In a strategic move ahead of the upcoming November midterms, U.S. Representative Greg Casar has introduced new legislation aimed at alleviating the financial burden of utility bills. This initiative focuses on capping profit margins for utility providers and imposing restrictions on how they allocate funds collected from customers.
The proposed bill, launched alongside other measures under the Congressional Progressive Caucus’ “New Affordability Agenda,” seeks to address what Casar perceives as excessive profits amassed by utility companies. It mandates that federal regulators establish a “reasonable” return on equity for utilities, which reflects the lower risk associated with electric and gas providers due to their guaranteed customer base.
The Federal Energy Regulatory Commission will be tasked with applying this new benchmark when determining the rates that for-profit utilities can charge consumers. Additionally, utility companies will be required to utilize this “reasonable” figure when seeking approval for rate increases from state regulators, such as the Texas Public Utility Commission.
“They face minimal risk yet compensate themselves at rates far exceeding typical stock market returns, leaving consumers to cover the difference,” Casar stated during a news conference on Wednesday.
The legislation, named the Lowering Utility Bills Act, was filed with the backing of 21 co-sponsors, including Houston Representatives Al Green and Christian Menefee, along with other members of the Congressional Progressive Caucus, which Casar chairs.
Moreover, the bill prohibits transmission providers and investor-owned utilities from imposing higher rates to cover costs related to lobbying, political donations, or extravagant executive perks like private jet travel. It also emphasizes the need for utilities to invest in cost-saving technologies that enhance the electric grid.
“This bill is fundamentally about ensuring that consumers are not burdened with additional costs simply to fund a private utility CEO’s lavish lifestyle,” Casar remarked during the press event.
Those found in violation of the new regulations could incur penalties of up to $1 million per day, according to the draft legislation from Casar’s office.
The timing of this proposal is significant as Texans contend with escalating living expenses and surging utility bills, which have increased by 30% since 2020, as reported by the Texas Energy Poverty Research Institute. Nationally, the U.S. Energy Information Administration noted a 6% rise in average household electric costs in 2025 compared to the previous year, outpacing inflation rates, with Texas reflecting this national trend.
According to estimates from the American Economic Liberties Project, the proposed bill could save the average family approximately $500 annually.
Since taking office in 2023, Casar has urged fellow Democrats to prioritize affordability and the cost of living, advocating for an economic populist strategy that challenges the influence of billionaires and special interest groups. This approach is evident in the broader affordability agenda rolled out by the Congressional Progressive Caucus, which has introduced additional measures aimed at reducing the costs of essentials such as groceries, housing, childcare, and prescription medications.
Among the proposals is a federal initiative to produce generic medications, such as insulin and asthma inhalers, at lower prices.
A memo outlining the caucus’s legislative agenda states that, in light of rising living costs, “Democrats are seeking a vision that rebuilds trust with working families and provides a mandate for significant changes in 2026.”
The memo characterizes the caucus’s affordability agenda as a series of “bold new policies designed to reduce costs in America by confronting powerful special interests and wealthy elites.”
While Casar’s utility bill may struggle to garner the necessary support from Republican lawmakers in the GOP-controlled Congress, it could serve as a foundational framework for Democrats should they regain control of the House in the midterm elections, a scenario that political analysts consider increasingly plausible.
“I am hopeful for bipartisan support, but I anticipate strong backing from Democrats as well,” Casar said. “This issue resonates with everyone.”
The Austin Democrat’s utility legislation is part of a broader array of bills introduced this year in Congress aimed at safeguarding consumers from rising energy and utility costs.
This week, the House Subcommittee on Energy reviewed seven related bills, all addressing the implications of artificial intelligence on the power grid. These proposals include shifting the financial burden of energy demands from consumers to data center developers and mandating federal regulators engage with operators to manage costs for residential and small business ratepayers.
The urgency of these discussions is heightened for many Texans as the number of data centers in the state continues to grow, making Texas one of the leading states in such facilities, second only to Virginia. This expansion has raised concerns regarding its impact on local utility rates and the ongoing water crisis.
“The American public is understandably concerned. Many are questioning whether AI and its supporting data centers will ultimately prove beneficial or detrimental, especially regarding energy costs for individuals,” stated Bob Latta, R-Ohio, Chair of the House Subcommittee on Energy, during his opening remarks at Wednesday’s hearing. “These concerns warrant serious attention.”
Both parties have introduced these AI-related energy bills, setting the stage for potential conflicts with the Trump administration, which supports accelerating data center development to foster AI innovation.
In recognition of escalating electric costs, former President Donald Trump invited major technology executives to the White House to endorse a “ratepayer protection pledge,” promising to cover their power needs for AI data centers. However, the pledge lacked specific commitments, and experts caution that it may not adequately shield consumers from the financial repercussions of data center operations.
