Utility Lawsuit: DTE and Consumers challenge Michigan's new political spending ban
Two days after voters approved Proposal 2 by more than 80 percent, the state's largest utilities filed suit claiming the measure violates their constitutional rights.
By Abigail Brooks ·
DTE Energy and Consumers Energy filed a federal lawsuit on Thursday to stop the enforcement of Michigan's new political spending restrictions.
The state's two largest utilities moved to block Proposal 2, which voters approved with more than 80 percent of the vote in Tuesday's election.
The complaint, submitted to the US District Court for the Western District of Michigan, argues that the new law infringes on the companies' First Amendment rights to free speech and association.
The utilities also claim the proposal violates the due process clause and equal protection clause of the 14th Amendment because it is too vague regarding who is covered by the ban.
Proposal 2 prohibits direct or indirect contributions to Michigan politicians by utilities and companies holding more than $250,000 in state government contracts.
The ban extends to immediate family members and other individuals with close connections to those companies, including presidents, CEOs, treasurers, board members, and people with substantial ownership stakes.
One plaintiff is the 86-year-old mother of DTE's treasurer, who would be barred from donating to candidates despite having no role at the utility, according to the filing.
Attorneys for the companies warned that without an injunction, they would be forced to surrender their rights to political association or risk substantial penalties.
They stated that policymakers and voters benefit from hearing the utilities' perspectives on reliability, affordability, and clean energy, even when opinions differ.
Maura Cowley, manager of the Michiganders for Money Out of Politics campaign, called the lawsuit "no surprise" in a statement.
Cowley said the corporations opposing the measure had been preparing for this legal challenge since the proposal qualified for the ballot.
She added that the group is confident Proposal 2 will withstand legal scrutiny and is prepared to handle any challenges to the law's validity.", "This is the second lawsuit filed over Proposal 2, following a legal challenge announced by the Mackinac Center for Public Policy on Tuesday night.", "The suit names Jonathan Brater, director of the Michigan Bureau of Elections; Dana Nessel, the Attorney General; and Jocelyn Benson, the governor-elect, as defendants.", "Consumers Energy spokesperson Katie Carey said in a statement that the law unfairly targets a Michigan business, its employees, and their families.", "Carey argued that Michiganders should not lose their First Amendment rights because of where they work.", "The proposal restricts contributions to the governor, attorney general, state legislators, and candidates for those offices, as well as state and local party committees.", "It also limits donations to members of the Michigan Public Service Commission and entities affiliated with elected officials that pay for travel, meals, or conference fees.", "The law requires disclosure from groups that reference candidates or ballot issues in issue ads, a change from the use of dark money nonprofits by the utilities.",
