Congress considers new options to shape retail electricity rates

A new Congressional Research Service report outlines how Congress can influence retail electricity rates, which state public utility commissions have controlled since 1935.

The report notes that Congress has used Section 111(d) of the Public Utility Regulatory Policies Act of 1978 to shape retail rates, establishing 21 standards from 1978 to 2021, and that two bills in the 119th Congress—H.R. 8568 and H.R. 7977—address utility return on equity.

The report presents five options for Congress: assert federal control over retail rates, use PURPA Section 111(d), legislate only for FERC‑jurisdictional rates, direct federal agencies to collect information, or offer incentives for voluntary ROE reductions, noting that the first option might have the most impact.

Read the full story at legis1.com.