H.R. 8568

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8568 Introduced in House (IH)]

<DOC>

119th CONGRESS
2d Session
H. R. 8568

To amend the Federal Power Act and the Public Utility Regulatory 
Policies Act of 1978 to require investor owned electric utilities and 
gas utilities and transmission providers to, when establishing or 
calculating a return on equity, establish or calculate the return on 
equity at the lowest return on equity in an established range of 
reasonableness, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

April 29, 2026

Mr. Casar (for himself, Mr. Riley of New York, Mr. Ryan, Ms. Ansari, 
Mrs. Foushee, Mr. Garcia of Illinois, Mr. Goldman of New York, Ms. 
Goodlander, Mr. Green of Texas, Mrs. Grijalva, Ms. Norton, Mr. Johnson 
of Georgia, Mr. Mannion, Mrs. McClain Delaney, Mr. Menefee, Mr. Mfume, 
Mr. Mrvan, Ms. Simon, Mr. Subramanyam, Mr. Thanedar, Ms. Tlaib, and 
Mrs. Watson Coleman) introduced the following bill; which was referred 
to the Committee on Energy and Commerce

_______________________________________________________________________

A BILL

To amend the Federal Power Act and the Public Utility Regulatory 
Policies Act of 1978 to require investor owned electric utilities and 
gas utilities and transmission providers to, when establishing or 
calculating a return on equity, establish or calculate the return on 
equity at the lowest return on equity in an established range of 
reasonableness, 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 ``Lowering Utility Bills Act''.

SEC. 2. REQUIREMENTS FOR AND RELATING TO TRANSMISSION PROVIDERS.

(a) In General.--The Federal Power Act is amended by inserting 
after section 206 (16 U.S.C. 824e) the following:

``SEC. 206A. REQUIREMENTS FOR AND RELATING TO TRANSMISSION PROVIDERS.

