Casar bill aims to lower utility costs by capping profit margins
News ClipThe Texas Tribune·TX·5/1/2026
U.S. Rep. Greg Casar introduced the "Lowering Utility Bills Act" to cap utility profit margins and restrict how companies spend ratepayer money, aiming to reduce consumer costs, particularly in Texas. The bill, part of a broader affordability agenda, addresses concerns about rising utility bills partly driven by data center energy demands. While unlikely to pass, it offers a policy framework for Democrats.
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U.S. Rep. Greg Casar (D-Austin) has filed the "Lowering Utility Bills Act," a federal bill aimed at capping profit margins for utility providers and restricting their spending of ratepayer money. The legislation, supported by 21 co-sponsors including U.S. Rep. Al Green (D-Houston), mandates that the Federal Energy Regulatory Commission establish a "reasonable" return on equity for utilities, a figure also to be applied by state regulators like the Texas Public Utility Commission when approving rate hikes. Additionally, the bill seeks to prevent utilities from charging customers for lobbying, political contributions, or executive luxuries, while prioritizing investments in cost-saving grid technologies.
The bill is part of the Congressional Progressive Caucus's "New Affordability Agenda," which Casar chairs. It addresses concerns over rising utility costs, which have increased by 30% in Texas since 2020. The proposal highlights the growing impact of data centers on energy demand and utility rates, with Texas being a major hub for such facilities. House Subcommittee on Energy Chair Bob Latta (R-Ohio) acknowledged public unease about AI and data centers' effects on energy costs, noting that related bills propose making developers responsible for their facilities' energy demands.
Despite bipartisan discussions around AI's energy consumption, Casar's bill faces an uphill battle in the Republican-controlled Congress. However, it is seen as a potential policy blueprint for Democrats should they gain control of the House in future elections. The legislation contrasts with former President Donald Trump's