govt.fyi
Back to SB 8
Kentucky General Assembly· SB 8became law without Governor's Signature (Acts Ch. 185)

An act relating to public utilities and declaring an emergency., the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Kentucky General Assembly, fetched 2026-09-25. Page and line markers are part of the official record; nothing is edited or removed. This is the current version. The official bill page.
UNOFFICIAL COPY                                                       26 RS SB 8/EN

1   AN ACT relating to public utilities and declaring an emergency.

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

3   SECTION 1. A NEW SECTION OF KRS CHAPTER 278 IS CREATED TO

4 READ AS FOLLOWS:

5 (1) The Public Service Commission shall consist of five (5) members appointed by the

6   Governor as follows:

7   (a) Two (2) shall be licensed attorneys who have actively practiced law in the

8   Commonwealth for at least seven (7) years; and

9   (b) Three (3) shall have education or training, and five (5) years of actual

10  experience, in one (1) or more of the following fields:

11  1. Economics;

12  2. Engineering;

13  3. Accounting;

14  4. Finance;

15  5. Utility regulation, operation, or management;

16  6. Pipeline or utility infrastructure safety;

17  7. Business management; or

18  8. Environmental management.

19 (2) Appointments and reappointments to the commission shall be subject to

20  confirmation by the Senate as provided in KRS 11.160.

21 (3) (a) Every four (4) years, the commissioners shall elect a chair from among the

22  commissioners, who shall serve a four (4) year term or until his or her term

23  expires without reappointment, whichever comes first.

24  (b) Members of the commission may serve multiple terms as chair subject to the

25  term limitations set forth in subsection (5) of this section.

26  (c) The chair shall be the chief executive officer of the commission and shall

27  designate one (1) of the commissioners to serve as vice chair to act for the

                                                  Page 1 of 13

    SB000820.100 - 1957 - XXXX 4/1/2026 11:43 PM                          Engrossed
    UNOFFICIAL COPY                                                      26 RS SB 8/EN

1   chair in his or her absence.

2   (d) The chair may designate in writing one (1) or more commissioners or the

3   executive director to act for him or her in the event of his or her absence or

4   inability for any reason to discharge the duties of the position. The designee

5   of the chair shall have all of the duties and powers of the chair for the

6   duration of the designation, except that the executive director shall not

7   serve as a member of the commission on any cases before the commission.

8 (4) Vacancies for unexpired terms shall be filled in the same manner as the original

9   appointments, but the appointee shall hold office only until the end of the

10  unexpired term and shall be subject to confirmation by the Senate as provided in

11  KRS 11.160.

12 (5) Members of the commission shall serve no more than three (3) terms, but any

13  terms or partial terms served prior to the effective date of this Act shall not be

14  counted toward the term limits established by this subsection.

15 (6) After the initial appointments, a member of the commission shall serve for a term

16  of four (4) years and until a successor is appointed and qualified.

17 (7) No more than three (3) members of the commission shall be of the same political

18  party, and members of the commission shall not serve on any other regulatory

19  bodies during their terms on the commission.

20  Section 2. KRS 278.040 is amended to read as follows:

21 (1) (a) The Public Service Commission shall constitute an independent department

22  of state government within the meaning of KRS Chapter 12 and shall be

23  administratively attached to the Energy and Environment Cabinet only for

24  those limited functions and purposes expressly requested by the commission

25  to be performed by the Energy and Environment Cabinet.

26  (b) The commission shall have sole discretion as to which functions shall be

27  deemed necessary for its efficient operation.

                                                  Page 2 of 13

    SB000820.100 - 1957 - XXXX 4/1/2026 11:43 PM                         Engrossed
    UNOFFICIAL COPY                                                   26 RS SB 8/EN

1   (c) The commission shall consist of the five (5) commissioners appointed under

2   Section 1 of this Act, an executive director appointed under Section 5 of this

3   Act, and other agents and employees as necessary to carry out the

4   commission's obligations under this chapter.

5 (2) Notwithstanding any provision of law to the contrary:

6   (a) The commission shall conduct all procurements necessary for the

7   performance of its duties in accordance with the procurement procedures

8   outlined in KRS Chapter 45A, this chapter, and the administrative

9   regulations promulgated under this chapter, but the commission shall not

10  be subject to any provision of KRS Chapter 45A that requires the approval

11  of any Finance and Administration Cabinet official for the commission to

12  proceed with any aspect of the procurement process;

13  (b) Upon approval of the commission, the executive director shall be deemed

14  the chief purchasing officer for the purposes of conducting procurements

15  for the commission and shall have all of the authority and responsibility

16  with regard to the commission's procurements as the secretary of the

17  Finance and Administration Cabinet has for procurements under KRS

18  Chapter 45A; and

19  (c) In the bidding and negotiation processes, the executive director, upon

20  approval of the commission, shall perform his or her own bidding and

21  procurement in accordance with the procedures established by KRS Chapter

22  45A.

