FERC Drops Review of Utility Political Spending Rules
Published Date: 4/21/2026
Notice
Summary
The Federal Energy Regulatory Commission is stopping its review about how companies handle fees for industry groups and political expenses. This means no new rules will be made, and the earlier request from the Center for Biological Diversity is denied. Companies affected can keep doing things as they have, with no changes or new costs starting April 16, 2026.
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Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Civic/Political Costs Not Typically Billed To Rates
The Commission reiterates that expenditures for influencing public opinion or public officials should normally be recorded in nonoperating Account 426.4 and are typically not includable in jurisdictional rates. By contrast, certain public relations activities (under defined parameters) may be recorded in operating accounts and recoverable in rates.
FERC Halts Rulemaking; Status Quo Stays
The Federal Energy Regulatory Commission withdrew its December 23, 2021 Notice of Inquiry and denied the Center for Biological Diversity's petition for rulemaking, effective April 16, 2026. That means no new Commission-wide rules will be adopted now about industry association dues or certain civic and political expenses, and companies can continue current practices without new costs starting April 16, 2026.
FERC Urges Greater Tariff Transparency
Although the Commission declined general rulemaking, it encourages regulated entities to adopt tariff revisions that enhance transparency into the industry association costs included in an entity's rates. This is an invitation (not a mandate) to improve visibility of such costs in tariffs.
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