An act relating to utility fuel adjustment and declaring an emergency., the official text

UNOFFICIAL COPY                                            26 RS SB 172/GA

1   AN ACT relating to utility fuel adjustment and declaring an emergency.

2 Be it enacted by the General Assembly of the Commonwealth of Kentucky:

3   Section 1. KRS 278.277 is amended to read as follows:

4 (1) In the administration of an electric utility's fuel adjustment clause and any

5   associated tariffs, the commission may, upon the request of an electric utility,

6   extend the period for recovery of fuel adjustment costs that are typically

7   recoverable in order to reduce volatility for consumers and encourage stability in

8   rates.

9 (2) In any review by the commission of any fuel adjustment clause, for any contracts

10  entered into on or after July 1, 2021, the commission shall, in determining the

11  reasonableness of fuel costs in procurement contracts and fuel procurement

12  practices, evaluate the reasonableness of fuel costs in contracts and competing bids

13  based on the cost of the fuel less any coal severance tax imposed by any

14  jurisdiction.

15 (3)[(2)] As used in this section, "fuel adjustment clause" means any clause or

16  provision in any tariff or contract by which an electric utility may immediately

17  recover increases in fuel costs subject to later scrutiny or review by the commission.

18  Section 2. Whereas it is critical that any measure to help control the volatility of

19 electric utility rates be enacted as soon as possible to give relief to the ratepayers of the

20 Commonwealth, an emergency is declared to exist, and this Act takes effect upon its

21 passage and approval by the Governor or upon its otherwise becoming a law.

22  Section 3. This Act may be cited as the Fuel Surcharge Stability Act.

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    SB017210.100 - 2096 - XXXX 2/12/2026 2:29 PM                               GA