Lowering Utility Bills Act

Bill Number: H.R. 8568
Origin Chamber: House
Congress: 119th Congress, Session 2
Policy Area: Energy
Status: Introduced
Latest Action: 2026-04-29: Referred to the House Committee on Energy and Commerce.
Last Updated: 2026-06-04T08:08:54Z

AI-Generated Summary

H.R. 8568: Lowering Utility Bills Act

Purpose

This bill aims to lower electricity and natural gas bills for customers by requiring investor-owned utilities and transmission providers (companies that manage high-voltage power lines across states) to calculate their return on equity (ROE)—the profit rate allowed on investments—at the lowest end of a specific "reasonable" range. It also bans passing certain executive perks, lobbying, and other costs to customers through rates.

Key Provisions

Return on Equity (ROE) Requirements

For Transmission Providers (adds Section 206A to the Federal Power Act, regulated by the Federal Energy Regulatory Commission or FERC):
FERC must create an ROE range using three data points: 5-year averages of expected 10-year U.S. stock market returns from financial academics (university finance programs), financial institutions (managing $2 trillion+ in assets), and global systemically important banks.
Adjust the range downward for the company's lower risks (e.g., federal incentives like loans or formula rates).
Set authorized ROE at the lowest point in the range, unless the company provides "clear and convincing evidence" a higher rate is needed to attract investors.
For Investor-Owned Utilities (adds Section 610 to the Public Utility Regulatory Policies Act of 1978 or PURPA; applies to electric and gas utilities owned by investors, excluding cooperatives and government-owned ones):
Utilities must use the same three-data-point ROE range, adjusted downward (by 5 basis points per factor, where 1 basis point = 0.01%) for monopoly status and state incentives (e.g., formula rates, bad debt recovery).
Use the lowest ROE for rates and reports, unless a state regulator requires otherwise; must publicly justify any higher ROE and show bill impacts.

"Corrupt Rate Recovery Ban" (Prohibits Passing Costs to Customers)

Applies to both transmission providers and investor-owned utilities.
Bans recovery of costs like:
Trade group dues, lobbying, political contributions.
Most advertising/marketing (unless approved by regulators).
Executive travel, entertainment, private jets, investor relations.
Rate case legal/expert fees.
Fines/penalties, unregulated business costs.
For transmission: Prioritizes low-cost "grid-enhancing technologies" (non-wires upgrades like software) in planning.

Other Requirements

FERC must issue implementing regulations within 120 days.
Repeals Federal Power Act Section 219 (removed incentives for transmission investment, nicknamed "FERC Candy").
Investor-owned utilities: States can override ROE but require disclosures; no impact on existing union contracts.
Enforcement: Treated as Federal Power Act violations.

Significant Changes to Existing Law

Overrides Discretion: FERC and states currently set ROE flexibly within a broad "zone of reasonableness"; this mandates the lowest end using specific market data.
New Cost Bans: Prohibits recovery of previously allowed expenses (e.g., some lobbying, exec perks).
Repeal: Eliminates transmission incentives under Section 219.
Planning Shift: Requires evidence of low-cost alternatives before approving big transmission projects.

Potential Impacts

Customers: Likely lower bills from reduced profits and banned pass-through costs.
Utilities/Transmission Providers: Reduced revenue and flexibility; potential challenges attracting investment if ROE is too low.
Government Agencies: FERC gains new rulemaking/enforcement duties; states retain some IOU oversight.
Grid Development: May slow expensive transmission builds without low-cost options; promotes cheaper upgrades.

Main Stakeholders Affected

Customers (residential, commercial): Benefit from potential bill reductions.
Investor-Owned Electric/Gas Utilities and Transmission Providers: Face profit caps and cost restrictions.
FERC: Must enforce, regulate, and adjust ROE ranges.
State Regulators: Oversee investor-owned utilities; can request higher ROE with disclosures.
Financial Data Providers (academics, banks, institutions): Sources for ROE calculations.

Notable Legal, Constitutional, or Political Implications

Legal: Increases federal oversight of state-regulated utilities via PURPA; potential challenges to FERC's rate-setting authority or preemption of state rules.
Constitutional: Could face "takings" claims if ROE reductions are seen as confiscatory (denying fair return on investments, per Supreme Court precedents).
Political: Introduced by a bipartisan group (mostly Democrats) in the 119th Congress (2026); targets utility profits and executive costs, emphasizing consumer protection. No direct international effects.

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

Sponsor

Rep. Casar, Greg [D-TX-35]

Cosponsors (23)

Rep. Riley, Josh [D-NY-19], Rep. Ryan, Patrick [D-NY-18], Rep. Ansari, Yassamin [D-AZ-3], Rep. Foushee, Valerie P. [D-NC-4], Rep. García, Jesús G. "Chuy" [D-IL-4], Rep. Goldman, Daniel S. [D-NY-10], Rep. Goodlander, Maggie [D-NH-2], Rep. Green, Al [D-TX-9], Rep. Grijalva, Adelita S. [D-AZ-7], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Johnson, Henry C. "Hank" [D-GA-4], Rep. Mannion, John W. [D-NY-22], Rep. McClain Delaney, April [D-MD-6], Rep. Menefee, Christian D. [D-TX-18], Rep. Mfume, Kweisi [D-MD-7], Rep. Mrvan, Frank J. [D-IN-1], Rep. Simon, Lateefah [D-CA-12], Rep. Subramanyam, Suhas [D-VA-10], Rep. Thanedar, Shri [D-MI-13], Rep. Tlaib, Rashida [D-MI-12], Rep. Watson Coleman, Bonnie [D-NJ-12], Rep. Wasserman Schultz, Debbie [D-FL-25], Rep. Randall, Emily [D-WA-6]

Recent Actions

2026-04-29: Referred to the House Committee on Energy and Commerce.
2026-04-29: Introduced in House
2026-04-29: Introduced in House

Bill Versions

Lowering Utility Bills Act — issued 2026-04-29 — PDF (23 pages)