This story was originally published by grist and is reproduced here as part of the Climate Table collaboration
Utilities throughout the country using money collected from customers’ monthly bills to fund political campaigns and lobbying efforts, often with the aim of blocking climate progress. But in Colorado, that’s about to change. This week, the state passed the nation’s most comprehensive legislation to prevent businesses from using customer funds to support political activities.
from Colorado new law regulating public services it was approved by the state Senate on Monday after clearing the state House two days earlier, and is expected to be signed by Gov. Jared Polis soon. Prohibits investor-owned utilities from charging their customers, known as ratepayers, for any trade association membership fees, lobbying expenses, or any other activity that influences legislation, ballot measures, or other actions regulators It also prohibits public services from spending taxpayers’ money on political advertising or any message intended to boost the company’s brand.
“This is the first comprehensive effort by a state to protect utility customers from being forced to fund the political machines of gas and electric companies,” said David Pomerantz, executive director of the Energy and Policy Institute. a public service control group.
While federal and state regulations already prevent utilities from spending taxpayer funds on lobbying, they tend to use a very narrow definition for lobbying and are “riddled with loopholes,” Pomerantz said.
The Edison Electric Institute, with a budget exceeding $90 million, has led national campaigns against federal climate and rooftop solar regulations.
It is common practice, for example, for investor-owned utilities to funnel customer money to trade associations such as the American Gas Association and the Edison Electric Institute, which are known for their political lobbying efforts to protect the interests of the sector. A report by London-based think tank InfluenceMap found that nearly half of the 25 largest U.S. utilities are owned by investors. actively working to delay the energy transition through lobbying, political messaging or campaign donationseven through trade groups.
Fees collected from millions of utility customers add to large political spending budgets: The Edison Electric Institute has an annual budget of more than $90 million and has led national campaigns against federal climate and rooftop solar regulations.
Edison Electric Institute spokesman Brian Reil said the association and its member companies “prioritize customer affordability and reliability as we work to deliver resilient clean energy throughout our economy.” Reil added that the group supported the bipartisan Federal Infrastructure Act of 2021 and the Clean Energy Tax Credits included in last year’s Inflation Reduction Act. The American Gas Association did not respond to Grist’s request for comment in time for publication.
A few other states, including New York and Minnesota, have passed similar laws to address the problem, but none are as comprehensive as Colorado’s. Unlike previous laws, Colorado includes an annual reporting requirement to ensure that utilities comply with the new rules. But the bill stops short of requiring the state’s Public Utilities Commission to impose fines on utilities that don’t comply. In response to pressure from public service companies and trade associations, the law was amended to say that the commission “may” impose fines, which the commission is already authorized to do. “It’s not a real change to the status quo,” Pomerantz said.
The law also directs the Public Utilities Commission to limit how much utilities can charge customers for funds spent on lawyers and consultants working to raise utility rates. It also includes a number of provisions to prevent utilities from passing on volatile gas prices to consumers.
Pomerantz and other advocates hope the new law will inspire efforts in other states at the start of the next legislative session. Colorado’s law “could be a watershed moment,” Pomerantz told Grist. “These things start with a trickle. Policymakers need to see that something is possible first.”
