A bill to amend the Public Utility Regulatory Policies Act of 1978 to prohibit retail electric and gas utility rate increases in excess of the cost of living.

Amends the Public Utility Regulatory Policies Act of 1978 to prohibit annual retail electric and gas utility rate increases in excess of the cost of living for the preceding calendar year. Makes such prohibition inapplicable to any rate increase which is charged to an electric consumer under an automatic fuel adjustment clause of a rate schedule which permits rate increases or decreases without prior hearing by a State regulatory authority. Treats the amount of any rate increase which is disallowed for any calendar year as an automatic rate increase for the next calendar year.