 2009. It is expected that the plaintiffs in this case will appeal this decision after all claims against defendants have been dismissed. At this time, there is no pending appeal. In June&nbsp;2010, CMS Energy and Cantera Gas Company were dismissed from the Newpage case; the Arandell (Wisconsin) case was reinstated against CMS ERM; and the Arandell (Wisconsin) case was consolidated with the Newpage case. These two consolidated cases remain pending only against CMS ERM. Pending before the court in all of the MDL cases are the defendants' renewed motions for summary judgment based on FERC preemption and the plaintiffs' motion for leave to amend their complaint to add a federal Sherman Act antitrust claim. In all but the </font></p></div></div> <div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">J.P. Morgan case, there are also pending plaintiffs' motions for class certification. These motions are not yet decided. </font></p></div> <div style="margin-top: 6pt;"> <table style="width: 100%;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="background-attachment: scroll; background-position: 0% 0%;"><td style="padding-bottom: 0in; padding-left: 0in; width: 2%; background-attachment: scroll; padding-right: 0in; background-position: 0% 0%; padding-top: 0in;" valign="top" width="2%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" valign="top" width="3%" nowrap="nowrap"> <p class="MsoNormal"><b><font style="color: black; font-size: 10pt;" class="_mt">&bull;</font></b><font style="color: black; font-size: 10pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="top" width="1%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="color: black; font-size: 10pt;" class="_mt">In 2005, Samuel D. Leggett, et al. v. Duke Energy Corporation, et al., a class action complaint brought on behalf of retail and business purchasers of natural gas in Tennessee, was filed in the Chancery Court of Fayette County, Tennessee. The defendants included CMS Energy, CMS MST, and CMS Field Services. In April&nbsp;2010, the Tennessee Supreme Court dismissed all claims against all defendants.</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td></tr> <tr style="background-attachment: scroll; background-position: 0% 0%;"><td style="padding-bottom: 0in; padding-left: 0in; width: 2%; background-attachment: scroll; padding-right: 0in; background-position: 0% 0%; padding-top: 0in;" valign="top" width="2%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" valign="top" width="3%" nowrap="nowrap"> <p class="MsoNormal"><b><font style="color: black; font-size: 10pt;" class="_mt">&bull;</font></b><font style="color: black; font-size: 10pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="top" width="1%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="color: black; font-size: 10pt;" class="_mt">In 2006, CMS Energy and CMS MST were each served with a summons and complaint which named CMS Energy, CMS MST, and CMS Field Services as defendants in an action filed in Missouri state court, titled Missouri Public Service Commission v. Oneok, Inc., alleging violation of the Missouri antitrust law, fraud, and unjust enrichment. In 2009, all defendants were dismissed for lack of standing. The Missouri Court of Appeals affirmed the dismissals in late 2009. In February&nbsp;2010, the plaintiff filed an application for leave to appeal with the Missouri Supreme Court, seeking to overturn the Missouri Court of Appeals decision and in September&nbsp;2010, the Missouri Supreme Court affirmed the dismissal of this case.</font></p></td></tr></table></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">These cases involve complex facts, a large number of similarly situated defendants with different factual positions, and multiple jurisdictions. Presently, any estimate of liability would be highly speculative; the amount of CMS Energy's possible loss would be based on widely varying models previously untested in this context. Defenses are being pursued vigorously, which could result in the dismissal of the cases completely, but CMS Energy is unable to predict the outcome of these matters. If the outcome is unfavorable, these cases could have a material adverse impact on CMS Energy's financial condition and results of operations. </font></p></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><b><font style="font-size: 10pt;" class="_mt">Bay Harbor: </font></b><font style="font-size: 10pt;" class="_mt">As part of the development of Bay Harbor by certain subsidiaries of CMS Energy, and under an agreement with the MDNRE, third parties constructed a golf course and park over several abandoned CKD piles left over from the former cement plant operations on the Bay Harbor site. The third parties also undertook a series of response activities, including constructing a leachate collection system in one area where CKD-impacted groundwater was entering Little Traverse Bay. Leachate is produced when water enters into the CKD piles. In 2002, CMS Energy sold its interest in Bay Harbor, but retained its obligations under environmental indemnities entered into at the start of the project. </font></p></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">In 2005, the EPA, along with CMS Land and CMS Capital, voluntarily executed an AOC under Superfund, and the EPA approved a Removal Action Work Plan to address contamination issues. Collection systems required under the plan have been installed and effectiveness monitoring of the systems at the shoreline is ongoing. CMS Land, CMS Capital, and the EPA agreed upon augmentation measures to address areas where pH measurements were not satisfactory. Several augmentation measures were implemented and completed in 2009, with the remaining measure scheduled for completion in late 2010. </font></p></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">In 2008, the MDNRE and the EPA granted permits for CMS Land or its affiliate, Beeland, to construct and operate a deep injection well in Antrim County, Michigan, to dispose of leachate from Bay Harbor. Certain environmental groups, a local township, and a local county filed lawsuits appealing the permits. The legal proceeding was stayed in 2009 and can be renewed by either party at any time. CMS Land and CMS Capital continue to seek a lower cost long-term water disposal option that will likely include a permitted discharge to surface water or a deep injection well. </font></p></div></div> <div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">Various claims have been brought against CMS Land or its affiliates, including CMS Energy, alleging environmental damage to property, loss of property value, insufficient disclosure of environmental matters, breach of agreement relating to access, or other matters. There is presently one lawsuit (Jankowski v. CMS Energy, CMS Capital, and CMS Land) pending that was filed in June&nbsp;2010 in Emmet County Circuit Court in Michigan relating to such subjects. CMS Land and other parties recently received a demand for payment from the EPA in the amount of $7&nbsp;million, plus interest, whereby the EPA is seeking recovery, as allowed under Superfund, of EPA's response costs incurred at the Bay Harbor site. CMS Land believes that this is not a valid claim and intends to dispute it. </font></p></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">CMS Land and CMS Capital, the MDNRE, the EPA, and other parties are negotiating the long-term remedy for the Bay Harbor sites, including: </font></p></div> <div style="margin-top: 6pt;"> <table style="width: 100%;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="background-attachment: scroll; background-position: 0% 0%;"><td style="padding-bottom: 0in; padding-left: 0in; width: 2%; background-attachment: scroll; padding-right: 0in; background-position: 0% 0%; padding-top: 0in;" valign="top" width="2%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" valign="top" width="3%" nowrap="nowrap"> <p class="MsoNormal"><b><font style="color: black; font-size: 10pt;" class="_mt">&bull;</font></b><font style="color: black; font-size: 10pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="top" width="1%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="color: black; font-size: 10pt;" class="_mt">the disposal of leachate;</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td></tr> <tr style="background-attachment: scroll; background-position: 0% 0%;"><td style="padding-bottom: 0in; padding-left: 0in; width: 2%; background-attachment: scroll; padding-right: 0in; background-position: 0% 0%; padding-top: 0in;" valign="top" width="2%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" valign="top" width="3%" nowrap="nowrap"> <p class="MsoNormal"><b><font style="color: black; font-size: 10pt;" class="_mt">&bull;</font></b><font style="color: black; font-size: 10pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="top" width="1%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="color: black; font-size: 10pt;" class="_mt">the capping and excavation of CKD;</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td></tr> <tr style="background-attachment: scroll; background-position: 0% 0%;"><td style="padding-bottom: 0in; padding-left: 0in; width: 2%; background-attachment: scroll; padding-right: 0in; background-position: 0% 0%; padding-top: 0in;" valign="top" width="2%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" valign="top" width="3%" nowrap="nowrap"> <p class="MsoNormal"><b><font style="color: black; font-size: 10pt;" class="_mt">&bull;</font></b><font style="color: black; font-size: 10pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="top" width="1%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="color: black; font-size: 10pt;" class="_mt">the location and design of collection lines and upstream water diversion systems;</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td></tr> <tr style="background-attachment: scroll; background-position: 0% 0%;"><td style="padding-bottom: 0in; padding-left: 0in; width: 2%; background-attachment: scroll; padding-right: 0in; background-position: 0% 0%; padding-top: 0in;" valign="top" width="2%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" valign="top" width="3%" nowrap="nowrap"> <p class="MsoNormal"><b><font style="color: black; font-size: 10pt;" class="_mt">&bull;</font></b><font style="color: black; font-size: 10pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="top" width="1%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="color: black; font-size: 10pt;" class="_mt">potential flow of leachate below the collection system;</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td></tr> <tr style="background-attachment: scroll; background-position: 0% 0%;"><td style="padding-bottom: 0in; padding-left: 0in; width: 2%; background-attachment: scroll; padding-right: 0in; background-position: 0% 0%; padding-top: 0in;" valign="top" width="2%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" valign="top" width="3%" nowrap="nowrap"> <p class="MsoNormal"><b><font style="color: black; font-size: 10pt;" class="_mt">&bull;</font></b><font style="color: black; font-size: 10pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="top" width="1%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="color: black; font-size: 10pt;" class="_mt">application of criteria for various substances such as mercury; and</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td></tr> <tr style="background-attachment: scroll; background-position: 0% 0%;"><td style="padding-bottom: 0in; padding-left: 0in; width: 2%; background-attachment: scroll; padding-right: 0in; background-position: 0% 0%; padding-top: 0in;" valign="top" width="2%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" valign="top" width="3%" nowrap="nowrap"> <p class="MsoNormal"><b><font style="color: black; font-size: 10pt;" class="_mt">&bull;</font></b><font style="color: black; font-size: 10pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="top" width="1%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="color: black; font-size: 10pt;" class="_mt">other</font><font style="color: black; font-size: 10pt;" class="_mt"> matters that are likely to affect the scope of response activities that CMS Land and CMS Capital may be obligated to undertake.</font></p></td></tr></table></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">CMS Energy has recorded a cumulative charge related to Bay Harbor of $181&nbsp;million. At September 30, 2010, CMS Energy had a recorded liability of $66&nbsp;million for its remaining obligations. CMS Energy calculated this liability based on discounted projected costs, using a discount rate of 4.32 percent and an inflation rate of one percent on annual operating and maintenance costs. CMS Energy based the discount rate on the interest rate for 30-year U.S. Treasury securities on June&nbsp;30, 2009. The undiscounted amount of the remaining obligation is $86&nbsp;million. CMS Energy expects to pay $7 million during the remainder of 2010, $9&nbsp;million in 2011, $7&nbsp;million in 2012, $5&nbsp;million in 2013, and the remaining amount thereafter on long-term liquid disposal and operating and maintenance costs. </font></p></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">CMS Energy's estimate of response activity costs and the timing of expenditures could change if there are additional major changes in circumstances or assumptions, including but not limited to: </font></p></div> <div style="margin-top: 6pt;"> <table style="width: 100%;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="background-attachment: scroll; background-position: 0% 0%;"><td style="padding-bottom: 0in; padding-left: 0in; width: 2%; background-attachment: scroll; padding-right: 0in; background-position: 0% 0%; padding-top: 0in;" valign="top" width="2%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" valign="top" width="3%" nowrap="nowrap"> <p class="MsoNormal"><b><font style="color: black; font-size: 10pt;" class="_mt">&bull;</font></b><font style="color: black; font-size: 10pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="top" width="1%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="color: black; font-size: 10pt;" class="_mt">inability to secure a suitable long-term water disposal option at a reasonable cost;</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td></tr> <tr style="background-attachment: scroll; background-position: 0% 0%;"><td style="padding-bottom: 0in; padding-left: 0in; width: 2%; background-attachment: scroll; padding-right: 0in; background-position: 0% 0%; padding-top: 0in;" valign="top" width="2%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" valign="top" width="3%" nowrap="nowrap"> <p class="MsoNormal"><b><font style="color: black; font-size: 10pt;" class="_mt">&bull;</font></b><font style="color: black; font-size: 10pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="top" width="1%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="color: black; font-size: 10pt;" class="_mt">further increases in water disposal costs under existing options;</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td></tr> <tr style="background-attachment: scroll; background-position: 0% 0%;"><td style="padding-bottom: 0in; padding-left: 0in; width: 2%; background-attachment: scroll; padding-right: 0in; background-position: 0% 0%; padding-top: 0in;" valign="top" width="2%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" valign="top" width="3%" nowrap="nowrap"> <p class="MsoNormal"><b><font style="color: black; font-size: 10pt;" class="_mt">&bull;</font></b><font style="color: black; font-size: 10pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="top" width="1%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="color: black; font-size: 10pt;" class="_mt">delays in developing a long-term water disposal option;</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td></tr> <tr style="background-attachment: scroll; background-position: 0% 0%;"><td style="padding-bottom: 0in; padding-left: 0in; width: 2%; background-attachment: scroll; padding-right: 0in; background-position: 0% 0%; padding-top: 0in;" valign="top" width="2%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" valign="top" width="3%" nowrap="nowrap"> <p class="MsoNormal"><b><font style="color: black; font-size: 10pt;" class="_mt">&bull;</font></b><font style="color: black; font-size: 10pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="top" width="1%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="color: black; font-size: 10pt;" class="_mt">an increase in the number of contamination areas;</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td></tr> <tr style="background-attachment: scroll; background-position: 0% 0%;"><td style="padding-bottom: 0in; padding-left: 0in; width: 2%; background-attachment: scroll; padding-right: 0in; background-position: 0% 0%; padding-top: 0in;" valign="top" width="2%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" valign="top" width="3%" nowrap="nowrap"> <p class="MsoNormal"><b><font style="color: black; font-size: 10pt;" class="_mt">&bull;</font></b><font style="color: black; font-size: 10pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="top" width="1%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="color: black; font-size: 10pt;" class="_mt">different remediation techniques;</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td></tr> <tr style="background-attachment: scroll; background-position: 0% 0%;"><td style="padding-bottom: 0in; padding-left: 0in; width: 2%; background-attachment: scroll; padding-right: 0in; background-position: 0% 0%; padding-top: 0in;" valign="top" width="2%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" valign="top" width="3%" nowrap="nowrap"> <p class="MsoNormal"><b><font style="color: black; font-size: 10pt;" class="_mt">&bull;</font></b><font style="color: black; font-size: 10pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="top" width="1%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="color: black; font-size: 10pt;" class="_mt">the nature and extent of contamination;</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td></tr> <tr style="background-attachment: scroll; background-position: 0% 0%;"><td style="padding-bottom: 0in; padding-left: 0in; width: 2%; background-attachment: scroll; padding-right: 0in; background-position: 0% 0%; padding-top: 0in;" valign="top" width="2%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" valign="top" width="3%" nowrap="nowrap"> <p class="MsoNormal"><b><font style="color: black; font-size: 10pt;" class="_mt">&bull;</font></b><font style="color: black; font-size: 10pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="top" width="1%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="color: black; font-size: 10pt;" class="_mt">inability to reach agreement with the MDNRE or the EPA over additional response activities;</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td></tr> <tr style="background-attachment: scroll; background-position: 0% 0%;"><td style="padding-bottom: 0in; padding-left: 0in; width: 2%; background-attachment: scroll; padding-right: 0in; background-position: 0% 0%; padding-top: 0in;" valign="top" width="2%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" valign="top" width="3%" nowrap="nowrap"> <p class="MsoNormal"><b><font style="color: black; font-size: 10pt;" class="_mt">&bull;</font></b><font style="color: black; font-size: 10pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="top" width="1%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="color: black; font-size: 10pt;" class="_mt">delays in the receipt of requested permits;</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td></tr> <tr style="background-attachment: scroll; background-position: 0% 0%;"><td style="padding-bottom: 0in; padding-left: 0in; width: 2%; background-attachment: scroll; padding-right: 0in; background-position: 0% 0%; padding-top: 0in;" valign="top" width="2%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" valign="top" width="3%" nowrap="nowrap"> <p class="MsoNormal"><b><font style="color: black; font-size: 10pt;" class="_mt">&bull;</font></b><font style="color: black; font-size: 10pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="top" width="1%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="color: black; font-size: 10pt;" class="_mt">delays following the receipt of any requested permits due to legal appeals of third parties;</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td></tr> <tr style="background-attachment: scroll; background-position: 0% 0%;"><td style="padding-bottom: 0in; padding-left: 0in; width: 2%; background-attachment: scroll; padding-right: 0in; background-position: 0% 0%; padding-top: 0in;" valign="top" width="2%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" valign="top" width="3%" nowrap="nowrap"> <p class="MsoNormal"><b><font style="color: black; font-size: 10pt;" class="_mt">&bull;</font></b><font style="color: black; font-size: 10pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="top" width="1%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="color: black; font-size: 10pt;" class="_mt">additional or new legal or regulatory requirements; or</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td></tr> <tr style="background-attachment: scroll; background-position: 0% 0%;"><td style="padding-bottom: 0in; padding-left: 0in; width: 2%; background-attachment: scroll; padding-right: 0in; background-position: 0% 0%; padding-top: 0in;" valign="top" width="2%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" valign="top" width="3%" nowrap="nowrap"> <p class="MsoNormal"><b><font style="color: black; font-size: 10pt;" class="_mt">&bull;</font></b><font style="color: black; font-size: 10pt;" class="_mt"> </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="top" width="1%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="color: black; font-size: 10pt;" class="_mt">new</font><font style="color: black; font-size: 10pt;" class="_mt"> or different landowner claims.</font></p></td></tr></table></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">Depending on the size of any indemnity obligation or liability under environmental laws, an adverse outcome of this matter could have a material adverse effect on CMS Energy's liquidity and financial condition and could negatively affect CMS Energy's financial results. CMS Energy cannot predict the financial impact or outcome of this matter. </font></p></div></div> <div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><b><font style="font-size: 10pt;" class="_mt">State Street Bank and TSU Litigation: </font></b><font style="font-size: 10pt;" class="_mt">In 2002, State Street Bank sued CMS Viron in the District Court of Harris County, Texas, claiming primarily a breach of representations and warranties and seeking $9&nbsp;million plus interest from CMS Viron. During the same year, CMS Viron filed a counterclaim, as well as third-party actions against TSU, Academic Capital Group, Inc., and Academic Services, Inc. for breach of contract and fiduciary duties and conversion. In December 2009, the jury rendered a verdict in favor of CMS Viron and a final judgment was rendered on January&nbsp;15, 2010 awarding CMS Viron $8&nbsp;million plus prejudgment interest from TSU and another $3 million plus prejudgment interest and attorneys' fees against Academic Capital Group, Inc. and Academic Services, Inc., collectively. This verdict is affected by an agreement under which CMS Viron is required to pay $3&nbsp;million to State Street Bank regardless of the verdict. In addition, State Street Bank agreed to assign certain rights of indemnification under a lease agreement to CMS Viron in return for a two-thirds stake in any ultimate recovery from TSU. At September&nbsp;30, 2010, CMS Energy had a recorded liability of $3&nbsp;million for its potential obligation related to this matter. CMS Viron has agreed to accept less than $1&nbsp;million to settle the Academic Capital judgment. TSU opposes payment of its judgment on the grounds of sovereign immunity. </font></p></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><b><font style="font-size: 10pt;" class="_mt">Equatorial Guinea Tax Claim: </font></b><font style="font-size: 10pt;" class="_mt">In 2004, CMS Energy received a request for indemnification from the purchaser of CMS Oil and Gas. The indemnity claim relates to the sale of CMS Energy's oil, gas, and methanol projects in Equatorial Guinea and the claim of the government of Equatorial Guinea that CMS Energy owes $142&nbsp;million in taxes in connection with that sale. CMS Energy concluded that the government's tax claim is without merit and the purchaser of CMS Oil and Gas submitted a response to the government rejecting the claim. The government of Equatorial Guinea has indicated that it still intends to pursue its claim. CMS Energy cannot predict the financial impact or outcome of this matter. </font></p></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><b><font style="font-size: 10pt;" class="_mt">Marathon Indemnity Claim regarding F.T. Barr Claim: </font></b><font style="font-size: 10pt;" class="_mt">In 2001, F.T. Barr filed a lawsuit in Harris County District Court in Texas against CMS Energy, CMS Oil and Gas, and other defendants alleging that his overriding royalty payments related to Alba field production were improperly calculated. In 2004, all parties signed a confidential settlement agreement that resolved claims between Barr and the defendants. The CMS Energy defendants reserved all defenses to any indemnity claim relating to the settlement. </font></p></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">In April&nbsp;2009, certain Marathon entities filed a case in the U.S. District Court for the Southern District of Texas against CMS Enterprises for indemnification in connection with this matter. CMS Energy entities dispute Marathon's claim, and are opposing it vigorously. CMS Energy entities also assert that Marathon has suffered minimal, if any, damages. CMS Energy cannot predict the outcome of this matter. If Marathon's claim were sustained, it would have a material effect on CMS Energy's future earnings and cash flow. </font></p></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><b><font style="font-size: 10pt;" class="_mt">Former NOMECO Employees' Litigation: </font></b><font style="font-size: 10pt;" class="_mt">In June&nbsp;2010, eight former employees of NOMECO filed a lawsuit in Ingham County Circuit Court in Michigan against CMS Energy and three Marathon entities (Richard Rulewicz, Trustee of the Richard Rulewicz Revocable Living Trust, et al. v. CMS Energy) alleging underpayment of the former employees' overriding royalty payments related to the Alba field production in Equatorial Guinea, to which the plaintiffs claim to be entitled. CMS Oil and Gas sold its interests in the Alba field to Marathon in 2002. CMS Energy believes that it may be entitled to full or partial indemnification from Marathon for monetary damages that may arise from this lawsuit. CMS Energy cannot predict the financial impact or outcome of this matter. </font></p></div></div> <div> <div style="margin-top: 12pt;"> <p class="MsoNormal"><b><font style="font-size: 10pt;" class="_mt">CONSUMERS' ELECTRIC UTILITY CONTINGENCIES</font></b><font style="font-size: 10pt;" class="_mt"> </font></p></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><b><font style="font-size: 10pt;" class="_mt">Electric Environmental Matters: </font></b><font style="font-size: 10pt;" class="_mt">Consumers' operations are subject to environmental laws and regulations. Generally, Consumers has been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations. </font></p></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><i><font style="font-size: 10pt;" class="_mt">Cleanup and Solid Waste: </font></i><font style="font-size: 10pt;" class="_mt">Consumers expects to incur remediation and other response activity costs at a number of sites under NREPA. Consumers believes that these costs should be recoverable in rates, but cannot guarantee that outcome. At September&nbsp;30, 2010, Consumers had a recorded liability of $2&nbsp;million, its estimated probable NREPA liability. </font></p></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">Consumers is</font><font style="font-size: 10pt;" class="_mt"> a potentially responsible party at a number of contaminated sites administered under the Superfund. Superfund liability is joint and several. In addition to Consumers, many other creditworthy parties with substantial assets are potentially responsible with respect to the individual sites. Based on its experience, Consumers estimates that its share of the total liability for known Superfund sites will be between $2&nbsp;million and $8&nbsp;million. Various factors, including the number of potentially responsible parties involved with each site, affect Consumers' share of the total liability. At September&nbsp;30, 2010, Consumers had a recorded liability of $2 million, the minimum amount in the range of its estimated probable Superfund liability. </font></p></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">The timing of payments related to Consumers' remediation and other response activities at its Superfund and NREPA sites is uncertain. Consumers periodically reviews these cost estimates. Any significant change in the underlying assumptions, such as an increase in the number of sites, different remediation techniques, nature and extent of contamination, and legal and regulatory requirements, could affect its estimates of NREPA and Superfund liability. </font></p></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><i><font style="font-size: 10pt;" class="_mt">Ludington PCB: </font></i><font style="font-size: 10pt;" class="_mt">In 1998, during routine maintenance activities, Consumers identified PCB as a component in certain paint, grout, and sealant materials at Ludington. Consumers removed and replaced part of the PCB material with non-PCB material. Since proposing a plan to take action with respect to the remaining materials, Consumers has had several communications with the EPA. Consumers is not able to predict when the EPA will issue a final ruling and cannot predict the financial impact or outcome of this matter. </font></p></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><i><font style="font-size: 10pt;" class="_mt">Electric Utility Plant Air Permit Issues and Notices of Violation: </font></i><font style="font-size: 10pt;" class="_mt">In 2007, Consumers received an NOV/FOV from the EPA alleging that fourteen utility boilers exceeded the visible emission limits in their associated air permits. Consumers has responded formally to the NOV/FOV denying the allegations. In addition, in 2008, Consumers received an NOV for three of its coal-fueled facilities alleging, among other things, violations of NSR PSD regulations relating to ten projects from 1986 to 1998 allegedly subject to NSR review. The EPA has alleged that some utilities have classified incorrectly major plant modifications as RMRR rather than seeking permits from the EPA or state regulatory agencies to modify their plants. Consumers responded to the information requests from the EPA on this subject in the past. Consumers believes that it has properly interpreted the requirements of RMRR. </font></p></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">Consumers is</font><font style="font-size: 10pt;" class="_mt"> engaged in discussions with the EPA on all of these matters. Depending upon the outcome of these discussions, the EPA could bring legal action against Consumers and/or Consumers could be required to install additional pollution control equipment at some or all of its coal-fueled electric generating plants, surrender emission allowances, engage in Supplemental Environmental Programs, and/or pay fines. Additionally, Consumers would need to assess the viability of continuing operations at certain plants. Consumers cannot predict the financial impact or outcome of these matters. Although the potential costs relating to these matters could be material and cost recovery cannot be reasonably estimated, Consumers expects that it would be able to recover some or all of the costs in rates, consistent with the recovery of other reasonable costs of complying with environmental laws and regulations.