Congressman Josh Riley (NY-19) and Congressman Jeff Van Drew (NJ-02) have introduced the bipartisan No Bonuses for Utility Executives Act, which prohibits utility company executives from receiving bonuses whenever they raise rates faster than inflation.
“Upstate New Yorkers are getting crushed by high utility bills,” said Riley. “Folks are cutting back on everything from groceries to school clothes just to keep the lights on. Meanwhile, the utility monopolies are rewarding their CEOs with millions of dollars per year. When the people footing the bill get squeezed and the folks at the top walk off with massive bonuses, something’s seriously broken — and I’m fighting to fix it. My bipartisan bill stops utility monopolies from rewarding the corporate executives who are ripping us off.”
“People are getting hit with higher and higher utility bills, and they are tired of seeing executives get big bonuses while they struggle to pay,” said Congressman Van Drew. “This bill is about basic fairness. In no world should executives be getting big bonuses if they are raising rates faster than inflation. This bill will make these companies think about the families they serve before they decide to jack up prices. I am proud to be a co-lead on this effort.”
Across Upstate New York, working families continue to feel the squeeze of rising electric bills. And even as these utilities pleaded for higher rates, they paid their CEOs more than $10 million last year — Fortis (parent company of Central Hudson) paid $10.6 million, and Avangrid (parent company of NYSEG and RG&E) paid $10.7 million — all while households struggled to keep up with higher monthly costs.
Riley’s bill would put an end to executive bonuses in years when utilities raise rates faster than inflation.
ABOUT THE NO BONUSES FOR UTILITY EXECUTIVES ACT:
1. Stops bonuses when utilities raise rates faster than inflation:
If a utility hikes rates above the annual inflation rate, its executives are barred from receiving bonuses of any kind.
2. Caps bonuses in years when rates stay stable:
If rate increases stay at or below inflation, any executive bonus must be capped at 25% of the median compensation earned by non-executive employees.
3. Enforces the rules with real oversight and penalties:
Utilities must report to the Federal Energy Regulatory Commission (FERC) within one week of their fiscal year ending, providing:
- the average percentage increase in customer rates, and
- the median pay of non-executive employees.
FERC has one month to determine whether bonuses are permitted and, if so, the maximum allowable bonus.
If a utility violates the law, its entire bonus pool is forfeited to the IRS, and the IRS must return those dollars directly to customers as a stimulus payment.
4. Applies to foreign-owned, state-regulated electric utilities:
The bill covers state-regulated electric utilities that are not wholly owned by U.S. persons, and it takes effect for fiscal years beginning on or after January 1, 2025.
The No Bonuses for Utility Executives Act builds on Riley’s earlier Keep the Lights Local Act, part of his broader push to lower utility costs, rein in utility monopolies, and deliver a square deal for Upstate families.
Full bill text available HERE.
