Retirement Benefits
9 Months Ended
Sep. 30, 2011
Retirement Benefits
10: RETIREMENT BENEFITS
CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees.
Presented in the following tables are the costs and other changes in plan assets and benefit obligations incurred in CMS Energy's and Consumers' retirement benefits plans:
                                 
    In Millions  
    Pension  
    Three Months Ended     Nine Months Ended  
September 30   2011     2010     2011     2010  
 
CMS Energy, including Consumers
                                
Net periodic pension cost
                                
Service cost
   $ 12     $ 11     $ 36     $ 33  
Interest expense
     25       25       75       74  
Expected return on plan assets
     (28 )     (24 )     (84 )     (70 )
Amortization of:
                                
Net loss
     16       13       47       39  
Prior service cost
     1       1       4       4  
 
Net periodic pension cost
   $ 26     $ 26     $ 78     $ 80  
Regulatory adjustment1
     —       7       —       30  
 
Net periodic pension cost after regulatory adjustment
   $ 26     $ 33     $ 78     $ 110  
 
Consumers
                                
Net periodic pension cost
                                
Service cost
   $ 12     $ 11     $ 35     $ 32  
Interest expense
     24       23       73       71  
Expected return on plan assets
     (27 )     (22 )     (82 )     (67 )
Amortization of:
                                
Net loss
     15       13       46       38  
Prior service cost
     1       1       4       4  
 
Net periodic pension cost
   $ 25     $ 26     $ 76     $ 78  
Regulatory adjustment1
     —       7       —       30  
 
Net periodic pension cost after regulatory adjustment
   $ 25     $ 33     $ 76     $ 108  
 
1   Regulatory adjustments are the differences between amounts included in rates and the periodic benefit cost calculated. These regulatory adjustments were offset by surcharge revenues, resulting in no impact to net income for the periods presented.
CMS Energy's and Consumers' expected long-term rate of return on Pension Plan assets is eight percent. For the twelve months ended September 30, 2011, the actual return on Pension Plan assets was two percent, and for the twelve months ended September 30, 2010, the actual return was 11.6 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.

                                 
In Millions  
    OPEB  
    Three Months Ended     Nine Months Ended  
September 30   2011     2010     2011     2010  
 
CMS Energy, including Consumers
                                
Net periodic OPEB cost
                                
Service cost
   $ 7     $ 7     $ 20     $ 20  
Interest expense
     20       20       58       61  
Expected return on plan assets
     (17 )     (16 )     (50 )     (45 )
Amortization of:
                                
Net loss
     7       8       23       24  
Prior service cost
     (5 )     (5 )     (15 )     (12 )
 
Net periodic OBEB cost
   $ 12     $ 14     $ 36     $ 48  
Regulatory adjustment1
     —       (1 )     —       5  
 
Net periodic OPEB cost after regulatory adjustment
   $ 12     $ 13     $ 36     $ 53  
 
Consumers
                                
Net periodic OPEB cost
                                
Service cost
   $ 7     $ 6     $ 20     $ 19  
Interest expense
     19       19       56       59  
Expected return on plan assets
     (15 )     (14 )     (46 )     (42 )
Amortization of:
                                
Net loss
     7       8       23       24  
Prior service cost
     (5 )     (5 )     (15 )     (11 )
 
Net periodic OPEB cost
   $ 13     $ 14     $ 38     $ 49  
Regulatory adjustment1
     —       (1 )     —       5  
 
Net periodic OPEB cost after regulatory adjustment
   $ 13     $ 13     $ 38     $ 54  
 
1   Regulatory adjustments are the differences between amounts included in rates and the periodic benefit cost calculated. These regulatory adjustments were offset by surcharge revenues, resulting in no impact to net income for the periods presented.
Consumers Energy Company [Member]
 
Retirement Benefits
10: RETIREMENT BENEFITS
CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees.
Presented in the following tables are the costs and other changes in plan assets and benefit obligations incurred in CMS Energy's and Consumers' retirement benefits plans:
                                 
In Millions
    Pension
    Three Months Ended     Nine Months Ended
September 30   2011     2010     2011     2010  
 
CMS Energy, including Consumers
                                
Net periodic pension cost
                                
Service cost
   $ 12     $ 11     $ 36     $ 33  
Interest expense
     25       25       75       74  
Expected return on plan assets
     (28 )     (24 )     (84 )     (70 )
Amortization of:
                                
Net loss
     16       13       47       39  
Prior service cost
     1       1       4       4  
 
Net periodic pension cost
   $ 26     $ 26     $ 78     $  80  
Regulatory adjustment1
     —       7       —       30  
 
Net periodic pension cost after regulatory adjustment
   $ 26     $ 33     $ 78     $  110  
 
Consumers
                                
Net periodic pension cost
                                
Service cost
   $ 12     $ 11     $ 35     $  32  
Interest expense
     24       23       73       71  
Expected return on plan assets
     (27 )     (22 )     (82 )     (67 )
Amortization of:
                                
Net loss
     15       13       46       38  
Prior service cost
     1       1       4       4  
 
Net periodic pension cost
   $ 25     $ 26     $ 76     $  78  
Regulatory adjustment1
     —       7       —       30  
 
Net periodic pension cost after regulatory adjustment
   $ 25     $ 33     $ 76     $  108  
 
1     Regulatory adjustments are the differences between amounts included in rates and the periodic benefit cost calculated. These regulatory adjustments were offset by surcharge revenues, resulting in no impact to net income for the periods presented.
CMS Energy's and Consumers' expected long-term rate of return on Pension Plan assets is eight percent. For the twelve months ended September 30, 2011, the actual return on Pension Plan assets was two percent, and for the twelve months ended September 30, 2010 the actual return was 11.6 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.
                                 
In Millions
    OPEB
    Three Months Ended     Nine Months Ended
September 30   2011     2010     2011     2010  
 
CMS Energy, including Consumers
                                
Net periodic OPEB cost
                                
Service cost
   $ 7     $ 7     $ 20     $ 20  
Interest expense
     20       20       58       61  
Expected return on plan assets
     (17 )     (16 )     (50 )     (45 )
Amortization of:
                                
Net loss
     7       8       23       24  
Prior service cost
     (5 )     (5 )     (15 )     (12 )
 
Net periodic OBEB cost
   $ 12     $ 14     $ 36     $ 48  
Regulatory adjustment1
     —       (1 )     —       5  
 
Net periodic OPEB cost after regulatory adjustment
   $ 12     $ 13     $ 36     $ 53  
 
Consumers
                                
Net periodic OPEB cost
                                
Service cost
   $ 7     $ 6     $ 20     $ 19  
Interest expense
     19       19       56       59  
Expected return on plan assets
     (15 )     (14 )     (46 )     (42 )
Amortization of:
                                
Net loss
     7       8       23       24  
Prior service cost
     (5 )     (5 )     (15 )     (11 )
 
Net periodic OPEB cost
   $ 13     $ 14     $ 38     $ 49  
Regulatory adjustment1
     —       (1 )     —       5  
 
Net periodic OPEB cost after regulatory adjustment
   $ 13     $ 13     $ 38     $ 54  
 
1   Regulatory adjustments are the differences between amounts included in rates and the periodic benefit cost calculated. These regulatory adjustments were offset by surcharge revenues, resulting in no impact to net income for the periods presented.