This bill requires nonregulated utilities and state regulators of utilities to consider implementing a standard to prohibit electric utilities from recovering costs relating to the deployment of any smart grid system from their consumers. It also repeals the current requirement for states to consider authorizing electric utilities to recover costs relating to the deployment of certain smart grid systems from their consumers.

Within a year, each nonregulated utility and state regulatory authority must consider adopting the prohibition. Within two years, they must determine whether or not to implement the prohibition. However, the deadlines do not apply if a state has already considered or implemented a comparable standard.