Utility Accountability Act
- Sponsor
- Rep. Riley, Josh [D-NY-19]
- Committees
- Energy and Commerce Committee (primary)
- Last action
- Oct 13, 2026
Bottom line
This bill aims to enhance accountability for investor-owned electric utilities by imposing financial penalties on those that consistently underperform state-mandated reliability and safety standards, directly benefiting residential customers through bill credits.
What it actually does
This bill establishes a federal mechanism to penalize investor-owned electric utilities that fail to meet State performance standards, such as electric reliability and safety standards. The penalties involve mandatory annual bill credits for residential customers, which utilities must fund from their investors' capital, and potential withholding of federal assistance from State regulatory authorities that do not enforce these penalties.
Proponents argue
Proponents would argue that this bill empowers states and the federal government to hold investor-owned utilities accountable for service failures, ensuring that residential customers receive reliable and safe electricity. By requiring utilities to fund bill credits from investor profits, it incentivizes better performance without burdening ratepayers, ultimately improving infrastructure and service quality.
Opponents contend
Opponents might contend that this bill represents federal overreach into state regulatory matters, potentially disrupting existing state-level accountability frameworks. They may argue that mandating bill credits could financially strain utilities, disincentivizing necessary infrastructure investments and potentially leading to higher long-term costs for all customers, or even impacting grid stability if utilities cut corners to avoid penalties.
The bill is very short and easily digestible, allowing ample time for a thorough evaluation of its provisions.
Section 2(a)
Annual Certification of Utility Performance
This provision requires each State regulatory authority, which has ratemaking authority over investor-owned electric utilities, to annually certify to the Secretary of Energy whether these utilities meet their respective State performance standards. This certification acts as the primary trigger for subsequent federal intervention and penalties.
Supporters argue
Supporters would argue this ensures federal oversight and data collection on utility performance, creating a standardized reporting mechanism that can inform national energy policy and accountability efforts.
Critics contend
Critics might argue this adds an unnecessary federal layer to state-level regulatory processes, potentially increasing administrative burden on state authorities without directly improving utility performance.
Tradeoffs
This provision balances federal interest in national utility performance with state autonomy in regulation, potentially creating additional administrative overhead for state bodies.
Section 2(b)(1)
Mandatory Residential Bill Credits for Underperforming Utilities
If a State regulatory authority certifies that an investor-owned electric utility failed to meet State performance standards, the Secretary of Energy must order the state authority to direct the utility to provide annual bill credits to each residential customer. The credit starts at $100 in the first year and increases by $100 each subsequent year until the utility meets the standards. Utilities are explicitly prohibited from passing these costs onto residential customers, instead requiring investors to bear the cost.
Section 2(b)(2)
Withholding Federal Assistance from Non-Compliant State Authorities
If a State regulatory authority fails to comply with the Secretary of Energy's order to direct utilities to provide bill credits, the Secretary may withhold federal assistance (including grants, loans, loan guarantees, and technical assistance) from that state authority until it complies. This serves as an enforcement mechanism for the federal mandate.
Section 2(c)
Key Definitions
This section defines key terms used in the Act. 'Ratemaking authority' and 'State regulatory authority' are given the meanings from section 3 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2602). 'Secretary' refers to the Secretary of Energy. 'State performance standards' explicitly includes electric reliability standards and electric safety standards.