Washington, D.C. — With electricity demand rising and energy costs putting pressure on consumers, Rep. Kevin Mullin (CA-15) introduced the Reasonable Adjustments To Energy Schedules (RATES) Act to streamline federal utility rate reviews, reduce unnecessary delays, and help keep electricity affordable.  

When utilities want to adjust energy rates under federal jurisdiction, they must seek approval from the Federal Energy Regulatory Commission (FERC). However, under current law, FERC only has the ability to approve or deny utilities’ proposals; it cannot ask for changes that might better protect consumers or reduce costs. This can put pressure on regulators to approve proposals that could otherwise be improved, delaying energy projects and driving up costs. 

“Too often, consumers are left paying the price when utility proposals move forward without enough scrutiny,” said Rep. Mullin. “We need to make sure federal regulators have the tools to push back on unreasonable costs and put ratepayers first. Before 2017, the FERC had the flexibility to suggest changes to utility proposals to address concerns and improve them. This bill will restore that authority, giving regulators the tools they need to hold utilities accountable and ensure consumers aren’t left footing the bill.” 

“For too long, the way rates are set has been tilted in favor of utility shareholders and against ratepayers,” said Marissa Paslick Gillett, Senior Fellow, American Economic Liberties Project and former chair of the Connecticut Public Utilities Regulatory Authority. “The RATES Act takes an important first step toward leveling the playing field by protecting federal regulators’ ability to do their jobs, and making clear they’re expected to push back when utilities’ requests are unreasonable. The next Congress should build on this legislation and prioritize comprehensive reform of FERC ratemaking as a top-tier affordability solution.” 

“Voters sent a clear message that energy affordability is an important issue for consumers, and the RATES Act supports an effective approach to lowering costs,” said Karim D. Marshall, Consumer Federation of America’s Director of Climate and Energy Policy. “This Act will protect consumers by letting jurisdictions expand the power grid while providing affordable and reliable electricity using a commonsense approach.” 

The Reasonable Adjustments To Energy Schedules (RATES) Act addresses this by re-establishing a common-sense review process that will allow electric utilities to more efficiently work with FERC. Specifically, the bill would: 

• Allow FERC to suggest changes to utility rate proposals that are unfair or unreasonable. 

• Give utilities a clear pathway and timeline to accept the proposed fixes or withdraw the proposal without a penalty. 

 
By helping regulators and utilities work together more efficiently, the RATES Act would help ensure the United States can strengthen its power grid while keeping electricity reliable and affordable. 

The bill is endorsed by the Natural Resources Defense Council, Consumer Federation of America, and the American Economic Liberties Project. 

Read the full bill text here.