Committee advances FAIR Act after amendment amid sharp debate over ROE cap

The House Consumer Protection, Technology & Utilities Committee voted to advance House Bill 2224, the FAIR Authorized Investment Return Act, after adopting an amendment that clarifies a utility's duty to serve customers and use a qualified workforce.

Representative Williams, who said she would vote to move the bill to the floor, criticized the measure's proposed return-on-equity (ROE) cap as “the most absurd extreme version” and warned it would likely lower utilities’ credit ratings and deter investment. “It proposes basically a 6% or so return on equity for utilities,” Williams said, adding that she will offer floor amendments to pursue performance-based rates modeled on programs in other states.

A committee member argued the bill would amount to market controls that reduce competition and increase costs, and attributed rising electricity prices to decades of decisions by PJM, the regional grid operator. “Market controls never work,” the committee member said, and stated they would vote no on the bill as introduced.

Committee members adopted Amendment A80358, which staff summarized as clarifying utilities’ duty to serve and the use of a qualified workforce. The committee then voted to report the bill as amended; the Chair announced the bill passed as amended.

Why it matters: The bill aims to address utility pricing and investor returns amid concerns about affordability. Supporters signaled further changes on the House floor, including substitutes to link returns to performance rather than a strict cap. Opponents cautioned that an overly low ROE could have systemic effects on utilities’ ability to borrow and invest.

What’s next: The committee reported the bill to the floor for further consideration; sponsors and critics indicated they expect additional floor amendments and debate.