H.R. 4785

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4785 Introduced in House (IH)]

<DOC>

119th CONGRESS
1st Session
H. R. 4785

To direct the Federal Energy Regulatory Commission to prohibit covered 
utilities from recovering covered expenses from ratepayers, and for 
other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

July 29, 2025

Ms. Castor of Florida (for herself, Ms. Matsui, Ms. McClellan, Ms. 
Ocasio-Cortez, Ms. Pingree, Mr. Thanedar, and Ms. Tlaib) introduced the 
following bill; which was referred to the Committee on Energy and 
Commerce

_______________________________________________________________________

A BILL

To direct the Federal Energy Regulatory Commission to prohibit covered 
utilities from recovering covered expenses from ratepayers, and for 
other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Ethics in Energy Act of 2025''.

SEC. 2. DEFINITIONS.

In this Act:
(1) Centralized service company.--The term ``centralized 
service company'' has the meaning given the term in section 
367.1(a) of title 18, Code of Federal Regulations (or a 
successor regulation).
(2) Commission.--The term ``Commission'' means the Federal 
Energy Regulatory Commission.
(3) Covered expense.--The term ``covered expense'' means a 
direct or indirect expense paid by a covered utility to--
(A) an external entity to perform political 
influence activities;
(B) a centralized service company, parent company, 
or other corporate affiliate--
(i) to perform a political influence 
activity; and
(ii) that invoices that covered utility for 
the expenses related to that political 
influence activity; or
(C) an employee of that covered utility, in the 
form of a salary, that performs a political influence 
activity.
(4) Covered utility.--The term ``covered utility'' means--
(A) an electric utility company (as defined in 
section 367.1(a) of title 18, Code of Federal 
Regulations (or a successor regulation)) that had, in 
each of the 3 previous calendar years, sales or 
transmission services that exceeded--
(i) 1,000,000 megawatt-hours of total 
annual sales;
(ii) 100 megawatt-hours of annual sales for 
resale;
(iii) 500 megawatt-hours of annual power 
exchanges delivered; or
(iv) 500 megawatt-hours of annual wheeling;
(B) a major natural gas company; and
(C) a centralized service company.
(5) Major natural gas company.--The term ``major natural 
gas company'' means a natural-gas company (as defined in 
section 2 of the Natural Gas Act (15 U.S.C. 717a)) whose 
combined gas transported or stored for a fee exceed 50,000,000 
Dth in each of the 3 previous calendar years.
(6) Political influence activity.--The term ``political 
influence activity'' includes--
(A) any expense for the purpose of directly or 
indirectly influencing the possible--
(i) adoption of Federal, State, or local 
regulations, legislation, or ordinances; or
(ii) repeal or modification of existing 
Federal, State, or local regulations, 
legislation, or ordinances;
(B) any expense for the purpose of directly or 
indirectly influencing elections or appointments of 
public officials or referenda;
(C) any expense for the purpose of directly or 
indirectly influencing the approval, modification, or 
revocation of utility franchises;
(D) any expense for the purpose of directly or 
indirectly influencing the public opinion with respect 
to Federal, State, or local--
(i) regulations, legislation, or 
ordinances;
(ii) elections;
(iii) referenda; or
(iv) utility rate setting;
(E) any expense for the purpose of directly or 
indirectly influencing the decisions of Federal, State, 
or local government officials;
(F) any expense relating to attendance or 
participation in, preparation for, or appeal of any 
formal proceeding before a regulatory commission;
(G) dues or fees paid to trade associations or 
industry associations;
(H) any contributions or other payments to an 
organization described in paragraph (3) or (4) of 
section 501(c) of the Internal Revenue Code of 1986; 
and
(I) advertising, marketing, or public relations 
expenses designed for the purpose of--
(i) influencing public opinion;
(ii) increasing goodwill toward a covered 
utility from the public or from public 
officials;
(iii) improving the reputation of a covered 
utility; or
(iv) promoting or retaining the service 
provided by a covered utility.

