No Bonuses for Utility Executives Act
Summary
The "No Bonuses for Utility Executives Act" aims to limit bonuses for executives of certain electric utilities. It stipulates that bonuses can only be paid if the average percentage increase in customer rates does not exceed the Consumer Price Index (CPI-U). The bill also establishes oversight mechanisms involving the Federal Energy Regulatory Commission (FERC) and the Commissioner of Internal Revenue to ensure compliance. Penalties for violations include forfeiture of bonuses, which will then be redistributed to customers as stimulus checks.
Expected Effects
This act could lead to lower rate increases for consumers of electricity provided by covered utilities. It may also reduce executive compensation at those utilities. The act also creates a mechanism for direct financial benefit to consumers if violations occur.
Potential Benefits
- Potentially lower electricity rates for consumers.
- Increased accountability for utility executives.
- Direct financial benefit to consumers if executive bonuses are found to be in violation of the act.
- Greater transparency in utility rate increases and executive compensation.
- Incentivizes utilities to control costs and avoid excessive rate hikes.
Potential Disadvantages
- May discourage qualified individuals from seeking executive positions at covered utilities.
- Could lead to utilities prioritizing short-term rate control over long-term infrastructure investments.
- Increased administrative burden for FERC and the IRS.
- Potential for utilities to manipulate data to comply with the act.
- May disproportionately affect smaller utilities with limited resources.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution, as it aims to benefit consumers by limiting utility rate increases. Congress has the power to regulate interstate commerce, which includes the regulation of electric utilities that operate across state lines (Article I, Section 8, Clause 3). The bill does not appear to infringe on any specific constitutional rights or protections.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).