Sponsors (2)
The bill protects ratepayers by capping and reclaiming excessive utility executive bonuses and boosting FERC oversight, but it may raise compliance costs that could be passed to customers, slow return of funds through federal administration, and create recruiting and timing challenges for utilities.
Renters, homeowners, and low-income customers: executive bonuses would be limited when a utility's rate increases outpace inflation and capped relative to median nonexecutive pay (25%), reducing the likelihood that higher customer bills fund excessive executive compensation and narrowing pay disparity within utilities.
Customers of covered utilities (renters, homeowners, low-income individuals): forfeited unlawful bonus payments are returned pro rata to ratepayers, providing a direct, compensatory monetary benefit to those who pay utility bills.
Utilities, taxpayers, and the public: the bill requires prompt reporting to FERC and a one-month review window, increasing transparency and regulatory oversight of utility executive compensation practices.
Renters and homeowners: compliance and reporting requirements impose administrative costs on covered utilities that could be passed through to customers via higher rates or reduce utility investment, indirectly raising household expenses or affecting service quality.
Utilities (especially foreign-owned, state-regulated firms): constrained executive pay may reduce ability to attract or retain senior management talent, potentially affecting utility leadership and operations.
Taxpayers and customers of covered utilities: routing forfeited bonuses through the IRS for redistribution adds federal administrative burden and could delay when customers actually receive relief from forfeited payments.
Based on analysis of 2 sections of legislative text.
Restricts executive bonuses for state-regulated electric utilities not wholly U.S.-owned by tying bonus eligibility to CPI–U–matched rate increases and capping bonuses at 25% of median nonexecutive pay.
Introduced December 10, 2025 by Josh Riley · Last progress December 10, 2025
Beginning January 1, 2025, the bill limits executive bonuses at state-regulated electric utilities that are not wholly owned by U.S. persons. Bonuses are allowed only when the utility’s average customer-rate increase for the fiscal year does not exceed the 12-month change in CPI–U; any allowed bonus is capped at 25% of the median annual pay of nonexecutive employees. Covered utilities must report data to FERC quickly; FERC and the IRS decide compliance and enforce forfeiture of illegal bonuses, which the IRS must return to customers pro rata.