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Congress·In Committee·H.R. 7729

Rep. Casten Introduces SURGE Act to Cut Energy Waste and Lower Power Bills

To amend the Federal Power Act to require the issuance of rules relating to shared savings frameworks for certain transmitting utilities, and for other purposes.

Also known as: SURGE Act of 2026

24 days ago·View on Congress.gov

Legislative Progress

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Senate
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Key Points

  • The bill creates a "shared savings" program where power companies that reduce energy waste on transmission lines can keep 10-60% of those savings as a reward. The rest goes back to customers through lower rates.

    From policy text

    “The total percentage of cost savings attributable to a qualifying action that such a utility may recover as an incentive under the shared savings framework, which may not be less than 10 percent or greater than 60 percent of such total attributable cost savings”
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  • It encourages utilities to invest in advanced conductors and grid-enhancing technologies that reduce the electricity lost during transmission, rather than building expensive new infrastructure. This shifts incentives away from big capital projects toward smarter, cheaper fixes.
  • FERC must issue a final rule within one year setting up standardized methods for measuring baseline performance, calculating savings, and verifying results through independent evaluators.

    From policy text

    “Not later than one year after the date of the enactment of this Act, the Commission shall issue a final rule under section 219(b)(3) of the Federal Power Act”
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  • The Department of Energy will create grants for state regulators to build their own shared-savings frameworks for local utilities not under federal jurisdiction, ensuring efficiency improvements happen at both national and state levels.

    From policy text

    “the Secretary shall establish a program under which the Secretary may award grants to State regulatory authorities to support the development, implementation, and oversight by such State regulatory authorities of frameworks under which covered electric utilities may recover a portion of verified cost savings”
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  • The bill requires ongoing studies every five years on how existing utility rate structures create inefficiencies and whether alternative models like revenue decoupling, performance scorecards, or multi-year rate plans could better serve consumers.
Energy EnvironmentEconomy Finance

Impact Analysis

Personal Impact

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions
Feb 26, 2026House

Referred to the House Committee on Energy and Commerce.

Feb 26, 2026

Introduced in House

What Happens Next

Projected impacts based on AI analysis

Within 1 year of enactment

FERC issues final rule establishing the shared savings framework with standardized methods for measuring baseline performance and calculating savings

Utilities under federal jurisdiction can begin applying for incentives to reduce transmission waste, setting the stage for eventual rate reductions for customers

Within 2 years of enactment

Department of Energy publishes guidance and launches grant program for state regulators to develop their own shared-savings frameworks

States can apply for federal money to set up efficiency reward programs for local power companies not covered by FERC, expanding the approach nationwide

Within 3 years of enactment

First DOE study published examining inefficiencies in existing utility rate structures and alternative frameworks

Policymakers and regulators get data-driven recommendations on whether the current system needs bigger changes to truly lower electricity costs for consumers

Source Information

Document Type

Congressional Bill

Official Title

To amend the Federal Power Act to require the issuance of rules relating to shared savings frameworks for certain transmitting utilities, and for other purposes.

Bill NumberHR 7729
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Energy and Commerce.

Sponsor

Analysis generated by AI. Always verify with official sources.