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HR7729119th CongressWALLET

SURGE Act of 2026

Sponsored By: Representative Casten, Sean [D-IL-6]

Introduced

Summary

This bill would create a shared-savings incentive framework that lets transmission utilities recover part of verified cost savings for efficiency and grid-enhancing technologies. It pairs a FERC rule for utilities it regulates with DOE guidance, state grant support, and recurring DOE studies to measure impacts.

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  • Covered transmitting utilities under FERC jurisdiction could recover a portion of verified savings as an incentive. The rule would set recoverable shares between 10% and 60% and allow recovery over 2 to 5 years while requiring initial filings, annual reports, and reconciliations to customers for any excess recoveries.
  • Utilities not under FERC would get DOE guidance for State ratemaking paths to recover savings, and a DOE grant program on a two-year schedule would help state regulators build and oversee frameworks with at least 30% of funds reserved for implementation and oversight.
  • The Secretary of Energy must study transmission rate inefficiencies and report findings within 3 years and every 5 years after. Those studies must assess effects on customers, bulk-power reliability, congestion, and deployment of cost-effective grid technologies to inform future rulemaking.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

Shared-savings rules for utilities

If enacted, the Commission would have one year to write a rule letting FERC-jurisdictional transmitting utilities recover part of verified transmission cost savings as an incentive. The rule would set a recoverable share between 10% and 60% and let utilities spread recovery over 2 to 5 years. Utilities could claim 50% of the recoverable percentage of estimated first-year savings when they file, and the Commission must act on filings or annual reports within 60 days. Verified savings must be measured and reconciled each year, and any excess recovery must be returned to ratepayers; the bill would also let these shared-savings amounts count as allowable transmission incentives under Section 219.

DOE grants, guidance, and studies

If enacted, the Secretary of Energy would publish guidance within two years to help states design shared-savings frameworks for non‑FERC utilities. The Secretary would also set up a grant program within two years to help state regulators pay for framework design and oversight; grants could not be used to pay utilities and must spend at least 30% on implementation/oversight, up to 70% on development, and up to 5% on federal admin. The Secretary must provide technical help with National Laboratories, keep a public registry, and report to Congress. The Secretary would also do a study within three years and every five years after that on transmission rate inefficiencies and alternative frameworks, and publish findings to inform future guidance.

Which utilities and actions qualify

If enacted, the bill would define who can use these shared-savings rules. A "covered transmitting utility" would be one subject to FERC Part II ratemaking and a "covered electric utility" would be one not under that FERC jurisdiction. A "covered action" must create cost savings for ratepayers and would not include building a new facility or a complete reconstruction. The bill also defines qualifying actions, advanced conductors, transmission losses, and related terms to set program scope.

Sponsors & CoSponsors

Sponsor

Casten, Sean [D-IL-6]

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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