No Bonuses for Utility Executives Act

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Read twice and referred to the Committee on Energy and Natural Resources.

Electric utility customers would get money back if executive bonuses break new rules.

This bill would stop state-regulated electric utilities from paying executive bonuses if customer rates go up faster than inflation. If utilities break these rules, the bonuses would be taken back and given directly to their customers as payments. This would create a direct link between executive pay and customer rates.

What Would Change

Today, state-regulated electric utilities can pay executives bonuses without federal limits, even if customer rates increase significantly. If this bill becomes law, starting January 1, 2027, these utilities would face federal rules capping bonuses based on customer rate hikes and non-executive pay. Any bonuses paid illegally would be taken back and returned directly to customers.

Key Provisions

Caps executive bonuses at state-regulated electric utilities if customer rates rise faster than inflation.
Limits any allowed executive bonus to 25 percent of the median pay for non-executive employees at the utility.
Blocks utilities from paying executive bonuses until the Federal Energy Regulatory Commission approves the amount.
Requires utilities to forfeit illegal bonuses, which would then be collected as a civil penalty.
Bans utilities from making customers pay for civil penalties through higher rates.
Lets the Treasury Department send direct payments to utility customers using money collected from forfeited bonuses.

View on Congress.gov

S 5353 · 119th Congress · AI Summary by gemini-2.5-flash · 9/10

No Bonuses for Utility Executives Act

What Would Change

Key Provisions

Lobbying Activity