``(a) Return on Equity.--
``(1) Range of reasonableness for return on equity.--
``(A) Establishment.--When establishing an 
authorized return on equity for a transmission provider 
for purposes of any change to be made by such 
transmission provider in any rate or charge, the 
Commission shall, subject to subparagraph (C), 
establish a range of reasonableness for the return on 
equity that is comprised of three data points, each of 
which represent a return on equity represented by a 
current average expected 10-year total or large-cap 
United States equity market return or equivalent 
measure determined in accordance with subparagraph (B).
``(B) Data point determinations.--
``(i) Data point 1.--The Commission shall 
determine one data point to be included in a 
range of reasonableness established under 
subparagraph (A) by--
``(I) identifying the midpoint 
expected 10-year total or large-cap 
United States equity market return or 
equivalent measure as estimated by 
financial academics for each of the 
previous 5 years; and
``(II) using the average of such 
midpoints.
``(ii) Data point 2.--The Commission shall 
determine one data point to be included in a 
range of reasonableness established under 
subparagraph (A) by--
``(I) identifying the midpoint 
expected 10-year total or large-cap 
United States equity market return or 
equivalent measure as estimated by 
financial institutions for each of the 
previous 5 years; and
``(II) using the average of such 
midpoints.
``(iii) Data point 3.--The Commission shall 
determine one data point to be included in a 
range of reasonableness established under 
subparagraph (A) by--
``(I) identifying the midpoint 
expected 10-year total or large-cap 
United States equity market return or 
equivalent measure as estimated by 
Global Systemically Important Banks for 
each of the previous 5 years; and
``(II) using the average of such 
midpoints.
``(C) Adjustment.--The Commission shall adjust a 
range of reasonableness established under subparagraph 
(A) to account for the reduced risks of the applicable 
transmission provider due to, as applicable--
``(i) not participating in a regional 
planning process; and
``(ii) any applicable Federal action, 
including--
``(I) the approval of any 
regulatory assets of the transmission 
provider;
``(II) the use of a formula 
ratemaking process;
``(III) the provision to the 
transmission provider of any Federal 
loans or guarantees for assets in the 
rate base; or
``(IV) approval or allowance of any 
other measure that reduces the risks of 
the transmission provider that it will 
not recover prudently incurred capital 
investments.
``(2) Authorized rate of return on equity.--
``(A) In general.--Except as provided in 
subparagraph (B), when establishing an authorized 
return on equity for a transmission provider for 
purposes of any change to be made by such transmission 
provider in any rate or charge, the Commission shall 
establish the authorized return on equity at the lowest 
return on equity in the applicable range of 
reasonableness established pursuant to paragraph (1).
``(B) Exception.--When establishing an authorized 
return on equity for a transmission provider for 
purposes of any change to be made by such transmission 
provider in any rate or charge, the Commission may 
establish an authorized return on equity that is in the 
applicable range of reasonableness established pursuant 
to paragraph (1) but is not the lowest return on equity 
in such range only if such transmission provider 
provides the Commission clear and convincing evidence 
that a higher return on equity is required to attract 
needed capital and to maintain the financial integrity 
of the transmission provider.
``(b) Corrupt Rate Recovery Ban.--No transmission provider may 
recover through customer rates or charges any direct or indirect cost 
associated with--
``(1) membership dues or sponsorship fees paid, or 
contributions made, to an organization described in section 
501(c)(6) of the Internal Revenue Code of 1986;
``(2) lobbying or legislative action, including--
``(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; and
``(E) any expense for the purpose of directly or 
indirectly influencing the decisions of Federal, State, 
or local government officials;
``(3) advertising, marketing, or communications that seek 
to influence public opinion or any other related costs, unless 
such marketing, advertising, communications, or related costs 
are specifically approved or ordered by the Commission, the 
Secretary of Energy, or the Administrator of the Environmental 
Protection Agency;
``(4) travel, lodging, or food and beverage expenses for 
the board of directors or officers of--
``(A) such transmission provider; or
``(B) such transmission provider's holding company 
or any associated company or affiliate;
``(5) entertainment or gifts;
``(6) any owned, leased, or chartered aircraft for the 
board of directors or officers of--
``(A) such transmission provider; or
``(B) such transmission provider's holding company 
or any associated company or affiliate;
``(7) investor relations;
``(8) attendance in, participation in, preparation for, or 
appeal of any rate proceeding conducted before the Commission 
pursuant to section 205 or section 206, including costs for 
attorneys' fees, fees to engage expert witnesses or 
consultants, the portion of employee salaries associated with 
such attendance, participation, preparation, or appeal of a 
rate proceeding and related costs identified by the Commission;
``(9) contributions made to an organization described in 
paragraph (3) or (4) of section 501(c) of the Internal Revenue 
Code of 1986;
``(10) contributions to political candidates, political 
parties, campaign committees, issue committees, or independent 
expenditure committees, or other political expenses;
``(11) products or services not regulated by the 
Commission, including marketing, administration, or customer 
service; or
``(12) penalties or fines, including tax penalties or 
fines, issued against the transmission provider.
``(c) Prioritizing Cost Saving Investments.--The Commission shall 
consider a capital expenditure by a transmission provider for a 
transmission project prudent only if--
``(1) the transmission provider provides to the Commission 
substantial evidence that the transmission provider prioritized 
grid enhancing technologies and other lower cost alternatives 
in its planning process for the transmission project; and
``(2) the transmission project was subject to a regional 
planning process that is determined by the Commission to be in 
compliance with applicable orders of the Commission.
``(d) Regulations.--Not later than 120 days after the date of 
enactment of this section, the Commission shall issue regulations to 
carry out this section.
``(e) Definitions.--In this section:
``(1) Affiliate; associate company; holding company.--The 
terms `affiliate', `associate company', and `holding company' 
have the meaning given such terms in section 366.1 of title 18, 
Code of Federal Regulations (or any successor regulations).
``(2) Financial academic.--The term `financial academic' 
means an accredited, full-time finance teaching program with 
over 50 years of teaching experience that regularly publishes 
United States equity market expected return data and that 
provides a curriculum in business administration or finance.
``(3) Financial institution.--The term `financial 
institution' means an entity that manages not less than 
$2,000,000,000,000 in combined assets and regularly publishes 
United States equity market expected return data.
``(4) Global systemically important bank.--The term `Global 
Systemically Important Bank' means an entity classified as a 
Global Systemically Important Bank by the Financial Stability 
Board that regularly publishes United States equity market 
expected return data.
``(5) Transmission provider.--The term `transmission 
provider' means any public utility that owns, operates, or 
controls facilities used for the transmission of electric 
energy in interstate commerce.''.
(b) Eliminating FERC Candy.--
(1) Repeal.--The Federal Power Act is amended by striking 
section 219 (16 U.S.C. 824s).
(2) Conforming amendments.--The Federal Power Act is 
amended--
(A) in section 201(b)(2), by striking ``219,'' each 
place it appears; and
(B) in section 201(e), by striking ``219,''.

