DTE Energy and Consumers Energy Sue in Federal Court to Block Michigan's Proposal 2, the Voter-Approved Ban on Utility Political Contributions

DTE Energy and Consumers Energy sued on Thursday to stop implementation of Proposal 2, two days after Michigan voters approved it, Bridge Michigan reported via the Associated Press. The measure, approved by more than 80% of voters, aims to prohibit direct or indirect contributions to Michigan politicians by the utilities or companies with more than $250,000 in state government contracts, along with immediate family members and others with close connections. It would not prohibit contributions to independent expenditure super PACs.

In a complaint filed in the US District Court for the Western District of Michigan, the utilities argue the measure violates the First Amendment and the Fourteenth Amendment; absent an injunction, they say, they “will be forced to choose between surrendering their rights to political association and risking substantial penalties for exercising them.” The suit names Michigan Bureau of Elections Director Jonathan Brater, Attorney General Dana Nessel and Secretary of State Jocelyn Benson as defendants. It is the second lawsuit over Proposal 2: the Mackinac Center for Public Policy announced a legal challenge Tuesday night. Consumers and DTE have spent on political races through employee-funded PACs and “dark money” nonprofits that don’t have to disclose donors.