Ethics in Energy Act of 2023

This bill directs the Federal Energy Regulatory Commission (FERC) to prohibit certain large utilities from recovering political activity expenses from ratepayers, and requires reporting and penalties for violations.

Sec. 2, Definitions: Defines key terms. A 'covered utility' includes large electric utilities (with sales or transmission over certain thresholds), major natural gas companies (transporting or storing over 50 million Dth annually), and centralized service companies. A 'covered expense' is a direct or indirect payment for 'political influence activities,' which broadly includes expenses to influence regulations, legislation, elections, public opinion, regulatory proceedings, trade association dues, and certain advertising or public relations.

Sec. 3, Prohibition against recovering political activity expenses from ratepayers: Within 18 months, FERC must issue regulations to prohibit covered utilities from recovering covered expenses from ratepayers in FERC proceedings, and to create accounting categories for such expenses that are presumptively non-recoverable. Covered utilities must submit annual reports to FERC with itemized lists and unredacted details (billing amounts, dates, payees, staff salaries, etc.) for covered expenses and related costs. FERC will monitor compliance and can assess penalties: for a covered expense charged to ratepayers under $1 million, a penalty of at least that amount; for $1-10 million, at least double; for over $10 million, at least triple, but capped at 20 times the expense. Half of collected penalties go to ratepayers as rebates, half to FERC for enforcement. Utilities cannot recover penalties from ratepayers.