SEC. 3. REQUIREMENTS FOR INVESTOR OWNED UTILITIES.

(a) In General.--Title VI of the Public Utility Regulatory Policies 
Act of 1978 is amended by adding at the end the following:

``SEC. 610. REQUIREMENTS FOR INVESTOR OWNED UTILITIES.

``(a) Calculation of Return on Equity.--
``(1) Range of reasonableness for return on equity.--
``(A) Establishment.--Except as provided in 
paragraph (2), when calculating a return on equity for 
a covered utility for purposes of any official 
business, including reports, financial disclosures, and 
rate applications, such covered utility shall, subject 
to subparagraph (C), establish a range of 
reasonableness for the return on equity that is 
comprised of three data points, each of which represent 
a return on equity represented by a current average 
expected 10-year total or large-cap United States 
equity market return or equivalent measure determined 
in accordance with subparagraph (B).
``(B) Data point determinations.--
``(i) Data point 1.--A covered utility 
shall determine one data point to be included 
in a range of reasonableness established under 
subparagraph (A) by--
``(I) identifying the midpoint 
expected 10-year total or large-cap 
United States equity market return or 
equivalent measure as estimated by 
financial academics for each of the 
previous 5 years; and
``(II) using the average of such 
midpoints.
``(ii) Data point 2.--A covered utility 
shall determine one data point to be included 
in a range of reasonableness established under 
subparagraph (A) by--
``(I) identifying the midpoint 
expected 10-year total or large-cap 
United States equity market return or 
equivalent measure as estimated by 
financial institutions for each of the 
previous 5 years; and
``(II) using the average of such 
midpoints.
``(iii) Data point 3.--A covered utility 
shall determine one data point to be included 
in a range of reasonableness established under 
subparagraph (A) by--
``(I) identifying the midpoint 
expected 10-year total or large-cap 
United States equity market return or 
equivalent measure as estimated by 
Global Systemically Important Banks for 
each of the previous 5 years; and
``(II) using the average of such 
midpoints.
``(C) Adjustment.--
``(i) In general.--A covered utility shall, 
in accordance with clause (ii), adjust a range 
of reasonableness established under 
subparagraph (A) to account for the reduced 
risks of the covered utility due to, as 
applicable--
``(I) operating as a regulated 
monopoly; and
``(II) any applicable State action, 
including--
``(aa) the approval of any 
alternative to traditional cost 
of service ratemaking, 
including formula rates, 
performance-based regulation, 
or contemporaneous cost 
recovery mechanisms;
``(bb) the approval of any 
regulatory assets of the 
covered utility;
``(cc) the allowance of 
operating cost riders and 
nonbypassable fees;
``(dd) the allowance of 
recovery for any customer bad 
debt or under-collections;
``(ee) the approval of any 
securitization or bond revenue 
related to the provision of 
services by the covered 
utility; and
``(ff) approval or 
allowance of any other measure 
that reduces the risks of the 
covered utility relative to an 
entity operating in a 
competitive market.
``(ii) Specific adjustment.--A covered 
utility shall adjust a range of reasonableness 
established under subparagraph (A) down by 5 
basis points for each of the factors in 
subclause (I), (II)(aa), (II)(bb), (II)(cc), 
(II)(dd), (II)(ee), and (II)(ff) of clause (i) 
that apply.
``(2) Use.--
``(A) In general.--Except as otherwise provided in 
this paragraph, when using a return on equity for 
purposes of any official business, a covered utility 
shall use the lowest return on equity in the applicable 
range of reasonableness established pursuant to 
paragraph (1).
``(B) State requirement or request.--Nothing in 
this section precludes an applicable State regulatory 
authority from requesting or requiring alternative rate 
schedules that rely on a return on equity that is not 
the return on equity required under subparagraph (A).
``(C) Information to make publicly available.--If a 
covered utility uses a return on equity that is not the 
return on equity required under subparagraph (A) for 
purposes of any alternative rate schedule described in 
subparagraph (B), such covered utility shall make 
publically available--
``(i) a justification outlining why the 
higher return on equity is required to attract 
needed capital and to maintain the financial 
integrity of the covered utility;
``(ii) an explanation of the difference in 
the return on equity used in comparison to 
return on equity required under subparagraph 
(A);
``(iii) a quantification of the different 
impacts on the covered utility's revenue 
requirement requested in its rate application 
using the return on equity used compared to the 
return on equity required under subparagraph 
(A); and
``(iv) a quantification of the different 
impacts of using the return on equity used 
compared to the return on equity required under 
subparagraph (A) on the average residential 
