Bill limits utility profit rates and customer fee pass-throughs

What does this do?

This bill changes how much profit privately owned electric and gas utilities can earn for their shareholders. It would require that profit rate to be set at the lowest point of an acceptable range, based on a five-year average of expected U.S. stock market returns. A utility could receive a higher rate only if it proves the need and publicly explains the difference, including the dollar impact on the average household's monthly bill.

Who does it affect?

This bill applies only to investor-owned, privately owned electric and gas utilities. Electric cooperatives and publicly owned utilities run by cities or states are not covered.

Why does it matter?

Where regulators currently can set the profit rate anywhere within an acceptable range, this bill would require the lowest point in that range, which directly affects the rates customers pay on their utility bills. The bill also bars utilities from charging customers for costs like lobbying, political advertising, executive travel, entertainment, legal fees for rate cases, and fines.

What does it cost, and who pays?

• Utilities can't bill lobbying costs to customers
• Bans passing fines, legal fees to ratepayers