Blumenthal & Hawley Introduce Bipartisan Bill Banning Bonuses for Utility Executives as Consumer Energy Costs Skyrocket

[WASHINGTON, D.C.] - U.S. Senators Richard Blumenthal (D-CT) and Josh Hawley (R-MO) introduced the No Bonuses for Utility Executives Act, legislation to hold utility company executives accountable for excessive costs on consumers. The legislation prohibits utility executives from receiving bonuses in years when utility rates rise faster than inflation and caps bonuses when rates remain stable.

"This legislation puts an end to unfair, unwarranted bonuses for utility executives who are lining their pockets while burdening consumers with increased costs," said Blumenthal. "For people in Connecticut, Eversource is seeking to raise utility rates by 18 percent when families are already struggling with rising costs-and while the C-Suite earns millions. The No Bonuses for Utility Executives Act makes sure executives won't receive bonuses when utility rates rise faster than inflation, prohibiting companies from rewarding themselves while American families are stuck paying the price."

"While Missourians bear the burden of rising electricity costs, utility executives at these companies receive hefty bonuses. I'm proud to introduce legislation to ban bonuses for corporate executives who benefit from skyrocketing prices," said Hawley.

U.S. Representatives Josh Riley (D-NY) and Jeff Van Drew (R-NJ) released similar legislation in the House of Representatives in December.

"Upstate New Yorkers are getting crushed by high utility bills," said Riley. "Folks are cutting back on everything from groceries to school clothes just to keep the lights on. Meanwhile, the utility monopolies are rewarding their CEOs with millions of dollars per year. When the people footing the bill get squeezed and the folks at the top walk off with massive bonuses, something's seriously broken - and I'm fighting to fix it. Our bipartisan bill stops utility monopolies from rewarding the corporate executives who are ripping us off."

"If you are making electricity unaffordable for working families, you should NOT be getting a bonus. Period." said Van Drew. "Families across South Jersey are getting hammered by higher electric bills while executives running these companies continue to reward themselves. That is completely backwards. This bill puts an end to that. If rates are skyrocketing, there should not be a big bonus waiting for you at the end of the year. It is time we put some real accountability on the people making these decisions."

The No Bonuses for Utility Executives Act would prohibit executives from earning a bonus when they raise rates faster than inflation. Additionally, if a covered utility illegally paid executive bonuses in violation of the bill, those bonuses would be forfeited and redistributed to customers as a rebate.

The full text of the bill can be found here.

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1. Energy & the Environment