AN ACT relating to investor-owned electric utilities.
Summary
HB616 would amend Kentucky law governing investor-owned electric utilities by changing what costs they may pass through to customers. Beginning January 1, 2026, the bill would prohibit investor-owned electric utilities from collecting taxes, fees, or other amounts imposed on customers by other governmental units. It would also bar the Public Service Commission from approving certain surcharges tied to environmental compliance, demand-side management, and voluntary energy cost assistance, and would limit customer charges to amounts directly and exclusively related to electric service that the commission has approved.
The bill also preserves existing filing and disclosure rules for utility rate schedules, while adding a new requirement that affected utilities file revised tariffs within 90 days of the effective date to conform to the new restrictions. The act would take effect December 30, 2025, giving utilities and regulators time to adjust before the new collection limits begin.
Impact
HB616 would significantly narrow the categories of costs that investor-owned electric utilities may recover from Kentucky ratepayers under KRS 278.160 and related provisions. It would constrain the Public Service Commission’s authority to approve certain utility surcharges and would effectively shift or eliminate recovery of some taxes, fees, and program-related charges currently embedded in customer bills. The bill would directly affect investor-owned electric utilities, their customers, and the commission’s ratemaking and tariff-approval processes.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of legislative debate or formal support/opposition in the available materials. Based on the bill text alone, the measure appears designed to reduce customer bills and limit utility pass-through charges, which may appeal to consumer advocates and ratepayer-focused lawmakers. At the same time, the restrictions on cost recovery suggest likely concern from utilities and stakeholders who support recovery of regulatory and program costs through rates.
Contention
The main points of contention are likely to be whether investor-owned utilities should be allowed to pass through taxes, fees, and other government-imposed charges to customers, and whether the Public Service Commission should continue approving surcharges for environmental compliance, demand-side management, and voluntary energy assistance programs. Supporters may argue the bill protects ratepayers from paying for items beyond direct electric service, while opponents may argue it undermines utility cost recovery, complicates compliance with environmental and efficiency programs, and could affect utility finances or program funding.