WASHINGTON — With an eye toward the November midterms, U.S. Rep. Greg Casar filed legislation this week aimed at lowering utility bills by capping profit margins for providers and limiting how they can spend money collected from ratepayers.
The bill, rolled out along with several other proposals under the Congressional Progressive Caucus’ “New Affordability Agenda,” takes aim at what Casar argues are excessive profits being hauled in by utility companies. Under the bill, federal regulators would have to establish a “reasonable” return on equity — the profit utilities collect beyond what’s needed to cover infrastructure costs — that accounts for the lower risk faced by electric and gas utilities due to their captive customer bases.
The Federal Energy Regulatory Commission would then have to apply this new figure when approving the rates that for-profit utilities can charge customers. Utility companies would also be required to use that “reasonable” number when asking state regulators — such as the Texas Public Utility Commission — to authorize rate hikes.
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