summary
Introduced
02/06/2026
02/06/2026
In Committee
02/26/2026
02/26/2026
Crossed Over
Passed
Dead
Introduced Session
Potential new amendment
2026 Regular Session
Bill Summary
Create new sections of KRS Chapter 96 relating to municipal utilities and KRS Chapter 278 relating to Public Service Commission-regulated utilities to: define terms; only allow for the provision of electric service to a data center through a contract that conforms to the requirements of the Act; require that within 90 days of the effective date of the Act, the electric service provider issue or file a tariff setting forth the process for a data center customer to apply for service; require the payment of a nonrefundable service application fee; require the preparation of studies to determine the manner in which the electric service provider can safely and efficiently serve the data center in a way that does not have negative service or rate impacts to their non-data center customers; establish the minimum contract requirements between the electric service provider and the data center customer; provide that requirements of the Act that are conflict with the Tennessee Valley Authority's requirements for the distribution of electricity that it supplies shall not apply; prohibit the charging or allocating of any costs associated with serving or constructing new infrastructure to serve a data center to any other customers served by natural gas, water, or wastewater utilities; amend KRS 154.20-229 to require that a qualified data center project that has been preliminarily approved for a certificate of exemption under KRS 139.499 include in its memorandum of agreement with the Kentucky Economic Development Finance Authority a certification that the data center project complies or will comply with all applicable local requirements and the applicable requirements of the Act.
AI Summary
This bill establishes new regulations for how data centers receive and are charged for electric service, and also impacts other utility services. It defines a "data center" based on its function, electrical load, and load factor, and requires that any electric service provided to a data center must be through a specific contract that meets the Act's requirements. Electric service providers must create a process for data center customers to apply for service, which includes paying a nonrefundable application fee and covering the full cost of studies to ensure service to the data center doesn't negatively impact other customers or rates. Contracts must ensure data centers bear all their associated costs, and they may need to prepay for infrastructure investments. Importantly, costs associated with serving data centers cannot be passed on to customers of natural gas, water, or wastewater utilities. The bill also amends an existing law to require that qualified data center projects seeking tax exemptions must certify their compliance with all local requirements and the provisions of this new Act.
Committee Categories
Business and Industry
Sponsors (5)
Last Action
2nd reading, to Rules (on 02/27/2026)
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/hb593.html |
| Local Mandate to House Committee Substitute 1 | https://apps.legislature.ky.gov/recorddocuments/note/26RS/hb593/HCS1LM.pdf |
| House Committee Substitute 1 | https://apps.legislature.ky.gov/recorddocuments/bill/26RS/HB593/HCS1.pdf |
| Local Mandate Fiscal Impact for HCS1 | https://apps.legislature.ky.gov/recorddocuments/note/26RS/hb593/HCS1LM.pdf |
| BillText | https://apps.legislature.ky.gov/recorddocuments/bill/26RS/hb593/orig_bill.pdf |
| Local Mandate Fiscal Impact | https://apps.legislature.ky.gov/recorddocuments/note/26RS/hb593/LM.pdf |
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