STORY PRODUCED BT THE CAPITAL NEWS SERVICE
Supplying energy to over 80% of Michigan residents, utility companies DTE and Consumers Energy provide the majority of electricity in the state.
However, a recent report from the Citizens Utility Board of Michigan said the state’s utilities rank near the bottom of a national list for reliability and environmental impact.
Utility companies have a history of using “dark money” to influence Michigan elections, including in 2018, when Consumers Energy was questioned by the Detroit News for using its nonprofit affiliate to help defeat Rep. Gary Glenn, a Midland Republican who vocally criticized the state utilities.
Dark money refers to political spending in elections meant to influence the decision of the voter and which is not disclosed to the public, according to the Campaign Legal Center.
Now, organizations such as Voters Not Politicians, Michiganders for Money Out of Politics and Show Michigan the Money are attempting to advance ballot initiatives aimed at stopping utility companies from contributing to politicians who run for or hold offices that impact them.
Michigan law currently allows candidates to accept donations from corporations as long as the money is not coming from ratepayers.
However, to get around this restriction, some companies, including utilities, form employee political action committees (PACs).
According to the Federal Election Commission, PACs are composed of individuals or shareholders associated with the companies. They can contribute large amounts at the state level, which may have a significant influence on political campaigns
A coalition of grassroots organizations wants to outlaw the practice with statewide ballot initiatives.
One proposal titled “Mop Up Michigan” would ban political donations from regulated utilities and companies with over $250,000 a year in government contracts. It would also amend the state’s campaign finance law so that political ads would be required to disclose donor information.
Christy McGillivray, the executive director of Voters Not Politicians, said that without such regulations, the majority of politicians from both major parties won’t willingly stop taking corporate money.
“This is a bipartisan problem and it has a nonpartisan solution,” said McGillivray. “Anyone concerned about democracy and corruption and who wants to fight for state governments that actually represent our well-being instead of corporate donors, should care about this,” she said.
The initiative is on track to collect over 500,000 signatures to get on the November 2026 ballot, said McGillivray.
Asked to comment on the ballot initiative, Consumers Energy Director of Media Relations Katie Carey said, “We participate in the legislative and political processes with a focus on compliance and transparency, and no customer funds are used for any political contributions.”
“Political spending for our company doesn’t come from ratepayers. The money comes from our employee-contributed PAC and shareholders, all of which are reported through the Secretary of State’s office,” said Carey.
According to the IRS, contributions to nonprofit organizations are not required to be reported. Elected officials and candidates can set up social welfare organizations that are exempt from federal income tax to accept money they don’t want their constituents to know about.
That is one way that companies can get around restrictions that would be imposed if the ballot proposal passes, said Hank Mayers, the president of Michiganders for Fair and Transparent Elections.
His organization, backed by Mop Up Michigan and a group called American Promise, wants political campaigns to disclose where all of their money comes from.
These organizations want a constitutional amendment to treat corporations differently from individual “persons.” As of now, “persons” means anyone seeking to influence elections, including corporations, nonprofits and individuals.
The measure titled “Show Michigan the Money” would require everyone spending $10,000 or more in an election to report their original donors and funding sources to the Secretary of State, aiming to close what Mayers calls “dark money loopholes.”
“Mop up Michigan’s piece will confront organizations that influence the Legislature, but that’s really just aimed at entities.” Mayers said. “Our proposal is aimed at everybody who is putting big money into politics.”
Show Michigan the Money’s ballot measure is currently under legal review for wording.
Mayers said he expects it to be submitted to the Board of State Canvassers by late October and supporters will begin collecting signatures by March, aiming for the November 2026 election ballot alongside the Michiganders for Money Out of Politics proposal.
Consumers Energy is a financial supporter of WKAR.
