119-hr4785

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4785 Introduced in House

    (IH) ]

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119th CONGRESS
 1st Session
 H. R. 4785

To direct the Federal Energy Regulatory Commission to prohibit covered 
 utilities from recovering covered expenses from ratepayers, and for 
 other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 July 29, 2025

 Ms. Castor of Florida (for herself, Ms. Matsui, Ms. McClellan, Ms. 
Ocasio-Cortez, Ms. Pingree, Mr. Thanedar, and Ms. Tlaib) introduced the 
 following bill; which was referred to the Committee on Energy and 
 Commerce

_______________________________________________________________________

 A BILL

To direct the Federal Energy Regulatory Commission to prohibit covered 
 utilities from recovering covered expenses from ratepayers, 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 ``Ethics in Energy Act of 2025''.

SEC. 2. DEFINITIONS.

 In this Act:

    (1) Centralized service company.--The term ``centralized 
 service company'' has the meaning given the term in 

section 367.1

    (a) of title 18, Code of Federal Regulations (or a 
 successor regulation).

    (2) Commission.--The term ``Commission'' means the Federal 
 Energy Regulatory Commission.

    (3) Covered expense.--The term ``covered expense'' means a 
 direct or indirect expense paid by a covered utility to--
        (A) an external entity to perform political 
 influence activities;
        (B) a centralized service company, parent company, 
 or other corporate affiliate--
            (i) to perform a political influence 
 activity; and
            (ii) that invoices that covered utility for 
 the expenses related to that political 
 influence activity; or
            (C) an employee of that covered utility, in the 
 form of a salary, that performs a political influence 
 activity.

    (4) Covered utility.--The term ``covered utility'' means--
        (A) an electric utility company (as defined in 
 

section 367.1

    (a) of title 18, Code of Federal 
 Regulations (or a successor regulation)) that had, in 
 each of the 3 previous calendar years, sales or 
 transmission services that exceeded--
            (i) 1,000,000 megawatt-hours of total 
 annual sales;
            (ii) 100 megawatt-hours of annual sales for 
 resale;
            (iii) 500 megawatt-hours of annual power 
 exchanges delivered; or
            (iv) 500 megawatt-hours of annual wheeling;
        (B) a major natural gas company; and
            (C) a centralized service company.

    (5) Major natural gas company.--The term ``major natural 
 gas company'' means a natural-gas company (as defined in 
 

section 2 of the Natural Gas Act (15 U.S.C. 717a)) whose 
 combined gas transported or stored for a fee exceed 50,000,000 
 Dth in each of the 3 previous calendar years.

    (6) Political influence activity.--The term ``political 
 influence activity'' includes--
        (A) any expense for the purpose of directly or 
 indirectly influencing the possible--
            (i) adoption of Federal, State, or local 
 regulations, legislation, or ordinances; or
            (ii) repeal or modification of existing 
 Federal, State, or local regulations, 
 legislation, or ordinances;
        (B) any expense for the purpose of directly or 
 indirectly influencing elections or appointments of 
 public officials or referenda;
            (C) any expense for the purpose of directly or 
 indirectly influencing the approval, modification, or 
 revocation of utility franchises;
            (D) any expense for the purpose of directly or 
 indirectly influencing the public opinion with respect 
 to Federal, State, or local--
            (i) regulations, legislation, or 
 ordinances;
            (ii) elections;
            (iii) referenda; or
            (iv) utility rate setting;
        (E) any expense for the purpose of directly or 
 indirectly influencing the decisions of Federal, State, 
 or local government officials;
        (F) any expense relating to attendance or 
 participation in, preparation for, or appeal of any 
 formal proceeding before a regulatory commission;
        (G) dues or fees paid to trade associations or 
 industry associations;
        (H) any contributions or other payments to an 
 organization described in paragraph

    (3) or

    (4) of 
 

section 501
            (c) of the Internal Revenue Code of 1986; 
 and
            (I) advertising, marketing, or public relations 
 expenses designed for the purpose of--
            (i) influencing public opinion;
            (ii) increasing goodwill toward a covered 
 utility from the public or from public 
 officials;
            (iii) improving the reputation of a covered 
 utility; or
            (iv) promoting or retaining the service 
 provided by a covered utility.

SEC. 3. PROHIBITION AGAINST RECOVERING POLITICAL ACTIVITY EXPENSES FROM 
 RATEPAYERS.

