Casar's Utility Bill Targets Texas Rate Hikes With Federal Profit Caps

WASHINGTON — U.S. Rep. Greg Casar filed the Lowering Utility Bills Act on Wednesday, aiming to reshape how Texas and the nation regulate electric and gas utilities ahead of November's midterm elections. The legislation, co-sponsored by 21 members of Congress including Houston Representatives Al Green and Christian Menefee, takes direct aim at what Casar describes as excessive profits hauled in by investor-owned utilities with captive customer bases unable to shop elsewhere. Under Casar's proposal, the Federal Energy Regulatory Commission would establish a "reasonable" return on equity that utilities can collect beyond infrastructure costs, then require state regulators—including the Texas Public Utility Commission—to apply that figure when approving rate hikes. The bill also bars utilities from charging ratepayers for lobbying, political contributions, or executive perks. Violators would face penalties of $1 million per day per violation. The American Economic Liberties Project estimates the bill would save the average Texas family $500 annually. Casar, who chairs the Congressional Progressive Caucus and has championed affordability issues since joining Congress in 2023, rolled out the utility bill as part of a broader "New Affordability Agenda" focused on cost-of-living relief. While unlikely to advance in the current Congress, the legislation provides Democrats a campaign blueprint for November. The proposal mandates utilities prioritize cost-saving investments like grid-enhancing technologies—a broader affordability push that echoes Casar's earlier work on the Connect the Grid Act, which would link Texas's isolated ERCOT system to national grids and potentially save the state $20 billion over 13 years. Republicans have countered with their own affordability agenda. The Republican Study Committee released a competing package in January, arguing Democratic policies drive up costs rather than lower them. Casar's bill represents the latest salvo in a broader congressional fight over utility regulation as energy costs continue pressuring Texas households.