State Energy Oversight Act of 2026

This bill establishes a program at the Department of Energy to provide financial and technical assistance to state utility commissions to improve oversight of electric and natural gas utilities, ensuring safe, reliable service at just and reasonable rates.

Sec. 2, State Energy Oversight Program: The Secretary of Energy must create a program to give financial and technical help to states for supporting utility commissions. States can use the money to improve commission staff skills, data analysis, and modeling; increase transparency and public participation in rate cases; support an independent public advocate for residential and small business customers; fund intervenor programs; develop alternative rate designs like affordability programs and performance-based rates; and improve coordination among agencies to help customers access bill assistance and weatherization.

The Secretary will decide how to allocate funds to states, possibly based on population, energy use, energy prices, or number of customers struggling with energy costs, with each state getting at least 1% of the funding. States must assure the money supplements, not replaces, state funds. Each year, states must report to the Secretary on how they used the money, utility rates, rate case outcomes, public access to hearings, participation of advocates, and affordability programs. The Secretary must post these reports online and direct the Energy Information Administration to create a public national database of utility rates updated yearly. If a state fails to report, the Secretary will withhold future funds.

The Secretary must provide technical assistance on rate cases, rate design, and affordability programs. The Secretary may fund nonprofit organizations to train commissioners, staff, and public advocates, as long as the training is free from influence by regulated utilities. The Secretary may also fund a fellowship program for recent graduates and energy professionals to work at state commissions. Ten percent of the program's funds must be set aside for these technical assistance activities.

The bill authorizes $50 million per year from fiscal years 2027 through 2031 for this program. It defines key terms like 'energy utility,' 'Secretary,' 'State,' 'State regulated electric utility,' 'State regulated gas utility,' and 'State utility commission.'