DTE, Consumers File Suit Against Prop 2
Michigan’s two largest utilities filed a federal lawsuit Thursday seeking to block a voter-approved ban on their political donations, arguing that it violates the First Amendment.
DTE Energy, Consumers Energy and their parent companies are challenging the utility-related provisions of Proposal 2 before they take effect. The measure passed with about 81% of the vote, according to unofficial results.
The lawsuit argues that the ban unfairly singles out utilities while leaving labor unions and other industries free to contribute. It also accuses the coalition behind the proposal, Michiganders for Money Out of Politics, of trying to silence companies it has long opposed on utility rates and energy policy.
“The First Amendment does not permit one side of a policy dispute to legislate the other side out of the debate,” the complaint says.
The companies contend that supporters have not presented evidence of quid pro quo corruption — political contributions exchanged for official action. They also argue that terms such as “affiliated” and “agent” are too vague.
Consumers Energy spokesperson Katie Carey said in a statement that the proposal would allow out-of-state groups to flood Michigan with political spending.
Proposal 2 prohibits monopoly gas and electric utilities, along with people tied to them, from making contributions to the governor, attorney general, state lawmakers, candidates for those offices and members of the Michigan Public Service Commission. The utilities’ lawsuit does not challenge the measure’s separate restrictions on government contractors.
Supporters say the restrictions are needed to curb utilities’ outsized influence over state government.
“This lawsuit is no surprise,” MMOP campaign manager Maura Cowley said in a statement. “The corporations bankrolling our opposition have been gearing up for this lawsuit since Proposal 2 first qualified for the ballot, if not before. On Tuesday, Michiganders spoke loud and clear, voting to pass Proposal 2 with an overwhelming majority and delivering a resounding mandate to end pay-to-play politics and put power back where it belongs — with the people.”
Cowley said organizers are confident the measure will withstand legal scrutiny.
The utilities’ suit is the second federal challenge to Proposal 2 this week. The Mackinac Center for Public Policy, a conservative think tank based in Midland, sued on election night, arguing that the measure infringes on free speech and donor privacy.
