v3.26.3
Exit Activities and Asset Sales (Tables)
 9 Months Ended
Sep. 30, 2026
Restructuring Cost and Reserve [Line Items]  
Schedule of Retention Benefit Liability Roll Forward
Presented in the following table is a reconciliation of the retention benefit liability recorded in other current liabilities on Consumers’ consolidated balance sheets:
In Millions
Nine Months Ended September 3020262025
1
Retention benefit liability at beginning of period$2 $14 
Costs deferred as a regulatory asset2
11 4 
Costs paid or settled(11)— 
Retention benefit liability at the end of the period$2 $18 
1Includes amounts associated with a retention incentive program established in connection with the planned retirement of J.H. Campbell in May 2025. Final payments under this program were made in November 2025.
2Includes $4 million for the three months ended September 30, 2026 and $1 million for the three months ended September 30, 2025.
Schedule of Income, Assets, and Liabilities from Discontinued Operations
At September 30, 2026, the assets and liabilities classified as held for sale consisted of the following:
In Millions
September 30, 2026
Assets
Current
Cash and cash equivalents$26 
Accounts receivable and other current assets17 
Total current assets$43 
Non‑current
Plant, property, and equipment, net$693 
Construction work in progress76 
Other non‑current assets14 
Total non‑current assets$783 
Total assets$826 
Liabilities
Current
Accounts payable and other current liabilities$14 
Total current liabilities$14 
Non‑current
Non-current portion of finance leases$52 
AROs35 
Total non‑current liabilities$87 
Total liabilities$101 
Certain of the entities held for sale are not wholly owned by NorthStar Clean Energy and are VIEs. As the primary beneficiary of these entities, NorthStar Clean Energy consolidates these entities and the remaining ownership interest is presented as noncontrolling interest on CMS Energy’s consolidated balance sheet. The noncontrolling interest associated with these consolidated VIEs held for sale totaled $479 million at September 30, 2026, before the attribution of $102 million of the impairment loss to the noncontrolling interest. NorthStar Clean Energy is obligated under certain indemnities, with varying durations, that protect the noncontrolling interests against losses incurred as a result of breaches of representations and warranties under the associated membership agreements. At September 30, 2026, the maximum obligation associated with these indemnifications was $180 million, and no amount has been recorded.
CMS Energy expects to complete the divestment within 12 months of the date the disposal groups were classified as held for sale, subject to negotiating contractual terms with third parties, regulatory approvals, and other customary closing conditions. Because the sales process remains ongoing and is subject to market conditions and transaction-specific factors, the losses recognized upon completion of the sales could differ from the impairment charges recorded for the three and nine months ended September 30, 2026.
Presented in the following table are the expenses comprising NorthStar Clean Energy impairment, disposal, and exit costs on CMS Energy’s consolidated statements of income:
In Millions
Three and Nine Months Ended September 302026
Impairment of long-lived assets held for sale1
$454 
Loss on sale of long-lived assets15 
Contract termination costs2
33 
Retention and severance3
7 
Other exit costs16 
NorthStar Clean Energy impairment, disposal, and exit costs
$525 
1Includes $102 million attributable to noncontrolling interests.
2Includes breakage fees associated with development and equipment purchase contracts. Breakage fees incurred were reported as other current liabilities on CMS Energy’s consolidated balance sheet at September 30, 2026. Additional contract termination costs associated with the divestment strategy are not expected to be significant.
3The aggregate cost of the retention incentive and severance program is estimated to be $10 million and is expected to be substantially completed by December 31, 2026. Retention and severance amounts incurred to date were reported as other current liabilities on CMS Energy’s consolidated balance sheet at September 30, 2026.
Consumers Energy Company  
Restructuring Cost and Reserve [Line Items]  
Schedule of Retention Benefit Liability Roll Forward
Presented in the following table is a reconciliation of the retention benefit liability recorded in other current liabilities on Consumers’ consolidated balance sheets:
In Millions
Nine Months Ended September 3020262025
1
Retention benefit liability at beginning of period$2 $14 
Costs deferred as a regulatory asset2
11 4 
Costs paid or settled(11)— 
Retention benefit liability at the end of the period$2 $18 
1Includes amounts associated with a retention incentive program established in connection with the planned retirement of J.H. Campbell in May 2025. Final payments under this program were made in November 2025.
2Includes $4 million for the three months ended September 30, 2026 and $1 million for the three months ended September 30, 2025.
Schedule of Income, Assets, and Liabilities from Discontinued Operations
At September 30, 2026, the assets and liabilities classified as held for sale consisted of the following:
In Millions
September 30, 2026
Assets
Current
Cash and cash equivalents$26 
Accounts receivable and other current assets17 
Total current assets$43 
Non‑current
Plant, property, and equipment, net$693 
Construction work in progress76 
Other non‑current assets14 
Total non‑current assets$783 
Total assets$826 
Liabilities
Current
Accounts payable and other current liabilities$14 
Total current liabilities$14 
Non‑current
Non-current portion of finance leases$52 
AROs35 
Total non‑current liabilities$87 
Total liabilities$101 
Certain of the entities held for sale are not wholly owned by NorthStar Clean Energy and are VIEs. As the primary beneficiary of these entities, NorthStar Clean Energy consolidates these entities and the remaining ownership interest is presented as noncontrolling interest on CMS Energy’s consolidated balance sheet. The noncontrolling interest associated with these consolidated VIEs held for sale totaled $479 million at September 30, 2026, before the attribution of $102 million of the impairment loss to the noncontrolling interest. NorthStar Clean Energy is obligated under certain indemnities, with varying durations, that protect the noncontrolling interests against losses incurred as a result of breaches of representations and warranties under the associated membership agreements. At September 30, 2026, the maximum obligation associated with these indemnifications was $180 million, and no amount has been recorded.
CMS Energy expects to complete the divestment within 12 months of the date the disposal groups were classified as held for sale, subject to negotiating contractual terms with third parties, regulatory approvals, and other customary closing conditions. Because the sales process remains ongoing and is subject to market conditions and transaction-specific factors, the losses recognized upon completion of the sales could differ from the impairment charges recorded for the three and nine months ended September 30, 2026.
Presented in the following table are the expenses comprising NorthStar Clean Energy impairment, disposal, and exit costs on CMS Energy’s consolidated statements of income:
In Millions
Three and Nine Months Ended September 302026
Impairment of long-lived assets held for sale1
$454 
Loss on sale of long-lived assets15 
Contract termination costs2
33 
Retention and severance3
7 
Other exit costs16 
NorthStar Clean Energy impairment, disposal, and exit costs
$525 
1Includes $102 million attributable to noncontrolling interests.
2Includes breakage fees associated with development and equipment purchase contracts. Breakage fees incurred were reported as other current liabilities on CMS Energy’s consolidated balance sheet at September 30, 2026. Additional contract termination costs associated with the divestment strategy are not expected to be significant.
3The aggregate cost of the retention incentive and severance program is estimated to be $10 million and is expected to be substantially completed by December 31, 2026. Retention and severance amounts incurred to date were reported as other current liabilities on CMS Energy’s consolidated balance sheet at September 30, 2026.