&nbsp;</font><font style="font-size: 10pt;" class="_mt">&nbsp;</font></p></div></div> <div> <div style="margin-top: 12pt;"> <p class="MsoNormal"><b><font style="font-size: 10pt;" class="_mt">Nuclear Matters:</font></b><font style="font-size: 10pt;" class="_mt"> </font></p></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><i><font style="font-size: 10pt;" class="_mt">DOE Litigation: </font></i><font style="font-size: 10pt;" class="_mt">In 1997, a U.S. Court of Appeals decision confirmed that the DOE was to begin accepting deliveries of spent nuclear fuel for disposal by January&nbsp;1998. Subsequent U.S. Court of Appeals litigation, in which Consumers and other utilities participated, has not been successful in producing more specific relief for the DOE's failure to accept the spent nuclear fuel. </font></p></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">A number of court decisions support the right of utilities to pursue damage claims in the U.S. Court of Claims against the DOE for failure to take delivery of spent nuclear fuel. Consumers filed a complaint in 2002. If Consumers' litigation against the DOE is successful, Consumers plans to use any recoveries as reimbursement for the incurred costs of spent nuclear fuel storage during Consumers' ownership of Palisades and Big Rock. Consumers cannot predict the financial impact or outcome of this matter. The sale of Palisades and the Big Rock ISFSI did not transfer the right to any recoveries from the DOE related to costs of spent nuclear fuel storage incurred during Consumers' ownership of Palisades and Big Rock. </font></p></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><i><font style="font-size: 10pt;" class="_mt">Nuclear Fuel Disposal Cost: </font></i><font style="font-size: 10pt;" class="_mt">Consumers has a recorded liability of $163&nbsp;million for amounts it collected from customers before 1983 to fund the disposal of spent nuclear fuel. This amount, which includes interest of $119&nbsp;million, is payable to the DOE when it begins to accept delivery of spent nuclear fuel. In conjunction with the sale of Palisades and the Big Rock ISFSI in 2007, Consumers retained this obligation and provided a letter of credit to Entergy as security for this obligation. </font></p></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><b><font style="font-size: 10pt;" class="_mt">CONSUMERS' GAS UTILITY CONTINGENCIES</font></b><font style="font-size: 10pt;" class="_mt"> </font></p></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><b><font style="font-size: 10pt;" class="_mt">Gas Environmental Matters: </font></b><font style="font-size: 10pt;" class="_mt">Consumers expects to incur remediation and other response activity costs at a number of sites under the NREPA. These sites include 23 former MGP facilities. Consumers operated the facilities on these sites for some part of their operating lives. For some of these sites, Consumers has no present ownership interest or may own only a portion of the original site. At September&nbsp;30, 2010, Consumers estimated its undiscounted remaining remediation and other response activity costs to be between $32&nbsp;million and $47&nbsp;million. Generally, Consumers has been able to recover most of its costs to date through proceeds from insurance settlements and customer rates. </font></p></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">At September&nbsp;30, 2010, Consumers had a recorded liability of $32&nbsp;million and a regulatory asset of $59&nbsp;million that included $27&nbsp;million of deferred MGP expenditures. The timing of payments related to the remediation and other response activity at Consumers' former MGP sites is uncertain. Consumers expects its remediation and other response activity costs to average $6&nbsp;million annually over the next five years. Consumers periodically reviews these cost estimates. Any significant change in the underlying assumptions, such as an increase in the number of sites, changes in remediation techniques, or legal and regulatory requirements, could affect Consumers' estimates of annual response activity costs and the MGP liability. </font></p></div></div> <div> <div style="margin-top: 12pt;"> <p class="MsoNormal"><b><font style="font-size: 10pt;" class="_mt">CONSUMERS' OTHER CONTINGENCIES</font></b><font style="font-size: 10pt;" class="_mt"> </font></p></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><b><font style="font-size: 10pt;" class="_mt">Employee Discrimination Litigation: </font></b><font style="font-size: 10pt;" class="_mt">In October 2010, the jury in a federal court action in Grand Rapids, Michigan, returned a verdict against Consumers and in favor of the plaintiff, a Consumers employee, of $0.4 million in compensatory damages and $7.5 million in punitive damages on a claim of hostile work environment. Consumers has filed a motion to reduce the verdict to a statutory cap under federal law, which is believed to be $0.3 million. Consumers intends to pursue vigorously additional motions for relief before the trial court and, if necessary, the federal court of appeals. Consumers believes that if the award were upheld, Consumers' insurance would pay for most of the damages. </font></p></div> <div style="margin-top: 12pt;"> <p class="MsoNormal"><b><font style="font-size: 10pt;" class="_mt">GUARANTEES</font></b><font style="font-size: 10pt;" class="_mt"> </font></p></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">The following table describes CMS Energy's guarantees at September&nbsp;30, 2010: </font></p></div> <div align="center"> <table style="width: 100%;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 52%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="52%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="5%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 7%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="7%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="5%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 7%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="7%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="5%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 5%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="5%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="1%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="3%"> <p class="MsoNormal">&nbsp;</p></td></tr> <tr><td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" colspan="13" nowrap="nowrap"> <p style="text-align: right;" class="MsoNormal" align="right"><font style="font-size: 8pt;" class="_mt">In Millions</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> <p style="text-align: center;" class="MsoNormal" align="center"><font style="font-size: 8pt;" class="_mt">Issue</font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> <p style="text-align: center;" class="MsoNormal" align="center"><font style="font-size: 8pt;" class="_mt">Expiration</font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom" colspan="3" nowrap="nowrap"> <p style="text-align: center;" class="MsoNormal" align="center"><font style="font-size: 8pt;" class="_mt">Maximum</font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom" colspan="3" nowrap="nowrap"> <p style="text-align: center;" class="MsoNormal" align="center"><font style="font-size: 8pt;" class="_mt">Carrying</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> <p class="MsoNormal"><font style="font-size: 8pt;" class="_mt">Guarantee Description</font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> <p style="text-align: center;" class="MsoNormal" align="center"><font style="font-size: 8pt;" class="_mt">Date</font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> <p style="text-align: center;" class="MsoNormal" align="center"><font style="font-size: 8pt;" class="_mt">Date</font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom" colspan="3" nowrap="nowrap"> <p style="text-align: center;" class="MsoNormal" align="center"><font style="font-size: 8pt;" class="_mt">Obligation</font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom" colspan="3" nowrap="nowrap"> <p style="text-align: center;" class="MsoNormal" align="center"><font style="font-size: 8pt;" class="_mt">Amount</font></p></td></tr> <tr><td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; border-top: black 1pt solid; border-right: medium none; padding-top: 0in;" colspan="13"> <p class="MsoNormal">&nbsp;</p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <div style="margin-left: 11.25pt;"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">Indemnity obligations from asset sales and other agreements</font></p></div></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">Various</font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top" nowrap="nowrap"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">Various through </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom" colspan="3"> <p style="text-align: center;" class="MsoNormal" align="center"><font style="font-size: 10pt;" class="_mt">$839 (a) </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom" colspan="3"> <p style="text-align: center;" class="MsoNormal" align="center"><font style="font-size: 10pt;" class="_mt">$21</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top" nowrap="nowrap"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">June 2022</font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <div style="margin-left: 11.25pt;"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">Guarantees and put options (b)</font></p></div></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">Various</font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">Various through</font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom" colspan="3"> <p style="text-align: center;" class="MsoNormal" align="center"><font style="font-size: 10pt;" class="_mt">36</font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom" colspan="3"> <p style="text-align: center;" class="MsoNormal" align="center"><font style="font-size: 10pt;" class="_mt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top" nowrap="nowrap"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">December 2011</font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td></tr> <tr><td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; border-top: black 3px double; border-right: medium none; padding-top: 0in;" colspan="13"> <p class="MsoNormal">&nbsp;</p></td></tr></table><font style="display: none;" class="_mt"> </font></div> <div style="margin-top: 3pt;"> <table style="width: 100%;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 3%; padding-right: 0in; padding-top: 0in;" width="3%"> </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 1%; padding-right: 0in; padding-top: 0in;" width="1%"> </td> <td style="padding-bottom: 0in; padding-left: 0in; width: 96%; padding-right: 0in; padding-top: 0in;" width="96%"> </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top" nowrap="nowrap"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">(a)</font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">The majority of this amount arises from stock and asset sales agreements under which CMS Energy or a subsidiary of CMS Energy, other than Consumers, indemnified the purchaser for losses resulting from various matters, including claims related to tax disputes, claims related to PPAs, and defects in title to the assets or stock sold to the purchaser by CMS Energy subsidiaries. Except for items described elsewhere in this Note, CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities.</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;"> </td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top" nowrap="nowrap"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">(b)</font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">At September&nbsp;30, 2010, the carrying amount of CMS Land's put option agreements with certain Bay Harbor property owners was $1&nbsp;million. If CMS Land is required to purchase a Bay Harbor property under a put option agreement, it may sell the property to recover the amount paid under the put option agreement.</font></p></td></tr></table></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">At September&nbsp;30, 2010, the maximum obligation and carrying amounts for Consumers' guarantees were less than $1&nbsp;million.&nbsp;</font><font style="font-size: 10pt;" class="_mt">&nbsp;</font></p></div></div> <div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">The following table provides additional information regarding CMS Energy's guarantees: </font></p></div> <div align="center"> <table style="width: 100%;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td style="padding-bottom: 0in; padding-left: 0in; width: 35%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="35%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 35%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="35%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 2%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="2%"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; width: 35%; padding-right: 0in; padding-top: 0in;" valign="bottom" width="35%"> <p class="MsoNormal">&nbsp;</p></td></tr> <tr><td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; border-top: black 1pt solid; border-right: medium none; padding-top: 0in;" valign="top" colspan="5"> <p class="MsoNormal">&nbsp;</p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> <p class="MsoNormal"><font style="font-size: 8pt;" class="_mt">Events That Would Require</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> <p class="MsoNormal"><font style="font-size: 8pt;" class="_mt">Guarantee Description</font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> <p class="MsoNormal"><font style="font-size: 8pt;" class="_mt">How Guarantee Arose</font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> <p class="MsoNormal"><font style="font-size: 8pt;" class="_mt">Performance</font></p></td></tr> <tr><td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; border-top: black 1pt solid; border-right: medium none; padding-top: 0in;" valign="top" colspan="5"> <p class="MsoNormal">&nbsp;</p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <div> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">Indemnity obligations from asset sales and other agreements </font></p></div></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">Stock and asset sales agreements </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">Findings of misrepresentation, breach of warranties, tax claims, and other specific events or circumstances</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <div> <p class="MsoNormal">&nbsp;</p></div></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal">&nbsp;</p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <div> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">Surety bonds and other indemnity obligations </font></p></div></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">Normal operating activity, permits and licenses </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">Nonperformance</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <div> <p class="MsoNormal">&nbsp;</p></div></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal">&nbsp;</p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <div> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">Guarantees and put options </font></p></div></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">Normal operating activity </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">Nonperformance or non-payment by a subsidiary under a related contract</font></p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <div> <p class="MsoNormal">&nbsp;</p></div></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal">&nbsp;</p></td></tr> <tr><td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> </td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">Bay Harbor remediation efforts </font></p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="MsoNormal">&nbsp;</p></td> <td style="padding-bottom: 0in; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="top"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">Owners exercising put options requiring CMS Land to purchase property</font></p></td></tr> <tr><td style="border-bottom: medium none; border-left: medium none; padding-bottom: 0in; padding-left: 0in; padding-right: 0in; border-top: black 3px double; border-right: medium none; padding-top: 0in;" valign="top" colspan="5"> <p class="MsoNormal">&nbsp;</p></td></tr></table></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">CMS Energy, Consumers, and certain other subsidiaries of CMS Energy also enter into various agreements containing tax and other indemnity provisions for which they are unable to estimate the maximum potential obligation. These factors include unspecified exposure under certain agreements. CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities to be remote. </font></p></div> <div style="margin-top: 12pt;"> <p class="MsoNormal"><b><font style="font-size: 10pt;" class="_mt">OTHER CONTINGENCIES</font></b><font style="font-size: 10pt;" class="_mt"> </font></p></div> <div style="margin-top: 6pt;"> <p class="MsoNormal"><font style="font-size: 10pt;" class="_mt">In addition to the matters disclosed in this Note and Note 4, Utility Rate Matters, there are certain other lawsuits and administrative proceedings before various courts and governmental agencies arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties. These other lawsuits and proceedings may involve personal injury, property damage, contracts, environmental issues, federal and state taxes, rates, licensing, and other matters. Further, CMS Energy and Consumers occasionally self-report certain regulatory non-compliance matters that may or may not eventually result in administrative proceedings. CMS Energy and Consumers believe that the outcome of any one of these proceedings will not have a material adverse effect on their consolidated results of operations, financial position, or cash flows. </font></p></div></div></div> </div> 0.375 0.125 0.45 0.15 350000000 125000000 350000000 125000000 227900000 84100000 229600000 84100000 2000000 841000000 2000000 841000000 225000000 279000000 73000000 104000000 317000000 359000000 145000000 166000000 506000000 505000000 605000000 604000000 -4000000 -239000000 889000000 879000000 318000000 315000000 955000000 946000000 363000000 359000000 694000000 365000000 1031000000 198000000 <div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 12pt; font-size: 10pt;" align="left"><b>5: FINANCINGS</b> </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">The following is a summary of significant long-term debt transactions during the nine months ended September&nbsp;30, 2010: </div> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="52%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" valign="top" colspan="17" align="left">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Principal</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Interest</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">&nbsp;</td> <td>&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">(in Millions)</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Rate</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Issue/Retirement Date</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Maturity Date</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="17" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><font style="font-variant: small-caps;" class="_mt"><b>Debt Issuances:</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><font style="font-variant: small-caps;" class="_mt"><b>CMS Energy</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Senior notes</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">300</td> <td>&nbsp;</td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">&nbsp;</td> <td align="right">6.25</td> <td nowrap="nowrap">%</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">January 2010</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">February 2020</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Senior notes (a)</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">250</td> <td>&nbsp;</td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">&nbsp;</td> <td align="right">4.25</td> <td nowrap="nowrap">%</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">September 2010</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">September 2015</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><font style="font-variant: small-caps;" class="_mt"><b>Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">FMBs</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">250</td> <td>&nbsp;</td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">&nbsp;</td> <td align="right">5.30</td> <td nowrap="nowrap">%</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">September 2010</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">September 2022</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">FMBs</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">50</td> <td>&nbsp;</td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">&nbsp;</td> <td align="right">6.17</td> <td nowrap="nowrap">%</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">September 2010</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">September 2040</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="17" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><font style="font-variant: small-caps;" class="_mt"><b>Debt Retirements:</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><font style="font-variant: small-caps;" class="_mt"><b>CMS Energy</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Senior notes</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">67</td> <td>&nbsp;</td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">&nbsp;</td> <td align="right">7.75</td> <td nowrap="nowrap">%</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">August 2010</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">August 2010</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><font style="font-variant: small-caps;" class="_mt"><b>Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">FMBs</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">250</td> <td>&nbsp;</td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">&nbsp;</td> <td align="right">4.00</td> <td nowrap="nowrap">%</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">May 2010</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">May 2010</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Tax-exempt pollution control revenue bonds</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">58</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" align="center">Various</td> <td>&nbsp;</td> <td colspan="3" align="center">June 2010</td> <td>&nbsp;</td> <td colspan="3" align="center">June 2010</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="17" align="left">&nbsp;</td></tr></table></div> <div style="margin-top: 3pt;"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="3%"> </td> <td width="1%"> </td> <td width="96%"> </td></tr> <tr valign="top"><td nowrap="nowrap" align="left">(a)</td> <td>&nbsp;</td> <td>In conjunction with the September&nbsp;2010 issuance of the 4.25&nbsp;percent senior notes, CMS Energy exercised its mandatory conversion rights for all of its outstanding 4.50&nbsp;percent cumulative convertible preferred stock. Also in September&nbsp;2010, holders tendered 633,971 shares of the 4.50&nbsp;percent cumulative convertible preferred stock for voluntary conversion. In October 2010, CMS Energy used the majority of the net proceeds from the issuance of the senior notes to pay the $226&nbsp;million cash portion of the conversion value and issued 13,110,733 shares of its common stock to pay the common stock portion of the conversion value.</td></tr></table></div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">In September&nbsp;2010, Consumers executed a bond purchase agreement and issued, in an October&nbsp;2010 private placement, $50&nbsp;million of 2.60&nbsp;percent FMBs due 2015, $100&nbsp;million of 3.21&nbsp;percent FMBs due 2017, $100&nbsp;million of 3.77&nbsp;percent FMBs due 2020, and $50&nbsp;million of 4.97&nbsp;percent FMBs due 2040. In conjunction with this issuance, in September&nbsp;2010 Consumers called $137&nbsp;million of 5.65&nbsp;percent FMBs due 2035 for redemption, which occurred in October&nbsp;2010. </div></div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><b>Revolving Credit Facilities: </b>The following secured revolving credit facilities with banks were available at September&nbsp;30, 2010: </div> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="40%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;" colspan="21" nowrap="nowrap" align="right">In Millions&nbsp;&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Letters of</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">&nbsp;</td> <td>&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Amount of</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Amount</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Credit</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Amount</td> <td>&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td nowrap="nowrap" align="left">Company</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Expiration Date</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Facility</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Borrowed</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Outstanding</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Available</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="21" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">CMS Energy (a)</div></td> <td>&nbsp;</td> <td colspan="3" align="center">April 2, 2012</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">550</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">3</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">547</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Consumers (b)</div></td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">September 21, 2011</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">30</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">30</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Consumers</div></td> <td>&nbsp;</td> <td colspan="3" align="center">March 30, 2012</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">500</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">300</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">200</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Consumers</div></td> <td>&nbsp;</td> <td colspan="3" align="center">August 9, 2013</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">150</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">150</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="21" align="left">&nbsp;</td></tr></table></div> <div style="margin-top: 3pt;"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="3%"> </td> <td width="1%"> </td> <td width="96%"> </td></tr> <tr valign="top"><td nowrap="nowrap" align="left">(a)</td> <td>&nbsp;</td> <td>CMS Energy's average borrowings during the nine months ended September&nbsp;30, 2010, totaled $1 million, with a weighted-average annual interest rate of 1.0&nbsp;percent, at LIBOR plus 0.75 percent.