A bipartisan bill introduced by Rep. Josh Riley would bar certain state-regulated electric utilities from selling or commercially using data collected by customers' smart meters unless the use serves a limited operational purpose.
The Smart Meter Data Privacy Protection Act, introduced with Utah Republican Rep. Mike Kennedy, would put the Federal Trade Commission in charge of enforcement and require violators to return three times the revenue tied to an improper use through credits on affected customers' bills.
Bill limits how covered utilities may use data
The legislation defines personal consumption data as information collected by a smart meter, which it describes as a digital device that records electricity use in near real time and automatically sends that information to a utility. Riley's office said those records can reveal detailed patterns in household energy use and daily routines.
Under the bill, covered utilities could use the information for billing, outage management, electric-grid reliability, regulatory compliance and customer-authorized demand-response programs. Licensing, selling, monetizing or otherwise using the data for commercial purposes would be prohibited outside those authorized operations.
The proposal would apply to state-regulated electric utilities that are not wholly owned by U.S. persons, a limitation included in the bill's definition of a covered utility. It would establish a federal baseline while allowing states to maintain or adopt stronger protections for smart-meter data.
Riley's office said Upstate New York customers who decline smart meters can face added charges. The release listed a $13.47 monthly opt-out fee from NYSEG and one-time Central Hudson fees of $49 for an electric meter and $89 for a gas meter.
Riley argued that customers should not have to pay extra to keep analog meters and should not have their household information turned into another revenue source for utilities. Kennedy said granular energy-use data can expose families' routines and should not become a commodity simply because residents need electric service.
Utilities would report data practices to the FTC
Each covered utility would have to submit an annual report to the FTC within one month after the end of its fiscal year. The report would identify the types of personal consumption data collected, explain how the information was used and list the parties with which it was shared.
The FTC would also be directed to establish reasonable security and retention standards for data used for authorized operational purposes. A violation of the law or its regulations would be treated as a violation of federal rules governing unfair or deceptive acts or practices, giving the commission the same enforcement powers and duties it has under the Federal Trade Commission Act.
If the FTC determined that a utility improperly used a customer's information, the utility would have to credit that customer's bill for three times the revenue attributable to the violation. The bill would prohibit the utility from recovering the cost of that credit from any electric customer it serves, and it would allow the FTC to consult with the Federal Energy Regulatory Commission when calculating or administering the remedy.
State attorneys general could also seek injunctions, compliance orders, damages, restitution or other relief on behalf of residents. They would generally have to notify the FTC and provide a copy of the complaint before filing, while the commission could intervene, be heard on issues in the case and appeal decisions.
The bill would temporarily block a state attorney general from filing a parallel case against a defendant while the FTC or U.S. attorney general has a federal action pending over the same alleged violations. It would not restrict investigative powers that state attorneys general already have under state law.
Proposal follows other utility measures
Riley's office described the privacy bill as the latest in a series of utility-focused proposals. He introduced the Weatherization Enhancement and Readiness Act, H.R. 1355, on Feb. 13, 2025, and the Keep the Lights Local Act, H.R. 5487, on Sept. 18, 2025, to expand weatherization assistance and prohibit foreign corporations and governments from owning U.S. utilities.
On April 17, 2026, Riley introduced the No Taxes on Utility Bills Act, H.R. 8350, aimed at allowing taxpayers to deduct taxes and state-mandated surcharges on gas and electric bills. He followed on April 29 with the Lowering Utility Bills Act, H.R. 8568, targeting utility overcharges, and on July 13 with the FAIR Data Act, H.R. 9655, intended to prevent data-center projects from increasing energy costs for families and small businesses.
His office also said he participated as an intervener in Central Hudson and NYSEG rate cases during 2025 and 2026, including cross-examining the utilities on behalf of ratepayers.
The legislation has been introduced in the House and would need to advance through Congress before any of its privacy restrictions, reporting rules or customer-credit provisions could take effect.
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