H.R.1148 - Stop Misappropriating Ratepayer Tariffs for Excessive Resources Act; SMARTER Act (119th Congress)
Summary
H.R. 1148, the SMARTER Act, aims to amend the Public Utility Regulatory Policies Act of 1978 (PURPA) to prevent electric utilities from recovering the costs of smart grid projects from ratepayers. The bill requires states to consider prohibiting cost recovery related to these projects. This is intended to protect consumers from potentially excessive or mismanaged costs associated with smart grid deployments.
Expected Effects
The SMARTER Act, if enacted, would likely lead to states re-evaluating their policies regarding smart grid investments and cost recovery mechanisms. Electric utilities might become more cautious about investing in smart grid technologies if they cannot pass the costs onto ratepayers. This could slow down the deployment of smart grid infrastructure.
Potential Benefits
- Potential reduction in electricity bills for consumers by preventing utilities from passing on smart grid costs.
- Increased scrutiny and accountability for utility investments in smart grid technologies.
- Encourages utilities to seek more cost-effective solutions for grid modernization.
- May spur innovation in smart grid technologies to reduce costs.
- Could lead to more transparent ratemaking processes.
Most Benefited Areas:
Potential Disadvantages
- May discourage utilities from investing in necessary smart grid upgrades, potentially hindering grid modernization and efficiency.
- Could lead to delayed or inadequate deployment of smart grid technologies, impacting grid reliability and resilience.
- May create uncertainty for utilities planning future grid investments.
- Could result in utilities shifting costs to other areas, potentially offsetting savings for ratepayers.
- May disproportionately affect states with ambitious smart grid deployment plans.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the Constitution, particularly Article I, Section 8, which grants Congress the power to regulate commerce among the states. PURPA, which this bill amends, falls under this power as it addresses energy regulation, which affects interstate commerce. The bill does not appear to infringe upon any specific constitutional rights or liberties.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).