</td></tr> <tr style="font-size: 3pt;"><td>&nbsp;</td></tr> <tr valign="top"><td nowrap="nowrap" align="left">(b)</td> <td>&nbsp;</td> <td>Secured revolving letter of credit facility.</td></tr></table></div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><b>Short-term Borrowings: </b>Under Consumers' revolving accounts receivable sales program, Consumers may transfer up to $250&nbsp;million of accounts receivable, subject to certain eligibility requirements. Effective January&nbsp;1, 2010, transactions entered into under this program are accounted for as secured borrowings rather than as sales. For additional details, see Note 1, New Accounting Standards. At September&nbsp;30, 2010, $250&nbsp;million of accounts receivable were eligible for transfer, and no accounts receivable had been transferred under the program. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">Consumers' average short-term borrowings during the nine months ended September&nbsp;30, 2010, totaled $1&nbsp;million, with a weighted average annual interest rate of 0.2&nbsp;percent. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><b>Contingently Convertible Securities: </b>At September&nbsp;30, 2010, the significant terms of CMS Energy's contingently convertible securities were as follows: </div> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="52%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" valign="top" colspan="17" align="left">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Outstanding</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Adjusted</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Adjusted</td> <td>&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td nowrap="nowrap" align="left">Security</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Maturity</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">(In Millions)</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Conversion Price</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Trigger Price</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="17" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">3.375% senior notes (a)</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">2023</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">131</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">9.67</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">11.60</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">2.875% senior notes (a)</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">2024</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">288</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">13.36</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">16.03</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">5.50% senior notes</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">2029</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">173</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">14.46</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">18.80</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="17" align="left">&nbsp;</td></tr></table></div> <div style="margin-top: 3pt;"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="3%"> </td> <td width="1%"> </td> <td width="96%"> </td></tr> <tr valign="top"><td nowrap="nowrap" align="left">(a)</td> <td>&nbsp;</td> <td>During 20 of the last 30 trading days ended September&nbsp;30, 2010, the adjusted trigger prices were met for these securities and, as a result, the securities are convertible at the option of the security holders for the three months ending December&nbsp;31, 2010.</td></tr></table></div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">During the three months ended September&nbsp;30, 2010, no other trigger price contingencies were met that would have allowed the holders of the convertible securities to convert the securities to cash and equity. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">In July&nbsp;2010, holders tendered 250,000 shares of 4.50&nbsp;percent cumulative convertible preferred stock for voluntary conversion. The conversion value per share of preferred stock was $89.43. CMS Energy issued 614,940 shares of its common stock and paid $13&nbsp;million cash on settlement. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">In July&nbsp;2010, holders tendered $8&nbsp;million principal amount of 3.375&nbsp;percent senior notes for voluntary conversion. The conversion value per $1,000 principal amount of convertible note was $1,666.57. CMS Energy issued 331,008 shares of its common stock and paid $8&nbsp;million cash on settlement. </div></div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 6pt; font-size: 10pt;" align="left">In September&nbsp;2010, holders tendered 633,971 shares of 4.50&nbsp;percent cumulative convertible preferred stock for voluntary conversion. The average conversion value per share of preferred stock was $103.88. CMS Energy issued 1,834,456 shares of its common stock and paid $32&nbsp;million cash on settlement of these conversions in October&nbsp;2010. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">In September&nbsp;2010, CMS Energy exercised its mandatory conversion rights for all of its outstanding 4.50&nbsp;percent cumulative convertible preferred stock. The conversion value per share of preferred stock was $104.22. CMS Energy issued 11,276,277 shares of its common stock and paid $194&nbsp;million on settlement of these conversions in October&nbsp;2010. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">As of September&nbsp;30, 2010, CMS Energy reclassified preferred stock of $226&nbsp;million to a current liability. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><b>Dividend Restrictions: </b>Under provisions of CMS Energy's senior notes indenture, at September&nbsp;30, 2010, payment of common stock dividends by CMS Energy was limited to $981&nbsp;million. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">Under the provisions of its articles of incorporation, at September&nbsp;30, 2010, Consumers had $425 million of unrestricted retained earnings available to pay common stock dividends to CMS Energy. Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers' retained earnings. Several decisions from FERC suggest that under a variety of circumstances common stock dividends from Consumers would not be limited to amounts in Consumers' retained earnings. Any decision by Consumers to pay common stock dividends in excess of retained earnings would be based on specific facts and circumstances and would result only after a formal regulatory filing process. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">For the nine months ended September&nbsp;30, 2010, CMS Energy received $259&nbsp;million of common stock dividends from Consumers. </div></div> </div> 172000000 172000000 111000000 111000000 131000000 65000000 205000000 107000000 43000000 206000000 191000000 203000000 231000000 926000000 405000000 1152000000 422000000 413000000 436000000 432000000 <div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 12pt; font-size: 10pt;" align="left"><b>8: DERIVATIVE INSTRUMENTS</b> </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">In order to limit exposure to certain market risks, primarily changes in commodity prices, interest rates, and foreign exchange rates, CMS Energy and Consumers may enter into various risk management contracts, such as forward contracts, futures, options, and swaps. In entering into these contracts, they follow established policies and procedures under the direction of an executive oversight committee consisting of senior management representatives and a risk committee consisting of business unit managers. Neither CMS Energy nor Consumers enters into any derivatives for trading purposes. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">The contracts used to manage market risks may qualify as derivative instruments. If a contract is a derivative and does not qualify for the normal purchases and sales exception, the contract is recorded on the balance sheet at its fair value. Each reporting period, the resulting asset or liability is adjusted to reflect any change in the fair value of the contract. Since none of CMS Energy's or Consumers' derivatives have been designated as accounting hedges, all changes in fair value are reported in earnings. For a discussion of how CMS Energy and Consumers determine the fair value of their derivatives, see Note 2, Fair Value Measurements. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><i>Commodity Price Risk</i>: In order to support ongoing operations, CMS Energy and Consumers enter into contracts for the future purchase and sale of various commodities, such as electricity, natural gas, and coal. These forward contracts are generally long-term in nature and result in physical delivery of the commodity at a contracted price. Most of these contracts are not subject to derivative accounting because: </div> <div style="margin-top: 6pt;"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td style="background: none transparent scroll repeat 0% 0%;" width="2%">&nbsp;</td> <td width="3%" nowrap="nowrap" align="left"><b>&bull;</b></td> <td width="1%">&nbsp;</td> <td>they do not have a notional amount (that is, a number of units specified in a derivative instrument, such as MWh of electricity or bcf of natural gas);</td></tr> <tr><td style="font-size: 6pt;">&nbsp;</td></tr> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td style="background: none transparent scroll repeat 0% 0%;" width="2%">&nbsp;</td> <td width="3%" nowrap="nowrap" align="left"><b>&bull;</b></td> <td width="1%">&nbsp;</td> <td>they qualify for the normal purchases and sales exception; or</td></tr> <tr><td style="font-size: 6pt;">&nbsp;</td></tr> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td style="background: none transparent scroll repeat 0% 0%;" width="2%">&nbsp;</td> <td width="3%" nowrap="nowrap" align="left"><b>&bull;</b></td> <td width="1%">&nbsp;</td> <td>there is not an active market for the commodity.</td></tr></table></div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">CMS Energy's and Consumers' coal purchase contracts are not derivatives because there is not an active market for the coal they purchase. If an active market for coal develops in the future, some of these contracts may qualify as derivatives. For Consumers, which is subject to regulatory accounting, the resulting fair value gains and losses would be offset by changes in regulatory assets and liabilities and would not affect net income. No other subsidiaries of CMS Energy enter into coal purchase contracts. </div></div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 6pt; font-size: 10pt;" align="left">CMS ERM has not designated its contracts to purchase and sell electricity and natural gas as normal purchases and sales and, therefore, CMS Energy accounts for those contracts as derivatives. To manage commodity price risks associated with these forward purchase and sale contracts, CMS ERM uses various financial instruments, such as futures, options, and swaps. At September&nbsp;30, 2010, CMS ERM held a forward contract for the physical sale of 709 GWh of electricity through 2015 on behalf of one of CMS Energy's non-utility generating plants. CMS ERM also held futures contracts through 2011 as an economic hedge of 27&nbsp;percent of the generating plant's natural gas requirements needed to serve a steam sales contract, for a total of 0.3 bcf of natural gas. In its role as a marketer of natural gas for third-party producers, CMS ERM held forward contracts to purchase 1.3 bcf and sell 1.0 bcf of natural gas through 2010 and a financial contract to sell 1.0 bcf of natural gas as an economic hedge of gas storage sales in 2011. At September&nbsp;30, 2010, CMS ERM held financial contracts through 2010 as an economic hedge against tolling arrangements with a purchase of 168 GWh of electricity and a sale of 1.1 bcf of gas. At September&nbsp;30, 2010, CMS ERM also held an option to sell 612 GWh of electricity and, as an economic hedge, contracts to purchase 0.4 bcf of natural gas. </div></div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 6pt; font-size: 10pt;" align="left">The following table summarizes the fair values of CMS Energy's and Consumers' derivative instruments: </div> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="28%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;" colspan="25" nowrap="nowrap" align="right">In Millions</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="11" nowrap="nowrap" align="center">Derivative Assets</td> <td>&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="11" nowrap="nowrap" align="center">Derivative Liabilities</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="7" nowrap="nowrap" align="center">Fair Value</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="7" nowrap="nowrap" align="center">Fair Value</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Balance</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Balance</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">&nbsp;</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Sheet</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">September 30,</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">December 31,</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Sheet</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">September 30,</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">December 31,</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Location</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">2010</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">2009</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Location</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">2010</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">2009</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="25" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td nowrap="nowrap"> <div style="text-indent: -15px; margin-left: 15px;"><font style="font-variant: small-caps;" class="_mt"><b>CMS Energy, including Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><i>Derivatives not designated as hedging instruments:</i></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="top"> <div style="text-indent: -15px; margin-left: 30px;">Commodity contracts (a)</div></td> <td>&nbsp;</td> <td valign="top" colspan="3" align="center">Other assets (b)</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">8</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td valign="top" colspan="3" align="center">Other liabilities (c)</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">7</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">9</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td colspan="2">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td valign="top"> <div style="text-indent: -15px; margin-left: 30px;">Interest rate contracts (d)</div></td> <td>&nbsp;</td> <td valign="top" colspan="3" align="center">Other assets</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td valign="top" colspan="3" align="center">Other liabilities</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="7" align="left">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="7" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Total CMS Energy Derivatives</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">8</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">7</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">10</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="25" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><font style="font-variant: small-caps;" class="_mt"><b>Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><i>Derivatives not designated as hedging instruments:</i></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 0px solid;" colspan="7" align="left">&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 0px solid;" colspan="7" align="left">&nbsp;</td></tr> <tr valign="bottom"><td valign="top"> <div style="text-indent: -15px; margin-left: 30px;">Commodity contracts</div></td> <td>&nbsp;</td> <td colspan="3" align="center">Other assets</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" align="center">Other liabilities</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="25" align="left">&nbsp;</td></tr></table></div> <div style="margin-top: 3pt;"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="3%"> </td> <td width="1%"> </td> <td width="96%"> </td></tr> <tr valign="top"><td nowrap="nowrap" align="left">(a)</td> <td>&nbsp;</td> <td>Assets and liabilities are presented gross and exclude the impact of offsetting derivative assets and liabilities under master netting agreements, which was $1&nbsp;million at September&nbsp;30, 2010 and December&nbsp;31, 2009.</td></tr> <tr style="font-size: 3pt;"><td>&nbsp;</td></tr> <tr valign="top"><td nowrap="nowrap" align="left">(b)</td> <td>&nbsp;</td> <td>Assets exclude the impact of offsetting cash margin deposits paid by other parties to CMS ERM, which was $5&nbsp;million at September&nbsp;30, 2010. CMS Energy presents these assets net of these impacts on its Consolidated Balance Sheets.</td></tr> <tr style="font-size: 3pt;"><td>&nbsp;</td></tr> <tr valign="top"><td nowrap="nowrap" align="left">(c)</td> <td>&nbsp;</td> <td>Liabilities exclude the $1&nbsp;million impact of offsetting cash margin deposits paid by CMS ERM to other parties at December&nbsp;31, 2009. CMS Energy presents these liabilities net of these impacts on its Consolidated Balance Sheets.</td></tr> <tr style="font-size: 3pt;"><td>&nbsp;</td></tr> <tr valign="top"><td nowrap="nowrap" align="left">(d)</td> <td>&nbsp;</td> <td>At December&nbsp;31, 2009, CMS Energy's derivatives included an interest rate collar held by Grayling as an economic hedge of the variable interest rate charged on its outstanding revenue bonds. Effective January&nbsp;1, 2010, CMS Energy deconsolidated Grayling. CMS Energy reflected its share of the loss on the interest rate collar, which was less than $1&nbsp;million at September 30, 2010, in Income (loss)&nbsp;from equity method investees on its Consolidated Statements of Income. For additional details about the deconsolidation of Grayling, see Note 11, Variable Interest Entities.</td></tr></table></div></div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 6pt; font-size: 10pt;" align="left">The following tables summarize the effect of CMS Energy's and Consumers' derivative instruments on their Consolidated Statements of Income: </div> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="64%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;" colspan="13" nowrap="nowrap" align="right">In Millions</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Location of Gain (Loss)</td> <td>&nbsp;</td> <td colspan="7" nowrap="nowrap" align="center">Amount of Gain (Loss)</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">on Derivatives</td> <td>&nbsp;</td> <td colspan="7" nowrap="nowrap" align="center">on Derivatives</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="3" nowrap="nowrap" align="center">Recognized in Income</td> <td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="7" nowrap="nowrap" align="center">Recognized in Income</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td nowrap="nowrap" align="left">Three months ended September 30</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">2010</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">2009</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="13" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><font style="font-variant: small-caps;" class="_mt"><b>CMS Energy, including Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><i>Derivatives not designated as hedging instruments:</i></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Commodity contracts</div></td> <td>&nbsp;</td> <td colspan="3" align="center">Operating Revenue</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">2</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">2</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">&nbsp;</div></td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Fuel for electric generation</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(1</td> <td nowrap="nowrap">)</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">&nbsp;</div></td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Cost of power purchased</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">&nbsp;</div></td> <td>&nbsp;</td> <td colspan="3" align="center">Other income</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">3</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">4</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="7" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Total CMS Energy</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">7</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">5</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="13" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><font style="font-variant: small-caps;" class="_mt"><b>Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><i>Derivatives not designated as hedging instruments:</i></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Commodity contracts</div></td> <td>&nbsp;</td> <td colspan="3" align="center">Other income</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">3</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">4</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="13" align="left">&nbsp;</td></tr></table></div> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="64%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;" colspan="13" nowrap="nowrap" align="right">In Millions</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Location of Gain (Loss)</td> <td>&nbsp;</td> <td colspan="7" nowrap="nowrap" align="center">Amount of Gain (Loss)</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">on Derivatives</td> <td>&nbsp;</td> <td colspan="7" nowrap="nowrap" align="center">on Derivatives</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="3" nowrap="nowrap" align="center">Recognized in Income</td> <td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="7" nowrap="nowrap" align="center">Recognized in Income</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td nowrap="nowrap" align="left">Nine months ended September 30</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">2010</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">2009</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="13" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><font style="font-variant: small-caps;" class="_mt"><b>CMS Energy, including Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><i>Derivatives not designated as hedging instruments:</i></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Commodity contracts</div></td> <td>&nbsp;</td> <td colspan="3" align="center">Operating Revenue</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">5</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">7</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">&nbsp;</div></td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Fuel for electric generation</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">3</td> <td>&nbsp;</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(3</td> <td nowrap="nowrap">)</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">&nbsp;</div></td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Cost of gas sold</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(3</td> <td nowrap="nowrap">)</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">&nbsp;</div></td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Cost of power purchased</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">2</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">&nbsp;</div></td> <td>&nbsp;</td> <td colspan="3" align="center">Other income</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">4</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">5</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Foreign exchange contracts (a)</div></td> <td>&nbsp;</td> <td colspan="3" align="center">Other expense</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(1</td> <td nowrap="nowrap">)</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="7" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Total CMS Energy</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">14</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">5</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="13" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><font style="font-variant: small-caps;" class="_mt"><b>Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><i>Derivatives not designated as hedging instruments:</i></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Commodity contracts</div></td> <td>&nbsp;</td> <td colspan="3" align="center">Other income</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">4</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">5</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="13" align="left">&nbsp;</td></tr></table></div> <div style="margin-top: 3pt;"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="3%"> </td> <td width="1%"> </td> <td width="96%"> </td></tr> <tr valign="top"><td nowrap="nowrap" align="left">(a)</td> <td>&nbsp;</td> <td>This derivative loss relates to a foreign-exchange forward contract that CMS Energy settled in January&nbsp;2009.</td></tr></table></div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">At September&nbsp;30, 2010, none of CMS Energy's derivative liabilities was subject to credit-risk-related contingency features. At December&nbsp;31, 2009, CMS Energy's derivative liabilities subject to credit-risk-related contingent features were less than $1&nbsp;million. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><i>Credit Risk: </i>CMS Energy's swaps, options, and forward contracts contain credit risk, which is the risk that a counterparty will fail to meet its contractual obligations. CMS Energy reduces this risk through established policies and procedures. CMS Energy assesses credit quality by considering credit ratings, financial condition, and other available information for counterparties. A credit limit is established for each counterparty based on the evaluation of their credit quality. Exposure to potential loss under each contract is monitored and action is taken when appropriate. </div></div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 6pt; font-size: 10pt;" align="left">CMS ERM enters into contracts primarily with companies in the electric and gas industry. This industry concentration may have a positive or negative impact on CMS Energy's exposure to credit risk based on how similar changes in economic conditions, the weather, or other conditions affect these counterparties. CMS ERM reduces its credit risk exposure by using industry-standard agreements that allow for netting positive and negative exposures associated with the same counterparty. Typically, these agreements also allow each party to demand adequate assurance of future performance from the other party, when there is reason to do so. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">The following table illustrates CMS Energy's exposure to potential losses at September&nbsp;30, 2010, if each counterparty within this industry concentration failed to meet its contractual obligations. This table includes contracts accounted for as derivatives. It does not include trade accounts receivable, derivative contracts that qualify for the normal purchases and sales exception, or other contracts that CMS Energy does not account for as derivatives. </div> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="40%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;" colspan="21" nowrap="nowrap" align="right">In Millions</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Net Exposure</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Net Exposure</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Exposure</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">from</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">from</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Before</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Investment</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Investment</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Collateral</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Grade</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Grade</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" align="center">(a)</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Collateral Held</td> <td>&nbsp;</td> <td style="border-bottom: #ffffff 1px solid;" colspan="3" nowrap="nowrap" align="center">Net Exposure</td> <td>&nbsp;</td> <td style="border-bottom: #ffffff 1px solid;" colspan="3" nowrap="nowrap" align="center">Companies</td> <td>&nbsp;</td> <td style="border-bottom: #ffffff 1px solid;" colspan="3" nowrap="nowrap" align="center">Companies (%)</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="21" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">CMS Energy</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">6</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">5</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">&nbsp;&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="21" align="left">&nbsp;</td></tr></table></div> <div style="margin-top: 3pt;"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="3%"> </td> <td width="1%"> </td> <td width="96%"> </td></tr> <tr valign="top"><td nowrap="nowrap" align="left">(a)</td> <td>&nbsp;</td> <td>Exposure is reflected net of payables or derivative liabilities if netting arrangements exist.