    (a) Regulations.--Not later than 18 months after the date of 
enactment of this Act, the Commission shall promulgate regulations--

    (1) to prohibit covered utilities from recovering covered 
 expenses from ratepayers in proceedings before the Commission, 
 in accordance with this section; and

    (2) to amend the applicable Uniform System of Accounts in 
 title 18, Code of Federal Regulations (or successor 
 regulations), to instruct covered utilities to place covered 
 expenses in accounts that are presumptively not recoverable 
 from ratepayers, in accordance with this section.

    (b) Report.--

    (1) In general.--The Commission shall require that, not 
 later than 18 months after the date of enactment of this Act, 
 and annually thereafter, each covered utility shall submit to 
 the Commission a report containing--
        (A) an itemized list of expenses of the preceding 
 year recorded in accounts relating to--
            (i) covered expenses;
            (ii) outside services or vendors; and
            (iii) the operations of the covered utility 
 with respect to administrative and general 
 expenses; and
        (B) for each expense or cost described in clauses
            (i) through
            (iii) of subparagraph
        (A) , unredacted 
 information with respect to each of the matters 
 described in paragraph

    (2) that are applicable to that 
 expense or cost.

    (2) Matters described.--The matters referred to in 
 paragraph

    (1)
        (B) for the expenses and costs described in 
 clauses
            (i) through
            (iii) of paragraph

    (1)
        (A) are the 
 following:
        (A) Billing amounts.
        (B) Billing dates.
            (C) The identity of each payee for any external 
 consultants or contracts.
            (D) In the case of a payment made to a third-party 
 vendor by a centralized service company, parent 
 company, or other corporate affiliate of the covered 
 utility, the identity of that third-party vendor.
        (E) The job title, portion of salaries, and 
 expenses, and all Uniform System of Account codes to 
 which compensation was recorded for the employee, of 
 covered utility staff with respect to any work 
 performed relating to a covered expense.
        (F) An explanation of the expense or cost that is 
 sufficient to describe the purpose of the expense or 
 cost.

    (3) Reporting minimum removed.--With respect to any annual 
 form that a covered utility submits to the Commission having a 
 reporting threshold of $250,0000, the Commission shall remove 
 that reporting threshold for the reporting of transactions with 
 associated or affiliated companies on that annual form.
            (c) Enforcement.--

    (1) In general.--The Commission shall monitor and 
 investigate compliance and noncompliance with the regulations 
 promulgated under this section.

    (2) Penalty.--
        (A) In general.--In addition to any refunds that 
 the Commission orders a covered utility to pay 
 ratepayers, the Commission shall assess a penalty in 
 accordance with subparagraph
        (B) against a covered 
 utility that violates or fails or refuses to comply 
 with the regulations promulgated under this section by 
 charging a ratepayer a covered expense.
        (B) Amount of penalty.--
            (i) In general.--Subject to clause
            (ii) , a 
 penalty assessed under subparagraph
        (A) shall 
 be--
            (I) for a covered expense charged 
 to ratepayers in an amount less than 
 $1,000,000, not less than the amount of 
 that covered expense;
            (II) for a covered expense charged 
 to ratepayers in an amount not less 
 than $1,000,000 and not more than 
 $10,000,000, not less than double the 
 amount of that covered expense; and
            (III) for a covered expense charged 
 to ratepayers in an amount more than 
 $10,000,000, not less than triple the 
 amount of that covered expense.
            (ii) Limitation.--The amount of a penalty 
 assessed under subparagraph
        (A) shall be not 
 more than 20 times the amount of the applicable 
 covered expense.

    (3) No recovery from ratepayers.--Covered utilities that 
 are subject to a penalty under this subsection may not recover 
 that penalty from ratepayers.

    (4) Penalty distribution.--With respect to each penalty 
 assessed and collected under this subsection--
        (A) \1/2\ of that penalty shall be distributed to 
 ratepayers, through a rebate; and
        (B) \1/2\ of that penalty shall be distributed to 
 the Commission for the purpose of increasing resources 
 for enforcing this section.

    (5) Rule of construction.--Nothing in this Act prevents the 
 Commission from issuing refunds or rebates to ratepayers for a 
 covered expense that was recovered by a covered utility on a 
 date before the date of enactment of this Act.
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