S. 5353

119 S5353 IS: No Bonuses for Utility Executives Act
 U.S. Senate
 2026-08-06
 text/xml
 EN
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 II  119th CONGRESS  2d Session  S. 5353  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.
1.
Short title
This Act may be cited as the   No Bonuses for Utility Executives Act  .
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.