The SURGE Act creates a new system to reward electric utilities for making improvements that save money and increase grid efficiency. Here's what it does: Utilities that operate transmission lines (the high-voltage infrastructure that moves electricity across regions) can now earn financial incentives when they make upgrades that reduce energy losses and cut costs for customers. For example, if a utility replaces old transmission lines with advanced conductors or installs smart grid technology that reduces power loss, they can recover a portion of the money they save—between 10% and 60% of verified savings—over a 2 to 5 year period. The Federal Energy Regulatory Commission will establish clear rules and standardized methods for calculating these savings so the process is fair and transparent across the country. For utilities that aren't regulated by the federal government (mostly rural and municipal utilities), the Department of Energy will provide guidance to help state regulators set up similar programs. The bill also creates a grant program to help states develop and implement these frameworks, and requires ongoing studies to evaluate whether these incentive approaches are working and whether other rate structures might be even more effective at encouraging utilities to invest in efficiency improvements.