23 (3) (a) Except as provided in paragraph (b) of this subsection, in any matter to be

24  decided by the commission, the chair of the commission shall assign three

25  (3) commissioners to hear and decide the matter. No more than two (2) of

26  the assigned commissioners shall be of the same political party.

27  (b) In his or her sole discretion, the chair may assign all five (5) commissioners

                                                  Page 3 of 13

    SB000820.100 - 1957 - XXXX 4/1/2026 11:43 PM                      Engrossed
    UNOFFICIAL COPY                                                  26 RS SB 8/EN

1   to hear and decide a matter before the commission.

2 (4) (a) Notwithstanding Section 8 of this Act or any provision of KRS Chapter 18A

3   to the contrary, the commission may, in its sole discretion, identify and

4   determine the compensation for categories of its professional employees at

5   the amounts it deems necessary to recruit and retain employees who have

6   the experience, expertise, and education required to perform their job

7   responsibilities with the commission.

8   (b) Noncontractual employees of the commission shall otherwise be subject to

9   the requirements and benefits of KRS Chapter 18A.

10 (5) The commission may engage hearing officers, consultants, and other persons and

11  entities on a contractual basis as needed to assist with the performance of the

12  commission's duties under this chapter and the administrative regulations

13  promulgated thereunder. The scope of responsibilities and duties held by a

14  hearing officer shall be established by the commission by rule.

15 (6) All personal service contracts entered into by the commission shall be subject to

16  review by the Government Contract Review Committee established by KRS

17  45A.705.

18 (7) The[ Public Service] commission shall regulate utilities,[ and] enforce the

19  provisions of this chapter and the rules and administrative regulations

20  promulgated hereunder, and exercise all powers necessary and incidental thereto.

21  The commission shall be a body corporate, with power to sue and be sued in its

22  corporate name. The commission may adopt a seal bearing the name "Public

23  Service Commission of Kentucky," which seal shall be affixed to all writs and

24  official documents, and to such other instruments as the commission directs, and all

25  courts shall take judicial note of the seal.

26 (8)[(2)] The jurisdiction of the commission shall extend to all utilities in this state. The

27  commission shall have exclusive jurisdiction over the regulation of rates and

                                                  Page 4 of 13

    SB000820.100 - 1957 - XXXX 4/1/2026 11:43 PM                     Engrossed
    UNOFFICIAL COPY                                                     26 RS SB 8/EN

1   service of utilities, but with that exception nothing in this chapter is intended to

2   limit or restrict the police jurisdiction, contract rights or powers of cities or political

3   subdivisions.

4 (9)[(3)] The commission may promulgate[adopt,] in accordance[keeping] with KRS

5   Chapter 13A[,] reasonable administrative regulations to implement the provisions

6   of KRS Chapter 278 and investigate the methods and practices of utilities to require

7   them to conform to the laws of this state, and to all reasonable rules, regulations and

8   orders of the commission not contrary to law.

9 (10) The commission shall not be subject to reorganization under KRS Chapter 12.

10  Section 3. KRS 278.060 is amended to read as follows:

11 (1) Each commissioner shall be a resident and qualified voter of this state, not less than

12  twenty-five (25) years of age at the time of his or her appointment and

13  qualification, and shall have resided in this state for at least three (3) years prior to

14  his or her appointment and qualification. Each commissioner shall take and

15  subscribe to the constitutional oath of office, which shall be recorded in the office

16  of the Secretary of State.

17 (2) No person shall be appointed to or hold the office of commissioner who holds, or

18  whose immediate family member holds, any official relationship to any utility, or

19  who owns any stocks or bonds thereof, or who has any pecuniary interest therein,

20  except for a pension or retirement savings account if no contributions have been

21  made to it for at least one (1) year prior to the appointment.

22 (3) No commissioner shall receive any rebate, pass, percentage of contract or other

23  thing of value from any utility.

24 (4) In addition to the restrictions on members of the commission set forth in Section 1

25  of this Act[KRS 278.050(1)], no commissioner shall engage in any occupation or

26  business inconsistent with his or her duties as such commissioner.

