Jocelyn Benson Proposes Banning Michigan Utilities From Political Spending As Energy Costs Rise

Michigan Democratic Gubernatorial Candidate Wants to End Conflict of Interest Between Regulated Utilities and Regulators

SAGINAW — Democratic gubernatorial hopeful Jocelyn Benson announced Friday she wants to ban regulated utilities from spending money to influence or elect politicians. The proposal from Benson could limit political spending by DTE Energy and Consumers Energy, the two largest electric utilities in Michigan.

"We're going to end the conflict of interest so that companies seeking to raise rates cannot influence making those rules and decisions that are meant to regulate them," Benson said during a news conference in Saginaw.

Benson currently oversees Michigan's campaign finance system as secretary of state. She unveiled the proposal as part of a broader plan to address high gas and electricity rates for Michigan residents.

Utilities Have Funded Michigan Legislature Heavily

In the last legislative session, DTE or Consumers-affiliated PACs gave to 120 of 148 legislators' campaigns or leadership funds, nearly $560,000 over two years. The contributions were bipartisan and almost evenly split between lawmakers and related leadership PACs from both major political parties.

At least 22 other states across the country have introduced or adopted proposals to limit investor-owned utilities' political activities, according to the Energy and Policy Institute.

Benson said Friday she has not accepted funds from energy companies in her campaign for governor, though she has benefited from spending by political action committees associated with the regulated utilities in the past.

A DTE PAC gave Benson $4,000 for her failed 2010 secretary of state campaign and $2,000 for her winning 2018 campaign, according to state campaign finance records. A Consumers Energy employee PAC gave Benson $7,000 between 2018 and 2021.

Industry Response Remains Vague

In separate statements, spokespersons for DTE and Consumers did not comment specifically on proposed limits to political giving, but acknowledged the need to address affordability concerns.

"We know that Michiganders are experiencing the cost of everything increasing — from groceries, to housing, to gas prices — which is why we're focused on securing the grid, powering homes and investing in Michigan," Consumers spokesperson Katie Carey said.

DTE spokesperson Ryan Lowry said that the utility is "mindful of the impact any increase can have on our customers and continue to look for ways to manage costs responsibly," adding that the priority is to "carefully balance reliability and long-term system needs with keeping bills as low as possible."

Benson Also Unveiled Energy Reform Plan

Benson's energy plan also aims to tie utility profits to service reliability, as well as increasing outage credits available to ratepayers. She called for additional reforms to the rate-setting process handled by the Michigan Public Service Commission.

Benson also advocated for a grid audit to identify weaknesses and infrastructure needs in the state's power supply, as well as a statewide home energy bills relief program to assist Michigan residents with weatherizing homes, upgrading insulation, replacing outdated heating and cooling systems and expanding flexible payment plan options.

Michigan has some of the country's longest outage times, according to federal data.

"To me, it's about building partnerships with folks who are already engaged in this, but having the state play a role in developing that comprehensive audit so it's also transparent, and that citizens have access to knowledge of what is actually being done," she said.

Critics Question Constitutionality of Proposal

Critics of similar efforts to curb utilities' political influence, including the Michigan Chamber of Commerce, contend that doing so would be an unconstitutional restriction on free speech.

Benson's campaign spokesperson Alyssa Bradley told Bridge Michigan that her proposal is not an endorsement of an ongoing Michigan petition drive that seeks to ban political spending by utilities or state government contractors.

Sean McBrearty, who co-chairs the Michiganders for Money out of Politics group behind the ballot initiative, said the coalition welcomes alternative plans to limit political influence and increase government transparency.

"We are hopeful that Secretary Benson's plan would ban direct and indirect contributions from utilities, entities associated with them, and government contractors as our initiative does," McBrearty told Bridge in an email.

Benson Running Against Several Candidates

Benson is running against Genesee County Sheriff Chris Swanson, former Cape Coral Florida Mayor Marni Sawicki and biochemist Kevin Hogan, among others, for the Democratic Party nomination. She faces a crowded field of Democratic candidates in the upcoming gubernatorial primary.