Utility Accountability Act

(a) Certification of audits. Each State regulatory authority that annually audits whether investor-owned electric utilities, with respect to which the State regulatory authority has ratemaking authority, meet State performance standards shall annually certify to the Secretary whether each such investor-owned electric utility meets such standards for the year, as determined by the State regulatory authority.

(b) Penalties

(1) Bill credits

(A) In general. If a State regulatory authority certifies under subsection (a) that an investor-owned electric utility, with respect to which the State regulatory authority has ratemaking authority, failed to meet State performance standards for a year, the Secretary shall order the State regulatory authority to direct the investor-owned electric utility that did not meet State performance standards to, beginning in the following year, annually provide to each residential customer of the investor-owned electric utility a bill credit until the investor-owned electric utility meets State performance standards.

(B) Amount of bill credits. The amount of the bill credit provided to a residential customer under subparagraph (A) for a year shall be—

(i) equal to $100 for the first year; and

(ii) increased by $100 each year.

(C) Prohibition on passing costs onto residential customers. An investor-owned electric utility that provides bill credits to residential customers of the investor-owned electric utility as required by subparagraph (A) shall charge the investors of the investor-owned electric utility to pay for the cost of providing such bill credits.

(2) Withholding of assistance. If a State regulatory authority fails to comply with an order of the Secretary under paragraph (1)(A), the Secretary may withhold providing assistance, including grants, loans, loan guarantees, and technical assistance, to such State regulatory authority until the State regulatory authority complies with the order.

(c) Definitions. In this section:

(1) Ratemaking authority; State regulatory authority. The terms ratemaking authority and State regulatory authority have the meanings given such terms, respectively, in section 3 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2602).

(2) Secretary. The term Secretary means the Secretary of Energy.

(3) State performance standards. The term State performance standards includes electric reliability standards and electric safety standards.