KentuckySB 82026 Regular SessionSenateWALLET

AN ACT relating to public utilities and declaring an emergency.

Sponsored By: Brandon Smith (Republican)

Became Law

Administrative Regulations And ProceedingsAttorney GeneralAuditor Of Public AccountsBoards And CommissionsConfirmation Of AppointmentsEffective Dates, EmergencyPublic Officers And EmployeesPublic UtilitiesState AgenciesState Employees

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 3 benefits, 1 costs, 0 mixed.

New rules for Kentucky utility regulators

The Public Service Commission has five members picked by the Governor and confirmed by the Senate. Two must be licensed attorneys with 7 years of practice, and three must have training and 5 years’ experience in fields like economics, engineering, or utility management. Members must be Kentucky voters, at least 25, and residents for 3 years. Terms are four years, with a limit of three terms; time served before this law does not count. No more than three members may be from the same party, and members cannot serve on other regulatory bodies. Strong conflict rules apply: no utility ties, no utility stocks or bonds (with a narrow retirement account exception), no gifts from utilities, and no outside work that conflicts. If a member joins a party committee, the seat is vacated. The commission elects a chair every four years. The chair assigns three commissioners to each case, with no more than two from one party. The Governor may remove a member for cause after notice and a public hearing. The law repeals the old membership statute, lets current members finish their terms and be reappointed without the new subsection (1) qualifications, and requires two new appointments within 30 days to terms ending July 1, 2028. The commission is protected from executive reorganization.

Utility commission gains staffing and purchasing control

The commission is independent and only uses the Energy and Environment Cabinet for tasks it requests. It runs its own purchasing under state procurement rules and does not need approval from the Finance Cabinet to proceed. The executive director is chosen by the commission (with Senate confirmation), works full time, manages programs and staff, keeps records, and serves as chief purchasing officer. The commission sets the executive director’s salary, and commissioners and staff get travel expenses repaid from the general expenditure fund. The commission can set pay for some professional staff to hire and keep talent, contract hearing officers and consultants (with legislative contract review), and make regulations and investigations to enforce utility laws and orders. On the law’s effective date, records tied to PSC functions move from the Energy and Environment Cabinet to the commission.

Up to 3% school tax on utilities and cable

In school districts that charge a school tax, your utility, cable, or satellite provider can raise your rate by that tax, up to 3%. The bill must show this amount and label it "Rate increase for school tax." The increase applies only in districts where the provider pays the school tax under state law.

Local voice and rules for power plant siting

A nine-member state board now oversees siting for merchant electric plants and transmission. The five utility commissioners and two cabinet secretaries serve, plus two local ad hoc members from the affected county or counties. Ad hoc members and their immediate family cannot have a direct financial interest in the project and must follow the executive branch ethics code. Ad hoc members serve until the plant is built and selling power, or the certificate expires. Board members are not paid a salary but get travel costs repaid. The board is supported by commission staff, must adopt rules, and is chaired by the commission’s chair, who also names a vice chair.

Sponsors & Cosponsors

Sponsor

  • Brandon Smith

    Republican • Senate

Cosponsors

  • Robby Mills

    Republican • Senate

  • Robin L. Webb

    Republican • Senate

  • Stephen West

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 138 • No: 21

House vote • 4/1/2026

3rd reading, passed

Yes: 76 • No: 11

Senate vote • 4/1/2026

passed

Yes: 32 • No: 5

Senate vote • 3/6/2026

passed

Yes: 30 • No: 5

Actions Timeline

  1. became law without Governor's Signature (Acts Ch. 185)

    4/15/2026
  2. filed without Governor's signature with the Secretary of State

    4/13/2026
  3. delivered to Governor

    4/2/2026
  4. enrolled, signed by Speaker of the House

    4/1/2026Senate
  5. enrolled, signed by President of the Senate

    4/1/2026Senate
  6. passed 32-5

    4/1/2026Senate
  7. Senate concurred in Committee Substitute (2) and Floor Amendment (5)

    4/1/2026Senate
  8. posted for passage for concurrence in House Committee Substitute (2) and Floor Amendment (5)

    4/1/2026House
  9. taken from Rules

    4/1/2026Senate
  10. to Rules (S)

    4/1/2026Senate
  11. received in Senate

    4/1/2026Senate
  12. 3rd reading, passed 76-11 with Committee Substitute (2) and Floor Amendment (5)

    4/1/2026House
  13. floor amendments (4) and (5) filed to Committee Substitute (2)

    3/31/2026House
  14. floor amendment (3) filed to Committee Substitute (2)

    3/27/2026House
  15. placed in the Orders of the Day

    3/27/2026House
  16. taken from Rules

    3/27/2026House
  17. reported favorably, to Rules with Committee Substitute (2) and committee amendment (1)

    3/27/2026House
  18. recommitted to Appropriations & Revenue (H)

    3/24/2026House
  19. floor amendment (2) filed to Committee Substitute

    3/20/2026House
  20. 2nd reading, to Rules

    3/20/2026House
  21. floor amendment (1) filed to Committee Substitute

    3/19/2026House
  22. reported favorably, 1st reading, to Calendar with Committee Substitute (1)

    3/19/2026House
  23. to Natural Resources & Energy (H)

    3/17/2026House
  24. to Committee on Committees (H)

    3/10/2026House
  25. received in House

    3/10/2026House

Bill Text

  • Current

    4/1/2026

  • Introduced

    3/2/2026

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