Michigan residents overwhelmingly passed a ballot measure last week intended to restrict the ability of utilities and state contractors to influence politics. Now, the utilities are fighting back.

In a lawsuit filed last Thursday, the two major utilities in Michigan, Consumers Energy and DTE, argue that the measure—dubbed Proposal 2—threatens their First and 14th Amendment rights.

The ballot measure, which passed with 81 percent of the vote, amends the state’s campaign finance laws to put restrictions on donations for both utilities and companies with more than $250,000 annually in state and local government contracts. The new language explicitly bans political donations from utilities, contractors, and high-level employees, lobbyists, and their immediate family members. The ballot measure also tightens the state’s regulations around disclosures for political ads, mailers, and other forms of communication.

Michigan was part of the blue tsunami election where energy prices and government corruption—and data centers—played a huge role in getting Democrats elected and getting ballot measures like this passed. The state is a major hub for data center development, with at least 26 projects planned across the state as of July.

4 billion, with consumers potentially on the hook. Michiganders have seen energy bills increase by 10 percent over the past 12 months, the fourth-largest increase in the US, according to Energy Bill Lab .

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