The POWER Act would require retail electric utilities to notify electric consumers at least 30 days before any rate increase is enacted. The notification must clearly state the percentage increase, justify the reasons for the increase, explain how bills will be affected, and provide a way for consumers to give feedback or file complaints. Utilities must use multiple channels (direct mail or email, website posting, and local newspapers/media) to reach impacted consumers, and penalties can be imposed if they fail to comply (civil penalties up to $10,000 and a halt to the rate increase until notification is provided). The law also imposes a separate Department of Energy (DOE) requirement: any planned rate increase of 5% or more must be reported to DOE at least 60 days before implementation, with substantial justification, potential consumer impacts, and proposed mitigation measures. DOE would review the justification within 30 days and publish a report with findings and recommendations (including possible mitigations like phased-in pricing or financial aid), and would monitor the rate increase after implementation to assess its impact and whether further action is needed. The act defines terms and clarifies that “retail electric utility” means an electric utility that sells electricity to end users, not for resale.
Key Points
- 1Public notification requirement for planned rate increases: utilities must inform affected electric consumers at least 30 days before implementing any rate increase, including the increase percentage, justification, bill impact, and consumer feedback options.
- 2Multichannel outreach: notifications must be delivered through several channels (direct mail or email, utility website posting, and local newspapers/media) to maximize reach.
- 3Penalties for noncompliance: utilities that fail to notify can face civil penalties up to $10,000, and cannot implement the rate increase until notification is provided; penalties are determined by the Federal Energy Regulatory Commission (FERC) after a hearing.
- 4DOE oversight for larger increases: any planned rate increase of 5% or more must be reported to the DOE at least 60 days before it goes into effect, with justification, consumer impact assessment, and proposed mitigations.
- 5DOE review and reporting: DOE must review the justification within 30 days of the notification and publish a report with findings, potential adjustments to the rate increase, mitigation options (e.g., phasing in prices, financial aid), and efficiency recommendations.
- 6Post-implementation monitoring: DOE will monitor the actual impacts of the rate increase after it takes effect to determine if further action is needed.