Michigan loophole makes it difficult to track utilities’ donations to politicians

An investigation into Michigan election records has found a major loophole in reporting laws that makes it difficult to track when and how campaign contributions move between lawmakers and the state’s controversial utilities, DTE Energy and Consumers Energy.

State law does not require the date that a contributor makes a donation to match the date that a campaign committee reports receiving it. That has created a scenario in which utilities throughout 2025 have cut checks for lawmakers around the time of controversial votes, but the lawmakers sometimes still have not reported receiving the contribution or report it much later.

A review of all 348 utility Pac donations recorded in 2025 through the last 20 October reporting deadline shows that contribution dates did not match 89% of the time, and lawmakers had not yet reported receiving about 37% of the donations.

The problem is illustrated in records showing donations around when the senate passed carbon sequestration bills supported by the utilities, but largely opposed by environmental groups.

Records show a burst of utility Pac giving that totaled about $100,000 in the month before and after the 5 September vote. As of mid-December, nearly $40,000 in donations were not reported by campaign committees that received them, despite the 20 October reporting deadline.

A member of the public who checks those records would not know a politician received a donation, unless they also looked at Pac records, which experts say is uncommon. Similar scenarios played out around controversial legislative action on data centers and a regulatory appointment.

It is impossible to know if any of the delays are intentional. The loophole creates a scenario in which a hypothetical lawmaker may know that a check is on the way and vote accordingly, but not have to report the contribution until long after the check was cut. Or a lawmaker could hold onto a check for months without reporting it.

“If we can’t understand clearly from the disclosures how money is moving, that compromises transparency, accountability and public understanding of this information,” said Karlee Weinmann, a researcher with utility industry analyst Energy and Policy Institute (EPI).

The donation records were compiled by EPI, and the data was reviewed by the Guardian. The Guardian investigated why the dates did not match.

The mismatch dates are not a violation, and current and former lawmakers, as well as state election officials, say mismatched reporting is the norm. The issue is also not limited to utility industry giving, officials say, and highlights the opaque process around campaign donation reporting more broadly.

DTE Energy and Consumers Energy are among the nation’s largest utility companies, and are unpopular in Michigan because, federal data shows, the state over the last decade has had among the nation’s highest rates and worst-in-the-nation reliability. The utilities are prolific campaign donors, and their contributions are thought to be the reason why reform legislation has always failed.

The revelations also come as a first-in-the-nation citizen’s ballot initiative to ban political donations by utilities picks up steam, and advocates say the investigation underscores the need for the legislation.

The “lack of transparency” is especially a problem because the utilities operate as a regulated monopoly, so political oversight is critical, said Nick Dodge, spokesperson for the Michigan League of Conservation Voters, which is on the steering committee for the ballot initiative.

“Lawmakers vote on legislation that can have major impacts on ratepayers,” Dodge said.

‘The system has a lot of holes in it’

Around the time the carbon sequestration bill moved in the Senate, DTE and Consumers Pacs respectively reported making donations of $1,000 and $2,500 to Democratic state senator and majority leader Sam Singh, who also vice-chairs the energy committee through which the legislation had to pass.

As of mid-December, the donations were not listed in Singh’s campaign finance records. A Singh spokesperson said the Consumers donation was received after the 20 October reporting deadline, and would be reported after the next deadline, in February. The spokesperson said the office never received DTE donation. DTE did not respond to questions about what happened to the donation, but said it would amend its report, if needed.

Records show Consumers around the same time made a $2,000 donation to Democratic state senator Sean McCann, an energy committee vice-chair who co-authored the bills. That and a $1,500 donation recorded on 3 June were not reported by McCann, records show. McCann’s office said the donations were not received until November.

Similarly, a $1,000 donation made to Democratic state senator Kevin Hertel, who sits on the energy committee, and a $2,500 donation to the Senate Republican Campaign Committee were not reported by the recipients.

The record keeping at the federal level does not generally have the same problems, said Brendan Glavin, director of insights with the campaign finance watchdog Open Secrets. The Federal Elections Commission has more resources than state election agencies, as do federal candidates who often hire firms to handle donations, Glavin said. He added that the level of mismatch seen in Michigan is rare, even for the state level.

“The dates could be a few days off, but nothing like what you’re talking about here,” Glavin said.

A secretary of state candidate handbook states that a committee receiving a donation “must promptly deposit all monies received …. the committee receives a contribution as soon as the committee treasurer or an agent designated by the treasurer receives it.”

If a lobbyist hands the check to a campaign, then it must be reported as received on the same day. Mailed checks can account for some delay, but sometimes legislators hold onto checks before depositing them, multiple lawmakers told the Guardian.

Other legitimate scenarios can cause a delay, but they all create a situation in which the public does not know when a donation is made. Yousef Rabhi, a former Democratic party leader in the statehouse and clean energy advocate, noted a scenario in which he burned a check from DTE Energy. He said he never deposited or reported the donation.

“It is kind of opaque, and if the rules were very clearly defined then maybe it would be easier for folks, but the system has a lot of holes in it,” Rabhi said.

A spokesperson for the Michigan secretary of state, Jocelyn Benson, who manages the state’s elections, said the office would inquire about any missing donations it finds. But the spokesperson said the mismatch on the reporting dates is not a violation, even if it obscures donations’ timing.

“Our department is always willing to work with our partners in the legislature to create better tools for greater transparency,” spokesperson Angela Benander said.

‘Major impacts on ratepayers’

The investigation comes as the fight over controversial data center plans in the state reaches a fever pitch. The centers are poised to derail Michigan’s nation leading clean energy transition and likely increase energy bills.

Utilities recently ignited controversy by requesting regulators fast track review of how centers would impact energy bills and the environment. Some lawmakers sent state regulators letters in support of utilities’ requests, including Democratic state representative Joey Andrews, who serves on the house’s energy committee.

Records show Consumers made a $1,000 donation to Andrews on 3 October, about a month before he sent a letter in support of DTE’s request. But records as of mid-December showed his committee did not report receiving it.

In a text message, Andrews said he did not receive the donation after the 20 October reporting deadline, and it will be in the February report.

In July, Michigan’s governor, Gretchen Whitmer, nominated Shaquila Myers to the Michigan public services commission, the regulatory agency that oversees utilities. Myers is widely viewed as a utility industry ally, and Whitmer appointed her to replace a commissioner considered to be a strong consumer and clean energy advocate.

The senate confirmed Myers, but the nomination drew calls for legislative hearings that never happened. Records show about $23,000 out of $55,000 in donations made around that time have not yet been reported by lawmakers.

Records show many donations from early in the year are still unaccounted for. Utility Pacs made three donations totaling $1,250 to Republican representative Luke Meerman. Two were made in late February, and a third in September. A donation from February and September were still not reported.

Meerman’s office told the Guardian it never received one of the February donations, or the September donation. After being contacted by the Guardian, a campaign staffer picked up the check that Consumers cut in September, Meerman’s office said. The office said it would report the donation in the next cycle, and is in compliance with the law.

A Consumers Energy spokesperson said it voided the February check. It did not respond to questions about why it voided the check, or why the September check was never delivered until after the Guardian contacted Meerman’s office.