27 (5) If any commissioner becomes a member of any political party committee, his or her

                                                  Page 5 of 13

    SB000820.100 - 1957 - XXXX 4/1/2026 11:43 PM                        Engrossed
    UNOFFICIAL COPY                                              26 RS SB 8/EN

1   office as commissioner shall be thereby vacated.[

2 (6) In making appointments to the commission, the Governor shall consider the various

3   kinds of expertise relevant to utility regulation and the varied interests to be

4   protected by the commission, including those of consumers as well as utility

5   investors, and no more than two (2) members shall be of the same occupation or

6   profession.]

7   Section 4. KRS 278.070 is amended to read as follows:

8 (1) The Governor may remove any commissioner for cause, after giving him or her a

9   copy of the charges against him or her and an opportunity of being publicly heard

10  in person or by counsel in his or her own defense upon not less than ten (10) days'

11  notice.

12 (2) If a commissioner is removed, the Governor shall file in the office of the Secretary

13  of State a complete statement of all charges against the commissioner and his or her

14  findings thereon, and a complete record of the proceedings.

15 (3) Any commissioner so removed may bring action in the proper court to determine

16  whether or not he or she was legally removed in accordance with this section.

17  Section 5. KRS 278.100 is amended to read as follows:

18 (1) The commission shall have the sole authority to appoint an executive director, by a

19  majority vote of the members of the commission and subject to confirmation by

20  the Senate pursuant to KRS 11.160, who shall hold office at the[during its]

21  pleasure of the commission and shall devote his or her entire time to the duties of

22  the[his] office.

23 (2) The executive director shall be selected on the basis of experience and training

24  demonstrating capacity to deal with the problems of management and governmental

25  regulation and knowledge relatable to utility regulation.

26 (3) The executive director shall be the chief administrative officer for the commission

27  and shall be responsible for implementing the programs, directing the staff, and

                                                  Page 6 of 13

    SB000820.100 - 1957 - XXXX 4/1/2026 11:43 PM                                   Engrossed
    UNOFFICIAL COPY                                                         26 RS SB 8/EN

1   maintaining the official records of commission proceedings, including all approved

2   orders.

3   Section 6. KRS 278.120 is amended to read as follows:

4 (1)[ The chairman and the other two (2) members of the commission shall be paid a

5   salary fixed under KRS 64.640 to be paid monthly.

6 (2)] Notwithstanding Section 8 of this Act or any provision of KRS Chapter 18A to the

7   contrary, the executive director of the commission shall be paid a salary to be fixed

8   solely by the commission[, with the approval of the Governor].

9 (2)[(3)] The commissioners, the executive director, and employees of the commission

10  are entitled to all expenses, including hotel bills, incurred in traveling on business

11  of the commission.

12 (3)[(4)] The salaries and expenses provided for by this section, and all other expenses

13  of the commission incurred in the administration of this chapter, shall be paid out of

14  appropriations as provided by law out of the general expenditure fund.

15  Section 7. KRS 278.702 is amended to read as follows:

16 (1) There is hereby established the Kentucky State Board on Electric Generation and

17  Transmission Siting. The board shall be composed of nine (9)[seven (7)] members

18  as follows:

19  (a) The five (5)[three (3)] members of the Kentucky Public Service Commission;

20  (b) The secretary of the Energy and Environment Cabinet or the secretary's

21  designee;

22  (c) The secretary of the Cabinet for Economic Development or the secretary's

23  designee;

24  (d) 1. If the facility subject to board approval is proposed to be located in one

25               (1) county, two (2) ad hoc public members to be appointed by the

26               Governor from a county where a facility subject to board approval is

27               proposed to be located:

                                                  Page 7 of 13

    SB000820.100 - 1957 - XXXX 4/1/2026 11:43 PM                            Engrossed
    UNOFFICIAL COPY                                             26 RS SB 8/EN

1   a. One (1) of the ad hoc public members shall be the chairman of the

2                    planning commission with jurisdiction over an area in which a

3                    facility subject to board approval is proposed to be located. If the

4                    proposed location is not within a jurisdiction with a planning

5                    commission, then the Governor shall appoint either the county

6                    judge/executive of a county that contains the proposed location of

7                    the facility or the mayor of a city, if the facility is proposed to be

8                    within a city; and

9   b. One (1) of the ad hoc public members shall be appointed by the

10                   Governor and shall be a resident of the county in which the facility

11                   is proposed to be located.

