26RS HB 535

House Bill 535

Actions

Last Action	02/02/26: to Committee on Committees (H)
Title	AN ACT relating to investor-owned electric utilities and declaring an emergency.
Bill Documents	Introduced
Bill Request Number	1016
Sponsors	P. Flannery, D. Lewis, V. Grossl, B. McCool, S. Sharp, M. Whitaker, R. White
Summary of Original Version	Amend KRS 278.670 to define "environmental control" and "underpreciated extra-state generation utility plant balances," amend various definitions, and make technical changes; amend KRS 278.672 to remove the deadline date for calculating the value of the regulatory asset associated with the undepreciated extra-state generation utility plant balances, deferred storm costs, and other regulatory assets approved by the Public Service Commission (PSC) remove the dollar amount thresholds for qualifying for a financing order; remove the submittals associated with securitization of deferred costs for retried electric generation greater than 50%; add additional submittals for an application for a financing order; remove the requirement that the comparison standard must demonstrate that the securitization will provide quantifiable net present value benefits to customer; add requirement for a utility to acquire in-state dispatchable generation and agree to a freeze on base rates for a period of 2 years; define "dispatchable"; amend KRS 278.674 to prohibit the PSC from requiring securitized bonds to be marketed as a specific type of security or that an assignee be formed as a specific type of entity; provide a price cap for costs associated with retaining counsel, advisors, or other consultants; remove PSC authority to address how the securities are marketed; add a template issuance advice letter to be included in the financing order; direct that the PSC must approve sales or transfer of assets including extra-state generation facilities even if the balances are securitized; amend KRS 278.678 to make technical changes; amend KRS 278.682 to remove the requirement that the securitized surcharge be listed as a separate item on the customer bill; EMERGENCY.
Index Headings of Original Version	Effective Dates, Emergency - Securitization, extra-state generating assets, deferred costs, storm and environmental control costs Energy - Securitization, extra-state generating assets, deferred costs, storm and environmental control costs Environment And Conservation - Securitization, extra-state generating assets, deferred costs, storm and environmental control costs Pollution - Securitization, extra-state generating assets, deferred costs, storm and environmental control costs Public Utilities - Securitization, extra-state generating assets, financing order rate freeze for 2 years