</td></tr></table></div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">CMS Energy does not expect a material adverse effect on its Consolidated Balance Sheets and Consolidated Statements of Income as a result of counterparty nonperformance, given CMS Energy's credit policies, current exposures, and credit reserves. </div></div> </div> 15000000 -1000000 5000000 -85000000 -233000000 -28000000 -103000000 -103000000 -259000000 -34000000 -91000000 -8000000 -2000000 -2000000 -1000000 -8000000 -2000000 -3000000 -1000000 0 2000000 9000000 1000000 0 11000000 8000000 10000000 0.93 0.29 1.3 0.58 0.9 0.28 1.19 0.53 <div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 12pt; font-size: 10pt;" align="left"><b>6: EARNINGS PER SHARE &#8212; CMS ENERGY</b> </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">The following table presents CMS Energy's basic and diluted EPS computations based on Income from Continuing Operations: </div> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="76%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;" colspan="9" nowrap="nowrap" align="right">In Millions, Except Per Share Amounts&nbsp;&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td nowrap="nowrap" align="left">Three months ended September 30</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="right">2010&nbsp;&nbsp;</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="right">2009&nbsp;&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="9" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><b>Income Available to Common Stockholders</b></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Income from Continuing Operations</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">146</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">76</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Less Income Attributable to Noncontrolling Interests</div></td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">&nbsp;</td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">&nbsp;</td> <td align="right">(6</td> <td nowrap="nowrap">)</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Less Charge for Deferred Issuance Costs on Preferred Stock</div></td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">&nbsp;</td> <td align="right">(8</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Less Preferred Stock Dividends</div></td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">&nbsp;</td> <td align="right">(3</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">&nbsp;</td> <td align="right">(2</td> <td nowrap="nowrap">)</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="7" nowrap="nowrap" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Income from Continuing Operations Available to Common Stockholders &#8212; Basic and Diluted</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">134</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">68</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 3px double;" colspan="7" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><b>Average Common Shares Outstanding</b></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Weighted Average Shares &#8212; Basic</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">229.0</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">227.3</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Add dilutive Contingently Convertible Securities</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">24.9</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">11.1</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Add dilutive Convertible Debentures</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">0.6</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Add dilutive Non-vested Stock Awards, Options, and Warrants</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">0.2</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">0.1</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="7" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Weighted Average Shares &#8212; Diluted</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">254.7</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">238.5</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><b>Income from Continuing Operations per Average Common Share Available to Common Stockholders</b></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Basic</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">0.58</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">0.30</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Diluted</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">0.53</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">0.29</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="9" align="left">&nbsp;</td></tr></table></div></div> <div style="font-family: 'Times New Roman',Times,serif;"> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="76%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;" colspan="9" nowrap="nowrap" align="right">In Millions, Except Per Share Amounts&nbsp;&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td nowrap="nowrap" align="left">Nine months ended September 30</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="right">2010&nbsp;&nbsp;</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="right">2009&nbsp;&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="9" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><b>Income Available to Common Stockholders</b></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Income from Continuing Operations</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">335</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">206</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Less Income Attributable to Noncontrolling Interests</div></td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">&nbsp;</td> <td align="right">(3</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">&nbsp;</td> <td align="right">(9</td> <td nowrap="nowrap">)</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Less Charge for Deferred Issuance Costs on Preferred Stock</div></td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">&nbsp;</td> <td align="right">(8</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Less Preferred Stock Dividends</div></td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">&nbsp;</td> <td align="right">(8</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">&nbsp;</td> <td align="right">(8</td> <td nowrap="nowrap">)</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="7" nowrap="nowrap" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Income from Continuing Operations Available to Common Stockholders &#8212; Basic and Diluted</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">316</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">189</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 3px double;" colspan="7" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><b>Average Common Shares Outstanding</b></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Weighted Average Shares &#8212; Basic</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">228.4</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">227.0</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Add dilutive Contingently Convertible Securities</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">21.3</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">8.6</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Add dilutive Non-vested Stock Awards, Options, and Warrants</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">0.1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">0.1</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="7" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Weighted Average Shares &#8212; Diluted</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">249.8</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">235.7</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><b>Income from Continuing Operations per Average Common Share Available to Common Stockholders</b></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Basic</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">1.38</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">0.83</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Diluted</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">1.26</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">0.80</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="9" align="left">&nbsp;</td></tr></table></div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><b>Contingently Convertible Securities: </b>When CMS Energy has earnings from continuing operations, its contingently convertible securities dilute EPS to the extent that the conversion value of a security, which is based on the average market price of CMS Energy's common stock, exceeds the principal value of that security. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">In September&nbsp;2010, CMS Energy exercised its mandatory conversion rights for all of its outstanding 4.50&nbsp;percent cumulative convertible preferred stock and charged unamortized issuance costs of $8 million to Charge for Deferred Issuance Costs on Preferred Stock, in Accumulated Deficit, which reduced Net Income Available to Common Stockholders, on its Consolidated Statements of Income. In October&nbsp;2010, CMS Energy issued 11,276,277 shares of its common stock upon conversion. For additional details on contingently convertible securities, see Note 5, Financings. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><b>Stock Options and Warrants: </b>For each of the three and nine months ended September&nbsp;30, 2010, outstanding options to purchase 0.4&nbsp;million shares of CMS Energy common stock had no impact on diluted EPS, since the exercise price was greater than the average market price of CMS Energy common stock. These stock options have the potential to dilute EPS in the future. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><b>Non-vested Stock Awards: </b>CMS Energy's non-vested stock awards are composed of participating and non-participating securities. The participating securities accrue cash dividends when common stockholders receive dividends. Since the recipient is not required to return the dividends to CMS Energy if the recipient forfeits the award, the non-vested stock awards are considered participating securities. As such, the participating non-vested stock awards were included in the computation of basic EPS. The non-participating securities accrue stock dividends that vest concurrently with the stock award. If the recipient forfeits the award, the stock dividends accrued on the non-participating securities are also forfeited. Accordingly, the non-participating awards and stock dividends were included in the computation of diluted EPS, but not basic EPS.&nbsp;&nbsp;</div></div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><b>Convertible Debentures: </b>For the nine months ended September&nbsp;30, 2010 and for each of the three and nine months ended September&nbsp;30, 2009, there was no impact on diluted EPS from CMS Energy's 7.75 percent convertible subordinated debentures. Using the if-converted method, the debentures would have: </div> <div style="margin-top: 6pt;"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td style="background: none transparent scroll repeat 0% 0%;" width="2%">&nbsp;</td> <td width="3%" nowrap="nowrap" align="left"><b>&bull;</b></td> <td width="1%">&nbsp;</td> <td>increased the numerator of diluted EPS by less than $1&nbsp;million for the three months ended September&nbsp;30, 2009, from an assumed reduction of interest expense, net of tax;</td></tr> <tr><td style="font-size: 6pt;">&nbsp;</td></tr> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td style="background: none transparent scroll repeat 0% 0%;" width="2%">&nbsp;</td> <td width="3%" nowrap="nowrap" align="left"><b>&bull;</b></td> <td width="1%">&nbsp;</td> <td>increased the denominator of diluted EPS by 0.7&nbsp;million shares for the three months ended September&nbsp;30, 2009;</td></tr> <tr><td style="font-size: 6pt;">&nbsp;</td></tr> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td style="background: none transparent scroll repeat 0% 0%;" width="2%">&nbsp;</td> <td width="3%" nowrap="nowrap" align="left"><b>&bull;</b></td> <td width="1%">&nbsp;</td> <td>increased the numerator of diluted EPS by $1&nbsp;million for the nine months ended September&nbsp;30, 2010, and by $4&nbsp;million for the nine months ended September&nbsp;30, 2009, from an assumed reduction of interest expense, net of tax; and</td></tr> <tr><td style="font-size: 6pt;">&nbsp;</td></tr> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td style="background: none transparent scroll repeat 0% 0%;" width="2%">&nbsp;</td> <td width="3%" nowrap="nowrap" align="left"><b>&bull;</b></td> <td width="1%">&nbsp;</td> <td>increased the denominator of diluted EPS by 0.7&nbsp;million shares for the nine months ended September&nbsp;30, 2010, and by 3.0&nbsp;million shares for the nine months ended September&nbsp;30, 2009.</td></tr></table></div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">CMS Energy can revoke the conversion rights if certain conditions are met. </div></div> </div> 1043000000 1038000000 1171000000 1167000000 158000000 148000000 120000000 120000000 <div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 12pt; font-size: 10pt;" align="left"><b>7: FINANCIAL INSTRUMENTS</b> </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">The carrying amounts of CMS Energy's and Consumers' cash, cash equivalents, current accounts and notes receivable, short-term investments, and current liabilities approximate their fair values because of their short-term nature. The cost or carrying amounts and fair values of CMS Energy's and Consumers' long-term financial instruments were as follows: </div> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="52%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;" colspan="16" nowrap="nowrap" align="right">In Millions</td> <td style="border-bottom: #000000 1px solid;">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="6" nowrap="nowrap" align="center">September 30, 2010</td> <td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="6" nowrap="nowrap" align="center">December 31, 2009</td> <td style="border-bottom: #000000 1px solid;">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Cost or</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Cost or</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">&nbsp;</td> <td>&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Carrying</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Carrying</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">&nbsp;</td> <td>&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Amount</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Fair Value</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Amount</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Fair Value</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="17" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><font style="font-variant: small-caps;" class="_mt"><b>CMS Energy, including Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Securities held to maturity</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">5</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">6</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">4</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">4</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Securities available for sale</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">90</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">92</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">26</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">27</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Notes receivable, net</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">331</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">359</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">269</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">279</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Long-term debt (a)</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">7,019</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">7,979</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">6,567</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">7,013</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="17" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><font style="font-variant: small-caps;" class="_mt"><b>Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Securities available for sale</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">64</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">90</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">24</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">45</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Long-term debt (b)</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">4,371</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">4,916</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">4,406</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">4,635</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="17" align="left">&nbsp;</td></tr></table></div> <div style="margin-top: 3pt;"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="3%"> </td> <td width="1%"> </td> <td width="96%"> </td></tr> <tr valign="top"><td nowrap="nowrap" align="left">(a)</td> <td>&nbsp;</td> <td>Includes current portion of long-term debt of $1,006&nbsp;million at September&nbsp;30, 2010 and $672 million at December&nbsp;31, 2009.</td></tr> <tr style="font-size: 3pt;"><td>&nbsp;</td></tr> <tr valign="top"><td nowrap="nowrap" align="left">(b)</td> <td>&nbsp;</td> <td>Includes current portion of long-term debt of $173&nbsp;million at September&nbsp;30, 2010 and $343 million at December&nbsp;31, 2009.</td></tr></table></div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">Notes receivable, net consist of EnerBank's fixed-rate installment loans. EnerBank estimates the fair value of these loans using a discounted cash flows technique that incorporates current market interest rates as well as assumptions about the remaining life of the loans and credit risk. Fair values for impaired loans are estimated using discounted cash flows or underlying collateral values. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">CMS Energy and Consumers estimate the fair value of their long-term debt using quoted prices from market trades of the debt, if available. In the absence of quoted prices, CMS Energy and Consumers&nbsp;calculate market yields and prices for the debt using a matrix method that incorporates market data for similarly rated debt. Depending on the information available, other valuation techniques may be used that rely on internal assumptions and models. For its convertible securities, CMS Energy incorporates, as appropriate, information on the market prices of CMS Energy's common stock. </div></div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 6pt; font-size: 10pt;" align="left">The effects of third-party credit enhancements are excluded from the fair value measurements of long-term debt. At September&nbsp;30, 2010, CMS Energy's long-term debt included $239&nbsp;million principal amount that was supported by third-party insurance or other credit enhancements. This entire principal amount was at Consumers. At December&nbsp;31, 2009, CMS Energy's long-term debt included $286&nbsp;million principal amount that was supported by third-party insurance or other credit enhancements. Of this amount, $271&nbsp;million principal amount was at Consumers. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">The following table summarizes CMS Energy's and Consumers' investment securities: </div> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="20%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;" colspan="32" nowrap="nowrap" align="right">In Millions</td> <td style="border-bottom: #000000 1px solid;">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="14" nowrap="nowrap" align="center">September 30, 2010</td> <td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="14" nowrap="nowrap" align="center">December 31, 2009</td> <td style="border-bottom: #000000 1px solid;">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Unrealized</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Unrealized</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Fair</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Unrealized</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Unrealized</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Fair</td> <td>&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Cost</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Gains</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Losses</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Value</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Cost</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Gains</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Losses</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Value</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="33" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><font style="font-variant: small-caps;" class="_mt"><b>CMS Energy, including Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Available for sale:</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">SERP:</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Mutual fund</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">62</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">2</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">64</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">State and municipal bonds</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">28</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">28</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">26</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">27</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Held to maturity:</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Debt securities</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">5</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">6</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">4</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">4</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="33" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><font style="font-variant: small-caps;" class="_mt"><b>Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Available for sale:</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">SERP:</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Mutual fund</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">39</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">40</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">State and municipal bonds</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">17</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">17</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">16</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">16</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">CMS Energy common stock</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">8</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">25</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">33</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">8</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">21</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">29</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="33" align="left">&nbsp;</td></tr></table></div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">The mutual fund classified as available for sale is a short-term, fixed-income fund. Shares in this fund were acquired during the nine months ended September&nbsp;30, 2010. State and municipal bonds classified as available for sale consist of investment grade state and municipal bonds. Debt securities classified as held to maturity consist of state and municipal bonds and mortgage-backed securities held by EnerBank. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">The following table summarizes the sales activity for CMS Energy's and Consumers' investment securities: </div> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="52%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;" colspan="16" nowrap="nowrap" align="right">In Millions</td> <td>&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-bottom: #000000 0px solid;" colspan="6" nowrap="nowrap" align="center">Three months ended</td> <td>&nbsp;</td> <td>&nbsp;</td> <td style="border-bottom: #000000 0px solid;" colspan="6" nowrap="nowrap" align="center">Nine months ended</td> <td>&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td nowrap="nowrap" align="left">September 30</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="left">&nbsp;&nbsp;&nbsp; 2010</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="left">&nbsp;&nbsp;&nbsp; 2009</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="left">&nbsp;&nbsp;&nbsp; 2010</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="left">&nbsp;&nbsp;&nbsp; 2009</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="17" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><b>Proceeds from sales of investment securities:</b></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">CMS Energy, including Consumers</div></td> <td>&nbsp;</td> <td align="left">&nbsp;&nbsp;$</td> <td align="left">&nbsp;&nbsp;&nbsp;&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">&nbsp;&nbsp;$</td> <td align="left">&nbsp;&nbsp;&nbsp;2</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">&nbsp;&nbsp;$</td> <td align="left">&nbsp;&nbsp;&nbsp;2</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">&nbsp;&nbsp;$</td> <td align="left">&nbsp;&nbsp;&nbsp;4</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Consumers</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">&nbsp;&nbsp;&nbsp;&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">&nbsp;&nbsp;&nbsp;1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">&nbsp;&nbsp;&nbsp;1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">&nbsp;&nbsp;&nbsp;3</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="17" align="left">&nbsp;</td></tr></table></div></div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 6pt; font-size: 10pt;" align="left">All of the proceeds related to sales of state and municipal bonds that were held within the SERP and classified as available for sale. Realized losses on these sales were insignificant for both CMS Energy and Consumers during each period. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">The fair values of the SERP state and municipal bonds by contractual maturity at September&nbsp;30, 2010 were as follows: </div> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="76%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;" colspan="8" nowrap="nowrap" align="right">In Millions</td> <td>&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">CMS Energy,</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">&nbsp;</td> <td>&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">including</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">&nbsp;</td> <td>&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Consumers</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Consumers</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="9" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Due one year or less</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="center">&#8212;&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="center">&#8212;&nbsp;&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Due after one year through five years</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="center">13</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="center">8</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Due after five years through ten years</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="center">&nbsp;&nbsp;8</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="center">5</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Due after ten years</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="center">&nbsp;&nbsp;7</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="center">4</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td> <div style="text-indent: -15px; margin-left: 15px;">&nbsp;</div></td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="left"> <div style="width: 66%; border-top: #000000 1px solid;"> </div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="left"> <div style="width: 66%; border-top: #000000 1px solid;"> </div></td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Total</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="center">28</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="center">17&nbsp;</td></tr></table></div></div> </div> <div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 12pt; font-size: 10pt;" align="left"><b>2: FAIR VALUE MEASUREMENTS</b> </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. When measuring fair value, CMS Energy and Consumers are required to incorporate all assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. A fair value hierarchy prioritizes inputs used to measure fair value according to their observability in the market. The three levels of the fair value hierarchy are as follows: </div> <div style="margin-top: 6pt;"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td style="background: none transparent scroll repeat 0% 0%;" width="2%">&nbsp;</td> <td width="3%" nowrap="nowrap" align="left"><b>&bull;</b></td> <td width="1%">&nbsp;</td> <td>Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities.