House Bill 398, sponsored by 4th District State Representative Wade Williams of Earlington, became law Tuesday. The measure establishes a new regulatory framework that assumes a coal or gas plant should stay open unless a utility can prove otherwise.
HB 398 establishes a regulatory framework for the retirement of electric generating units in the Commonwealth. This legislation creates a rebuttable presumption against closing fossil fuel-fired plants. To protect consumers, the Public Service Commission is required only to approve a retirement if the utility company proves the move will result in cost savings for customers and avoids any net incremental costs that could have been prevented by maintaining the existing unit.
Rep. Williams says the legislation is essential for protecting Kentuckians from “sudden spikes” in their monthly bills during times of economic uncertainty. He says companies should not be allowed to pass higher costs on to consumers just because they chose to replace a functional plant.
The bill moved through the capital and became law without the signature of Governor Andy Beshear.
