Bill Summary
The "No Bonuses for Utility Executives Act" is proposed legislation aimed at regulating executive bonuses at certain electric utilities. It stipulates that starting January 1, 2025, these utilities can only grant bonuses to executives if the average increase in customer rates does not exceed the increase in the Consumer Price Index (CPI-U) for that fiscal year. Additionally, any bonus granted cannot exceed 25% of the median annual compensation of non-executive employees at the utility.
The legislation also establishes oversight mechanisms, requiring utilities to report relevant financial data to the Federal Energy Regulatory Commission (FERC) and allowing the Commission to determine the eligibility and maximum amount for bonuses. If a utility violates the bonus limitations, the forfeited bonuses will be redirected to the U.S. government, and the funds will then be distributed as stimulus checks to the utility's customers.
Overall, the act aims to ensure that executive compensation is aligned with customer rate increases and promotes accountability in the utility sector.
Possible Impacts
Here are three examples of how the "No Bonuses for Utility Executives Act" could affect people:
1. **Impact on Utility Customers**: The legislation aims to limit executive bonuses based on customer rate increases. If electric utilities adhere to this law, customers may see more stable electricity rates, as utilities will be incentivized to keep rate hikes in check to ensure that executives do not exceed the bonus thresholds. This could lead to lower energy bills or at least less drastic increases, directly benefiting consumers who rely on affordable electricity.
2. **Increased Accountability for Utility Executives**: By tying executive bonuses to customer rate increases and overall employee compensation, the legislation ensures that executives are held accountable for the financial health of the utility and its impact on customers. This could lead to a shift in corporate priorities, where executives may focus more on operational efficiency and customer satisfaction rather than maximizing their own compensation, which can foster a more customer-centric approach in utility management.
3. **Economic Redistribution**: If any bonuses are forfeited due to violations of the act, the legislation mandates that these amounts be redistributed to customers in the form of stimulus checks. This redistribution could provide financial relief to customers, particularly those who may be struggling with rising costs of living. As a result, the law not only discourages excessive executive compensation but also promotes a form of economic equity by ensuring that utility customers receive a direct benefit when companies fail to comply with the established regulations.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6590 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 6590
To limit bonuses for executives of certain electric utilities, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 10, 2025
Mr. Riley of New York (for himself and Mr. Van Drew) introduced the
following bill; which was referred to the Committee on Energy and
Commerce, and in addition to the Committee on Ways and Means, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To limit bonuses for executives of certain electric utilities, 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 ``No Bonuses for Utility Executives
Act''.
SEC. 2. LIMITATION ON BONUSES FOR EXECUTIVES OF CERTAIN ELECTRIC
UTILITIES.
(a) Authorized Bonuses.--
(1) In general.--Beginning January 1, 2025, a covered
utility may, subject to paragraph (2), pay a bonus to an
executive of such covered utility for the fiscal year of the
covered utility only if the average percentage increase in
customer rates of the covered utility for such fiscal year does
not exceed any percentage increase in the Consumer Price Index
for All Urban Consumers (CPI-U) published by the Bureau of
Labor Statistics of the Department of Labor for the 12-month
period ending on the last day of such fiscal year.
(2) Limitation.--A bonus paid pursuant to paragraph (1) may
not exceed 25 percent of the median of the annual compensation
for such fiscal year of employees of the covered utility who
are not executives.
(b) Oversight.--
(1) Determination of bonuses allowed.--
(A) Information provided to commission.--Not later
than 1 week after the last day of the fiscal year of a
covered utility, the covered utility shall provide to
the Federal Energy Regulatory Commission information
on--
(i) the average percentage increase in
customer rates of the covered utility for such
fiscal year; and
(ii) the median of the annual compensation
for such fiscal year of employees of the
covered utility who are not executives.
(B) Determination of bonuses allowed.--Not later
than 1 month after the last day of such fiscal year,
the Commission shall determine--
(i) whether the covered utility may pay a
bonus pursuant to subsection (a)(1); and
(ii) the maximum allowable amount under
subsection (a)(2) of any such bonus.
(2) Oversight of bonuses.--
(A) Determination of compliance.--The Commission
shall, jointly with the Commissioner of Internal
Revenue, determine whether each covered utility is in
compliance with subsection (a).
(B) Penalties.--
(i) Forfeiture.--A bonus resulting from a
violation of subsection (a) by a covered
utility shall be forfeited to the United
States.
(ii) Stimulus checks.--For any such bonus--
(I) the covered utility shall
provide any information to the
Commissioner of Internal Revenue that
the Commissioner determines to be
necessary to carry out subclause (II);
and
(II) the Commissioner shall issue a
payment to each customer of such
covered utility in an amount equal to
the amount forfeited under clause (i)
divided by the number of customers of
the covered utility.
(c) Definitions.--In this section:
(1) Covered utility.--The term ``covered utility'' means a
State regulated electric utility (as such term is defined in
section 3 of the Public Utility Regulatory Policies Act of 1978
(16 U.S.C. 2602)) that is not wholly owned by United States
persons.
(2) Customer rates.--The term ``customer rates'' means the
rates and charges made, demanded, or received by a covered
utility for or in connection with the sale of electric energy
and, if applicable, natural gas.
(3) Executive.--The term ``executive'' means a C-suite
executive, including a chief executive officer, chief operating
officer, chief financial officer, chief information officer,
chief technology officer, chief marketing officer, chief human
resources officer, chief people officer, and any person that
the Commission determines holds a title substantially similar
to any such title.
(4) United states person.--The term ``United States
person'' means--
(A) an individual who is a citizen of, or an alien
lawfully admitted for permanent residence in, the
United States; or
(B) an entity organized under the laws of the
United States or any jurisdiction within the United
States.
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