Lawmakers Push Legislation to Curb Utilities Spending Ratepayer Money on Lobbying and Political Activities

Lawmakers in statehouses across the country are taking action to curb utilities’ spending of ratepayer money on lobbying, expert testimony, advertising, and other expenses. At least a dozen states have considered bills to limit how gas, water, and electric utilities can use customers’ funds, with some states already signing similar bills into law.

The Energy and Policy Institute, a watchdog group focused on utilities and fossil fuel interests, has been tracking these legislative efforts. In Louisiana, a public service commission has opened a proceeding to investigate the use of ratepayer cash on trade association dues and other activities meant to influence legislation. Michigan recently introduced legislation to ban utility political spending, while groups like AARP and the Citizens Utility Board in Illinois are pushing for similar measures.

The push for legislation comes as natural gas bills have fallen, but average residential electric prices in the U.S. have climbed. The Energy and Policy Institute has published a report scrutinizing how utilities use ratepayer money to fund political activities that influence legislation and elections.

Examples of questionable spending by utilities include a massive bribery scandal in Ohio involving FirstEnergy, political favors by Commonwealth Edison in Illinois, and accusations of using political consultants in Florida. In South Carolina, Dominion Energy was involved in sending fake emails to lawmakers, while Arizona Public Service funneled money to dark money groups to influence elections.

Despite these revelations, bills to curb utility influence spending can face challenges, as demonstrated in Virginia where attempts to prevent candidates from accepting donations from public service companies like Dominion Energy failed to pass. The Edison Electric Institute, representing investor-owned electric utilities, defends its lobbying activities as essential for ensuring affordable, reliable, and clean energy for customers.

Climate justice organizations are calling attention to energy company influence, with rallies and federal legislation introduced to prevent utility companies from using ratepayer dollars for political activities. The public is increasingly demanding accountability from utilities, urging regulators to take action to protect consumers’ interests.