What does Preamble of Ethics in Energy Act of 2025 do?

This bill, formally titled 'To direct the Federal Energy Regulatory Commission to prohibit covered utilities from recovering covered expenses from ratepayers, and for other purposes,' aims to direct the Federal Energy Regulatory Commission to prohibit covered utilities from recovering covered expenses from ratepayers.

What does SHORT TITLE. of Ethics in Energy Act of 2025 do?

This bill is formally titled the Ethics in Energy Act of 2025.

What does DEFINITIONS. of Ethics in Energy Act of 2025 do?

This section defines key terms used throughout the Act. A 'centralized service company' is defined by reference to section 367.1(a) of title 18, Code of Federal Regulations. The 'Commission' refers to the Federal Energy Regulatory Commission. A 'covered expense' includes payments related to 'political influence activities' made to external entities, centralized service companies, or employees. A 'covered utility' includes electric utilities exceeding specific sales thresholds, major natural gas companies, and centralized service companies. A 'major natural gas company' is defined by reference to section 2 of the Natural Gas Act. A 'political influence activity' encompasses a wide range of expenses aimed at influencing regulations, legislation, elections, utility franchises, public opinion, government decisions, and formal proceedings. Political influence activities include expenses related to trade associations, contributions to certain organizations under the Internal Revenue Code, and advertising designed to influence public opinion or improve a utility's reputation.

What does PROHIBITION AGAINST RECOVERING POLITICAL ACTIVITY EXPENSES FROM of Ethics in Energy Act of 2025 do?

This section prohibits covered utilities from recovering 'covered expenses' from ratepayers. The Commission must promulgate regulations within 18 months of enactment to implement this prohibition and amend the Uniform System of Accounts. Covered utilities must submit annual reports to the Commission detailing itemized expenses, including billing amounts, dates, payee identities, and employee compensation related to covered expenses. The Commission will remove the $250,000 reporting threshold for transactions with affiliated companies on annual forms. The Commission is tasked with monitoring and investigating compliance with the regulations and assessing penalties for violations. Penalties for violating the regulations are tiered, ranging from not less than the amount of the covered expense to not less than triple the amount, but capped at 20 times the expense. Covered utilities cannot recover penalties from ratepayers, and half of collected penalties will be distributed to ratepayers as rebates, while the other half goes to the Commission for enforcement. The Commission can issue refunds or rebates for covered expenses recovered before the Act's enactment.

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Ethics in Energy Act of 2025

Last updated: 7/29/2025 · Introduced: 7/29/2025

Author: Kathy Castor (D-FL)

TL;DR (AI)

This bill prohibits covered utilities (large electric and natural gas companies, and centralized service companies) from charging ratepayers for expenses related to political influence activities.
The Federal Energy Regulatory Commission (FERC) must create regulations to enforce this prohibition, require annual reporting of related expenses from covered utilities, and assess penalties for violations.
Collected penalties will be split between FERC enforcement and rebates to ratepayers.

119th Congressin committeeOfficial page

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Includes provisions on preamble, short title., and 2 more.

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