SURGE Act of 2026
Sponsored By: Representative Casten
Introduced
Summary
A standardized shared savings incentive framework would let FERC-jurisdictional transmitting utilities recover part of verified cost savings from qualifying transmission efficiency actions. The bill would also require a Department of Energy study of alternative rate and incentive models and fund guidance and grants to help states adopt similar approaches.
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- Covered transmitting utilities would be able to propose recoverable percentages and rate recovery timelines, claim an early payment equal to 50% of estimated recoverable savings, and trigger a rate adjustment within 60 days of filings. Proposals must include independent-evaluator-verified annual reports.
- State regulatory authorities would get DOE guidance and a grant program to build state frameworks for utilities outside FERC Part II jurisdiction. Grants can use up to 70% of funds for framework development and must reserve at least 30% for implementation and oversight.
- Ratepayers would see annual reporting begin one year after initial filings and a reconciliation process that credits any over-recovery, while the bill pushes for performance-based measures to encourage grid-enhancing technologies and reliability improvements.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 0 benefits, 0 costs, 3 mixed.
New federal rule for utility savings
If enacted, the bill would change FERC rules to let covered transmitting utilities recover part of verified transmission cost savings. Recoverable shares would be between 10% and 60% of total attributable savings. Recovery would be spread over 2 to 5 years. The initial claim would equal 50% of the recoverable share of estimated first-year savings. Utilities must use a one-year pre-action baseline and independent verification. FERC would adjust rates within 60 days of initial filings and annual reports. If a utility recovered too much, FERC would require a credit to ratepayers.
Government study on transmission rate rules
If enacted, the bill would require the Department of Energy to complete a study within three years and every five years after. DOE would consult with FERC and publish findings on a public website. The study would examine how current transmission rate treatments affect costs, reliability, and grid technology deployment. DOE would review alternative frameworks such as shared savings, revenue decoupling, ROE adjustments, multi‑year plans, earnings sharing, total expenditure models, and performance scorecards. DOE would send detailed reports to relevant congressional committees.
Help for states to set utility incentives
If enacted, the bill would require the Department of Energy to publish guidance within two years to help state regulators. The guidance would cover baselines, cost‑savings measurement, independent verification, and separate advice for four utility types. The bill would also create a DOE grant program within two years to help state authorities build and run these frameworks. Grants could not be used to pay utilities. No more than 70% of funds could pay for development. At least 30% must fund implementation, and up to 5% may pay federal admin. States must submit annual reports to remain eligible for awards.
Sponsors & CoSponsors
Sponsor
Casten
IL • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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