No Bonuses for Utility Executives Act

The No Bonuses for Utility Executives Act restricts performance bonuses for top executives at state-regulated electric utilities starting in 2027. A utility is only permitted to pay a bonus if its average customer rate increases do not exceed the annual inflation rate, and any allowed bonus is capped at 25 percent of the median salary of non-executive employees. The Federal Energy Regulatory Commission must review reported data on rates and compensation to approve bonuses before they are paid. If a utility violates these rules or fails to report accurately, the bonus is forfeited to the U.S. Treasury, and the recovered funds are distributed directly to the utility’s customers as individual payments.