HB 535: AN ACT relating to investor-owned electric utilities and declaring an emergency.

Official summary

Abstract published by the legislature (via Open States). Text as published by the legislature; reproduced verbatim.

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.

Sponsors

Sponsors by party (alphabetical): Republican 10

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. April 15, 2026recommitted to Appropriations & Revenue (H)
2. March 26, 2026returned to Rules
3. March 26, 2026taken from the Orders of the Day
4. March 11, 2026floor amendment (1) filed to Committee Substitute
5. March 10, 2026posted for passage in the Regular Orders of the Day for Wednesday, March 11 2026
6. March 6, 20262nd reading, to Rules
7. March 5, 2026reported favorably, 1st reading, to Calendar with Committee Substitute (1)
8. February 9, 2026to Natural Resources & Energy (H)
9. February 2, 2026to Committee on Committees (H)
10. February 2, 2026introduced in House