SEC. 3. PROHIBITION AGAINST RECOVERING POLITICAL ACTIVITY EXPENSES FROM 
RATEPAYERS.

(a) Regulations.--Not later than 18 months after the date of 
enactment of this Act, the Commission shall promulgate regulations--
(1) to prohibit covered utilities from recovering covered 
expenses from ratepayers in proceedings before the Commission, 
in accordance with this section; and
(2) to amend the applicable Uniform System of Accounts in 
title 18, Code of Federal Regulations (or successor 
regulations), to instruct covered utilities to place covered 
expenses in accounts that are presumptively not recoverable 
from ratepayers, in accordance with this section.
(b) Report.--
(1) In general.--The Commission shall require that, not 
later than 18 months after the date of enactment of this Act, 
and annually thereafter, each covered utility shall submit to 
the Commission a report containing--
(A) an itemized list of expenses of the preceding 
year recorded in accounts relating to--
(i) covered expenses;
(ii) outside services or vendors; and
(iii) the operations of the covered utility 
with respect to administrative and general 
expenses; and
(B) for each expense or cost described in clauses 
(i) through (iii) of subparagraph (A), unredacted 
information with respect to each of the matters 
described in paragraph (2) that are applicable to that 
expense or cost.
(2) Matters described.--The matters referred to in 
paragraph (1)(B) for the expenses and costs described in 
clauses (i) through (iii) of paragraph (1)(A) are the 
following:
(A) Billing amounts.
(B) Billing dates.
(C) The identity of each payee for any external 
consultants or contracts.
(D) In the case of a payment made to a third-party 
vendor by a centralized service company, parent 
company, or other corporate affiliate of the covered 
utility, the identity of that third-party vendor.
(E) The job title, portion of salaries, and 
expenses, and all Uniform System of Account codes to 
which compensation was recorded for the employee, of 
covered utility staff with respect to any work 
performed relating to a covered expense.
(F) An explanation of the expense or cost that is 
sufficient to describe the purpose of the expense or 
cost.
(3) Reporting minimum removed.--With respect to any annual 
form that a covered utility submits to the Commission having a 
reporting threshold of $250,0000, the Commission shall remove 
that reporting threshold for the reporting of transactions with 
associated or affiliated companies on that annual form.
(c) Enforcement.--
(1) In general.--The Commission shall monitor and 
investigate compliance and noncompliance with the regulations 
promulgated under this section.
(2) Penalty.--
(A) In general.--In addition to any refunds that 
the Commission orders a covered utility to pay 
ratepayers, the Commission shall assess a penalty in 
accordance with subparagraph (B) against a covered 
utility that violates or fails or refuses to comply 
with the regulations promulgated under this section by 
charging a ratepayer a covered expense.
(B) Amount of penalty.--
(i) In general.--Subject to clause (ii), a 
penalty assessed under subparagraph (A) shall 
be--
(I) for a covered expense charged 
to ratepayers in an amount less than 
$1,000,000, not less than the amount of 
that covered expense;
(II) for a covered expense charged 
to ratepayers in an amount not less 
than $1,000,000 and not more than 
$10,000,000, not less than double the 
amount of that covered expense; and
(III) for a covered expense charged 
to ratepayers in an amount more than 
$10,000,000, not less than triple the 
amount of that covered expense.
(ii) Limitation.--The amount of a penalty 
assessed under subparagraph (A) shall be not 
more than 20 times the amount of the applicable 
covered expense.
(3) No recovery from ratepayers.--Covered utilities that 
are subject to a penalty under this subsection may not recover 
that penalty from ratepayers.
(4) Penalty distribution.--With respect to each penalty 
assessed and collected under this subsection--
(A) \1/2\ of that penalty shall be distributed to 
ratepayers, through a rebate; and
(B) \1/2\ of that penalty shall be distributed to 
the Commission for the purpose of increasing resources 
for enforcing this section.
(5) Rule of construction.--Nothing in this Act prevents the 
Commission from issuing refunds or rebates to ratepayers for a 
covered expense that was recovered by a covered utility on a 
date before the date of enactment of this Act.
<all>