Consolidated Edison, Inc. | Lobbying Expenditures Disclosure at Consolidated Edison, Inc.

Status
Filed
Previous AGM date
Resolution details
Company ticker
ED
Lead filer
Individual
Resolution ask
Report on or disclose
ESG theme
  • Governance
ESG sub-theme
  • Lobbying / political engagement
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Utilities
Company HQ country
United States
Resolved clause
RESOLVED, the shareholders of Edison International (“EIX”) request the preparation of a report, updated annually, disclosing:
1. Company policy and procedures governing lobbying, both direct and indirect, and grassroots lobbying communications.
2. Payments by EIX used for (a) direct or indirect lobbying or (b) grassroots lobbying communications, in each case including the amount of the payment and the recipient.
3. EIX’s membership in and payments to any tax-exempt organization that writes and endorses model legislation.
4. Description of management’s and the Board’s decision-making process and oversight for making payments described in sections 2 and 3 above.
For purposes of this proposal, a “grassroots lobbying communication” is a communication directed to the general public that (a) refers to specific legislation or regulation, (b) reflects a view on the legislation or regulation and (c) encourages the recipient of the communication to take action with respect to the legislation or regulation. “Indirect lobbying” is lobbying engaged in by a trade association or other organization of which EIX is a member.
Both “direct and indirect lobbying” and “grassroots lobbying communications” include efforts at the local, state and federal levels.
The report shall be presented to the Audit and Finance Committee and posted on EIX’s website.
Supporting statement
SUPPORTING STATEMENT
Full disclosure of EIX’s lobbying activities and expenditures is needed to assess whether EIX’s lobbying is consistent with its expressed goals and shareholder interests. EIX spent $27,901,000 from 2010 – 2022 on federal lobbying. This does not include state lobbying, where EIX spent $22.97 million on lobbying in California from 2010 – 2022.
Companies can give unlimited amounts to third party groups that spend millions on lobbying and undisclosed grassroots activity.1 EIX discloses its payments over $50,000 to trade associations like the Edison Electric Institute and the portions used for lobbying. Yet EIX’s disclosure leaves out many trade associations that lobby, including the California Electric Transportation Coalition, Los Angeles Area Chamber of Commerce, National Hydropower Association and Orange County Business Council, and critically fails to disclose its payments to politically active social welfare groups (SWGs), like serving on the board of California Taxpayers Association.
EIX’s lack of disclosure presents reputational risk when it hides payments to SWGs or its lobbying contradicts company public positions. Highlighting these risks, peer FirstEnergy was fined $230 million for funneling $60 million through SWG Generation Now in an Ohio bribery scandal.2 S&P notes the Ohio scandal has increased “scrutiny of how utilities use ‘dark money’ groups.”3 An investigation found that EIX donated $1,035,188 to members of Affordable Clean Energy for All, described as a fake grassroots organization that claimed to represent low-income ratepayers.4 A recent analysis found EIX was one of 25 utilities contributing $215 million to dark money groups from 2014 to 2020.5 And Edison Electric Institute’s recent opposition to EPA’s proposed carbon standards has attracted scrutiny.6
EIX should expand its lobbying disclosure.
1 https://theintercept.com/2019/08/06/business-group-spending-on-lobbying-in-washington-is-at-least-double-whats-publicly-reported/. 
2 https://www.npr.org/2021/07/23/1019567905/an-energy-company-behind-a-major-bribery-scandal-in-ohio-will-pay-a-230-million-. 
3 https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/ohio-bribery-scandal-increases-scrutiny-of-how-utilities-use-dark-money-groups-59894461.
4 https://insideclimatenews.org/news/08022022/is-the-california-coalition-fighting-subsidies-for-rooftop-solar-a-fake-grassroots-group/. 
5 https://www.theguardian.com/us-news/2023/jun/15/us-power-companies-political-lobbying-donations-nonprofit. 
6 https://www.washingtonpost.com/politics/2023/08/15/top-utility-group-opposes-epa-rule-some-members-invest-compliance/; https://www.theguardian.com/us-news/2023/aug/07/us-utilities-gas-power-plants-lobbying-eei-epa.

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