What is Dark Utility Money?

Utility “dark money” refers to political campaign contributions and spending where the source of the funds is concealed, making it difficult or impossible for voters to know who is financing political ads, ballot initiatives, or lobbying efforts. This often involves using non-profit organizations, like 501(c)4s, to funnel money without disclosing the donors.

Two prominent utility dark money groups that have been identified are DTE-linked non profit Michigan Energy First, and the Consumers-linked non profit Citizens for Energizing Michigan’s Economy. The two dark money groups have donated significant amounts of money to non profits organizations controlled by lawmakers in the Legislature, who can then benefit from additional contributions from utility companies while avoiding campaign finance disclosures and limits.

The state does not require rigorous reporting of 501(c)(4) spending, which is subject to annual federal disclosures that are more limited in nature. As such, the 501(c)(4) spending is more difficult to track.

Michigan LCV plans to further track dark money spending where information is verifiable and available to add more contributions from utility companies through 501(c)(4) vehicles. The current Dark Money figures included were identified in Detroit News reporting.