Michigan Residents Voted to Get Corporate Money Out of Politics. Now Utilities Are Suing
Amid rising electricity costs, Michiganders decisively voted for a ballot proposition to curtail the ability of utilities to spend on elections—a move utilities say limits their freedom of speech.
Michigan residents recently voted to limit corporate contributions to politics, but two major utilities, Consumers Energy and DTE, are now challenging the measure in court. Proposal 2, which garnered 81 percent of the vote, restricts donations from utilities, contractors, high-level employees, lobbyists, and their immediate family members.
The new laws also tighten regulations on political ads, mailers, and other communications. Michigan is a key hub for data center development, with 26 projects in the pipeline as of July. The utilities have previously lobbied for tax breaks for data centers, with DTE proposing to build two new gas plants for potential data center load.
Energy bills in the state have risen by 10 percent over the past year, the fourth-largest increase in the US. Utilities argue that the ballot measure infringes on their First and Fourteenth Amendment rights and denies their constituents the right to participate in the political process. Michigan's regulators and government bodies are often elected or appointed by the governor, potentially increasing incentives for pay-to-play schemes.
The lawsuit claims that the new provisions go beyond other states' regulations and are more effective in preventing corruption. Michigan utilities spent under $200,000 to oppose the measure, which was widely rejected by Michiganders.
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