AN ACT relating to utility disconnection protections.
Summary
HB326 would create new utility disconnection protections for residential customers in Kentucky. The bill prohibits a utility from disconnecting service during extreme cold or extreme heat forecast periods, for 30 days after receipt of a qualifying certificate of need from certain medical or service providers, or for nonpayment if the customer pays the lesser of 10% of the accrued balance or $200 and enters into a payment plan. It also requires utilities to provide a more prominent final notice of termination at least 14 days before disconnection and to include information about payment options, bill disputes, and assistance resources.
The bill further establishes a hardship reconnection process. If a customer is disconnected after the 30-day medical protection period and then makes the required partial payment and enters a payment plan, the utility must restore service the same day requested, waive reconnection fees, and preserve the prior security deposit. If a disconnected customer later meets the same payment conditions, the utility must make a reasonable effort to restore service the same day and no later than 24 hours after payment, with reconnection fees waived in hardship reconnection cases. The Public Service Commission would be directed to adopt regulations and issue orders to implement the new protections and procedures.
Impact
HB326 would add a new section to KRS Chapter 278 governing residential utility shutoffs, creating mandatory limits on when utilities may disconnect service and imposing notice, payment-plan, and reconnection requirements. It would affect regulated utilities, residential customers, and the Public Service Commission by establishing new statutory obligations for disconnection timing, emergency protections, notice formatting, fee waivers, and administrative rulemaking.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of legislative debate or formal support/opposition in the materials supplied. Based on the bill text alone, the measure appears consumer-protective and focused on preventing dangerous utility shutoffs during severe weather and health emergencies.
Contention
The main potential points of contention are likely to be the operational and financial burdens on utilities, including limits on shutoff timing, mandatory notice requirements, fee waivers, deposit preservation, and rapid reconnection obligations. Supporters would likely emphasize public health, safety, and protections for vulnerable households, while opponents may argue that the bill could reduce collection leverage, increase administrative complexity, and shift costs to utilities or other ratepayers.