S. 5306: Affordable Electricity Rates Act of 2026

This bill would change how the Federal Energy Regulatory Commission (FERC) decides whether certain electricity rates are “just and reasonable” under federal law.

What the bill would require FERC to do

When reviewing rates or charges that fall under FERC’s authority, the commission would have to consider whether those rates are likely to make retail electricity prices unaffordable for consumers.

• FERC would need to look at whether a rate could lead to electricity bills that are unaffordable for “electric consumers,” as that term is defined in existing law.
• If FERC determines that a rate is likely to increase retail electricity prices by 5% or more, the bill says FERC must presume that the rate would make electricity unaffordable.

What happens if a rate is found unaffordable

If FERC makes that finding, the rate or charge could not be treated as “just and reasonable” under the Federal Power Act. In practical terms, that would make it harder for such a rate to be approved or maintained under federal law.

Overall effect

The bill would add affordability as a formal factor in federal electricity-rate decisions. It would not set electricity prices directly, but it would require FERC to weigh the consumer impact of higher rates more explicitly, and it creates a specific presumption against rates that would raise retail electricity prices by 5% or more.

Relevant Companies

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