SMARTER Act

# SMARTER Act Summary **What the Bill Would Do:** The SMARTER Act would prevent electric utility companies from passing the costs of smart grid systems directly to consumers through their electric bills. Smart grids are modernized electrical systems that use digital technology to monitor and manage electricity distribution more efficiently. Currently, federal law allows utilities to recover these deployment costs from ratepayers; this bill would flip that requirement, instead requiring utilities and state regulators to consider prohibiting such cost recovery. **Who It Affects and Key Provisions:** This bill primarily affects electric utility companies and their customers.

Utilities would need to absorb smart grid costs themselves rather than charging consumers. The bill gives utilities and state regulatory bodies one year to consider adopting this prohibition and two years to decide whether to implement it—though states that have already addressed this issue are exempt. The bill repeals existing federal encouragement for utilities to recover smart grid costs from ratepayers. **Current Status:** The bill was introduced by Representative Jefferson Van Drew (R-NJ) in the 119th Congress and is currently in committee, meaning it has not yet been voted on by the full House of Representatives.