Kentucky legislation · 2026 Regular Session
Kentucky HB535: AN ACT relating to investor-owned electric utilities and declaring an emergency.
Status: In committee, April 15, 2026
Amend KRS 278.670 to define "environmental control" and "underpreciated extra-state generation utility plant balances," amend various definitions, and make technical changes; amend KRS 278.672 to remove the deadline date for calculating the value of the regulatory asset associated with the undepreciated extra-state generation utility plant balances, deferred storm costs, and other regulatory assets approved by the Public Service Commission (PSC) remove the dollar amount thresholds for qualifying for a financing order; remove the submittals associated with securitization of deferred costs for retried electric generation greater than 50%; add additional submittals for an application for a financing order; add requirement for a utility to acquire in-state dispatchable generation and agree to a freeze on base rates for a period of 2 years; define "dispatchable"; amend KRS 278.674 to prohibit the PSC from requiring securitized bonds to be marketed as a specific type of security or that an assignee be formed as a specific type of entity; provide a price cap for costs associated with retaining counsel, advisors, or other consultants; remove PSC authority to address how the securities are marketed; add a template issuance advice letter to be included in the financing order; direct that the PSC must approve sales or transfer of assets including extra-state generation facilities even if the balances are securitized; amend KRS 278.678 to make technical changes; amend KRS 278.682 to remove the requirement that the securitized surcharge be listed as a separate item on the customer bill; EMERGENCY.
What the bill says
An act relating to investor-owned electric utilities and declaring an emergency.
From the committee substitute text:
AN ACT relating to investor-owned electric utilities and declaring an emergency. WHEREAS, the General Assembly desires to reduce costs for electric utility customers while encouraging investment in electric generation facilities within the borders of the Commonwealth; and WHEREAS, the General Assembly wishes to allow for the securitization of certain additional utility assets by electric utilities pursuing the development of dispatchable generation located in the Commonwealth; NOW, THEREFORE, Be it enacted by the General Assembly of the Commonwealth of Kentucky: Section 1. KRS 278.670 is amended to read as follows: In addition to the definitions in KRS 278.010, except KRS 278.010(3)(a), which shall apply unless they conflict with or the context otherwise requires, as used in KRS 278.670 to 278.696 and 65.114: (1) "Ancillary agreement" means a bond, insurance policy, letter of credit, reserve account, surety bond, interest rate lock or swap arrangement, hedging arrangement, liquidity or credit support arrangement, or other financial arrangement entered into in connection with securitized bonds; (2) "Assignee" means a legally recognized entity to which an electric utility assigns, sells, or transfers, other than as security, all or a portion of its interest in or right to securitized property. The term "assignee" includes a corporation, limited liability company, general or limited partnership, public authority, trust, and financing entity to which an assignee assigns, sells or transfers, …
Sponsors
- Patrick Flannery (R, HD-096) · primary sponsor
- Derek Lewis (R, HD-090)
- Vanessa Grossl (R, HD-088)
- Tony Hampton (R, HD-062)
- Bobby McCool (R, HD-097)
- Scott Sharp (R, HD-100)
- Timmy Truett (R, HD-089)
- Bill Wesley (R, HD-091)
- Mitch Whitaker (R, HD-094)
- Richard White (R, HD-099)
Latest actions
- : recommitted to Appropriations & Revenue (H)
- : returned to Rules
- : taken from the Orders of the Day
- : floor amendment (1) filed to Committee Substitute
- : posted for passage in the Regular Orders of the Day for Wednesday, March 11 2026
- : 2nd reading, to Rules
- : reported favorably, 1st reading, to Calendar with Committee Substitute (1)
- : to Natural Resources & Energy (H)
- : to Committee on Committees (H)
- : introduced in House
Subjects: Effective Dates, Emergency, Energy, Environment And Conservation, Public Utilities, Pollution
Common questions
- What is HB535?
- HB535 is a bill in the Kentucky Legislature (2026 Regular Session): AN ACT relating to investor-owned electric utilities and declaring an emergency.
- What does HB535 do?
- In its own words: An act relating to investor-owned electric utilities and declaring an emergency.
- What is the status of HB535?
- In committee as of April 15, 2026. Latest action: recommitted to Appropriations & Revenue (H) (April 15, 2026).
- Who sponsored HB535?
- Patrick Flannery (R, HD-096), with 9 co-sponsors.
- Where is the official record for HB535?
- On the Kentucky Legislature website: https://apps.legislature.ky.gov/record/26rs/hb535.html
Source: official Kentucky record. Tracked by Delilah, AI for legislation across all 50 states and Congress.