KentuckyHB 3982026 Regular SessionHouseWALLET

AN ACT relating to decommissioning costs for electric generating units.

Sponsored By: Wade Williams (Republican)

Became Law

Boards And CommissionsCoalEnergyOil And Natural GasPublic Utilities

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

Tougher rules to retire power plants

Utilities must get Kentucky Public Service Commission approval before retiring a power unit. They must give 30 days’ notice, certify compliance with KRS 164.2807, and get a decision within 180 days of a complete filing. There is a presumption against retiring fossil‑fuel units; the commission also cannot allow a decommissioning surcharge or other retirement cost recovery unless the utility meets strict tests. Approval requires dispatchable replacement that keeps or improves reliability and reserve margins, with comparable capacity value unless not needed. The utility must show no net extra cost to customers and that federal incentives did not drive the choice, and list all retirement costs with expected customer savings. Retirement normally cannot start until the replacement is built, permitted, and running. The law defines “dispatchable” and “intermittent,” and treats storage under 48 hours as intermittent.

Utilities can recover shutdown costs earlier

The Public Service Commission can let a utility record and seek recovery of decommissioning, removal, salvage, and depreciation costs through rates over the unit’s depreciable life, even before retirement is approved. This cost‑recovery approval does not approve the retirement or its timing.

Sponsors & Cosponsors

Sponsor

Wade Williams
Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 189 • No: 35

House vote • 3/31/2026

passed

Yes: 81 • No: 14

Senate vote • 3/26/2026

3rd reading, passed

Yes: 30 • No: 6

House vote • 2/2/2026