Michigan voters approve utility spending ban as Democrats secure legislative trifecta

Michigan voters approved Proposal 2 on Tuesday with 81% support, a ballot measure that bans political contributions from utilities and major state contractors. The result, confirmed by the Secretary of State, signals a sharp shift in how the state regulates corporate influence in politics.

The measure, known as Michiganders for Money Out of Politics, succeeded after backing from Democratic statewide candidates and more than 80 organizations. Christy McGillivray, co-chair of the initiative's steering committee, stated in August that anger over proposed rate hikes from DTE Energy and Consumers Energy would drive support. She noted that voters overwhelmingly agreed government should work for people rather than powerful corporations.

Democrats also secured a trifecta, winning the governor's office, the state House, and the state Senate. This control allows the party to defend the Clean Energy and Jobs Act, passed in 2023, which targets 100% clean energy generation by 2040. Republicans had introduced legislation in March, titled Project Lighthouse, to repeal those mandates. State Rep. Pauline Wendzel, R-Watervliet, called the requirements arbitrary, arguing they benefit investor-owned utilities at the expense of ratepayers.

Abdul El-Sayed defeated Republican Mike Rogers to win Michigan's open U.S. Senate seat. El-Sayed released terms of engagement for data centers in January, outlining rules to protect utility ratepayers from data center costs and ensure community benefits. He criticized DTE Energy's political spending, which he said helped the company gain fast-tracked approval for Oracle and OpenAI data center contracts in Saline Township. El-Sayed stated during the primary that he was the only candidate who received no donations from corporate political action committees.

Eli Savit won the attorney general's race, pledging to continue the work of outgoing Attorney General Dana Nessel. Nessel intervened in rate cases involving DTE, Consumers Energy, and other utilities over her eight-year tenure. Savit told Planet Detroit in September that utility rates should ensure reliability without exceeding what is necessary. He also challenged utilities' returns on equity and the inclusion of expenses like travel and lobbying in rate calculations.

The Mackinac Center for Public Policy filed a federal lawsuit against Secretary of State Jocelyn Benson and Attorney General Dana Nessel on Tuesday. The conservative think tank alleges that Proposal 2 violates free speech protections. Representatives for utilities and Blue Cross Blue Shield of Michigan also challenged the initiative, arguing it would silence employees engaging in the political process.

In Ann Arbor, Proposition E lost 52% to 48%. The citizen-led ballot initiative sought to create a municipal energy utility board to replace DTE Energy. The city council passed a resolution in October challenging the effort, citing a possible $1 billion cost, which backers disputed.