</td></tr> <tr><td style="font-size: 6pt;">&nbsp;</td></tr> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td style="background: none transparent scroll repeat 0% 0%;" width="2%">&nbsp;</td> <td width="3%" nowrap="nowrap" align="left"><b>&bull;</b></td> <td width="1%">&nbsp;</td> <td>Level 2 inputs are observable, market-based inputs, other than Level 1 prices. Level 2 inputs may include quoted prices for similar assets or liabilities in active markets, quoted prices in inactive markets, interest rates and yield curves observable at commonly quoted intervals, credit risks, default rates, and inputs derived from or corroborated by observable market data.</td></tr> <tr><td style="font-size: 6pt;">&nbsp;</td></tr> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td style="background: none transparent scroll repeat 0% 0%;" width="2%">&nbsp;</td> <td width="3%" nowrap="nowrap" align="left"><b>&bull;</b></td> <td width="1%">&nbsp;</td> <td>Level 3 inputs are unobservable inputs that reflect CMS Energy's or Consumers' own assumptions about how market participants would value their assets and liabilities.</td></tr></table></div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">To the extent possible, CMS Energy and Consumers use quoted market prices or other observable market pricing data in valuing assets and liabilities measured at fair value. If this information is unavailable, they use market-corroborated data or reasonable estimates about market participant assumptions. CMS Energy and Consumers classify fair value measurements within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement in its entirety. </div></div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 12pt; font-size: 10pt;" align="left"><b>Assets and Liabilities Measured at Fair Value on a Recurring Basis</b> </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">The following table summarizes, by level within the fair value hierarchy, CMS Energy's and Consumers' assets and liabilities reported at fair value on a recurring basis at September&nbsp;30, 2010: </div> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="52%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;" colspan="17" nowrap="nowrap" align="right">In Millions</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="right">Total</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="right">Level 1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="right">Level 2</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="right">Level 3</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="17" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><font style="font-variant: small-caps;" class="_mt"><b>CMS Energy, including Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Assets:</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Cash equivalents</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">624</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">624</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Restricted cash equivalents</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">5</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">5</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Nonqualified deferred compensation plan assets</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">5</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">5</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">SERP:</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">Cash equivalents</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">Mutual fund</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">64</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">64</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">State and municipal bonds</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">28</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">28</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Derivative instruments:</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">Commodity contracts (a)</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">8</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">3</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">4</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="15" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Total (b)</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">735</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">702</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">32</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">1</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 3px double;" colspan="15" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">&nbsp;</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Liabilities:</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Nonqualified deferred compensation plan liabilities</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">5</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">5</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Derivative instruments:</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">Commodity contracts (c)</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">7</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">2</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">4</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="15" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Total (d)</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">12</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">6</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">2</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">4</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="17" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><font style="font-variant: small-caps;" class="_mt"><b>Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Assets:</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Cash equivalents</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">185</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">185</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Restricted cash equivalents</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">5</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">5</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">CMS Energy common stock</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">33</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">33</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Nonqualified deferred compensation plan assets</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">4</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">4</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">SERP:</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">Mutual fund</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">40</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">40</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">State and municipal bonds</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">17</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">17</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Derivative instruments:</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">Commodity contracts</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="15" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Total (e)</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">285</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">267</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">17</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">1</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 3px double;" colspan="15" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">&nbsp;</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Liabilities:</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Nonqualified deferred compensation plan liabilities</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">4</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">4</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="15" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Total</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">4</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">4</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="17" align="left">&nbsp;</td></tr></table></div> <div style="margin-top: 3pt;"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="3%"> </td> <td width="1%"> </td> <td width="96%"> </td></tr> <tr valign="top"><td nowrap="nowrap" align="left">(a)</td> <td>&nbsp;</td> <td>This amount is gross and excludes the $1&nbsp;million impact of offsetting derivative assets and liabilities under master netting arrangements and the $5&nbsp;million impact of offsetting cash margin deposits paid to CMS ERM by other parties.</td></tr> <tr style="font-size: 3pt;"><td>&nbsp;</td></tr> <tr valign="top"><td nowrap="nowrap" align="left">(b)</td> <td>&nbsp;</td> <td>At September&nbsp;30, 2010, CMS Energy's assets classified as Level 3 represented less than one percent of CMS Energy's total assets measured at fair value.</td></tr></table></div></div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 3pt;"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="3%"> </td> <td width="1%"> </td> <td width="96%"> </td></tr> <tr valign="top"><td nowrap="nowrap" align="left">(c)</td> <td>&nbsp;</td> <td>This amount is gross and excludes the $1&nbsp;million impact of offsetting derivative assets and liabilities under master netting arrangements.</td></tr> <tr style="font-size: 3pt;"><td>&nbsp;</td></tr> <tr valign="top"><td nowrap="nowrap" align="left">(d)</td> <td>&nbsp;</td> <td>At September&nbsp;30, 2010, CMS Energy's liabilities classified as Level 3 represented 33&nbsp;percent of CMS Energy's total liabilities measured at fair value. The Level 3 liabilities consist primarily of an electricity sales agreement held by CMS ERM.</td></tr> <tr style="font-size: 3pt;"><td>&nbsp;</td></tr> <tr valign="top"><td nowrap="nowrap" align="left">(e)</td> <td>&nbsp;</td> <td>At September&nbsp;30, 2010, Consumers' assets classified as Level 3 represented less than one percent of Consumers' total assets measured at fair value.</td></tr></table></div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">The following table summarizes, by level within the fair value hierarchy, CMS Energy's and Consumers' assets and liabilities reported at fair value on a recurring basis at December&nbsp;31, 2009: </div> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="52%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;" colspan="17" nowrap="nowrap" align="right">In Millions</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="right">Total</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="right">Level 1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="right">Level 2</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="right">Level 3</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="17" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><font style="font-variant: small-caps;" class="_mt"><b>CMS Energy, including Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Assets:</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Cash equivalents</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">57</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">57</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Restricted cash equivalents</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">12</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">12</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Nonqualified deferred compensation plan assets</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">5</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">5</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">SERP:</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">Cash equivalents</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">49</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">49</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">State and municipal bonds</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">27</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">27</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Derivative instruments:</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">Commodity contracts (a)</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="15" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Total</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">151</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">123</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">28</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 3px double;" colspan="15" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">&nbsp;</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Liabilities:</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Nonqualified deferred compensation plan liabilities</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">5</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">5</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Derivative instruments:</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">Commodity contracts (b)</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">9</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">7</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">Interest rate contracts</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="15" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Total (c)</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">15</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">6</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">8</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="17" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><font style="font-variant: small-caps;" class="_mt"><b>Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Assets:</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Cash equivalents</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">31</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">31</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Restricted cash equivalents</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">5</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">5</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">CMS Energy common stock</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">29</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">29</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Nonqualified deferred compensation plan assets</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">4</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">4</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">SERP:</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">Cash equivalents</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">30</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">30</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">State and municipal bonds</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">16</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">16</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="15" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Total</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">115</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">99</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">16</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 3px double;" colspan="15" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">&nbsp;</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Liabilities:</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Nonqualified deferred compensation plan liabilities</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">4</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">4</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="15" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Total</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">4</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">4</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="17" align="left">&nbsp;</td></tr></table>&nbsp;</div></div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 3pt;"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="3%"> </td> <td width="1%"> </td> <td width="96%"> </td></tr> <tr valign="top"><td nowrap="nowrap" align="left">(a)</td> <td>&nbsp;</td> <td>This amount is gross and excludes the $1&nbsp;million impact of offsetting derivative assets and liabilities under master netting arrangements.</td></tr> <tr style="font-size: 3pt;"><td>&nbsp;</td></tr> <tr valign="top"><td nowrap="nowrap" align="left">(b)</td> <td>&nbsp;</td> <td>This amount is gross and excludes the $1&nbsp;million impact of offsetting derivative assets and liabilities under master netting arrangements and the $1&nbsp;million impact of offsetting cash margin deposits paid by CMS ERM to other parties.</td></tr> <tr style="font-size: 3pt;"><td>&nbsp;</td></tr> <tr valign="top"><td nowrap="nowrap" align="left">(c)</td> <td>&nbsp;</td> <td>At December&nbsp;31, 2009, CMS Energy's liabilities classified as Level 3 represented 53&nbsp;percent of CMS Energy's total liabilities measured at fair value. The Level 3 liabilities consist primarily of an electricity sales agreement held by CMS ERM.</td></tr></table></div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><i>Cash Equivalents: </i>Cash equivalents and restricted cash equivalents consist of money market funds with daily liquidity. The funds invest in U.S. Treasury notes, other government-backed securities, and repurchase agreements collateralized by U.S. Treasury notes. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><i>Nonqualified Deferred Compensation Plan Assets: </i>CMS Energy's and Consumers' nonqualified deferred compensation plan assets are invested in various mutual funds. CMS Energy and Consumers value these assets using a market approach, using the daily quoted NAVs provided by the fund managers that are the basis for transactions to buy or sell shares in each fund. CMS Energy and Consumers report these assets in Other non-current assets on their Consolidated Balance Sheets. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><i>SERP Assets: </i>CMS Energy and Consumers value their SERP assets using a market approach, incorporating prices and other relevant information from market transactions. The SERP cash equivalents consist of a money market fund with daily liquidity, which invests in state and municipal securities. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">The SERP invests in a short-term, fixed-income mutual fund that holds a variety of debt securities with average maturities of one to three years. The fund invests primarily in investment-grade debt securities but, in order to achieve its investment objective, it may invest a portion of its assets in high-yield securities, foreign debt, and derivative instruments. The fair value of the fund is determined using the daily published NAV, which is the basis for transactions to buy or sell shares in the fund. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">The SERP state and municipal bonds are investment grade securities that are valued using a matrix pricing model that incorporates Level 2 market-based information. The fair value of the bonds is derived from various observable inputs, including benchmark yields, reported trades, broker/dealer quotes, bond ratings, and general information on market movements normally considered by market participants when pricing such debt securities. CMS Energy and Consumers report their SERP assets in Other non-current assets on their Consolidated Balance Sheets. For additional details about SERP securities, see Note 7, Financial Instruments. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><i>Nonqualified Deferred Compensation Plan Liabilities: </i>CMS Energy and Consumers value their non-qualified deferred compensation plan liabilities based on the fair values of the plan assets, as they reflect what is owed to the plan participants in accordance with their investment elections. CMS Energy and Consumers report these liabilities in Other non-current liabilities on their Consolidated Balance Sheets. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><i>Derivative Instruments: </i>CMS Energy and Consumers value their derivative instruments using either a market approach that incorporates information from market transactions, or an income approach that discounts future expected cash flows to a present value amount. They use various inputs to value the derivatives depending on the type of contract and the availability of market data. CMS Energy has exchange-traded derivative contracts that are valued based on Level 1 quoted prices in actively traded markets, as well as derivatives that are valued using Level 2 inputs, including commodity market prices, interest rates, credit ratings, default rates, and market-based seasonality factors.&nbsp;&nbsp;</div></div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 6pt; font-size: 10pt;" align="left">CMS Energy's derivatives include an electricity sales agreement held by CMS ERM that extends beyond the term for which quoted electricity prices are available. To value this agreement, CMS Energy uses an internally developed model to project future prices. This method incorporates a proprietary forward power pricing curve that is based on forward gas prices and an implied heat rate. CMS Energy also increases the fair value of the liability for this agreement by an amount that reflects the uncertainty of its model. Since the modeling technique is significant to the overall fair value measurement, this agreement is classified as Level 3. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">For all fair values other than Level 1 prices, CMS Energy and Consumers incorporate adjustments for the risk of nonperformance. For derivative assets, a credit adjustment is applied against the asset based on the published default rate for the credit rating that CMS Energy and Consumers assign to the counterparty based on an internal credit-scoring model. This model considers various inputs, including the counterparty's financial statements, credit reports, trade press, and other information that would be available to market participants. To the extent that the internal ratings are comparable to credit ratings published by independent rating agencies, the resulting credit adjustment is classified within Level 2. If the internal model results in a rating that is outside of the range of ratings given by the independent agencies and the credit adjustment is significant to the overall valuation, the derivative fair value is classified as Level 3. CMS Energy and Consumers adjust their derivative liabilities downward to reflect the risk of their own nonperformance, based on their published credit ratings. Adjustments for credit risk using the approach outlined within this paragraph are not materially different from the adjustments that would result from using credit default swap rates for the contracts presently held. For additional details about derivative contracts, see Note 8, Derivative Instruments. </div> <div style="margin-top: 12pt; font-size: 10pt;" align="left"><b>Assets and Liabilities Measured at Fair Value on a Recurring Basis using Significant Level 3 Inputs</b> </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">The following table is a reconciliation of changes in the fair values of Level 3 assets and liabilities at CMS Energy, which includes Level 3 assets and liabilities at Consumers: </div> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="76%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;" colspan="9" nowrap="nowrap" align="right">In Millions</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td nowrap="nowrap" align="left">Three months ended September 30</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">2010</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">2009</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="9" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Balance at July 1</div></td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">$</td> <td align="right">(5</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">$</td> <td align="right">(11</td> <td nowrap="nowrap">)</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Total gains (losses)&nbsp;included in earnings (a)</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">5</td> <td>&nbsp;</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(1</td> <td nowrap="nowrap">)</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Purchases, sales, issuances, and settlements (net)</div></td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(3</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">4</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="7" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Balance at September 30</div></td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">$</td> <td align="right">(3</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">$</td> <td align="right">(8</td> <td nowrap="nowrap">)</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="9" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td>Unrealized gains (losses)&nbsp;included in earnings for the three months ended September&nbsp;30 relating to assets and liabilities still held at September&nbsp;30 (a)</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">3</td> <td>&nbsp;</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">$</td> <td align="right">(1</td> <td nowrap="nowrap">)</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="9" align="left">&nbsp;</td></tr></table></div> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="76%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;" colspan="9" nowrap="nowrap" align="right">In Millions</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td nowrap="nowrap" align="left">Nine months ended September 30</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">2010</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">2009</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="9" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Balance at January 1</div></td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">$</td> <td align="right">(8</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">$</td> <td align="right">(16</td> <td nowrap="nowrap">)</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Total gains included in earnings (a)</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">8</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">5</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Purchases, sales, issuances, and settlements (net)</div></td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(3</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">3</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="7" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Balance at September 30</div></td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">$</td> <td align="right">(3</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">$</td> <td align="right">(8</td> <td nowrap="nowrap">)</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="9" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td>Unrealized gains included in earnings for the nine months ended September&nbsp;30 relating to assets and liabilities still held at September&nbsp;30 (a)</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">5</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">3</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="9" align="left">&nbsp;</td></tr></table></div> <div style="margin-top: 3pt;"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="3%"> </td> <td width="1%"> </td> <td width="96%"> </td></tr> <tr valign="top"><td nowrap="nowrap" align="left">(a)</td> <td>&nbsp;</td> <td>CMS Energy records realized and unrealized gains and losses for Level 3 recurring fair values in earnings as a component of Operating Revenue or Maintenance and other operating expenses on its Consolidated Statements of Income.