CMS ENERGY CORP

In accordance with its Clean Energy Plan, and absent an extension of the May 2025 emergency order or other government order, Consumers plans to retire J.H. Campbell in 2025. In order to ensure necessary staffing at J.H. Campbell through retirement, Consumers has implemented a retention incentive program. The terms of and Consumers’ obligations under this program have not been modified. The aggregate cost of the J.H. Campbell program through 2025 is estimated to be less than $50 million. The MPSC has approved deferred accounting treatment for these costs; these expenses are deferred as a regulatory asset. For information on the emergency order associated with J.H. Campbell, see Note 1, Regulatory Matters.

As of June 30, 2025, the cumulative cost incurred and deferred as a regulatory asset related to the J.H. Campbell retention incentive program was $46 million. Amounts deferred under the program are subsequently collected from customers over three years.

Presented in the following table is a reconciliation of the retention benefit liability recorded in other liabilities on Consumers’ consolidated balance sheets:

1 Includes $1 million for the three months ended June 30, 2025 and less than $1 million for the three months ended June 30, 2024.

2 Includes current portion of other liabilities of $17 million at June 30, 2025 and $8 million at June 30, 2024.