To amend the Public Utility Regulatory Policies Act of 1978 to require States to consider prohibiting cost recovery related to smart grid projects, and for other purposes.

This bill prohibits electric utilities from recovering smart grid deployment costs from customers. It amends the 1978 Public Utility Regulatory Policies Act to add a new rule (section 111(d)(22)) stating utilities cannot pass capital, operating, or other costs related to smart grid systems to ratepayers. States must begin reviewing this requirement within one year of the bill's enactment and finalize decisions within two years. The bill directly affects utilities and their customers (ratepayers), shifting the financial burden of smart grid investments away from consumers. Existing state actions on this issue before the bill's passage are exempt from the new timeline.