12  2. If the facility subject to board approval is proposed to be located in more

13  than one (1) county, two (2) ad hoc public members to be chosen as

14  follows:

15  a. One (1) ad hoc public member shall be the county judge/executive

16                   of a county in which the facility is proposed to be located, to be

17                   chosen by majority vote of the county judge/executives of the

18                   counties in which the facility is proposed to be located; and

19  b. One (1) ad hoc public member shall be a resident of a county in

20                   which the facility is proposed to be located, and shall be appointed

21                   by the Governor.

22  If a member has not been chosen by majority vote, as provided in

23  subdivision a. of this subparagraph, by thirty (30) days after the filing of

24  the application, the Governor shall directly appoint the member.

25  3. Ad hoc public members appointed to the board and their immediate

26  family members shall have no direct financial interest in the facility

27  proposed to be constructed and shall be subject to the executive branch

                                                  Page 8 of 13

    SB000820.100 - 1957 - XXXX 4/1/2026 11:43 PM                                    Engrossed
    UNOFFICIAL COPY                                                       26 RS SB 8/EN

1   code of ethics established in KRS Chapter 11A.

2 (2) The term of service for the ad hoc members of the board shall continue until the

3   merchant electric generating facility for which they were appointed has been

4   constructed and begins generating electricity for sale or the construction certificate

5   expires. The remaining members of the board shall be permanent members.

6 (3) The board shall be attached to the Public Service Commission for administrative

7   purposes. The commission staff shall serve as permanent administrative staff for the

8   board. The members of the board identified in subsection (1)(a) to (d) of this

9   section shall promulgate administrative regulations in accordance with KRS

10  Chapter 13A to implement KRS 278.700 to 278.716.

11 (4) No member of the board shall receive any salary or fee for service on the board or

12  shall have any financial interest in any facility the application for which comes

13  before the board, but each member shall be reimbursed for actual travel and

14  expenses directly related to service on the board.

15 (5) The chair[chairman] of the Public Service Commission shall be the

16  chair[chairman] of the board. The chair[chairman] shall designate one (1) member

17  of the board as vice chair[chairman]. A majority of the members of the board shall

18  constitute a quorum for the transaction of business. No vacancy on the board shall

19  impair the right of the remaining members to exercise all of the powers of the

20  board. The board shall convene upon the call of the chair[chairman].

21  Section 8. KRS 64.640 is amended to read as follows:

22 (1) Except as otherwise provided in subsection (2) of this section, and excepting

23  officers elected by popular vote, employees of the General Assembly, including

24  employees of the Legislative Research Commission, members of boards and

25  commissions, those officers and employees of Kentucky Educational Television

26  exempt from classified service as provided in KRS 18A.115, presidents and

27  employees of the state universities and the state colleges, officers employed by the

                                                  Page 9 of 13

    SB000820.100 - 1957 - XXXX 4/1/2026 11:43 PM                             Engrossed
    UNOFFICIAL COPY                                              26 RS SB 8/EN

1   Department of Kentucky State Police under KRS Chapter 16, employees whose

2   compensation is set by the Public Service Commission under subsection (4) of

3   Section 2 of this Act and subsection (1) of Section 6 of this Act, and persons

4   employed by the commissioner of parks on a temporary basis under KRS 148.026,

5   the Personnel Cabinet shall prepare schedules of compensation, payable out of the

6   State Treasury, with a minimum salary rate, and other salary rates as are deemed

7   necessary or advisable, for the office or position of employment of every state

8   officer and employee, including specifically the offices and positions of

9   employment in every constitutional administrative department, statutory

10  administrative department, independent agency, board, commission, or other unit of

11  state government. The language of any statute empowering a board, commission,

12  authority, or other administrative body for which the Personnel Cabinet provides

13  personnel and payroll services, except for any board governing any of the Kentucky

14  Retirement Systems, the County Employees Retirement System, the Kentucky

15  Public Pensions Authority, the Kentucky Higher Education Assistance Authority,

16  the Kentucky Authority for Educational Television, or the Council on

17  Postsecondary Education, to establish, set, or approve the salaries of its

18  administrative head and other employees to the contrary notwithstanding, the

19  establishment or setting of salaries for administrative heads or other employees

20  shall be subject to the approval of the secretary of the Personnel Cabinet. The

21  schedules and rates shall be based upon studies of the duties and responsibilities of

22  the offices and positions and upon a comparison with rates being paid for similar or

23  comparable services elsewhere, and in the preparation of such schedules, the

24  Personnel Cabinet shall ascertain and record the duties, responsibilities, and

25  authority pertaining to the various offices and positions in the state service, and

26  classify such positions in the manner provided in KRS 18A.030, 18A.035, 18A.110,

27  18A.130, 18A.135, and 18A.150 to 18A.160. No such schedule shall become

                                                  Page 10 of 13

    SB000820.100 - 1957 - XXXX 4/1/2026 11:43 PM                 Engrossed
    UNOFFICIAL COPY                                              26 RS SB 8/EN

1   effective until it has been approved by the Governor by executive order.

