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This bill would tell states to look at whether electric utilities should be blocked from charging customers for the costs of smart grid systems. In simple terms, it would push state regulators to consider a rule that would stop utilities from recovering smart grid spending through electric bills. The bill also sets deadlines for states and nonregulated utilities to review the issue, and it would not apply in places that have already taken similar action or already held recent hearings or votes on the matter.
- It creates a new rule saying an electric utility may not pass along the costs of smart grid systems to ratepayers, including capital costs, operating costs, and other related expenses.
- State utility regulators and nonregulated electric utilities would have to start reviewing this rule within 1 year after the bill becomes law, or set a hearing date to do so.
- They would have to finish that review and make a decision within 2 years after the bill becomes law.
- The bill would not force this review in states where a similar rule already exists, where a proceeding on the issue has already been held, or where the state legislature voted on a similar rule in the last 3 years.
Official Summaries
Stop Misappropriating Ratepayer Tariffs for Excessive Resources Act or the SMARTER Act
This bill requires nonregulated utilities and state regulators of utilities to consider implementing a standard to prohibit electric utilities from recovering costs relating to the deployment of any smart grid system from their consumers. It also repeals the current requirement for states to consider authorizing electric utilities to recover costs relating to the deployment of certain smart grid systems from their consumers.
Within a year, each nonregulated utility and state regulatory authority must consider adopting the prohibition. Within two years, they must determine whether or not to implement the prohibition. However, the deadlines do not apply if a state has already considered or implemented a comparable standard.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1148 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1148
To amend the Public Utility Regulatory Policies Act of 1978 to require
States to consider prohibiting cost recovery related to smart grid
projects, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 7, 2025
Mr. Van Drew introduced the following bill; which was referred to the
Committee on Energy and Commerce
_______________________________________________________________________
A BILL
To amend the Public Utility Regulatory Policies Act of 1978 to require
States to consider prohibiting cost recovery related to smart grid
projects, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Stop Misappropriating Ratepayer
Tariffs for Excessive Resources Act'' or the ``SMARTER Act''.
SEC. 2. SMART GRID COST RECOVERY.
(a) Consideration and Determination Respecting Certain Ratemaking
Standards.--
(1) Repeal.--Section 111(d)(18)(B) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)(18)(B)) is
repealed.
(2) Establishment.--Section 111(d) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended
by adding at the end the following:
``(22) Prohibition on rate recovery for smart grid
investments.--No electric utility may recover from ratepayers
any capital, operating expenditure, or other costs of the
electric utility relating to the deployment of any smart grid
system.''.
(b) Obligations To Consider and Determine.--
(1) Time limitations.--Section 112(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended
by adding at the end the following:
``(8)(A) Not later than 1 year after the date of enactment
of this paragraph, each State regulatory authority (with
respect to each electric utility for which the State has
ratemaking authority) and each nonregulated utility shall
commence consideration under section 111, or set a hearing date
for consideration, with respect to the standard established by
paragraph (22) of section 111(d).
``(B) Not later than 2 years after the date of enactment of
this paragraph, each State regulatory authority (with respect
to each electric utility for which the State has ratemaking
authority), and each nonregulated electric utility shall
complete the consideration and make the determination under
section 111 with respect to the standard established by
paragraph (22) of section 111(d).''.
(2) Failure to comply.--Section 112(c) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is
amended by adding at the end the following: ``In the case of
the standard established by paragraph (22) of section 111(d),
the reference contained in this subsection to the date of
enactment of this Act shall be deemed to be a reference to the
date of enactment of that paragraph (22).''.
(3) Prior state actions.--Section 112 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622) is amended by
adding at the end the following:
``(i) Prior State Actions.--Subsections (b) and (c) shall not apply
to the standard established by paragraph (22) of section 111(d) in the
case of any electric utility in a State if, before the date of
enactment of this subsection--
``(1) the State has implemented for the electric utility
the standard (or a comparable standard);
``(2) the State regulatory authority for the State or the
relevant nonregulated electric utility has conducted a
proceeding to consider implementation of the standard (or a
comparable standard) for the electric utility; or
``(3) the State legislature has voted on the implementation
of the standard (or a comparable standard) for the electric
utility during the 3-year period ending on that date of
enactment.''.
(c) Prior and Pending Proceedings.--Section 124 of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2634) is amended by
adding at the end the following: ``In the case of the standard
established by paragraph (22) of section 111(d), the reference
contained in this section to the date of enactment of this Act shall be
deemed to be a reference to the date of enactment of that paragraph
(22).''.
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