HR 6590
No Bonuses for Utility Executives Act
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Bill overview
This bill, the No Bonuses for Utility Executives Act, limits the bonuses that executives at certain electric utilities can receive. Starting in 2025, a utility can only award a bonus for the year if the average increase in customer rates doesn't exceed the Consumer Price Index. Any bonus paid would be capped at 25% of the median compensation for non-executive employees, and the Federal Energy Regulatory Commission will oversee compliance and penalties for violations.
Key provisions
- Bonuses for utility executives are limited starting January 1, 2025.
- Bonus payments are tied to customer rate increases, which must not exceed the CPI-U.
- Bonuses cannot exceed 25% of the median compensation for non-executive employees.
- Covered utilities must provide data to the Federal Energy Regulatory Commission (FERC) on rate increases and employee compensation.
- FERC will determine if a utility can pay a bonus and the maximum allowable amount.
- The Commissioner of Internal Revenue will oversee compliance with the bonus limitations.
- Bonuses forfeited due to violations will be paid back to utility customers.
- The bill applies to State regulated electric utilities not wholly owned by United States persons.
Who is affected
- Electric Utilities
- Utility Executives
- Electric Utility Customers
- Federal Energy Regulatory Commission
- Commissioner of Internal Revenue
Notable changes
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119th CONGRESS — 1st Session
H. R. 6590
IN THE HOUSE OF REPRESENTATIVES
A BILL
To limit bonuses for executives of certain electric utilities, and for other purposes.
This Act may be cited as the No Bonuses for Utility Executives Act
.
the average percentage increase in customer rates of the covered utility for such fiscal year; and
whether the covered utility may pay a bonus pursuant to subsection (a)(1); and
The Commission shall, jointly with the Commissioner of Internal Revenue, determine whether each covered utility is in compliance with subsection (a).
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.
The term United States person means—
an entity organized under the laws of the United States or any jurisdiction within the United States.