</td></tr></table>&nbsp;</div></div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 6pt; font-size: 10pt;" align="left">At September&nbsp;30, 2010, Consumers held $1&nbsp;million in assets classified as Level 3. No further detail is provided on Consumers' Level 3 assets, due to the immateriality of the amounts. </div> <div style="margin-top: 12pt; font-size: 10pt;" align="left"><b>Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis</b> </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">The following table summarizes, by level within the fair value hierarchy, CMS Energy's assets reported at fair value on a nonrecurring basis during the nine months ended September&nbsp;30, 2010: </div> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="52%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;" colspan="17" nowrap="nowrap" align="right">In Millions</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Gains</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Level 1</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Level 2</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Level 3</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">(Losses)</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="17" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><font style="font-variant: small-caps;" class="_mt"><b>CMS Energy, including Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Assets held for sale</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">7</td> <td>&nbsp;</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">$</td> <td align="right">(4</td> <td nowrap="nowrap">)</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="17" align="left">&nbsp;</td></tr></table></div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">In June&nbsp;2010, CMS Energy wrote down assets held for sale from their carrying amount of $11&nbsp;million to their fair value of $7&nbsp;million, resulting in a loss of $4&nbsp;million, which was recorded in earnings as part of discontinued operations for the nine months ended September&nbsp;30, 2010. The fair value was determined based on a discounted cash flow technique. The reduction in fair value was due primarily to declines in forward electricity prices. Consumers did not have any nonrecurring fair value measurements during the nine&nbsp;months ended September&nbsp;30, 2010. </div></div> </div> 393000000 335000000 140000000 119000000 472000000 407000000 183000000 157000000 13000000 9000000 5000000 6000000 6000000 2000000 0 189000000 68000000 316000000 134000000 9000000 6000000 3000000 1000000 335000000 437000000 123000000 165000000 542000000 562000000 233000000 252000000 206000000 76000000 335000000 146000000 0.83 0.3 1.38 0.58 0.8 0.29 1.26 0.53 23000000 -1000000 -17000000 0 0 0 0 23000000 -1000000 -17000000 0.1 -0.01 -0.08 0.1 -0.01 -0.07 -2000000 -1000000 8000000 3000000 <div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 12pt; font-size: 10pt;" align="left"><b>10: INCOME TAXES</b> </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">The actual income tax expense on income from continuing operations, excluding income attributable to noncontrolling interests, differs from the amount computed by applying the statutory U.S. federal income tax rate as follows: </div> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="76%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;" colspan="9" nowrap="nowrap" align="right">In Millions</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td nowrap="nowrap" align="left">Nine months ended September 30</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">2010</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">2009</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="9" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><font style="font-variant: small-caps;" class="_mt"><b>CMS Energy, including Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Income from continuing operations before income taxes</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">539</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">326</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">&nbsp;</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Income tax expense at statutory 35% federal rate</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">189</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">114</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Increase (decrease)&nbsp;in income taxes from:</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Change in tax law, Medicare Part D subsidy</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">3</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">ITC amortization</div></td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(3</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(3</td> <td nowrap="nowrap">)</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Medicare Part D exempt income</div></td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(8</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(5</td> <td nowrap="nowrap">)</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Property differences</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">3</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Research and development credits, net</div></td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(3</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">State and local income taxes, net of federal benefit</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">22</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">19</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Valuation allowance</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Other, net</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">5</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="7" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Income tax expense</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">207</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">129</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="7" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Effective tax rate</div></td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">38.4</td> <td nowrap="nowrap">%</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">39.6</td> <td nowrap="nowrap">%</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="9" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><font style="font-variant: small-caps;" class="_mt"><b>Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Income from continuing operations before income taxes</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">562</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">437</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">&nbsp;</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Income tax expense at statutory 35% federal rate</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">197</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">153</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Increase (decrease)&nbsp;in taxes from:</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">ITC amortization</div></td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(3</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(3</td> <td nowrap="nowrap">)</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Medicare Part D exempt income</div></td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(7</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(4</td> <td nowrap="nowrap">)</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Property differences</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">2</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">4</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Research and development credits, net</div></td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(3</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">State and local income taxes, net of federal benefit</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">20</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">14</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Other, net</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="7" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Income tax expense</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">207</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">165</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="7" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Effective tax rate</div></td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">36.8</td> <td nowrap="nowrap">%</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">37.8</td> <td nowrap="nowrap">%</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="9" align="left">&nbsp;</td></tr></table></div></div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 6pt; font-size: 10pt;" align="left">For taxable years beginning after December&nbsp;31, 2012, the Health Care Acts repeal the tax deduction for the portion of health care costs that are reimbursed by the Medicare Part&nbsp;D subsidy. To reflect the law change, CMS Energy and Consumers decreased their deferred tax asset balances by $68 million, with CMS Energy recognizing deferred tax expense of $3&nbsp;million and Consumers recognizing an increase to net regulatory tax assets of $65&nbsp;million (not including the effects of ratemaking tax gross-ups). Therefore, this legislation had no effect on Consumers' net income for the nine months ended September&nbsp;30, 2010. </div></div> </div> 129000000 165000000 47000000 64000000 207000000 207000000 87000000 92000000 205000000 205000000 239000000 241000000 -55000000 -55000000 -9000000 -9000000 -181000000 -143000000 -187000000 -195000000 122000000 122000000 127000000 127000000 -122000000 -119000000 -88000000 -90000000 15000000 29000000 -12000000 -9000000 -6000000 -8000000 -85000000 -110000000 41000000 75000000 0 0 50000000 0 96000000 70000000 73000000 38000000 307000000 199000000 103000000 67000000 324000000 210000000 102000000 64000000 287000000 187000000 97000000 63000000 293000000 183000000 97000000 60000000 23000000 15000000 7000000 5000000 34000000 30000000 6000000 5000000 13000000 12000000 5000000 5000000 14000000 13000000 5000000 4000000 9000000 29000000 49000000 33000000 15256000000 14622000000 15571000000 14574000000 1954000000 1671000000 2297000000 1176000000 10364000000 9093000000 10408000000 9192000000 0 1000000 5895000000 4063000000 6013000000 4198000000 97000000 45000000 11000000 -35000000 335000000 -66000000 -675000000 -635000000 -726000000 -640000000 634000000 699000000 998000000 900000000 220000000 220000000 220000000 69000000 69000000 69000000 315000000 315000000 315000000 145000000 145000000 145000000 9000000 9000000 9000000 6000000 6000000 6000000 3000000 3000000 3000000 1000000 1000000 1000000 212000000 270000000 67000000 100000000 299000000 353000000 134000000 159000000 52000000 41000000 -4000000 14000000 46000000 37000000 16000000 12000000 81000000 79000000 74000000 61000000 269000000 322000000 4002000000 3825000000 1033000000 986000000 3930000000 3801000000 1124000000 1066000000 590000000 595000000 230000000 218000000 820000000 735000000 319000000 304000000 <div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 6pt; font-size: 10pt;" align="left">These interim Consolidated Financial Statements have been prepared by CMS Energy and Consumers in accordance with accounting principles generally accepted in the U.S. for interim financial information and with the instructions to Form 10-Q and Article&nbsp;10 of Regulation&nbsp;S-X. As a result, CMS Energy and Consumers have condensed or omitted certain information and Note disclosures normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the U.S. CMS Energy and Consumers have reclassified certain prior period amounts to conform to the presentation in the current period. In management's opinion, the unaudited information contained in this report reflects all adjustments of a normal recurring nature necessary to ensure the fair presentation of financial position, results of operations, and cash flows for the periods presented. The Notes to Consolidated Financial Statements and the related Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related Notes contained in the 2009 Form 10-K. Due to the seasonal nature of CMS Energy's and Consumers' operations, the results presented for this interim period are not necessarily indicative of results to be achieved for the fiscal year. </div></div> </div> 31000000 23000000 39000000 30000000 254000000 195000000 178000000 109000000 -1000000 -1000000 -1000000 -1000000 -2000000 -2000000 0 0 0 1000000 0 0 0 4000000 4000000 7000000 7000000 3000000 3000000 3000000 3000000 0 4000000 4000000 0 6000000 6000000 4000000 4000000 4000000 4000000 0 -1000000 0 -1000000 853000000 755000000 278000000 254000000 844000000 801000000 273000000 258000000 422000000 413000000 128000000 125000000 436000000 432000000 133000000 131000000 118000000 111000000 104000000 101000000 123000000 86000000 119000000 91000000 310000000 241000000 278000000 188000000 50000000 0 25000000 6000000 20000000 2000000 7000000 7000000 2000000 2000000 62000000 31000000 11000000 10000000 27000000 27000000 9000000 9000000 -16000000 -10000000 -1000000 1000000 33000000 33000000 31000000 31000000 4000000 13000000 -16000000 6000000 49000000 2000000 85000000 233000000 103000000 259000000 8000000 2000000 8000000 2000000 617000000 612000000 611000000 608000000 247000000 239000000 171000000 161000000 136000000 132000000 169000000 166000000 <div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 12pt; font-size: 10pt;" align="left"><b>9: RETIREMENT BENEFITS</b> </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">CMS Energy and Consumers provide Pension Plan, OPEB, and other retirement benefit plans to employees. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">The following tables show the costs and other changes in plan assets and benefit obligations incurred in CMS Energy's and Consumers' retirement benefits plans: </div> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="52%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;" colspan="17" nowrap="nowrap" align="right">In Millions</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-bottom: #000000 0px solid;" colspan="15" nowrap="nowrap" align="center">Pension</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="7" nowrap="nowrap" align="center">Three Months Ended</td> <td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="7" nowrap="nowrap" align="center">Nine Months Ended</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td nowrap="nowrap" align="left">September 30</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">2010</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">2009</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">2010</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">2009</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="17" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><font style="font-variant: small-caps;" class="_mt"><b>CMS Energy, including Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Service cost</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">11</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">10</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">33</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">30</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Interest expense</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">25</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">24</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">74</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">72</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Expected return on plan assets</div></td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(24</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(22</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(70</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(65</td> <td nowrap="nowrap">)</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;"><i>Amortization of:</i></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">Net loss</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">13</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">10</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">39</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">31</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">Prior service cost</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">2</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">4</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">5</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="15" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Net periodic cost</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">26</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">24</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">80</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">73</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Regulatory adjustments (a)</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">7</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">30</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="15" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Net periodic cost after regulatory adjustments</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">33</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">24</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">110</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">73</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="17" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><font style="font-variant: small-caps;" class="_mt"><b>Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Service cost</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">11</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">9</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">32</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">29</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Interest expense</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">23</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">24</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">71</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">70</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Expected return on plan assets</div></td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(22</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(20</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(67</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(62</td> <td nowrap="nowrap">)</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;"><i>Amortization of:</i></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">Net loss</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">13</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">9</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">38</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">29</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">Prior service cost</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">2</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">4</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">5</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="15" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Net periodic cost</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">26</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">24</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">78</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">71</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Regulatory adjustments (a)</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">7</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">30</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="15" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Net periodic cost after regulatory adjustments</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">33</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">24</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">108</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">71</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="17" align="left">&nbsp;</td></tr></table></div> <div style="margin-top: 3pt;"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="3%"> </td> <td width="1%"> </td> <td width="96%"> </td></tr> <tr valign="top"><td nowrap="nowrap" align="left">(a)</td> <td>&nbsp;</td> <td>Regulatory adjustments are the differences between amounts included in rates and the periodic benefit cost calculated.</td></tr></table></div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">CMS Energy's and Consumers' expected long-term rate of return on Pension Plan assets is eight percent. For the nine months ended September&nbsp;30, 2010, the actual return on Pension Plan assets was 8.8 percent, and for 2009 the actual return was 21&nbsp;percent. The expected rate of return is an assumption about long-term asset performance that CMS Energy and Consumers review annually for reasonableness and appropriateness. </div></div> <div style="font-family: 'Times New Roman',Times,serif;"> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="52%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;" colspan="17" nowrap="nowrap" align="right">In Millions</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-bottom: #000000 0px solid;" colspan="15" nowrap="nowrap" align="center">OPEB</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-bottom: #000000 0px solid;" colspan="7" nowrap="nowrap" align="center">Three Months Ended</td> <td>&nbsp;</td> <td style="border-bottom: #000000 0px solid;" colspan="7" nowrap="nowrap" align="center">Nine Months Ended</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="17" align="left">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td nowrap="nowrap" align="left">September 30</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">2010</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">2009</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">2010</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">2009</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="17" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><font style="font-variant: small-caps;" class="_mt"><b>CMS Energy, including Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Service cost</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">7</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">6</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">20</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">19</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Interest expense</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">20</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">20</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">61</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">60</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Expected return on plan assets</div></td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(16</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(12</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(45</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(38</td> <td nowrap="nowrap">)</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;"><i>Amortization of:</i></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">Net loss</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">8</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">8</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">24</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">25</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">Prior service credit</div></td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(5</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(3</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(12</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(8</td> <td nowrap="nowrap">)</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="15" nowrap="nowrap" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Net periodic cost</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">14</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">19</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">48</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">58</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Regulatory adjustments (a)</div></td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">5</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="15" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Net periodic cost after regulatory adjustments</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">13</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">19</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">53</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">58</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="17" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><font style="font-variant: small-caps;" class="_mt"><b>Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Service cost</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">6</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">6</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">19</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">18</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Interest expense</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">19</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">20</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">59</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">59</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Expected return on plan assets</div></td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(14</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(11</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(42</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(35</td> <td nowrap="nowrap">)</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;"><i>Amortization of:</i></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">Net loss</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">8</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">8</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">24</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">25</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">Prior service credit</div></td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(5</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(3</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(11</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(8</td> <td nowrap="nowrap">)</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="15" nowrap="nowrap" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Net periodic cost</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">14</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">20</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">49</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">59</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Regulatory adjustments (a)</div></td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">5</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="15" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Net periodic cost after regulatory adjustments</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">13</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">20</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">54</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">59</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="17" align="left">&nbsp;</td></tr></table></div> <div style="margin-top: 3pt;"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="3%"> </td> <td width="1%"> </td> <td width="96%"> </td></tr> <tr valign="top"><td nowrap="nowrap" align="left">(a)</td> <td>&nbsp;</td> <td>Regulatory adjustments are the differences between amounts included in rates and the periodic benefit cost calculated.</td></tr></table></div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">In February&nbsp;2010, the MPSC issued an order in Consumers' GCR case that allowed Consumers to collect a one-time surcharge under a Pension Plan and OPEB equalization mechanism. For the nine months ended September&nbsp;30, 2010, Consumers collected $2&nbsp;million of Pension Plan and $1&nbsp;million of OPEB surcharge revenue in gas rates. Consumers' collection of the equalization mechanism surcharge had no impact on net income for the nine months ended September&nbsp;30, 2010. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">In April&nbsp;2010, the MPSC issued an order in Consumers' 2007 PSCR case that allowed Consumers to collect a one-time surcharge under a Pension Plan and OPEB equalization mechanism. For the nine months ended September&nbsp;30, 2010, Consumers collected $21&nbsp;million of Pension Plan and $6&nbsp;million of OPEB surcharge revenue in electric rates. Consumers' collection of the equalization mechanism surcharge had no impact on net income for the nine months ended September&nbsp;30, 2010. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">In July&nbsp;2010, the MPSC issued an order in Consumers' 2008 PSCR case that allowed Consumers to collect a one-time surcharge under a Pension Plan and OPEB equalization mechanism. For the nine months ended September&nbsp;30, 2010, Consumers collected $8&nbsp;million of Pension Plan surcharge revenue and refunded $1&nbsp;million of OPEB surcharge revenue in electric rates. Consumers' collection of the equalization mechanism surcharge had no impact on net income for the nine months ended September 30, 2010.&nbsp;&nbsp;</div></div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 6pt; font-size: 10pt;" align="left">CMS Energy and Consumers remeasured their OPEB obligations at April&nbsp;30, 2010 to incorporate the effects of a new collective bargaining agreement reached between the Union and Consumers. The OPEB plan remeasurement decreased CMS Energy's OPEB liability by $95&nbsp;million, OPEB regulatory asset by $93&nbsp;million, and AOCL by $2&nbsp;million, and will result in a decrease in benefit costs of $14&nbsp;million for 2010. The OPEB plan remeasurement decreased Consumers' OPEB liability and OPEB regulatory asset by $93&nbsp;million each, and will result in a decrease in benefit costs of $13&nbsp;million for 2010. With the plan remeasurement, the discount rate was reduced from 6.0&nbsp;percent at December&nbsp;31, 2009 to 5.85&nbsp;percent at April&nbsp;30, 2010. