HR6590-119

2. Limitation on bonuses for executives of certain electric utilities 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. 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. 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— the average percentage increase in customer rates of the covered utility for such fiscal year; and the median of the annual compensation for such fiscal year of employees of the covered utility who are not executives. Not later than 1 month after the last day of such fiscal year, the Commission shall determine— whether the covered utility may pay a bonus pursuant to subsection (a)(1); and the maximum allowable amount under subsection (a)(2) of any such bonus. The Commission shall, jointly with the Commissioner of Internal Revenue, determine whether each covered utility is in compliance with subsection (a). A bonus resulting from a violation of subsection (a) by a covered utility shall be forfeited to the United States. For any such bonus— 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 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. In this section: 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. 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. 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. The term United States person means— an individual who is a citizen of, or an alien 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.