Affordable Electricity Rates Act of 2026

What it does

• •Amends the Federal Power Act to require FERC to consider whether rates under its jurisdiction will make electricity unaffordable for consumers when determining if rates are 'just and reasonable.'
• •Establishes a presumption that any rate or charge resulting in a retail electricity price increase of 5 percent or more is likely to be unaffordable.
• •Prohibits FERC from approving rates it determines will result in unaffordable retail electricity prices.

Why it matters

• •Currently, FERC's primary standard for approving utility rates is whether they are 'just and reasonable,' without explicit consideration of consumer affordability; this bill adds affordability as a statutory factor in that determination.
• •The 5 percent threshold creates a bright-line rule: rates causing 5 percent or larger price increases are presumed unaffordable unless rebutted.

Who is affected

• •The Federal Energy Regulatory Commission (FERC), which regulates wholesale electricity rates and interconnection agreements.
• •Electric utilities, generators, and transmission companies subject to FERC jurisdiction whose rate proposals may be rejected under the new affordability standard.
• •Electric consumers whose retail rates are affected by FERC-approved wholesale rates.

What happens next

The bill was referred to the Senate Committee on Energy and Natural Resources on August 6, 2026, and awaits committee consideration.