KentuckySB 82026 Regular SessionSenateWALLET

AN ACT relating to public utilities and declaring an emergency.

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Bill Overview

Analyzed Economic Effects

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

New state board for power plant siting

The law creates a nine‑member board to decide where large power plants and transmission lines can be built. It includes all five utility commissioners, the energy and economic development leaders, and local public members from the project area. The board is housed at the utility commission, uses its staff, and must write rules for the siting process. The commission chair leads the board; a majority is a quorum, and vacancies do not block action. Board members get no pay (only travel reimbursement) and cannot have any financial interest in the project; local members serve until the project is built or the certificate expires.

Stronger rules for the utility commission

The law rebuilds the Public Service Commission as five experts, appointed by the Governor and confirmed by the Senate. Two must be Kentucky lawyers with at least seven years of practice, and three must have at least five years in fields like engineering, economics, accounting, finance, utility operations or safety, or environmental management. Members must be Kentucky voters age 25+ who have lived in the state for three years, no more than three may be from one party, and they can serve up to three terms. Strict ethics now apply: no utility jobs, stock, bonds, gifts, or other financial ties; no conflicting outside work; and a seat is vacated if a member joins a party committee. Commissioners elect a chair every four years, and the chair leads balanced three‑member panels (or all five) to hear cases. The commission is an independent state department, not subject to state reorganization, with clear power to regulate utilities, adopt a seal, and hire hearing officers and consultants.

Immediate start and utility commission transition

This law takes effect right away. The Governor must appoint two commissioners within 30 days, with terms ending July 1, 2028. Current members can finish their terms and may be reappointed without meeting the new subsection (1) qualifications, but they must follow the other new rules. The old statute on commission membership is repealed, and the new rules apply. Records tied to commission functions move from the Energy and Environment Cabinet to the commission.

Utility commission gets more hiring and contracting control

The utility commission now runs its own purchasing under state law, without Finance Cabinet sign‑off, and its executive director serves as chief purchasing officer. The commission can set pay for key professional staff to recruit and keep talent, while other staff stay under state personnel rules. Commissioners pick a Senate‑confirmed executive director who must be qualified, work full time, run programs, and keep official records. The commission sets the director’s salary, reimburses travel for commissioners and staff from general fund appropriations, and exempts certain commission‑paid employees from standard Personnel Cabinet pay schedules.

Utility bills can rise 3% for school tax

Utilities, cable, and satellite TV providers can add up to 3% to rates in school districts that levy a school tax. They must show it on your bill as "Rate increase for school tax." The exact added dollars depend on your bill and the tax amount.

Sponsors & Cosponsors

Sponsor

Tom Smith
Republican • House

Cosponsors

Jason Petrie
Republican • House
Keturah J. Herron
Democrat • Senate
Myron Dossett
Republican • House
Robby Mills
Republican • Senate
Robin L. Webb
Republican • Senate
Suzanne Miles
Republican • House
Stephen West
Republican • Senate
Wade Williams
Republican • House

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