A federal proposal sponsored by Rep. Josh Riley that would restrict executive bonuses at certain electric utilities when customer rates outpace inflation has gained a bipartisan companion measure in the Senate, a development Riley says would benefit ratepayers in New York State.
Sens. Richard Blumenthal, a Connecticut Democrat, and Josh Hawley, a Missouri Republican, introduced the Senate proposal last week, according to Riley's office. Riley introduced the House version, H.R. 6590, in December with Republican Rep. Jeff Van Drew of New Jersey.
The No Bonuses for Utility Executives Act would prohibit executive bonuses at utilities that increase customer rates by more than the annual inflation rate. When rate increases remain at or below inflation, executive bonuses would be capped at 25% of the median compensation earned by nonexecutive employees.
The measure applies to state-regulated electric utilities that are not wholly owned by U.S. persons. Its requirements would cover fiscal years beginning on or after Jan. 1, 2025.
Utilities would report rates and pay data
Covered utilities would have one week after the end of their fiscal year to report their average percentage increase in customer rates and the median compensation of nonexecutive employees to the Federal Energy Regulatory Commission.
FERC would then have one month to decide whether executive bonuses were allowed and, if so, determine the maximum permitted amount.
If a utility violated the proposed restrictions, its entire executive bonus pool would be forfeited to the Internal Revenue Service. The bill directs the IRS to return that money to customers through stimulus payments.
Sponsors point to rising utility costs
Riley said Upstate New York residents have told him that rising utility bills are forcing them to cut spending elsewhere while utility executives continue to receive increased compensation. He said the bill would prevent companies from awarding bonuses while ratepayers face increases above inflation.
Blumenthal cited a proposed 18% increase by Eversource in Connecticut and said utilities should not reward executives while customers face higher costs. Hawley said the legislation would bar bonuses for executives who benefit while electricity costs rise.
Riley's office also cited an Energy and Policy Institute report that said investor-owned utilities paid their chief executives more than $626 million last year. The release did not provide a breakdown of that figure by company or state.
Proposal follows other utility measures
Riley's office said the bill is part of a broader effort focused on utility costs. He introduced the Weatherization Enhancement and Readiness Act in February 2025 to support household energy-efficiency work and the Keep the Lights Local Act in September 2025 to prohibit foreign corporations and governments from owning U.S. utility companies.
In April 2026, Riley introduced the No Taxes on Utility Bills Act, which would allow taxpayers to deduct taxes and state-mandated surcharges included on gas and electric bills, and the Lowering Utility Bills Act, which his office said targets utility overcharges.
He introduced the FAIR Data Act in July 2026 to address utility costs associated with data center projects. Riley's office also said he participated as an intervener in Central Hudson and NYSEG rate cases during 2025 and 2026.
The release did not identify a committee timetable or a date for further action on either version of the executive bonus bill.
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