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">In March&nbsp;2010, CMS Energy contributed $100&nbsp;million to its pension fund, which included a contribution of $97&nbsp;million by Consumers. In February&nbsp;2010, CMS Energy contributed $17&nbsp;million to its SERP fund, which included a contribution of $11&nbsp;million by Consumers. </div></div> </div> 1460000000 1396000000 1283000000 1225000000 8000000 2000000 2000000 1000000 8000000 2000000 3000000 1000000 0 0 8000000 8000000 239000000 44000000 0 44000000 100000000 100000000 0 250000000 250000000 0 1188000000 500000000 850000000 300000000 7000000 7000000 -12000000 105000000 229000000 272000000 229000000 272000000 272000000 75000000 101000000 75000000 101000000 101000000 318000000 355000000 318000000 355000000 355000000 146000000 160000000 146000000 160000000 160000000 46000000 40000000 45000000 42000000 4000000 4000000 1000000 1000000 4000000 4000000 1000000 1000000 -3000000 -3000000 -1000000 -1000000 -3000000 -3000000 -1000000 -1000000 <div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 12pt; font-size: 10pt;" align="left"><b>4: UTILITY RATE MATTERS</b> </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">Rate matters are critical to Consumers. Depending upon the specific issues, the outcomes of rate cases and proceedings could have a material adverse effect on Consumers' cash flows and results of operations. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><b>CONSUMERS' ELECTRIC UTILITY RATE MATTERS</b> </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><b>Power Supply Cost Recovery: </b>The PSCR process is designed to allow Consumers to recover all of its power supply costs if incurred under reasonable and prudent policies and practices. The MPSC reviews these costs, policies, and practices in annual plan and reconciliation proceedings. Consumers adjusts its PSCR billing factor monthly in order to minimize the overrecovery or underrecovery amount in the annual PSCR reconciliation. </div></div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><i>PSCR Reconciliations</i>: The following table summarizes the PSCR reconciliation filing pending with the MPSC: </div> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="20%">&nbsp;</td> <td width="2%">&nbsp;</td> <td width="20%">&nbsp;</td> <td width="2%">&nbsp;</td> <td width="25%">&nbsp;</td> <td width="2%">&nbsp;</td> <td width="25%">&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" valign="top" colspan="7" align="left">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td nowrap="nowrap" align="center">PSCR Cost of</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td nowrap="nowrap" align="left">PSCR Year</td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">Date Filed</td> <td>&nbsp;</td> <td nowrap="nowrap" align="center">Net Underrecovery</td> <td>&nbsp;</td> <td nowrap="nowrap" align="center">Power Sold</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" valign="top" colspan="7" align="left">&nbsp;</td></tr> <tr valign="bottom"><td valign="top"> <div style="text-indent: 0px; margin-left: 0px;">2009 </div></td> <td>&nbsp;</td> <td valign="top" align="left">March&nbsp;2010 </td> <td>&nbsp;</td> <td valign="top" align="center">$39 million (a) </td> <td>&nbsp;</td> <td valign="top" align="center">$1.6&nbsp;billion</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" valign="top" colspan="7" align="left">&nbsp;</td></tr></table></div> <div style="margin-top: 3pt;"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="3%"> </td> <td width="1%"> </td> <td width="96%"> </td></tr> <tr valign="top"><td nowrap="nowrap" align="left">(a)</td> <td>&nbsp;</td> <td>In 2005, the MPSC approved an economic development discount for a large industrial customer to promote long-term investments in the industrial infrastructure of Michigan. It was determined in the November&nbsp;2009 electric rate case order that recovery of this discount should be provided through the electric general rates that Consumers self-implemented in May&nbsp;2009. That order, however, did not address the recovery of the power-supply component of the discount provided from January&nbsp;2009 through self-implementation, which totaled $4&nbsp;million. Consumers has requested recovery of this amount through its 2009 PSCR reconciliation.</td></tr></table></div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">In March&nbsp;2010, the MPSC issued an order in Consumers' 2007 PSCR reconciliation, disallowing PSCR recovery of $3&nbsp;million of economic development discounts and $4&nbsp;million of net replacement power costs associated with a crane incident at Consumers' Campbell plant. The MPSC approved the 2007 PSCR reconciliation, as modified by the order, and authorized Consumers to include an underrecovery of $21&nbsp;million in its 2008 PSCR plan. In April&nbsp;2010, Consumers filed for a rehearing in its 2007 PSCR reconciliation, asking the MPSC to reconsider its decision to disallow recovery of a $2 million economic development discount provided in 2007 to a large industrial customer. In June 2010, the MPSC denied Consumers' petition for rehearing. In July&nbsp;2010, Consumers filed a claim for appeal with the Michigan Court of Appeals regarding the MPSC's decision to disallow recovery of the economic development discount. Consumers cannot predict the outcome of this proceeding. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">In June&nbsp;2010, the MPSC issued an order in Consumers' 2008 PSCR reconciliation, disallowing PSCR recovery of a $3&nbsp;million economic development discount. The MPSC approved the 2008 PSCR reconciliation, as modified by the order, and authorized Consumers to include an overrecovery of $14&nbsp;million in its 2009 PSCR reconciliation. In July&nbsp;2010, Consumers filed for a rehearing in its 2008 PSCR reconciliation, asking the MPSC to reconsider its decision to disallow recovery of the $3 million economic development discount. Consumers cannot predict the outcome of this proceeding. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><i>PSCR Plan</i>: In September&nbsp;2009, Consumers submitted its 2010 PSCR plan to the MPSC. In accordance with its proposed plan, Consumers self-implemented the 2010 PSCR charge beginning in January&nbsp;2010. In July&nbsp;2010, the ALJ recommended that the MPSC approve Consumers' 2010 PSCR plan with the exception of $5&nbsp;million of gas transportation costs related to Zeeland. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">In September&nbsp;2010, Consumers submitted its 2011 PSCR plan to the MPSC. In accordance with its proposed plan, Consumers expects to self-implement the 2011 PSCR charge beginning in January&nbsp;2011. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">While Consumers expects to recover all of its PSCR costs, it cannot predict the financial impact or outcome of these proceedings. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><b>Electric Rate Cases: </b>The MPSC, through a final order and rehearing in Consumers' 2009 electric rate case, directed Consumers to refund to customers the difference between the rates it self-implemented in May&nbsp;2009 and the rates authorized in the order, plus interest, subject to a reconciliation proceeding. In August&nbsp;2010, the MPSC ordered Consumers to refund self-implemented revenue of $16&nbsp;million to customers. Consumers refunded this amount in September&nbsp;2010. </div></div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 6pt; font-size: 10pt;" align="left">The MPSC's order in Consumers' 2009 electric rate case also adopted a pilot decoupling mechanism and an uncollectible expense tracking mechanism. At September 30, 2010, Consumers had a $31 million regulatory asset for electric decoupling recorded on its Consolidated Balance Sheets. Various parties have filed appeals concerning aspects of the MPSC order, including both the pilot decoupling mechanism and the uncollectible expense tracking mechanism. Consumers cannot predict the outcome of these proceedings. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">In January&nbsp;2010, Consumers filed an application with the MPSC seeking an annual increase in revenue of $178&nbsp;million based on an 11&nbsp;percent authorized return on equity. The filing requested authority to recover new investments in system reliability, environmental compliance, and technology advancements. In August&nbsp;2010, the MPSC Staff recommended a revenue increase of $91&nbsp;million, based on a 10.35&nbsp;percent return on equity. The MPSC Staff also recommended an additional revenue increase of $35&nbsp;million if the MPSC denies Consumers' request for a mechanism to track an economic development discount provided to a large industrial customer. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">In July&nbsp;2010, Consumers self-implemented an annual electric rate increase of $150&nbsp;million, subject to refund with interest. Consumers self-implemented $28&nbsp;million less than it originally requested in order to respond to concerns raised by the MPSC Staff and other intervenors and to provide a balance between the need for investment in Michigan's infrastructure, which will support economic recovery in the state, and the resulting rate impacts on customers. The following table details the components of Consumers' self-implemented electric rate increase and the increase recommended by the MPSC Staff: </div> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="64%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="3" nowrap="nowrap" align="center">In Millions</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Increase</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Consumers'</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Recommended</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Self-Implemented</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">by the</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td nowrap="nowrap" align="left">Components of the increase in revenue</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Increase</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">MPSC Staff</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">Difference</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="13" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Investment in rate base</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">106</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">74</td> <td>&nbsp;</td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">$</td> <td align="right">(32</td> <td nowrap="nowrap">)</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Recovery of operating and maintenance costs</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">21</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">32</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">11</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Return on equity</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">18</td> <td>&nbsp;</td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">&nbsp;</td> <td align="right">(19</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">&nbsp;</td> <td align="right">(37</td> <td nowrap="nowrap">)</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Impact of sales declines</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">5</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">4</td> <td>&nbsp;</td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">&nbsp;</td> <td align="right">(1</td> <td nowrap="nowrap">)</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="11" nowrap="nowrap" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Total</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">150</td> <td>&nbsp;</td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">$</td> <td align="right">91 </td> <td nowrap="nowrap">(a)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">$</td> <td align="right">(59</td> <td nowrap="nowrap">)</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="13" align="left">&nbsp;</td></tr></table></div> <div style="margin-top: 3pt;"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="3%"> </td> <td width="1%"> </td> <td width="96%"> </td></tr> <tr valign="top"><td nowrap="nowrap" align="left">(a)</td> <td>&nbsp;</td> <td>Does not include the $35&nbsp;million of additional revenue the MPSC Staff recommends if the MPSC denies Consumers' request for an economic development discount tracking mechanism.</td></tr></table></div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">In its July&nbsp;2010 order allowing Consumers to self-implement the $150&nbsp;million increase, the MPSC expressed concern about utilities repeatedly self-implementing rate increases over short time periods, and before the return of previous overcollections of self-implemented rate increases. The MPSC also resolved to dispense with the ALJ's PFD in this rate case, in order to shorten the amount of time during which self-implemented rates will be in effect. In August&nbsp;2010, the Attorney General filed a claim for appeal with the Michigan Court of Appeals regarding the MPSC's July&nbsp;2010 order. Consumers cannot predict the financial impact or outcome of this electric rate case. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><b>Electric Operation and Maintenance Expenditures Show-Cause Order: </b>In December&nbsp;2005, the MPSC authorized Consumers to increase its electric rates. In the same order, the MPSC ordered Consumers to spend certain amounts on future tree-trimming and line-clearing activities, as well as on the operation and maintenance of Consumers' fossil-fueled power plants. At that time, the MPSC also ordered Consumers to establish mechanisms to track these expenditures and stated that the rate increase was subject to refund with interest if the specified amounts were not spent on these activities.</div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">In October&nbsp;2009, the MPSC issued a show-cause order alleging that, in 2007, Consumers spent $14 million less on forestry and fossil-fueled plant operation and maintenance activity than the amount ordered by the MPSC and that Consumers has not refunded this amount to customers. The order directed Consumers to explain why it should not be found in violation of the MPSC's December&nbsp;2005 order and subjected to applicable sanctions, and why the refunds required by that order have not yet occurred. Consumers' response indicated that the total amount it spent on forestry and fossil-fueled plant operation and maintenance activity for the years 2006 through 2009 exceeded the total amounts included in rates for these activities. </div></div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 6pt; font-size: 10pt;" align="left">In March&nbsp;2010, the MPSC Staff requested that the MPSC find Consumers in violation of the December 2005 order and that the MPSC order Consumers to refund $27&nbsp;million for failure to meet annual spending requirements during 2007 and 2008. Consumers filed a response, stating that it would be unreasonable and unlawful to order a refund of this amount and that Consumers' expenditures were consistent with the MPSC's orders. In March&nbsp;2010, the ALJ's PFD found Consumers' expenditures to be prudent and that Consumers did not violate the December&nbsp;2005 order. The ALJ recommended that the MPSC find that no violation of the December&nbsp;2005 order occurred and that no refunds be made to customers. Consumers cannot predict the outcome of this proceeding. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><b>Big Rock Decommissioning: </b>The MPSC and FERC regulate the recovery of Consumers' costs to decommission Big Rock. Subsequent to 2000, Consumers stopped funding a Big Rock trust fund because the collection period for an MPSC-authorized decommissioning surcharge expired on that date. The level of funds provided by the trust fell short of the amount needed to complete decommissioning and Consumers provided $44&nbsp;million of corporate contributions for decommissioning costs. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">In an order issued in February&nbsp;2010, the MPSC concluded that certain revenues collected during a statutory rate freeze from 2001 through 2003 should have been deposited in the decommissioning trust fund. The MPSC agreed that Consumers was entitled to recover the $44&nbsp;million decommissioning shortfall, but concluded that Consumers had collected this amount previously through the rates in effect during the rate freeze. In April&nbsp;2010, the MPSC ordered Consumers to refund $85&nbsp;million of revenue collected in excess of decommissioning costs plus interest, over seven months beginning in July&nbsp;2010. At September&nbsp;30, 2010, Consumers had a $44&nbsp;million regulatory liability recorded on its Consolidated Balance Sheets for this refund. Consumers filed an appeal with the Michigan Court of Appeals in March&nbsp;2010 to dispute the MPSC's conclusion that the collections received during the rate freeze should be subject to refund. Consumers cannot predict the outcome of this proceeding. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">Consumers has paid $30&nbsp;million to Entergy to assume ownership and responsibility for the Big Rock ISFSI, and has incurred $55&nbsp;million for nuclear fuel storage costs as a result of the DOE's failure to accept spent nuclear fuel. Consumers is seeking recovery of these costs from the DOE. At September&nbsp;30, 2010, Consumers had an $85&nbsp;million regulatory asset recorded on its Consolidated Balance Sheets for these costs. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><b>Electric Depreciation: </b>In February&nbsp;2010, Consumers filed an electric depreciation case related to its wholly owned electric utility property. As ordered by the MPSC, Consumers prepared a traditional cost-of-removal study, which supported a $46&nbsp;million increase in annual depreciation expense. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">Also in February&nbsp;2010, Consumers filed an electric depreciation case for Ludington, the pumped storage plant jointly owned by Consumers and Detroit Edison. This case, filed jointly with Detroit Edison, requests an increase in annual depreciation expense. Consumers' share of this increase is $9&nbsp;million annually. Consumers cannot predict the financial impact or outcome of these proceedings. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><b>Renewable Energy Plan: </b>In June&nbsp;2010, Consumers filed its first annual report and reconciliation for its renewable energy plan with the MPSC, requesting approval of Consumers' reconciliation of renewable energy plan costs for 2009. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><b>Energy Optimization Plan: </b>In April&nbsp;2010, Consumers filed its first annual report and reconciliation for its energy optimization plan with the MPSC, requesting approval of Consumers' reconciliation of energy optimization plan costs for 2009. Consumers also requested approval of the collection of a $6&nbsp;million incentive payment for both its gas and electric energy optimization plans. During 2009, Consumers achieved 134&nbsp;percent of its electric savings target and 132&nbsp;percent of its gas savings target. These achievements qualify Consumers to earn the maximum incentive allowed by the MPSC, which is calculated as 15&nbsp;percent of Consumers' investment in energy savings. </div></div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 6pt; font-size: 10pt;" align="left">As one of the conditions to the continuation of the electric and gas pilot decoupling mechanisms, Consumers must exceed the statutory savings targets specified in the 2008 Energy Legislation for 2011 through 2014. In September&nbsp;2010, Consumers filed an amended energy optimization plan to recover the additional spending necessary to exceed these savings targets. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><b>CONSUMERS' GAS UTILITY RATE MATTERS</b> </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><b>Gas Cost Recovery: </b>The GCR process is designed to allow Consumers to recover all of its purchased natural gas costs if incurred under reasonable and prudent policies and practices. The MPSC reviews these costs, policies, and practices in annual plan and reconciliation proceedings. Consumers adjusts its GCR billing factor monthly in order to minimize the overrecovery or underrecovery amount in the annual GCR reconciliation. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><i>GCR Reconciliations</i>: The following table summarizes the GCR reconciliation filings pending with the MPSC: </div> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="20%">&nbsp;</td> <td width="2%">&nbsp;</td> <td width="20%">&nbsp;</td> <td width="2%">&nbsp;</td> <td width="25%">&nbsp;</td> <td width="2%">&nbsp;</td> <td width="25%">&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" valign="top" colspan="7" align="left">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td nowrap="nowrap" align="center">GCR Cost of</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td nowrap="nowrap" align="left">GCR Year</td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">Date Filed</td> <td>&nbsp;</td> <td nowrap="nowrap" align="center">Net (Under)/Over recovery</td> <td>&nbsp;</td> <td nowrap="nowrap" align="center">Gas Sold</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" valign="top" colspan="7" align="left">&nbsp;</td></tr> <tr valign="bottom"><td valign="top"> <div style="text-indent: 0px; margin-left: 0px;">2008-2009 </div></td> <td>&nbsp;</td> <td valign="top" align="left">June&nbsp;2009 </td> <td>&nbsp;</td> <td valign="top" align="center">$(15)&nbsp;million (a) </td> <td>&nbsp;</td> <td valign="top" align="center">$1.8&nbsp;billion</td></tr> <tr valign="bottom"><td valign="top"> <div style="text-indent: 0px; margin-left: 0px;">2009-2010 </div></td> <td>&nbsp;</td> <td valign="top" align="left">June&nbsp;2010 </td> <td>&nbsp;</td> <td valign="top" align="center">&nbsp; $1&nbsp;million </td> <td>&nbsp;</td> <td valign="top" align="center">$1.3&nbsp;billion</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" valign="top" colspan="7" align="left">&nbsp;</td></tr></table></div> <div style="margin-top: 3pt;"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="3%"> </td> <td width="1%"> </td> <td width="96%"> </td></tr> <tr valign="top"><td nowrap="nowrap" align="left">(a)</td> <td>&nbsp;</td> <td>In August&nbsp;2010, the ALJ recommended that the MPSC allow Consumers to include its $15 million net underrecovery in the 2009-2010 GCR plan year.</td></tr></table></div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><i>GCR Plans: </i>In March&nbsp;2010, the MPSC authorized Consumers to implement its 2009-2010 base GCR factor and generally approved Consumers' plan. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">In December&nbsp;2009, Consumers filed an application with the MPSC seeking approval of a GCR plan for its 2010-2011 GCR plan year. In April&nbsp;2010, Consumers self-implemented its filed GCR plan. In September&nbsp;2010, the ALJ recommended that the MPSC approve Consumers' 2010-2011 GCR plan with certain adjustments to its purchasing guidelines and contingent cost recovery methodology. While Consumers expects to recover all of its GCR costs, it cannot predict the financial impact or outcome of these proceedings.</div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><b>Gas Rate Cases: </b>In May&nbsp;2009, Consumers filed an application with the MPSC seeking an annual increase in revenue of $114&nbsp;million based on an 11&nbsp;percent authorized return on equity. The filing requested authorization to implement an uncollectible expense tracking mechanism, Pension Plan and OPEB equalization mechanisms, as well as a revenue decoupling mechanism.</div></div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 6pt; font-size: 10pt;" align="left">In November&nbsp;2009, Consumers self-implemented a gas rate increase in the annual amount of $89 million. In May&nbsp;2010, the MPSC issued its order in this case, authorizing Consumers to increase its rates by $66&nbsp;million based on an authorized return on equity of 10.55&nbsp;percent. The following table details the components of Consumers' self-implemented gas rate increase and the increase authorized by the MPSC:</div> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="64%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;" colspan="12" nowrap="nowrap" align="right">In Millions</td> <td>&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Consumers'</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Increase</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">&nbsp;</td> <td>&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Self-Implemented</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Authorized by</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">&nbsp;</td> <td>&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td nowrap="nowrap" align="left">Components of the increase in revenue</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Increase</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">the MPSC</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="center">Difference</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="13" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Impact of sales declines</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="center">41</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="center">28</td> <td>&nbsp;</td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">$</td> <td align="center">(13)&nbsp;</td> <td nowrap="nowrap"> </td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Investment in rate base</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="center">23</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="center">27</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="center">&nbsp;4</td> <td> </td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Recovery of operating and maintenance costs</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="center">17</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="center">13</td> <td>&nbsp;</td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">&nbsp;</td> <td align="center">&nbsp;(4)</td> <td nowrap="nowrap"> </td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Return on equity</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="center">&nbsp;&nbsp;8</td> <td>&nbsp;</td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">&nbsp;</td> <td align="center">&nbsp;&nbsp;(2)</td> <td nowrap="nowrap"> </td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">&nbsp;</td> <td align="center">(10)</td> <td nowrap="nowrap"> </td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="11" nowrap="nowrap" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Total</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="center">89</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="left">$</td> <td align="center">66</td> <td>&nbsp;</td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">$</td> <td align="center">(23)</td> <td nowrap="nowrap"> </td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="13" align="left">&nbsp;</td></tr></table></div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">The MPSC directed Consumers to refund to customers the difference between the rates it self-implemented in November&nbsp;2009 and the rates authorized in this order, plus interest, subject to a reconciliation proceeding. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">The order also approved a revenue decoupling mechanism, effective June&nbsp;1, 2010, which, subject to certain conditions, allows Consumers to adjust future rates to collect or refund the change in marginal revenue by class arising from the difference between base sales per customer established in the order and weather-adjusted sales per customer. The order denied Consumers' request to implement a gas uncollectible expense tracking mechanism and Pension Plan and OPEB equalization mechanisms. In August&nbsp;2010, Consumers filed an application to refund $11&nbsp;million to customers, beginning in January&nbsp;2011. Consumers cannot predict the financial impact or outcome of this gas rate case. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">In August&nbsp;2010, Consumers filed an application with the MPSC seeking an annual increase in revenue of $55&nbsp;million based on an 11&nbsp;percent authorized return on equity. The filing requested recovery for investments made to enhance safety, system reliability, and operational efficiencies that improve service to customers. The following table details the components of the requested increase in revenue: </div> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="88%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="1%">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;" colspan="5" nowrap="nowrap" align="right">In Millions</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td nowrap="nowrap" align="left">Components of the increase in revenue</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="5" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Investment in rate base</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">30</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Recovery of operating and maintenance costs</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">16</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Return on equity</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">5</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">Impact of sales declines</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">4</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td> <div style="text-indent: -15px; margin-left: 15px;">&nbsp;</div></td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="3" nowrap="nowrap" align="right">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;">Total</div></td> <td>&nbsp;</td> <td align="left">$</td> <td align="right">55</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="5" align="left">&nbsp;</td></tr></table></div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><b>Gas Depreciation: </b>In September&nbsp;2009, the MPSC ordered Consumers to adopt certain standard retirement units by January&nbsp;1, 2010. Consumers estimates that the use of these standard retirement units will increase maintenance expense, and recovery of that expense, by $10&nbsp;million annually. In May&nbsp;2010, as ordered by the MPSC, Consumers implemented the new standard retirement units concurrently with the final rates approved in its gas rate case.