Know Your Rates Act

Bill Number

H.R. 1412

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Energy

Status

Introduced

Latest Action

2025-02-18: Referred to the House Committee on Energy and Commerce.

Last Updated

2026-03-19T08:06:44Z

AI-Generated Summary

Purpose of the Legislation

The "Know Your Rates Act" (H.R. 1412) aims to increase transparency in utility billing by requiring electric and gas utilities that receive federal funding to provide consumers with detailed, timely information about their energy and gas consumption. This helps consumers better understand and manage their usage and costs.

Key Provisions

• Electric Utilities (Amendments to Sections 113 and 115 of PURPA):
• Utilities must include in each bill: (1) the difference in dollar amount charged compared to the previous billing period, and (2) the average monthly consumption in both dollars and kilowatt-hours (kWh, a unit measuring electricity use).
• Mid-billing notifications for excess usage: If average daily consumption exceeds the prior period's average, notify consumers on the 10th day (if detected in the first 9 days) or on the 20th day (or a consumer-chosen date, if detected in the first 19 days).
• Optional alerts: Consumers can opt for notifications when their bill reaches a self-selected dollar amount based on current rates and usage.
• Applies to "covered electric utilities," defined as those receiving federal funding, as determined by the Federal Energy Regulatory Commission (FERC, the agency overseeing interstate energy regulation).

• Gas Utilities (Amendments to Sections 303 and 304 of PURPA):
• Similar requirements as electric utilities: Bills must include (1) the difference in dollar amount from the previous period, and (2) average monthly consumption in dollars and therms (a unit measuring gas heat content).
• Mid-billing notifications for excess daily usage, following the same 10th- and 20th-day (or chosen date) schedule.
• Optional alerts for reaching a consumer-chosen dollar threshold based on rates and usage.
• Applies to "covered gas utilities" receiving federal funding, as determined by FERC.

• Implementation: Utilities must establish programs to deliver this information, ensuring compliance with the new federal standards under the Public Utility Regulatory Policies Act of 1978 (PURPA, a law promoting energy efficiency and consumer protections in utilities).

Significant Changes to Existing Law

• Expands PURPA's existing consumer information standards by adding mandatory billing details and real-time usage alerts, which were not previously required at this level of specificity.
• Introduces new subsections (e.g., Section 115(f)(4) for electric and Section 304(c) for gas) to enforce these requirements, shifting from general guidelines to detailed, actionable obligations for federally funded utilities.
• Limits scope to utilities with federal funding, creating a targeted federal overlay on state-regulated utilities without broadly overriding local rules.

Potential Impacts

• On Citizens: Empowers consumers with clearer insights into usage patterns, potentially encouraging energy conservation, reducing unexpected bills, and promoting informed decisions about efficiency (e.g., adjusting habits mid-billing cycle).
• On Government Agencies: Increases FERC's role in determining which utilities are "covered" and enforcing compliance, possibly requiring new monitoring or reporting mechanisms; no direct impact on international relations.
• On Utilities: Imposes administrative costs for developing notification systems (e.g., digital alerts or bill inserts), but could foster customer satisfaction and loyalty through transparency.

Main Stakeholders Affected

• Consumers: Primary beneficiaries, including households and businesses using electric or gas services from covered utilities.
• Electric and Gas Utilities: Especially those receiving federal funds (e.g., via grants or loans for infrastructure), who must update billing processes.
• Regulatory Bodies: FERC, which defines coverage and oversees implementation; state utility commissions may coordinate but retain primary authority over non-federal aspects.
• Federal Fund Providers: Agencies like the Department of Energy, whose funding recipients face new compliance duties.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens PURPA's consumer protection framework without conflicting with state utility regulations, as it applies only to federally funded entities; could lead to FERC rulemaking for enforcement details.
• Constitutional: No apparent issues, as it involves federal spending conditions (a standard congressional power) and does not infringe on free speech or privacy rights—utilities already share billing data.
• Political: Advances bipartisan goals of energy efficiency and consumer empowerment; may face pushback from utilities over costs but aligns with broader pushes for transparency in essential services, potentially influencing future energy policy debates.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Gottheimer, Josh [D-NJ-5]

Cosponsors (2)

Rep. Lawler, Michael [R-NY-17], Rep. Vindman, Eugene Simon [D-VA-7]

Recent Actions

• 2025-02-18: Referred to the House Committee on Energy and Commerce.
• 2025-02-18: Introduced in House
• 2025-02-18: Introduced in House

Bill Versions

• Know Your Rates Act — issued 2025-02-18 — PDF (7 pages)