No Utility Junk Fees Act

This bill, titled the "No Utility Junk Fees Act," aims to protect residential consumers from unjustified fees imposed by regulated electric utilities by conditioning federal financial assistance to states. Specifically, it mandates that states prohibit "spurious charges" as a prerequisite for receiving their full allocation of State energy program financial assistance. A "spurious charge" is defined as any payment processing fee that exceeds 150 percent of the utility's documented cost of acceptance or $3.00, whichever is greater. It also includes fees imposed on payment channels where the utility incurs no documented cost, such as automatic recurring payments or mail payments, and any charge levied without clear, prior disclosure of its amount, reason, and alternative fee-free payment options. To comply, states must require utilities to disclose all payment-related charges, provide at least one fee-free payment channel accessible without internet, and prohibit fees on automatic recurring payments and electronic fund transfers. States are also responsible for enforcing these prohibitions and requirements, including investigating complaints and imposing penalties for non-compliance. The Secretary of Energy will withhold 10 percent of a state's financial assistance if it fails to comply, though a 90-day cure period is provided for states to remedy non-compliance. The Secretary is also tasked with establishing compliance procedures, maintaining a public database of state compliance, offering technical assistance, and reporting annually to Congress on compliance rates.