Bill
Bill > HB535
summary
Introduced
02/02/2026
02/02/2026
In Committee
02/09/2026
02/09/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Session
Bill Summary
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.
AI Summary
This bill modifies existing laws concerning investor-owned electric utilities and their ability to finance certain costs through securitized bonds, which are essentially loans packaged and sold to investors. Key changes include defining "environmental control costs" and "undepreciated extra-state generation utility plant balances" (costs related to power plants outside the state that haven't been fully accounted for), and expanding the definition of "securitized costs" to include these new categories. The bill removes a deadline for calculating the value of these regulatory assets and also removes dollar amount thresholds that previously determined eligibility for financing orders, which are official approvals from the Public Service Commission (PSC) allowing utilities to issue securitized bonds. It also adds new requirements for utilities applying for financing orders, including the need to acquire in-state dispatchable generation (generation that can be turned on or off as needed) and agree to a two-year freeze on their base rates. The PSC's authority to dictate how securitized bonds are marketed or the specific type of entity that can act as an assignee is limited, and a price cap is placed on the costs associated with retaining legal and financial advisors for the PSC. Finally, the bill removes the requirement for securitized surcharges, which are added to customer bills to repay the securitized bonds, to be listed as a separate line item. An emergency clause is included, stating the bill takes effect immediately due to rising energy costs and the need for lower-cost energy.
Committee Categories
Agriculture and Natural Resources
Sponsors (9)
Patrick Flannery (R)*,
Vanessa Grossl (R),
Tony Hampton (R),
Derek Lewis (R),
Bobby McCool (R),
Scott Sharp (R),
Timmy Truett (R),
Mitchum Whitaker (R),
Richard White (R),
Last Action
to Natural Resources & Energy (H) (on 02/09/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://apps.legislature.ky.gov/record/26RS/hb535.html |
| BillText | https://apps.legislature.ky.gov/recorddocuments/bill/26RS/hb535/orig_bill.pdf |
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