SURGE Act of 2026

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.
• 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.
• 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.
• 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.