I 

118TH CONGRESS 

2D SESSION H. R. 10019 

To amend the Public Utility Regulatory Policies Act of 1978 to require 

States to consider prohibiting cost recovery related to smart grid projects, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 18, 2024 

Mr. VAN DREW introduced the following bill; which was referred to the 

Committee on Energy and Commerce 

A BILL 

To amend the Public Utility Regulatory Policies Act of 1978 

to require States to consider prohibiting cost recovery 

related to smart grid projects, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SMART GRID COST RECOVERY. 

4 (a) CONSIDERATION AND DETERMINATION RESPECT5 ING CERTAIN RATEMAKING STANDARDS.— 

6 (1) REPEAL.—Section 111(d)(18)(B) of the 

7 Public Utility Regulatory Policies Act of 1978 (16 

8 U.S.C. 2621(d)(18)(B)) is repealed. 


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1 (2) ESTABLISHMENT.—Section 111(d) of the 

2 Public Utility Regulatory Policies Act of 1978 (16 

3 U.S.C. 2621(d)) is amended by adding at the end 

4 the following: 

5 ‘‘(22) PROHIBITION ON RATE RECOVERY FOR

6 SMART GRID INVESTMENTS.—No electric utility may 

7 recover from ratepayers any capital, operating ex8 penditure, or other costs of the electric utility relat9 ing to the deployment of any smart grid system.’’. 

10 (b) OBLIGATIONS TO CONSIDER AND DETERMINE.— 

11 (1) TIME LIMITATIONS.—Section 112(b) of the 

12 Public Utility Regulatory Policies Act of 1978 (16 

13 U.S.C. 2622(b)) is amended by adding at the end 

14 the following: 

15 ‘‘(8)(A) Not later than 1 year after the date of 

16 enactment of this paragraph, each State regulatory 

17 authority (with respect to each electric utility for 

18 which the State has ratemaking authority) and each 

19 nonregulated utility shall commence consideration 

20 under section 111, or set a hearing date for consid21 eration, with respect to the standard established by 

22 paragraph (22) of section 111(d). 

23 ‘‘(B) Not later than 2 years after the date of 

24 enactment of this paragraph, each State regulatory 

25 authority (with respect to each electric utility for 


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1 which the State has ratemaking authority), and each 

2 nonregulated electric utility shall complete the con3 sideration and make the determination under section 

4 111 with respect to the standard established by 

5 paragraph (22) of section 111(d).’’. 

6 (2) FAILURE TO COMPLY.—Section 112(c) of 

7 the Public Utility Regulatory Policies Act of 1978 

8 (16 U.S.C. 2622(c)) is amended by adding at the 

9 end the following: ‘‘In the case of the standard es10 tablished by paragraph (22) of section 111(d), the 

11 reference contained in this subsection to the date of 

12 enactment of this Act shall be deemed to be a ref13 erence to the date of enactment of that paragraph 

14 (22).’’. 

15 (3) PRIOR STATE ACTIONS.—Section 112 of the 

16 Public Utility Regulatory Policies Act of 1978 (16 

17 U.S.C. 2622) is amended by adding at the end the 

18 following: 

19 ‘‘(i) PRIOR STATE ACTIONS.—Subsections (b) and 

20 (c) shall not apply to the standard established by para21 graph (22) of section 111(d) in the case of any electric 

22 utility in a State if, before the date of enactment of this 

23 subsection— 

24 ‘‘(1) the State has implemented for the electric 

25 utility the standard (or a comparable standard); 


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1 ‘‘(2) the State regulatory authority for the 

2 State or the relevant nonregulated electric utility has 

3 conducted a proceeding to consider implementation 

4 of the standard (or a comparable standard) for the 

5 electric utility; or 

6 ‘‘(3) the State legislature has voted on the im7 plementation of the standard (or a comparable 

8 standard) for the electric utility during the 3-year 

9 period ending on that date of enactment.’’. 

10 (c) PRIOR AND PENDING PROCEEDINGS.—Section 

11 124 of the Public Utility Regulatory Policies Act of 1978 

12 (16 U.S.C. 2634) is amended by adding at the end the 

13 following: ‘‘In the case of the standard established by 

14 paragraph (22) of section 111(d), the reference contained 

15 in this section to the date of enactment of this Act shall 

16 be deemed to be a reference to the date of enactment of 

17 that paragraph (22).’’. 

Æ 


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