Corporate Political Contributions, Governance and Disclosure
The Corporation may contribute to political parties, ballot measures and other organizations in the U.S., as permitted by law, only from corporate shareholder funds and not reflected in customer rates. The Corporation does not make contributions to federal Super PACS, nor do we contribute directly to, or make independent expenditures to expressly advocate for, the election or defeat of a federal, state or local candidate.
As part of their oversight functions, the Boards of Directors of CMS Energy Corporation and Consumers Energy Company (collectively, the Board) oversee our political engagement policies, programs and practices. The Governance, Sustainability and Public Responsibility Committee (the Committee), which is comprised of independent directors of the Board, is responsible for advising and assisting the Board with respect to our political engagement.
The Committee’s key functions are to:
- Review the Corporation’s strategies to help develop public policy supporting the business.
- Review, revise and approve the Corporation’s political and charitable contributions policy.
- Review and approve political and charitable contributions made on the Corporation’s behalf, including payments to tax-exempt organizations.
- Report to the Board and recommend the Board’s approval of political contributions as required.
Annually, the senior vice president for governmental, regulatory and public affairs (SVP GRPA) reports to the Committee the prior year’s expenditures for political purposes.
Governmental Affairs initiates all political contribution recommendations, which are then reviewed by the legal department before being sent for review and approval by the general counsel, the SVP GRPA, and the vice president and corporate secretary. Any contribution of $2,500 or less requires no further approval. A contribution greater than $2,500 and up to $10,000 requires additional approval by the president and chief executive officer. Contribution requests over $10,000 require prior approval of the president and chief executive officer and the Board.
To promote transparency, the Corporation goes above what is required by law and annually publishes on its website the previous year’s political contributions at all levels of government in March of each year as noted below:
- Expenditures made to influence the outcome of ballot initiatives.
- Direct corporate contributions to an entity organized under Sections 527 and Section 501(c)(4) of the Internal Revenue Code when annual contributions exceed $25,000.
- Non-deductible portions of trade association and other organization dues when annual mandatory membership dues exceed $25,000.
The Corporation will disclose such contributions and payments yearly. Beginning in 2023, we intend to begin publishing semiannual contribution reports each March and September.