Stop Unfair Electricity Prices Act
- Bill Number
- H.R. 7926
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Energy
- Status
- Introduced
- Latest Action
- 2026-03-12: Referred to the House Committee on Energy and Commerce.
- Last Updated
- 2026-03-26T18:45:07Z
AI-Generated Summary
Purpose
The "Stop Unfair Electricity Prices Act" (H.R. 7926) aims to protect residential electricity consumers from rate increases by regulated investor-owned electric utilities that receive financial assistance from the U.S. Department of Energy (DOE). It establishes temporary restrictions on such assistance to promote energy affordability, linking federal support to controls on utility rates and executive compensation.
Key Provisions
- One-Year Moratorium (Starting on Enactment Date):
- The Secretary of Energy cannot provide any financial assistance (e.g., loans, grants) to a regulated investor-owned electric utility if it raises residential electricity rates above the levels in effect on January 1, 2026.
- Utilities already receiving assistance during this period must freeze residential rates at January 1, 2026, levels; violations result in immediate termination of the assistance.
- Two-Year Follow-Up Period (After the Moratorium):
- Financial assistance is prohibited unless the utility meets strict conditions:
- It does not increase total compensation (including salary, bonuses, stock awards, options, and other remuneration) for its five highest-paid employees beyond January 1, 2026, levels.
- If rates are increased, the utility must reduce top executive compensation by an amount equal to twice the percentage point increase in rates (e.g., a 5% rate hike requires a 10% cut in executive pay).
- The utility must submit a report to the Secretary detailing pre- and post-adjustment compensation for the top five executives.
- Violations of these compensation rules lead to termination of assistance.
- Definitions:
- "Regulated investor-owned electric utility": A state-regulated utility owned by private investors (not public or cooperatives).
- Terms like "electric consumer," "rate," and "state regulatory authority" follow standard definitions from the Public Utility Regulatory Policies Act of 1978 (a law promoting energy efficiency and conservation).
Significant Changes to Existing Law
- Overrides other federal laws governing DOE financial assistance, imposing new rate-freeze and executive pay restrictions as prerequisites for support.
- Introduces novel requirements tying utility executive compensation directly to residential rate changes, which were not previously mandated in federal energy assistance programs.
- Limits DOE's discretion in providing aid, creating enforceable penalties (assistance termination) for non-compliance.
Potential Impacts
- On Government Agencies: The DOE faces restrictions on disbursing funds, potentially delaying or reducing support for utility infrastructure projects; it must monitor compliance, including reviewing compensation reports, increasing administrative workload.
- On Citizens: Residential electricity consumers may benefit from stabilized or frozen rates for up to three years, improving affordability, especially in areas with high energy costs; however, utilities might pass compliance costs indirectly to consumers if not receiving federal aid.
- On International Relations: Minimal direct impact, though it could indirectly affect U.S. energy sector competitiveness if utilities delay clean energy or grid upgrades due to funding limitations.
Main Stakeholders Affected
- Regulated Investor-Owned Electric Utilities: Primary targets; they must comply with rate and compensation rules to access DOE funds, potentially affecting operations and profitability.
- Residential Electric Consumers: Benefit from protections against rate hikes but could face service disruptions if utilities cut investments.
- U.S. Department of Energy (Secretary): Responsible for enforcement, reporting, and fund allocation decisions.
- State Regulatory Authorities: Involved in overseeing utility rates; the bill may create tensions with federal oversight of state-regulated entities.
Notable Legal, Constitutional, or Political Implications
- Legal: Could face challenges under the Tenth Amendment (reserving powers to states), as it interferes with state-regulated utilities; enforcement relies on DOE determinations, which might lead to disputes over "total compensation" calculations or rate definitions.
- Constitutional: Potential federal overreach into state utility regulation, though justified under Congress's commerce clause authority over interstate energy markets.
- Political: Highlights tensions over energy affordability and corporate executive pay; may appeal to consumer advocates but draw opposition from utility industry groups concerned about innovation stifling or investment deterrence. The bill's temporary nature (three years total) suggests it as a short-term response to rising energy costs.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Stevens, Haley M. [D-MI-11]
Recent Actions
- 2026-03-12: Referred to the House Committee on Energy and Commerce.
- 2026-03-12: Introduced in House
- 2026-03-12: Introduced in House
Bill Versions
- Stop Unfair Electricity Prices Act — issued 2026-03-12 — PDF (5 pages)