The State Energy Oversight Act of 2026 directs the Department of Energy to establish a grant program providing financial and technical assistance to state utility commissions to strengthen their capacity to regulate electric and natural gas utilities. States can use funding to hire specialized staff, improve data analysis capabilities, enhance public participation in rate cases, support independent advocates for residential and small business customers, develop affordable rate programs, and coordinate assistance for low-income energy customers. The bill authorizes $50 million annually from fiscal year 2027 through 2031, with each state guaranteed at least one percent of available funds, while requiring states to supplement rather than replace existing funding sources. States receiving grants must submit annual reports on utility rates, rate case outcomes, and energy affordability programs, with all information compiled into a national database maintained by the Energy Information Administration, and states failing to report will lose future funding.