The SURGE Act of 2026 creates financial incentives for electric utilities to improve grid efficiency by allowing them to recover a portion of the cost savings they achieve through various efficiency improvements. The bill amends federal power law to require the Federal Energy Regulatory Commission to establish rules within one year that set standardized methods for measuring baseline performance and verifying savings, with utilities permitted to keep between 10 and 60 percent of documented savings over a 2 to 5-year period. The legislation also provides federal grants to state regulatory authorities to develop similar frameworks for utilities not under federal jurisdiction, while explicitly directing funds toward framework development and implementation rather than direct utility payments, with at least 30 percent of grant money designated for implementation activities. Additionally, the Department of Energy is tasked with offering guidance to states and conducting periodic studies on transmission rate structures. The bill affects both large utilities and state regulators nationwide, creating a nationwide approach to incentivizing energy grid improvements while ensuring ratepayers benefit from verified cost savings.
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