2 (2) The Governor shall set the compensation payable out of the State Treasury to each

3   officer or position in the state service, which officer or position heads a statutory

4   administrative department, independent agency, or other unit of state government,

5   except for those excluded under subsection (1) of this section. Such compensation

6   shall be based upon studies of the duties and responsibilities and classification of

7   the positions by the Governor and upon a comparison with compensation being paid

8   for similar or comparable services elsewhere, provided, however, such

9   compensation shall not exceed the total taxable compensation of the Governor

10  derived from state sources, the provisions of KRS 64.660 to the contrary

11  notwithstanding. For the purposes of this section, the total taxable compensation of

12  the Governor from state sources shall include the amount provided for

13  compensation to the Governor under KRS 64.480 and any benefits or discretionary

14  spending accounts that are imputed as taxable income for federal tax purposes.

15 (3) The compensation payable out of the State Treasury to officers and employees

16  subordinate to any office or position covered by subsection (2) of this section shall

17  not exceed the maximum rate established pursuant to subsection (2) of this section

18  for such office or position, except with respect to physicians as provided in KRS

19  64.655 and employees of the Public Service Commission not otherwise exempt

20  from the requirements of this section under subsection (4) of Section 2 of this Act

21  and subsection (1) of Section 6 of this Act[of Kentucky] whose compensation shall

22  be fixed, within constitutional limits, by the Personnel Cabinet with the approval of

23  the Governor as provided in subsection (1) of this section.

24 (4) Nothing in this section shall preclude the allowance of maintenance to officers and

25  employees of the state.

26  Section 9. KRS 160.617 is amended to read as follows:

27 Notwithstanding KRS 278.040(8)[(2)], or any other provision to the contrary, any utility,

                                                  Page 11 of 13

    SB000820.100 - 1957 - XXXX 4/1/2026 11:43 PM                              Engrossed
    UNOFFICIAL COPY                                              26 RS SB 8/EN

1 cable service provider, or satellite broadcast and wireless cable service provider required

2 to pay the tax authorized by KRS 160.613 or 160.614 may increase its rates in any school

3 district in which it is required to pay the school tax by the amount of the school tax

4 imposed, up to three percent (3%). Any utility, cable service provider, or satellite [

5 ]broadcast and wireless cable service provider so increasing its rates shall separately state

6 on the bills sent to its customers the amount of the increase and shall identify the amount

7 as: "Rate increase for school tax."

8   Section 10. The following KRS section is repealed:

9 278.050 Membership of Public Service Commission -- Appointment -- Terms --

10  Chairman -- Vacancies.

11  Section 11. (1) Within thirty days of the effective date of this Act, the

12 Governor shall appoint two members of the Public Service Commission for terms

13 expiring July 1, 2028.

14  (2) All current members of the Public Service Commission on the effective date

15 of this Act may serve out the remainder of their terms and any subsequent terms upon

16 reappointment without being subject to the qualifications and appointment limitations in

17 subsection (1) of Section 1 of this Act, but they shall be subject to subsections (2) to (7)

18 of Section 1 of this Act.

19  (3) On the effective date of this Act, copies of any records, files, or documents,

20 including legal documents or memoranda, associated with functions of the Public Service

21 Commission that were previously performed by the Energy and Environment Cabinet but

22 for which it is no longer deemed responsible, shall be transferred or transmitted to the

23 Public Service Commission.

24  Section 12. Whereas it is critical that changes to the organization, membership,

25 and authority of the Public Service Commission be enacted as soon as possible to apply

26 to any membership vacancies or matters before the commission to which the changes

27 may apply, an emergency is declared to exist, and this Act takes effect upon its passage

                                                  Page 12 of 13

    SB000820.100 - 1957 - XXXX 4/1/2026 11:43 PM                 Engrossed
UNOFFICIAL COPY                                                       26 RS SB 8/EN

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

                                              Page 13 of 13

SB000820.100 - 1957 - XXXX 4/1/2026 11:43 PM                          Engrossed
Every fact on this page links to its source, starting with the official bill record.