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    BREAKING NEWS: [UPDATED] House Democrats paid-off to grant utility monopoly


    By Nick, Section News
    Posted on Thu Apr 26, 2007 at 02:35:24 PM EST

    "We are beginning a new era in the Michigan House of Representatives by holding our members to the highest ethical standards. The people of Michigan have spoken loud and clear. They refuse to tolerate a culture of corruption. House Democrats respect what our residents have to say, and we responded to it by strengthening our ethics policies in the House."

    House Majority Leader Steve Tobocman MIRS – March 22, 2007

    So much for holding members in the House to the highest ethical standards.

    When Democrat House Speaker Andy Dillon proposed granting DTE and Consumers Energy a monopoly of Michigan's utility industry everyone assumed he was looking at a creative if not misguided way to raise taxes.

    Turns out he had more to gain from the proposal than we were led to believe.  Less than two weeks from the day the Speaker announced his plan to repeal PA 141 of 2001, DTE cut a $15,000 check to the Michigan House Democrat Political Action Committee.

    Dillon announced his intention to grant DTE a monopoly on March 29, 2007.  You can read original coverage of his announcement here and here.

    According to a report filed with the Michigan Secretary of State by the House Democrat PAC (available here... see line 10), DTE made it worth the Speaker's while on April 11.  Their "contribution" ranked as the tenth largest given to the House Democrats during a reporting period that saw the PAC take in over 2,600 unique donations.

    This is the second time this month the Speaker has been caught tailoring policy proposals that appear to be influenced by corporate giving.  Just over a week ago Dillon and several other House Democrats announced they would reimburse Apple for a trip they'd taken on the companies dime only a short time before unveiling their vision to put iPods, an Apple product, in the hands of every schoolchild in Michigan.

    It appears to be the first time a policy proposal has led to a direct cash pay-off.

    Update [2007-4-26 14:59:45 by Nick]:The pay-off was delivered several weeks after Dillon's initial proposal and on the same day DTE CEO Anthony Early testified before the House in favor of monopolization.

    The give and take between Dillon and corporate interests seriously undercuts Democrat's stated goal of running an ethical ship in the House of Representatives.  You can pass all the ethics legislation you want, but accepting a suitcase full of green after scratching a company's back isn't what most folks would call ethical.  In the real world that's called a bribe.

    < Granholm stamps her feet, she's taking her ball and going home | Angry Granholm called on school funding "charade," holding kids hostage to tax hike demand >
    Display: Sort:
    Ha! (5.00 / 1) (#1)
    by Republican Yankee on Thu Apr 26, 2007 at 03:02:33 PM EST
    Well, what can you say?  It looks like the "culture of corruption" isn't limited to Washington and certainly isn't to Republicans.  You have Apple, you have DTE now and who knows what more Jon Stryker is going to want from newly purchased Democratic majority.

    So the question after all of this becomes: who is Dillon and the Democrats representing?  The people of Michigan or DTE, Apple, the UAW and the MEA.  So far, it's pretty obvious.

    so what's the over under on the amount of time (5.00 / 1) (#2)
    by Nick on Thu Apr 26, 2007 at 03:04:30 PM EST
    before Dillon calls a press conference to tell everyone he's returning the cash then no-shows at the podium a-la the iPod fiasco?

    So DTEs never given money to the Dems? (1.00 / 1) (#3)
    by NoviDemocrat on Thu Apr 26, 2007 at 04:17:44 PM EST


    um... they just gave $15K to the Dems (5.00 / 1) (#4)
    by Nick on Thu Apr 26, 2007 at 04:23:17 PM EST
    And made the pay-off the SAME day their CEO was at the Capitol lobbying for Dillon's monopolization proposal.

    The SAME day.

    "We are beginning a new era in the Michigan House of Representatives by holding our members to the highest ethical standards.  The people of Michigan have spoken loud and clear. They refuse to tolerate a culture of corruption. House Democrats respect what our residents have to say, and we responded to it by strengthening our ethics policies in the House."

    House Majority Leader Steve Tobocman MIRS - March 22, 2007

    Um... that didn't last long, did it?

    Pay offs three weeks later?!  

    Stop playing politics and demand more of your party.  They're letting you down!

    If the tables were turned. (5.00 / 1) (#5)
    by trainjunkie47 on Thu Apr 26, 2007 at 04:26:07 PM EST
    Had this been a republican legislator tailoring a bill to aid a corporation to this extent and a donation of this magnitude followed in two weeks to the Michigan Republican Party, there would have been a firestorm.  The Detroit Free Press would have stopped the presses to make this banner headline material.  Many television stations would have interrupted programming in progress to bring you the latest breaking story.  

    I will not be holding my breath while awaiting any report of this on the evening news or tomorrow's Free Press.

    so you're telling me (5.00 / 1) (#7)
    by Nick on Thu Apr 26, 2007 at 04:33:24 PM EST
    they've been trying to buy this legislation for more than a year?

    How many years in a row?  Are you telling me it took the $30K mark?  The $45K?  $60K since the Speaker was first elected?  What's Dillon's price?

    Ethics? What ethics? (5.00 / 1) (#8)
    by Nick on Thu Apr 26, 2007 at 04:35:04 PM EST
    Just in case some of our friends missed it...

    "We are beginning a new era in the Michigan House of Representatives by holding our members to the highest ethical standards.  The people of Michigan have spoken loud and clear. They refuse to tolerate a culture of corruption. House Democrats respect what our residents have to say, and we responded to it by strengthening our ethics policies in the House."

    House Majority Leader Steve Tobocman MIRS - March 22, 2007



    DTE Again (5.00 / 1) (#9)
    by Spartyfan on Thu Apr 26, 2007 at 04:37:53 PM EST
    Didn't they conspire with the Gov. to run ads during the campaign?  They used corporate dollars to help her campaign.  She was all over their ads.  I assume that wasn't political either.  Gotta give them credit - they know how to play the game.

    Phony quid pro quo (1.00 / 1) (#10)
    by NoviDemocrat on Thu Apr 26, 2007 at 08:20:36 PM EST
    I know you're being deliberately obtuse. DTE has given thousands of dollars a year to the House Dems. I know you know how to look up the amounts. Why are you shocked, yes shocked, that they give money to the Dems? They also give money to Republicans. I know that will shock you as well.

    15K isn't only the LARGEST amount they've ever (5.00 / 1) (#11)
    by Nick on Thu Apr 26, 2007 at 08:32:57 PM EST
    given to the House Dems, it came on the DAY their CEO testified in favor of a deal that would net them millions of dollars.

    So beyond the dollar amount what's the difference between this briefcase full of cash and other contributions?  The others didn't directly result in policy proposals.  

    But hey, if you think corporate contributions that are followed by legislative action benefiting the contributor is alright, hey, alright.  Your call.

    Rate increases too!!! (5.00 / 1) (#12)
    by Spartyfan on Fri Apr 27, 2007 at 10:06:27 AM EST
    They've also asked for hundreds of millions in rate increases from the PSC.

    Great business model - have the central government give you huge increases so your CEO and other execs can make millions - and then have the government remove any semblance of competition.

    The Kremlin would be proud.

    Why reward the one company that is doing well ? (5.00 / 1) (#14)
    by rbnelso on Fri Apr 27, 2007 at 05:01:50 PM EST
    DTE's stock just reached a 52-week high. It's CEO earned more than $7 million last year and the company wants more relief from the Legislature. DTE may be the only large company in Michigan that is not facing massive layoffs and yet the Speaker apparently wants to reward them with monopoly status .Why not give the other businesses a break and allow  them to choose an electric supplier other than DTE?

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