Sponsors (2)
The bill increases accountability and returns unlawfully paid executive bonuses to ratepayers—protecting consumers and narrowing pay gaps—while imposing compliance, timing, and talent-retention costs on utilities that could indirectly affect rates or service.
Electric utility customers (renters, homeowners, and low-income households) are protected from bearing increased costs to fund executive bonuses when utility rate increases outpace inflation due to limits on such bonuses.
Customers of covered utilities receive direct monetary benefit because unlawful or forfeited executive bonus payments are returned pro rata to ratepayers.
Covered utilities and the public gain greater transparency and regulatory oversight because the bill requires timely reporting to FERC and a one-month review period for bonus plans.
Covered utilities — particularly foreign-owned, state-regulated firms — may have reduced ability to attract or retain senior executives if pay is constrained, potentially affecting management talent and long-term utility performance.
Compliance, reporting, and administrative requirements impose costs on covered utilities that could be passed on to customers through rates or reduce capital available for investment.
Short statutory deadlines for reporting and FERC review create timing uncertainty for utilities and executives, complicating fiscal planning and bonus-payment timing.
Based on analysis of 2 sections of legislative text.
Prohibits bonuses for executives at non‑U.S.-wholly-owned state-regulated electric utilities unless rate increases are no greater than inflation and caps bonuses at 25% of median nonexecutive pay.
Stops many state-regulated electric utilities that aren’t wholly U.S.-owned from paying executive bonuses unless customer rate increases stay at or below inflation and any allowed bonus is limited relative to nonexecutive pay. It requires quick reporting to FERC after each fiscal year, gives FERC one month to decide bonus eligibility and caps payouts at 25% of the median nonexecutive annual pay; unlawful bonuses are forfeited to the U.S. and returned to customers via the IRS. The rule applies starting January 1, 2025, uses existing statutory definitions for covered utilities, and sets joint FERC/IRS compliance and enforcement mechanics for reporting, review, forfeiture, and distribution of funds to affected customers.
Official title: To limit bonuses for executives of certain electric utilities, and for other purposes.
Introduced December 10, 2025 by Josh Riley · Last progress December 10, 2025