</div></div> </div> 9682000000 9471000000 9918000000 9847000000 0 226000000 19000000 19000000 19000000 19000000 2291000000 2291000000 2012000000 2012000000 145000000 145000000 58000000 58000000 1991000000 1991000000 1954000000 1954000000 17000000 17000000 18000000 18000000 1074000000 377000000 436000000 335000000 32000000 22000000 23000000 23000000 -1927000000 389000000 -1731000000 483000000 4592000000 4420000000 1263000000 1204000000 4750000000 4536000000 1443000000 1370000000 <div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 12pt; font-size: 10pt;" align="left"><b>1: NEW ACCOUNTING STANDARDS</b> </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><b>IMPLEMENTATION OF NEW ACCOUNTING STANDARDS</b> </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><i>SFAS No.&nbsp;166, Accounting for Transfers of Financial Assets, an amendment of FASB Statement No.&nbsp;140,</i> codified through <i>ASU No.&nbsp;2009-16, Transfers and Servicing (Topic 860): Accounting for Transfers of Financial Assets: </i>This standard, which was effective for CMS Energy and Consumers January&nbsp;1, 2010, removes the concept of a QSPE from guidance relating to transfers of financial assets and extinguishments of liabilities. It also removes the exceptions from applying guidance relating to VIEs to QSPEs. This standard revises and clarifies when an entity is required to derecognize a financial asset that it has transferred to another entity. It further clarifies how to measure beneficial interests received as proceeds in connection with a transfer of a financial asset, and introduces the concept of a "participating interest," the conditions of which must be met for a partial asset transfer to qualify for sale accounting treatment. The standard also requires enhanced disclosures related to continuing involvement with financial assets. Under this standard, transactions entered into under Consumers' revolving accounts receivable sales program, discussed in Note 5, Financings, are accounted for as secured borrowings rather than as sales. CMS Energy and Consumers present outstanding amounts under the program as short-term debt collateralized by accounts receivable. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left"><i>SFAS No.&nbsp;167, Amendments to FASB Interpretation No.&nbsp;46(R), </i>codified through <i>ASU No.&nbsp;2009-17, Consolidations (Topic 810): Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities: </i>This standard, which was effective for CMS Energy and Consumers January&nbsp;1, 2010, amends the criteria used to determine which entity, if any, has a controlling financial interest in a VIE. It replaces the quantitative calculation of risks and rewards with a qualitative approach focused on identifying which entity (1)&nbsp;has the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and (2)&nbsp;has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE. This standard also requires ongoing assessments of whether an entity is the primary beneficiary of a VIE. Upon implementation of this guidance, CMS Energy concluded that it is the primary beneficiary of CMS Energy Trust I and consolidated the trust in its consolidated financial statements on January&nbsp;1, 2010. CMS Energy also concluded that it is not the primary beneficiary of T.E.S. Filer City, Grayling, or Genesee and deconsolidated these partnerships in its consolidated financial statements on January&nbsp;1, 2010. CMS Energy consolidated CMS Energy Trust I at the carrying value that would be recorded had this guidance been effective when CMS Energy initially became involved with&nbsp;CMS Energy Trust I. CMS Energy recorded its retained interest in the deconsolidated partnerships at the carrying value that would be recorded had this guidance been effective when CMS Energy initially became involved with the partnerships. CMS Energy and Consumers have chosen not to adjust previously reported balances. No cumulative effect adjustments were required. For additional details, see Note 11, Variable Interest Entities. </div></div> </div> <div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 12pt; font-size: 10pt;" align="left"><b>11: VARIABLE INTEREST ENTITIES</b> </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">Entities that are VIEs must be consolidated if the reporting entity determines that it has a controlling financial interest. The entity that is required to consolidate the VIE is called the primary beneficiary. Variable interests are contractual, ownership, or other interests in an entity that change as the fair value of the VIE's net assets, excluding variable interests, changes. An entity is considered to be a VIE when its capital is insufficient to permit it to finance its activities without additional subordinated financial support or its equity investors, as a group, lack the characteristics of having a controlling financial interest. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">Effective January&nbsp;1, 2010, the accounting standards for consolidation of VIEs were amended. The most significant amendment changed the criteria for identifying the primary beneficiary. Under the amended standard, the primary beneficiary is the entity that has both (1)&nbsp;the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and (2)&nbsp;the obligation to absorb losses of the VIE that could potentially be significant to the VIE. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">As a result of adopting this amendment, effective January&nbsp;1, 2010, CMS Energy has consolidated CMS Energy Trust I and deconsolidated three partnerships that it had previously consolidated. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">CMS Energy has consolidated CMS Energy Trust I because CMS Energy is the variable interest holder that designed the entity and, through the design, has the power to direct the activities of CMS Energy Trust I that most significantly impact the trust's economic performance. Through its guarantee, CMS Energy also has the obligation to absorb losses of CMS Energy Trust I. The sole assets of the trust consist of notes payable by CMS Energy, and the sole liabilities of the trust consist of Trust Preferred Securities. Upon consolidation, CMS Energy reduced its equity method investment by $5&nbsp;million and its Long-term debt by $34&nbsp;million. CMS Energy also recorded a $29 million liability for the mandatorily redeemable preferred securities issued by the trust. No gain or loss was recognized on the consolidation of CMS Energy Trust I. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">CMS Energy has deconsolidated T.E.S. Filer City, Grayling, and Genesee because CMS Energy determined that power is shared among unrelated parties, and that no one party has the power to direct the activities that most significantly impact the entities' economic performance. The partners must agree on all major decisions for each of the partnerships. As a result, CMS Energy is not the primary beneficiary of these partnerships. </div></div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 6pt; font-size: 10pt;" align="left">The following table provides information about these partnerships: </div> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="20%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="15%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="63%">&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" valign="top" colspan="5" align="left">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td nowrap="nowrap" align="center">Nature of</td> <td>&nbsp;</td> <td nowrap="nowrap" align="center">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td nowrap="nowrap" align="left">Name (Ownership Interest)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="center">the Entity</td> <td>&nbsp;</td> <td nowrap="nowrap" align="left">Financing of Partnership</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" valign="top" colspan="5" align="left">&nbsp;</td></tr> <tr valign="bottom"><td valign="top"> <div style="text-indent: 0px; margin-left: 0px;">T.E.S. Filer City (50%) </div></td> <td>&nbsp;</td> <td valign="top" align="left">Coal-fueled power generator </td> <td>&nbsp;</td> <td valign="top" align="left">Non-recourse long-term debt that matured in December&nbsp;2007.</td></tr> <tr valign="bottom"><td valign="top"> <div style="text-indent: 0px; margin-left: 0px;">&nbsp;</div></td> <td>&nbsp;</td> <td valign="top" align="left">&nbsp;</td> <td>&nbsp;</td> <td valign="top" align="left">&nbsp;</td></tr> <tr valign="bottom"><td valign="top"> <div style="text-indent: 0px; margin-left: 0px;">Grayling (50%) </div></td> <td>&nbsp;</td> <td valign="top" align="left">Wood waste- fueled power generator </td> <td>&nbsp;</td> <td valign="top" align="left">Sale of revenue bonds that mature in November 2012 and bear interest at variable rates. The debt is recourse to the partnership, but not the individual partners, and secured by a letter of credit equal to the outstanding balance.</td></tr> <tr valign="bottom"><td valign="top"> <div style="text-indent: 0px; margin-left: 0px;">&nbsp;</div></td> <td>&nbsp;</td> <td valign="top" align="left">&nbsp;</td> <td>&nbsp;</td> <td valign="top" align="left">&nbsp;</td></tr> <tr valign="bottom"><td valign="top"> <div style="text-indent: 0px; margin-left: 0px;">Genesee (50%) </div></td> <td>&nbsp;</td> <td valign="top" align="left">Wood waste- fueled power generator </td> <td>&nbsp;</td> <td valign="top" align="left">Sale of revenue bonds that mature in 2021 and bear interest at fixed rates. The debt is non-recourse to the partnership and secured by a CMS Energy guarantee capped at $3 million annually.</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" valign="top" colspan="5" align="left">&nbsp;</td></tr></table></div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">CMS Energy has operating and management contracts with Grayling and Genesee, and Consumers is the primary purchaser of power from each partnership through long-term PPAs. Consumers also has reduced dispatch agreements with Grayling and Genesee, which allow these facilities to be dispatched based on the market price of wood waste. This results in fuel cost savings that each partnership shares with Consumers' customers. </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">CMS Energy's investment in these partnerships is included in Investments on the Consolidated Balance Sheets in the amount of $49&nbsp;million as of September&nbsp;30, 2010. The partnerships were consolidated at December&nbsp;31, 2009. Total assets of the partnerships were $189&nbsp;million and total liabilities were $92&nbsp;million at December&nbsp;31, 2009. The partnerships had third-party debt obligations totaling $70&nbsp;million at December&nbsp;31, 2009. Plant, property, and equipment serving as collateral for these obligations had a carrying value of $137&nbsp;million at December&nbsp;31, 2009. The creditors of these partnerships do not have recourse to the general credit of CMS Energy or Consumers, except through outstanding letters of credit of $2&nbsp;million and a guarantee of $3&nbsp;million annually. CMS Energy has deferred collections on certain receivables owed by Genesee. CMS Energy's maximum exposure to loss from these receivables is $6&nbsp;million. Consumers has not provided any financial or other support during the periods presented that was not previously contractually required. </div></div> </div> <div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 12pt; font-size: 10pt;" align="left"><b>12: REPORTABLE SEGMENTS</b> </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">Reportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy's common stockholders. The reportable segments for CMS Energy and Consumers are: </div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">CMS Energy: </div> <div style="margin-top: 6pt;"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td style="background: none transparent scroll repeat 0% 0%;" width="2%">&nbsp;</td> <td width="3%" nowrap="nowrap" align="left"><b>&bull;</b></td> <td width="1%">&nbsp;</td> <td>electric utility, consisting of regulated activities associated with the generation and distribution of electricity in Michigan;</td></tr> <tr><td style="font-size: 6pt;">&nbsp;</td></tr> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td style="background: none transparent scroll repeat 0% 0%;" width="2%">&nbsp;</td> <td width="3%" nowrap="nowrap" align="left"><b>&bull;</b></td> <td width="1%">&nbsp;</td> <td>gas utility, consisting of regulated activities associated with the transportation, storage, and distribution of natural gas in Michigan;</td></tr> <tr><td style="font-size: 6pt;">&nbsp;</td></tr> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td style="background: none transparent scroll repeat 0% 0%;" width="2%">&nbsp;</td> <td width="3%" nowrap="nowrap" align="left"><b>&bull;</b></td> <td width="1%">&nbsp;</td> <td>enterprises, consisting of various subsidiaries engaging primarily in domestic independent power production; and</td></tr> <tr><td style="font-size: 6pt;">&nbsp;</td></tr> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td style="background: none transparent scroll repeat 0% 0%;" width="2%">&nbsp;</td> <td width="3%" nowrap="nowrap" align="left"><b>&bull;</b></td> <td width="1%">&nbsp;</td> <td>other, including corporate interest and other expenses and discontinued operations.</td></tr></table></div> <div style="margin-top: 6pt; font-size: 10pt;" align="left">Consumers: </div> <div style="margin-top: 6pt;"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td style="background: none transparent scroll repeat 0% 0%;" width="2%">&nbsp;</td> <td width="3%" nowrap="nowrap" align="left"><b>&bull;</b></td> <td width="1%">&nbsp;</td> <td>electric utility, consisting of regulated activities associated with the generation and distribution of electricity in Michigan;</td></tr> <tr><td style="font-size: 6pt;">&nbsp;</td></tr> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td style="background: none transparent scroll repeat 0% 0%;" width="2%">&nbsp;</td> <td width="3%" nowrap="nowrap" align="left"><b>&bull;</b></td> <td width="1%">&nbsp;</td> <td>gas utility, consisting of regulated activities associated with the transportation, storage, and distribution of natural gas in Michigan; and</td></tr> <tr><td style="font-size: 6pt;">&nbsp;</td></tr> <tr style="background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" valign="top"><td style="background: none transparent scroll repeat 0% 0%;" width="2%">&nbsp;</td> <td width="3%" nowrap="nowrap" align="left"><b>&bull;</b></td> <td width="1%">&nbsp;</td> <td>other, including a consolidated special-purpose entity for the sale of accounts receivable.</td></tr></table></div></div> <div style="font-family: 'Times New Roman',Times,serif;"> <div style="margin-top: 6pt; font-size: 10pt;" align="left">The following tables provide financial information by reportable segment: </div> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="55%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;" colspan="17" nowrap="nowrap" align="right">In Millions</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="7" nowrap="nowrap" align="center">Three months ended</td> <td style="border-bottom: #000000 1px solid;">&nbsp;</td> <td style="border-bottom: #000000 1px solid;" colspan="7" nowrap="nowrap" align="center">Nine months ended</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td nowrap="nowrap" align="left">September 30</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">2010</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">2009</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">2010</td> <td>&nbsp;</td> <td colspan="3" nowrap="nowrap" align="center">2009</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="17" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><b>Operating Revenue</b></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;"><font style="font-variant: small-caps;" class="_mt"><b>CMS Energy, including Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Electric utility</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">1,154</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">991</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">2,967</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">2,651</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Gas utility</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">216</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">213</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1,569</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1,769</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Enterprises</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">63</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">52</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">186</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">153</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Other</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">10</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">7</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">28</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">19</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="15" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">Total Operating Revenue &#8212; CMS Energy</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">1,443</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">1,263</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">4,750</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">4,592</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;"><font style="font-variant: small-caps;" class="_mt"><b>Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Electric utility</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">1,154</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">991</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">2,967</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">2,651</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Gas utility</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">216</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">213</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1,569</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1,769</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="15" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">Total Operating Revenue &#8212; Consumers</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">1,370</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">1,204</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">4,536</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">4,420</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td width="52%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="3%">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><b>Net Income Available to Common Stockholders</b></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;"><font style="font-variant: small-caps;" class="_mt"><b>CMS Energy, including Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Electric utility</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">156</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">111</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">283</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">217</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Gas utility</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">2</td> <td>&nbsp;</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(12</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">69</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">52</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Enterprises</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">9</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">6</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">51</td> <td>&nbsp;</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(6</td> <td nowrap="nowrap">)</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Discontinued Operations</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">&#8212;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(17</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">23</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Other</div></td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(33</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(37</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(87</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(74</td> <td nowrap="nowrap">)</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="15" nowrap="nowrap" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">Total Net Income Available to Common Stockholders &#8212; CMS Energy</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">134</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">67</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">299</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">212</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;"><font style="font-variant: small-caps;" class="_mt"><b>Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Electric utility</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">156</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">111</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">283</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">217</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Gas utility</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">2</td> <td>&nbsp;</td> <td>&nbsp;</td> <td nowrap="nowrap" align="right">&nbsp;</td> <td align="right">(12</td> <td nowrap="nowrap">)</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">69</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">52</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Other</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="15" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">Total Net Income Available to Common Stockholder &#8212; Consumers</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">159</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">100</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">353</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">270</td> <td>&nbsp;</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="17" align="left">&nbsp;</td></tr></table></div></div> <div style="font-family: 'Times New Roman',Times,serif;"> <div align="center"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="bottom"><td width="80%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="1%">&nbsp;</td> <td width="5%">&nbsp;</td> <td width="3%">&nbsp;</td> <td width="1%">&nbsp;</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td style="border-bottom: #000000 1px solid;" colspan="8" nowrap="nowrap" align="right">In Millions</td></tr> <tr style="font-size: 8pt;" valign="bottom"><td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="right">September 30, 2010</td> <td>&nbsp;</td> <td>&nbsp;</td> <td colspan="2" nowrap="nowrap" align="right">December 31, 2009</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 1px solid;" colspan="8" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><b>Plant, Property, and Equipment, Gross</b></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;"><font style="font-variant: small-caps;" class="_mt"><b>CMS Energy, including Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Electric utility</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">9,803</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">9,525</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Gas utility</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">3,990</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">3,812</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Enterprises</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">102</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">345</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Other</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">34</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">34</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="6" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">Total Plant, Property, and Equipment &#8212; CMS Energy</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">13,929</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">13,716</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;"><font style="font-variant: small-caps;" class="_mt"><b>Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Electric utility</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">9,803</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">9,525</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Gas utility</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">3,990</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">3,812</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Other</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">15</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">15</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="6" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">Total Plant, Property, and Equipment &#8212; Consumers</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">13,808</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">13,352</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;">&nbsp;</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 15px;"><b>Assets</b></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;"><font style="font-variant: small-caps;" class="_mt"><b>CMS Energy, including Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Electric utility (a)</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">9,229</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">9,157</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Gas utility (a)</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">4,756</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">4,594</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Enterprises</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">181</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">303</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Other</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1,405</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">1,202</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="6" align="left">&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">Total Assets &#8212; CMS Energy</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">15,571</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">15,256</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 30px;"><font style="font-variant: small-caps;" class="_mt"><b>Consumers</b></font></div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Electric utility (a)</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">9,229</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">9,157</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Gas utility (a)</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">4,756</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">4,594</td></tr> <tr style="background: #cceeff;" valign="bottom"><td> <div style="text-indent: -15px; margin-left: 60px;">Other</div></td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">589</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">871</td></tr> <tr style="font-size: 1px;"><td>&nbsp;</td> <td>&nbsp;</td> <td style="border-top: #000000 1px solid;" colspan="6" align="left">&nbsp;</td></tr> <tr valign="bottom"><td> <div style="text-indent: -15px; margin-left: 45px;">Total Assets &#8212; Consumers</div></td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">14,574</td> <td>&nbsp;</td> <td>&nbsp;</td> <td align="right">$</td> <td align="right">14,622</td></tr> <tr style="font-size: 1px;"><td style="border-top: #000000 3px double;" colspan="8" align="left">&nbsp;</td></tr></table></div> <div style="margin-top: 3pt;"> <table style="font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="3%"> </td> <td width="1%"> </td> <td width="96%"> </td></tr> <tr valign="top"><td nowrap="nowrap" align="left">(a)</td> <td>&nbsp;</td> <td>Amounts include a portion of Consumers' other common assets attributable to both the electric and the gas utility businesses.</td></tr></table></div></div> </div> 40000000 0 2602000000 3814000000 2821000000 4162000000 2815000000 3749000000 -27000000 -1000000 0 -28000000 4533000000 2000000 96000000 243000000 -2031000000 -7000000 6000000 -1000000 2482000000 841000000 44000000 383000000 2922000000 3893000000 -27000000 -1000000 1000000 -27000000 4552000000 2000000 95000000 243000000 -1943000000 -7000000 10000000 3000000 2582000000 841000000 44000000 423000000 2966000000 3893000000 -26000000 -1000000 4000000 -23000000 4555000000 2000000 97000000 239000000 -1904000000 -7000000 13000000 6000000 2582000000 841000000 44000000 420000000 2938000000 3858000000 -32000000 -1000000 0 -33000000 4560000000 2000000 97000000 239000000 -1927000000 -11000000 13000000 2000000 2582000000 841000000 44000000 389000000 2993000000 4132000000 -30000000 -1000000 0 -31000000 4569000000 2000000 45000000 239000000 -1831000000 -11000000 11000000 2832000000 841000000 44000000 415000000 2866000000 4206000000 -30000000 -1000000 0 -31000000 4581000000 2000000 45000000 0 -1731000000 -11000000 17000000 6000000 2832000000 841000000 44000000 483000000 12000000 4000000 15000000 5000000 -1000000 -1000000 -2000000 -1000000 164000000 158000000 51000000 51000000 156000000 151000000 49000000 47000000 283000000 277000000 114000000 114000000