Stop the Rate Hikes Act
The Stop the Rate Hikes Act would amend the Public Utility Regulatory Policies Act of 1978 (PURPA) to change how often electric utilities can seek rate increases. The bill adds a new requirement stating that each electric utility shall request no more than one rate increase per year. In practice, this would limit the frequency of retail rate increase requests that utilities can submit to state regulators, with the aim of giving ratepayers more predictable bills and reducing the number of increases within a single year. The measure is framed as a consumer-protection/price-stability step, though it also reshapes how utilities plan and recover costs for operations, maintenance, and capital investments. The bill as introduced specifies a nationwide cap on the number of rate increase requests, though it speaks to States considering measures to implement such caps. It is centered on limiting annual rate-change requests and could interact with existing state rate-case processes and utility financing needs. There are no detailed definitions or exemptions in the text about what counts as a “rate increase” or how to handle extraordinary circumstances or cross-border utility operations.
Key Points
- 1Cap on rate increase frequency: Each electric utility would be limited to requesting no more than one rate increase per year.
- 2Legal basis: Amends Section 111(d) of PURPA (adding a new item to the list of regulatory requirements) to implement the cap.
- 3Scope: Applies to electric utilities operating under PURPA; the text does not specify exemptions, carve-outs, or temporary waivers.
- 4Regulatory implications: Shifts more of the timing and frequency control of rate increases to utilities and/or state regulators, potentially affecting rate-case scheduling and cost recovery planning.
- 5Enforcement/definitions not specified: The bill does not define what counts as a “rate increase” or describe enforcement mechanisms, exemptions, or transition rules, leaving important implementation details to regulators or future legislation.