STRINGS ATTACHED How Utilities Use Charitable Giving to Influence Politics and Increase Investor Profits
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STRINGS ATTACHED How utilities use charitable giving to influence politics and increase investor profits December 2019 - Energy and Policy Institute Strings Attached How utilities use charitable giving to influence politics and increase investor profits December 2019 The Energy and Policy Institute is a watchdog organization working to expose attacks on renewable energy and counter misinformation by fossil fuel and utility interests. It does not receive funding from for-profit corporations or trade associations. Authors David Anderson Matt Kasper David Pomerantz Kelly Roache Alissa Jean Schafer Joe Smyth Daniel Tait Itai Vardi Energy and Policy Institute Strings Attached, December 2019 1 Table of Contents I. INTRODUCTION ............................................................................................................................................................................ 4 II. SCOPE OF THIS REPORT ............................................................................................................................................................. 7 III. KEY FINDINGS: FOUR WAYS UTILITIES USE CHARITABLE GIVING TO INFLUENCE POLITICS ...................................... 7 1. GRANTEES WEIGH IN ON POLITICAL MATTERS IN SUPPORT OF UTILITIES........................................................................................................7 2. UTILITIES GIVE TO ORGANIZATIONS CONNECTED WITH OR FAVORED BY IMPORTANT POLICYMAKERS.........................................................8 3. UTILITIES USE PHILANTHROPY TO SUPPRESS RESISTANCE AND DISSENT .........................................................................................................9 4. UTILITIES USE CHARITIES TO EXTORT SUPPORT FROM LOW-INCOME COMMUNITIES AND COMMUNITIES OF COLOR.............................. 10 IV. LACK OF UTILITY TRANSPARENCY....................................................................................................................................... 12 V. RECOMMENDATIONS FOR REGULATORS AND POLICYMAKERS ................................................................................... 12 VI. DATA SOURCES ....................................................................................................................................................................... 13 VII. REPORT ORGANIZED BY UTILITY ........................................................................................................................................ 14 AMEREN ......................................................................................................................................................................................... 14 BASIC FACTS: ....................................................................................................................................................................................................... 14 EXAMPLES OF AMEREN USING CHARITABLE GIVING TO MANIPULATE POLICY: ................................................................................................ 15 AMERICAN ELECTRIC POWER .................................................................................................................................................... 19 BASIC FACTS: ....................................................................................................................................................................................................... 19 EXAMPLES OF AEP USING CHARITABLE GIVING TO MANIPULATE POLICY: ....................................................................................................... 20 ARIZONA PUBLIC SERVICE (APS) ............................................................................................................................................... 24 BASIC FACTS: ....................................................................................................................................................................................................... 24 EXAMPLES OF APS USING CHARITABLE GIVING TO MANIPULATE POLICY: ....................................................................................................... 25 DOMINION ENERGY ..................................................................................................................................................................... 29 BASIC FACTS: ....................................................................................................................................................................................................... 29 EXAMPLES OF DOMINION USING CHARITABLE GIVING TO MANIPULATE POLICY: ............................................................................................ 31 DTE ENERGY .................................................................................................................................................................................. 35 BASIC FACTS: ....................................................................................................................................................................................................... 35 EXAMPLES OF DTE USING CHARITABLE GIVING TO MANIPULATE POLICY: ....................................................................................................... 36 DUKE ENERGY ............................................................................................................................................................................... 40 BASIC FACTS: ....................................................................................................................................................................................................... 40 EXAMPLES OF DUKE USING CHARITABLE GIVING TO MANIPULATE POLICY: ..................................................................................................... 42 ENTERGY ........................................................................................................................................................................................ 46 BASIC FACTS: ....................................................................................................................................................................................................... 46 EXAMPLES OF ENTERGY USING CHARITABLE GIVING TO MANIPULATE POLICY: ............................................................................................... 47 FIRSTENERGY ................................................................................................................................................................................. 49 BASIC FACTS: ....................................................................................................................................................................................................... 49 EXAMPLES OF FIRSTENERGY USING CHARITABLE GIVING TO MANIPULATE POLICY: ........................................................................................ 50 Energy and Policy Institute Strings Attached, December 2019 2 NEXTERA ENERGY......................................................................................................................................................................... 55 BASIC FACTS: ....................................................................................................................................................................................................... 55 EXAMPLES OF NEXTERA USING CHARITABLE GIVING TO MANIPULATE POLICY:............................................................................................... 56 SOUTHERN COMPANY ................................................................................................................................................................ 60 BASIC FACTS: ....................................................................................................................................................................................................... 60 EXAMPLES OF SOUTHERN COMPANY USING CHARITABLE GIVING TO MANIPULATE POLICY: ......................................................................... 62 Energy and Policy Institute Strings Attached, December 2019 3 I. Introduction In the fall of 2017, a parade of paid actors, pretending to be concerned residents, lined up to offer public comments to the New Orleans City Council in support of a new gas-burning power plant that Entergy wanted to build there. But the paid actors weren’t the only people testifying on behalf of Entergy or its gas plant proposal. A host of others, including directors of dozens of locally respected non-profits, also testified on behalf of the company and its gas plant proposal. Howard Rodgers of the New Orleans Council on Aging said that “gas is an energy that we use that does not have any kind of additional effects.” Burning natural gas, a fossil fuel, contributes to climate change, leading to more extreme weather and storm surges that have inundated New Orleans. Last year, Rodgers posed for a photo while receiving a $300,000 novelty check from Charles Rice, the Entergy CEO, to administer the utility’s “Power to Care” program. At least nine of the organizations which testified at the New Orleans City Council’s hearing on the gas plant on Entergy’s behalf that day had received charitable donations from the Entergy Charitable Foundation. They were a part of the charitable giving operation that Entergy, like virtually all regulated electric and gas utilities,