| Last Action | 03/06/26: 2nd reading, to Rules |
|---|---|
| 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, T. Hampton, B. McCool, S. Sharp, T. Truett, B. Wesley, 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; 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 |
| Jump to Proposed Amendments | House Committee Substitute 1 |
| 02/02/26 |
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|---|---|
| 02/09/26 |
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| 03/05/26 |
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| 03/06/26 |
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| Amendment | House Committee Substitute 1 |
|---|---|
| Summary | Retain original provisions, except change references to securitization bonds to securitized bonds; change the definition of "undepreciated extra-state generation utility plant balances" to "undepreciated extra-state generation facility plant balances" and include in the definition facilities including each separate generation unit; change nameplate generation capacity from 800 megawatts to 750 megawatts; include transmission as payable in the securitized surcharge; require a comparison demonstrating cost savings to ratepayers in aggregate and same discount rate used in the analysis; require submission of the agreement to the Energy Planning and Inventory Commission, the Attorney General's Office of Rate Intervention 60 days after the issuance of the securitized bonds and an update to the comparison; require a statement to be included in the application for a financing order that the facility will not seek an increase in base rate for a 2 year period regardless of whether the application is approved and that it will not implement a new rider or tracking mechanism and the application for a financing order is provided to the Energy Planning and Inventory Commission, the Attorney General's Office of Rate Intervention and the Legislative Research Commission; require that cost of counsel, advisors, or other consultant not exceed $750,000 in total for any transaction; add retired generation costs to requirements not changed or modified without Public Service Commission approval; change securitized surcharges to cost-reduction charges; require a notice of the cost-reduction charge as a part of the customer bill and add it to another applicable line item on the bill. |
| Index Headings |
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 |
Last updated: 3/9/2026 7:15 PM (EDT)