Ending Guaranteed Rate of Return on Government Subsidies

Model Bill Info
Bill Title	Ending Guaranteed Rate of Return on Government Subsidies
Date Introduced	July 18, 2025
Type	Model Policy
Status	Draft
Task Forces	Energy, Environment and Agriculture
Keywords	Energy

Ending Guaranteed Rate of Return on Government Subsidies

Section 1. Definitions

“Government Subsidies” mean money received from federal, state, and local governments for the building of electricity generation, storage, transmission, and carbon capture and storage, and generation of electricity by any of these. “Rate of return” means the additional amount that is allowed to be charged electric ratepayers for capital expenditures by electric utilities for their profit.

Section 2. Prohibiting rate of return on government subsidies of electric generation, transmission, storage and carbon capture and storage

The electric utility regulatory agency shall develop rules and procedures to ensure that the owners of utility investments shall not receive rate of return of capital investments for the government subsidies they receive.

Section 3. Severability

Each section, paragraph, and portion of each paragraph of this Act is severable. If one or more sections, paragraphs, or portions of one or more paragraphs of this Act are held invalid on their face or as applied to particular facts, then the remaining portions and applications of the Act shall be given full effect to the greatest extent practicable.

Section 4. Applicability And Effective Date

This Act applies to all electricity generation, transmission, storage, and carbon capture and storage after passage of this Act.