monthly bill.
``(b) Corrupt Rate Recovery Ban.--No covered utility may recover 
through rates any direct or indirect cost associated with--
``(1) membership dues or sponsorship fees paid, or 
contributions made, to an organization described in section 
501(c)(6) of the Internal Revenue Code of 1986;
``(2) lobbying or legislative action, including--
``(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; and
``(E) any expense for the purpose of directly or 
indirectly influencing the decisions of Federal, State, 
or local government officials;
``(3) advertising, marketing, or communications that seek 
to influence public opinion or any other related costs 
identified by the Commission, unless such marketing, 
advertising, communications, or related costs are specifically 
approved or ordered by the relevant State regulatory authority, 
State energy office, or State environmental agency;
``(4) travel, lodging, or food and beverage expenses for 
the board of directors or officers of--
``(A) such covered utility; or
``(B) such covered utility's holding company or any 
associated company or affiliate;
``(5) entertainment or gifts;
``(6) any owned, leased, or chartered aircraft for the 
board of directors or officers of--
``(A) such covered utility; or
``(B) such covered utility's holding company or any 
associated company or affiliate;
``(7) investor relations;
``(8) attendance in, participation in, preparation for, or 
appeal of any rate proceeding conducted before the applicable 
State regulatory authority or the Commission, including costs 
for attorneys' fees, fees to engage expert witnesses or 
consultants, the portion of employee salaries associated with 
such attendance, participation, preparation, or appeal of a 
rate proceeding and related costs identified by the Commission;
``(9) contributions made to an organization described in 
paragraph (3) or (4) of section 501(c) of the Internal Revenue 
Code of 1986;
``(10) contributions to political candidates, political 
parties, campaign committees, issue committees, or independent 
expenditure committees, or other political expenses;
``(11) products or services not regulated by the applicable 
State regulatory authority, including marketing, 
administration, or customer service;
``(12) penalties or fines, including tax penalties or 
fines, issued against the covered utility; or
``(13) payments to outside attorneys representing the 
covered utility in any Commission proceeding or experts 
testifying on behalf of, or otherwise supporting the 
participation by, utilities in any Commission proceeding.
``(c) Enforcement.--A violation of this section shall be treated as 
a violation of a provision of part II of the Federal Power Act and 
enforced in accordance with section 316A of such Act.
``(d) Regulations.--Not later than 120 days after the date of 
enactment of this section, the Commission shall issue regulations to 
carry out this section.
``(e) Rule of Construction.--Nothing in this section shall be 
construed to preempt, diminish, or interfere with a collective 
bargaining agreement that is in place on the date of the enactment of 
this section.
``(e) Definitions.--In this section:
``(1) Affiliate; associate company; holding company.--The 
terms `affiliate', `associate company', and `holding company' 
have the meaning given such terms in section 366.1 of title 18, 
Code of Federal Regulations (or any successor regulations).
``(2) Covered utility.--
``(A) In general.--Subject to subparagraph (B), the 
term `covered utility' means an investor-owned utility 
enterprise engaged in the production or distribution of 
electricity or natural gas for use by the public.
``(B) Exclusions.--The term `covered utility' does 
not include--
``(i) an electric cooperative;
``(ii) a gas cooperative;
``(iii) an electric utility that is owned 
or operated by a State or political subdivision 
thereof; or
``(iv) a gas utility that is owned or 
operated by a State or political subdivision 
thereof.
``(3) Financial academic.--The term `financial academic' 
means an accredited, full-time finance teaching program with 
over 50 years of teaching experience that regularly publishes 
United States equity market expected return data and that 
provides a curriculum in business administration or finance.
``(4) Financial institution.--The term `financial 
institution' means an entity that manages not less than 
$2,000,000,000,000 in combined assets and regularly publishes 
United States equity market expected return data.
``(5) Global systemically important bank.--The term `Global 
Systemically Important Bank' means an entity classified as a 
Global Systemically Important Bank by the Financial Stability 
Board that regularly publishes United States equity market 
expected return data.''.
(b) Table of Contents.--The table of contents in section 1(b) of 
the Public Utility Regulatory Policies Act of 1978 is amended by 
inserting after the item relating to section 608 the following:

``Sec. 609. Rural and remote communities electrification grants.
``Sec. 610. Requirements for investor owned utilities.''.
<all>