summary
Introduced
03/03/2026
03/03/2026
In Committee
03/05/2026
03/05/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Session
Bill Summary
Create a new section of KRS Chapter 96 to define "municipal interlocal gas utility"; provide that a municipal interlocal gas utility is exempt from the jurisdiction of the Public Service Commission and KRS Chapter 278 exempt as provided in KRS 278.495; authorize a municipal interlocal gas utility to determine its own service territory through official acts of its governing authority; allow a municipal interlocal gas utility to have the primary right to provide service in its service territory and to have the right to be the first provider for new customers in the service territory; authorize the municipal interlocal gas utility to acquire an existing natural gas system through eminent domain and specify the valuation method for the acquired plant or system; exempt a municipal interlocal gas utility from the provisions of KRS 96.5375, 96.045, and 96.538; amend KRS 65.240 to allow a public agency to acquire natural gas facilities inside or outside of its jurisdictional boundaries; amend KRS 96.5375 to allow a municipal interlocal gas utility to extend an existing natural gas system or construct a new system inside or outside its constituent cities' boundaries; specify the valuation of natural gas distribution system or plant acquired by eminent domain; define "municipal interlocal gas utility"; amend KRS 278.010 to exempt to municipal interlocal gas utilities from the definition of "utility" for the purpose of establishing the jurisdiction of the Public Service Commission; define "municipal interlocal gas utility"; amend KRS 96.045 and 96.538 to conform; RETROACTIVE.
AI Summary
This bill establishes a new category of entity called a "municipal interlocal gas utility," which is defined as an agency formed by city governments solely to operate a natural gas system. These utilities would be exempt from the oversight of the Public Service Commission (PSC), the state agency that regulates utilities, and from certain state laws governing utilities, except as specified in KRS 278.495. The bill grants these municipal interlocal gas utilities the power to define their own service territories, giving them the primary right to provide gas service to customers within those territories, including new customers. They would also be authorized to acquire existing natural gas systems through eminent domain, a legal process where private property can be taken for public use, with the compensation for such acquisitions being the depreciated replacement cost of the system plus the value of any vacant land. The bill also allows public agencies, including these new utilities, to acquire natural gas facilities both inside and outside their usual service areas and permits them to extend or build new natural gas systems beyond the boundaries of their constituent cities. Importantly, the bill makes these provisions retroactive to January 1, 2020, meaning they apply to actions taken even before the law is enacted.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
returned to Appropriations & Revenue (H) (on 03/25/2026)
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/hb844.html |
| BillText | https://apps.legislature.ky.gov/recorddocuments/bill/26RS/hb844/orig_bill.pdf |
| Local Mandate Fiscal Impact | https://apps.legislature.ky.gov/recorddocuments/note/26RS/hb844/LM.pdf |
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