No Bonuses for Utility Executives Act
Sponsored By: Representative Riley (NY)
Introduced
Summary
Limits executive bonuses for certain state-regulated electric utilities. The bill would block bonuses tied to customer rate increases that exceed the Consumer Price Index for Urban Consumers (CPI-U) change and would cap any allowed executive bonus at 25% of the covered utility’s median annual pay for non‑executive employees, with the rule kicking in January 1, 2025.
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- Customers: If a bonus is paid in violation it must be forfeited and the Internal Revenue Service would divide the forfeited amount and issue a per-customer payment.
- Executives: C-suite officers such as CEOs and CFOs would be subject to a new eligibility test tied to the CPI-U and a hard 25% cap based on median non-executive pay.
- Oversight and compliance: The Federal Energy Regulatory Commission must receive utility data on rate changes and median non-executive pay within one week of the fiscal year end and must determine eligibility and maximum allowable bonuses within one month, with FERC and the IRS jointly overseeing enforcement.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
Tighter bonus rules for utility bosses
If enacted, some state‑regulated electric utilities that are not fully U.S.-owned would face new limits on executive bonuses starting with fiscal years on or after January 1, 2025. A bonus could be paid only if the utility’s average customer rate increase for that year is no higher than the 12‑month rise in the Consumer Price Index for urban consumers (CPI‑U). Any allowed bonus could not be more than 25% of the utility’s median pay for non‑executive employees for that year. Customer rates include electricity and, if applicable, natural gas. These rules would cover top executives like CEOs and CFOs.
Customer refunds from illegal utility bonuses
If enacted, starting in 2025, covered utilities would have to send FERC their average rate increase and median non‑executive pay within 1 week after their fiscal year ends. FERC would decide within 1 month if bonuses are allowed and the maximum amount. FERC and the IRS would oversee compliance. If a utility pays an illegal bonus, the bonus would be forfeited. The IRS would send each customer a one‑time payment equal to the forfeited amount divided by the number of customers.
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Sponsors & CoSponsors
Sponsor
Riley (NY)
NY • D
Cosponsors
Van Drew
NJ • R
Sponsored 12/10/2025
Roll Call Votes
No roll call votes available for this bill.
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