[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 5353 Introduced in Senate (IS)]
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119th CONGRESS
2d Session
S. 5353
To limit bonuses for executives of certain electric utilities, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
August 6, 2026
Mr. Blumenthal (for himself and Mr. Hawley) introduced the following
bill; which was read twice and referred to the Committee on Energy and
Natural Resources
_______________________________________________________________________
A BILL
To limit bonuses for executives of certain electric utilities, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``No Bonuses for Utility Executives
Act''.
SEC. 2. LIMITATION ON BONUSES FOR EXECUTIVES OF CERTAIN ELECTRIC
UTILITIES.
(a) Definitions.--In this section:
(1) Commission.--The term ``Commission'' means the Federal
Energy Regulatory Commission.
(2) Covered utility.--The term ``covered utility'' has the
meaning given the term ``State regulated electric utility'' in
section 3 of the Public Utility Regulatory Policies Act of 1978
(16 U.S.C. 2602).
(3) Customer rates.--The term ``customer rates'' means the
rates and charges made, demanded, or received by a covered
utility for or in connection with the sale of electric energy
and, if applicable, natural gas.
(4) Executive.--The term ``executive'' means a C-suite
executive, including a chief executive officer, chief operating
officer, chief financial officer, chief information officer,
chief technology officer, chief marketing officer, chief human
resources officer, chief people officer, and any person that
the Commission determines holds a title substantially similar
to any such title.
(5) Fiscal year.--The term ``fiscal year'', with respect to
a covered utility, means the fiscal year of that covered
utility.
(6) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury, acting through the Bureau of the Fiscal
Service.
(b) Authorized Bonuses.--
(1) In general.--Beginning January 1, 2027, a covered
utility may, subject to paragraph (2), pay a bonus to an
executive of the covered utility for a fiscal year only if the
average percentage increase in customer rates of the covered
utility for that fiscal year does not exceed any percentage
increase in the Consumer Price Index for All Urban Consumers
(CPI-U) published by the Bureau of Labor Statistics of the
Department of Labor for the 12-month period ending on the last
day of that fiscal year.
(2) Limitation.--A bonus paid pursuant to paragraph (1) may
not exceed an amount equal to 25 percent of the median annual
compensation, for the applicable fiscal year, of employees of
the covered utility who are not executives.
(3) Prohibition.--A covered utility may not pay a bonus to
an executive of the covered utility for a fiscal year before
the Commission has made a determination under subsection (c)(2)
with respect to that covered utility for that fiscal year.
(c) Determination of Bonuses Allowed.--
(1) Notification.--Not later than 7 days after the last day
of a fiscal year, a covered utility shall provide to the
Commission information on--
(A) the average percentage increase in customer
rates of the covered utility for that fiscal year; and
(B) the median annual compensation, for that fiscal
year, of employees of the covered utility who are not
executives.
(2) Determination.--Not later than 30 days after the last
day of a fiscal year for which the Commission receives
information from a covered utility under paragraph (1), the
Commission shall determine--
(A) whether the covered utility may pay a bonus
pursuant to subsection (b)(1); and
(B) the maximum allowable amount of that bonus
under subsection (b)(2).
(d) Oversight of Bonuses.--
(1) Notification.--Not later than 7 days after paying a
bonus to an executive, a covered utility shall provide to the
Commission information on--
(A) the amount of the bonus; and
(B) the fiscal year for which the bonus was paid.
(2) Determination of compliance.--Not later than 30 days
after receiving a notification under paragraph (1), the
Commission shall determine whether the covered utility
submitting the notification is in compliance with subsection
(b).
(3) Penalties.--
(A) Forfeiture.--A bonus shall be forfeited to the
United States if--
(i) the bonus was paid in violation of any
provision of subsection (b);
(ii) the covered utility paying the bonus
failed to provide a notification under
paragraph (1) by the date described in that
paragraph with respect to the bonus; or
(iii) the covered utility paying the bonus
made a materially false or misleading
representation in a notification provided under
paragraph (1) or subsection (c)(1) with respect
to the bonus or any other matter described in
paragraph (1) or subsection (c)(1) for the
applicable fiscal year.
(B) Collection of forfeited bonus.--
(i) In general.--To collect a bonus
forfeited under subparagraph (A), the
Commission shall impose a civil penalty in the
amount of the bonus on the covered utility that
paid the bonus.
(ii) Transfer to the secretary.--Amounts
collected by the Commission under clause (i)
shall be transferred to the Secretary for
purposes of carrying out subparagraph (C).
(iii) Prohibition.--A covered utility may
not recover through customer rates the cost of
a civil penalty imposed under this
subparagraph.
(C) Ratepayer checks.--For any bonus described in
subparagraph (A) that is collected pursuant to
subparagraph (B)--
(i) the applicable covered utility shall
provide any information to the Commission or
the Secretary that the Commission or the
Secretary, as applicable, determines to be
necessary to carry out clause (ii); and
(ii) the Secretary shall issue to each
customer of that covered utility a payment in
an amount equal to the quotient obtained by
dividing--
(I) the amount forfeited under
subparagraph (A) and collected under
subparagraph (B); by
(II) the number of customers of the
covered utility.
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