CMS ENERGY CORPCMS

CMS ENERGY CORP Revenue Disclosure

10-KFiled Feb 10, 20265 min read
Revenue
Presented in the following tables are the components of operating revenue:
In Millions
Year Ended December 31, 2025Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$5,578 $2,468 $— $8,046 
Other— — 259 259 
Revenue recognized from contracts with customers$5,578 $2,468 $259 $8,305 
Leasing income— — 149 149 
Financing income10 6 — 16 
Consumers alternative-revenue programs50 19 — 69 
Total operating revenue – CMS Energy$5,638 $2,493 $408 $8,539 
Consumers
Consumers utility revenue
Residential$2,661 $1,701 $4,362 
Commercial1,888 538 2,426 
Industrial762 62 824 
Other267 167 434 
Revenue recognized from contracts with customers$5,578 $2,468 $8,046 
Financing income10 6 16 
Alternative-revenue programs50 19 69 
Other non-segment revenue— — 1 
Total operating revenue – Consumers$5,638 $2,493 $8,132 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2024Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,995 $2,114 $— $7,109 
Other— — 211 211 
Revenue recognized from contracts with customers$4,995 $2,114 $211 $7,320 
Leasing income— — 105 105 
Financing income10 5 — 15 
Consumers alternative-revenue programs56 19 — 75 
Total operating revenue – CMS Energy$5,061 $2,138 $316 $7,515 
Consumers
Consumers utility revenue
Residential$2,318 $1,429 $3,747 
Commercial1,674 440 2,114 
Industrial670 50 720 
Other333 195 528 
Revenue recognized from contracts with customers$4,995 $2,114 $7,109 
Financing income10 5 15 
Alternative-revenue programs56 19 75 
Other non-segment revenue— — 1 
Total operating revenue – Consumers$5,061 $2,138 $7,200 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
In Millions
Year Ended December 31, 2023Electric UtilityGas Utility
NorthStar Clean Energy1
Consolidated
CMS Energy, including Consumers
Consumers utility revenue$4,686 $2,394 $— $7,080 
Other— — 181 181 
Revenue recognized from contracts with customers$4,686 $2,394 $181 $7,261 
Leasing income— — 116 116 
Financing income10 6 — 16 
Consumers alternative-revenue programs49 20 — 69 
Total operating revenue – CMS Energy$4,745 $2,420 $297 $7,462 
Consumers
Consumers utility revenue
Residential$2,236 $1,619 $3,855 
Commercial1,550 489 2,039 
Industrial660 60 720 
Other240 226 466 
Revenue recognized from contracts with customers$4,686 $2,394 $7,080 
Financing income10 6 16 
Alternative-revenue programs49 20 69 
Other non-segment revenue— — 1 
Total operating revenue – Consumers$4,745 $2,420 $7,166 
1Amounts represent NorthStar Clean Energy’s operating revenue from independent power production and its sales of energy commodities.
Electric and Gas Utilities
Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff-based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff-based sales performance obligations are described below.
•Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of Consumers’ service to stand ready to deliver.
•Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate-making process and represent the stand-alone selling price of a bundled product comprising the commodity, electricity or natural gas, and the service of delivering such commodity.
In some instances, Consumers has specific fixed-term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals and utility contract work. Generally, these contracts are short term or evergreen in nature.
Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost less an allowance for uncollectible accounts. The allowance is increased for uncollectible accounts expense and decreased for account write-offs net of recoveries. CMS Energy and Consumers establish the allowance based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and reasonable and supported forecast information. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past-due terms established with customers. Accounts are written off when deemed uncollectible, which is generally when they become six months past due.
CMS Energy and Consumers recorded uncollectible accounts expense of $40 million for the year ended December 31, 2025, $33 million for the year ended December 31, 2024, and $34 million for the year ended December 31, 2023.
Consumers’ customers are billed monthly in cycles having billing dates that do not generally coincide with the end of a calendar month. This results in customers having received electricity or natural gas that they have not been billed for as of the month-end. Consumers estimates its unbilled revenues by applying an average billed rate to total unbilled deliveries for each customer class. Unbilled revenues, which are recorded as accounts receivable and accrued revenue on CMS Energy’s and Consumers’ consolidated balance sheets, were $659 million at December 31, 2025 and $584 million at December 31, 2024.
Alternative‑revenue Programs: Consumers accounts for its energy waste reduction incentive mechanism, financial compensation mechanism, and demand response incentive mechanism as alternative-revenue programs.
Consumers recognizes revenue related to the energy waste reduction incentive as soon as energy savings exceed the annual targets established by the MPSC. Revenue related to the financial compensation mechanism is recognized as payments are made on MPSC-approved PPAs. Under a demand response incentive mechanism, Consumers earns a financial incentive when it meets demand response targets set by the MPSC. Consumers recognizes revenue related to this program once demand response incentive objectives are complete, the incentive amount is calculable, and the incentive revenue will be collected within a 24‑month period. For additional information on these mechanisms, see Note 3, Regulatory Matters.
Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers.

Historical Timeline

Fiscal YearFiled
2025Feb 10, 2026Showing above
2024Feb 11, 2025
2023Feb 8, 2024
2022Feb 9, 2023
2021Feb 10, 2022
2020Feb 11, 2021
2019Feb 6, 2020
2018Feb 5, 2019

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

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