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Jocelyn Benson: Ban Michigan utility spending to influence politicians

Democratic gubernatorial candidate Jocelyn Benson speaks during a press conference at Saginaw County Democratic Party headquarters, where she unveiled a plan to lessen utilities’ influence on the political process and conduct a “grid audit” to identify gaps and areas for improvement in electric services. Photo credit: Lauren Gibbons/Bridge Michigan.

Editor note: This story was originally published by Bridge Michigan (bridgemi.com), a nonprofit and nonpartisan news organization. To get regular coverage from Bridge Michigan, sign up for a free Bridge Michigan newsletter .” 

by Lauren Gibbons (Bridge Michigan)

Michigan Democratic gubernatorial hopeful Jocelyn Benson said Friday she wants to ban regulated utilities from spending to “influence or elect politicians.”

The proposal from Benson, who currently oversees Michigan campaign finance system as secretary of state, could limit political spending by DTE Energy and Consumers Energy. She announced it as part of a  that aims to address high gas and electricity rates for Michigan residents.

“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, where she was joined by Mayor Brenda Moore and other Democratic activists.

It not immediately clear how broad of a political spending ban Benson wants for the utilities, which are associated with political action committees and dark money groups that have donated to causes and candidates from both major political parties.

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.

 across the country have introduced or adopted proposals to limit investor-owned utilities’ political activities, according to the Energy and Policy Institute.

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. “We will work with any future administration and Legislature on achieving these goals.”

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.”

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 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.

Benson campaign said her proposal is not an endorsement of an  that seeks to ban political spending by utilities or state government contractors.

As secretary of state, Benson can’t weigh in on pending initiatives, which are reviewed by her office to determine if they qualify for the ballot, campaign spokesperson Alyssa Bradley told Bridge Michigan.

Sean McBrearty, who co-chairs the  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 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. “We look forward to further details being released.”

Energy reforms

The energy plan Benson unveiled Friday also aims to tie utility profits to service reliability, as well as increasing outage credits available to ratepayers. Broadly, 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 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.

Benson didn’t offer specifics when asked how much those plans would cost to implement, but she said her ultimate goal is to protect residents from higher heating and electricity costs and frequent, widespread outages. , according to federal data.

“To me, it 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 also transparent, and that citizens have access to knowledge of what is actually being done,” she said.

Benson isn’t the only candidate discussing utility rates as part of the campaign to replace term-limited Gov. Gretchen Whitmer.

Republican Tom Leonard, a former Michigan House speaker, in January proposed expanding the Michigan Public Service Commission from three to five members and  to make appointments, in addition to the governor, who currently appoints all members.

Among other reforms, Leonard also called for banning non-public meetings, capping utility rate increases at inflation, increasing automatic outage credits and implementing performance-based regulation of utilities, including penalties for unreliable service.

Other GOP candidates, including US Rep. John James, former Attorney General Mike Cox and Senate Minority Leader Aric Nesbitt, have largely laid blame for high energy costs on the state  spurred by laws passed during Democratic control of the state Legislature.

They’ve vowed to repeal the regulations if elected.

Democratic candidate Chris Swanson, the Genesee County sheriff, has endorsed a and has said he wouldn’t take campaign donations from groups associated with utilities.

by Marsha Chartrand

Marsha Johnson Chartrand, a founder, writer, and copy editor with the Manchester Mirror, is a 50-year resident of Manchester. She has a long history of volunteer and community involvement.