Electricity Rate Stability Act

Section 1. Title

This act shall be known and may be cited as the “Electricity Rate Stability Act.”

Section 2. Legislative Findings & Intent

The Legislature finds that:

Rapid and unpredictable increases in electricity costs place a significant financial burden on residents and small businesses;
Affordable and stable energy pricing is essential to maintaining economic security and quality of life;

Therefore, the purpose of this act is to:

Ensure predictable and reasonable electricity rate increases;
Protect consumers from excessive year-over-year cost spikes;
Promote transparency and accountability in utility rate-setting.
Section 3. Annual Rate Increase Cap

(a) No electric utility operating within the state shall increase residential electricity rates by more than:

The rate of inflation (CPI) or
3% annually,

whichever is lower, without additional regulatory approval.

Section 4. Exception Process

(a) A utility may request approval for an increase above the cap only upon demonstrating:

Significant infrastructure necessity;
Unforeseen emergency costs;

(b) Such requests shall require:

Public hearings;
Full disclosure of financial justification;
Approval by the appropriate regulatory authority.
Section 5. Transparency Requirements

(a) Utilities must provide:

Clear notice of any proposed rate increase;
A plain-language explanation of the cause of the increase;

(b) All filings shall be made publicly accessible.

Section 6. Consumer Protections

(a) No increase above the cap shall take effect without:

Regulatory approval;
Public review process;

(b) The regulatory authority shall prioritize consumer affordability in all decisions.

Section 7. Enforcement

(a) Violations of this act shall result in:

Financial penalties;
Refunds or credits to affected consumers;

(b) The state regulatory body shall oversee compliance.

Section 8. Effective Date

This act shall take effect in the next rate-setting cycle following adoption.