To limit bonuses for executives of certain electric utilities, and for other purposes.
Sponsors
Legislative Progress
IntroducedMr. Riley of New York (for himself and Mr. Van …
Summary
What This Bill Does
This bill limits executive bonuses at foreign-owned electric utilities that are regulated by state public utility commissions. It only allows bonuses if the utility's customer rate increases stay at or below the Consumer Price Index (inflation), and caps any bonuses at 25% of what the median non-executive employee earns.
Who Benefits and How
Customers of foreign-owned electric utilities benefit because the bill creates pressure to keep rate increases at or below inflation, and any illegally paid bonuses would be forfeited and distributed back to customers. Non-executive utility employees indirectly benefit because executive bonus caps are tied to their median compensation. US-owned utilities benefit competitively since they are exempt from these restrictions.
Who Bears the Burden and How
Foreign-owned electric utilities face new compliance requirements including mandatory reporting to FERC about rate increases and employee compensation data. C-suite executives at these utilities face significant limits on their bonus compensation. FERC takes on new administrative duties to review utility reports and determine bonus eligibility. The IRS takes on new enforcement responsibilities working jointly with FERC.
Key Provisions
- Bonus eligibility is tied to customer rate increases not exceeding CPI
- Bonuses are capped at 25% of median non-executive employee compensation
- Utilities must report rate and compensation data to FERC within one week of fiscal year end
- FERC must determine bonus eligibility within one month of fiscal year end
- Illegally paid bonuses are forfeited and distributed to utility customers
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Limits executive bonuses at foreign-owned state-regulated electric utilities by tying bonus eligibility to customer rate increases and capping bonus amounts relative to median non-executive employee compensation.
Policy Domains
Legislative Strategy
"Protect consumers from rate increases by limiting executive compensation at foreign-owned utilities, with enforcement through FERC and IRS coordination"
Likely Beneficiaries
- Utility customers/ratepayers
- Non-executive utility employees (indirectly, as bonus caps are tied to their median compensation)
Likely Burden Bearers
- Foreign-owned electric utility companies
- C-suite executives at covered utilities
- Federal Energy Regulatory Commission (new administrative duties)
- IRS (new enforcement duties)
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_commission"
- → Federal Energy Regulatory Commission (FERC)
- "the_commissioner"
- → Commissioner of Internal Revenue (IRS)
Key Definitions
Terms defined in this bill
A C-suite executive, including CEO, COO, CFO, CIO, CTO, CMO, CHRO, Chief People Officer, and any person the Commission determines holds a substantially similar title.
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.
A State regulated electric utility (as defined in section 3 of PURPA 1978) that is not wholly owned by United States persons.
An individual who is a citizen of, or lawfully admitted for permanent residence in, the United States; or an entity organized under the laws of the United States or any jurisdiction within the United States.
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology