Dte and Consumers energy sue Michigan over new campaign finance restrictions

DTE Energy and Consumers Energy, along with their political action committees and two individuals, filed a federal lawsuit on Nov. 5 challenging a voter-approved campaign finance law that restricts utility political contributions. The suit seeks to block enforcement of Section 30a of the Michigan Campaign Finance Act, which prohibits electric and gas utilities and their affiliates from making direct or indirect political contributions to a broad range of candidates and organizations.

The challenge centers on Proposal 2, approved by Michigan voters on Nov. 3, which the companies argue violates the First and Fourteenth Amendments by restricting political speech based on the speaker’s identity. The plaintiffs contend the law was specifically designed to limit the political influence of Michigan’s utilities due to disagreements over energy policy and rates, while allowing labor unions and other groups to continue contributing.

DTE Treasurer Case Lancaster and his mother are among the individual plaintiffs, arguing the law’s definition of principals extends restrictions beyond utility executives to family members with no role in business decisions. The utility PACs assert the blanket prohibition eliminates their ability to contribute to state candidates, despite being funded through voluntary employee contributions rather than corporate treasury funds.

Read the full story at clickondetroit.com.