HB 445 — AN ACT relating to the retirement of fossil fuel-fired electric generating units.

Summary

Amend KRS 278.264 to prohibit the Public Service Commission from approving the retirement of a fossil fuel-fired electric generating unit unless the commission finds that the utility has no undepreciated investment in the unit and that the costs to operate the unit are greater than the revenue that it generates.

Bill Text

• Introduced View text Current pdf

Compared against the Kentucky Revised Statutes as published AI-generated reading aid — verify against the official bill.

The bill modifies the approval process for retiring fossil fuel-fired electric generating units by adding financial criteria that must be met before approval can be granted.

• KRS 278.264(2)

  The commission shall not approve the retirement of an electric generating unit, authorize a surcharge for the decommissioning of the unit, or take any other action which authorizes or allows for the recovery of costs for the retirement of an electric generating unit, including any stranded asset recovery, unless the presumption created by this section is rebutted by evidence sufficient for the commission to find that: → The commission shall not approve the retirement of an electric generating unit, authorize a surcharge for the decommissioning of the unit, or take any other action which authorizes or allows for the recovery of costs for the retirement of an electric generating unit, including any stranded asset recovery, unless: (a) The commission finds that the utility has no undepreciated investment in the fossil fuel-fired electric generating unit or any of its ancillary units; (b) The commission finds that the costs to operate the fossil fuel-fired electric generating unit and its ancillary units are greater than the revenues it and its ancillary units generate; and (c) The presumption created by this section is rebutted by evidence sufficient for the commission to find that:

  This change adds additional criteria related to investment and operational costs that must be satisfied before a utility can retire a fossil fuel-fired electric generating unit.

• KRS 278.264(2)(a)

  1. Is dispatchable by either the utility or the regional transmission organization or independent system operator responsible for balancing load within the utility's service area; 2. Maintains or improves the reliability and resilience of the electric transmission grid; 3. Maintains the minimum reserve capacity requirement established by the utility's reliability coordinator; 4. Has the same or higher capacity value and net capability, unless the utility can demonstrate that such capacity value and net capability is not necessary to provide reliable service; → 1.[(a)] The utility will replace the retired electric generating unit with new electric generating capacity that: a.[1.]Is dispatchable by either the utility or the regional transmission organization or independent system operator responsible for balancing load within the utility's service area; b.[2.]Maintains or improves the reliability and resilience of the electric transmission grid; c.[3].Maintains the minimum reserve capacity requirement established by the utility's reliability coordinator;

  This change removes the requirement for the replacement capacity to have the same or higher capacity value and net capability.

Action History

1. February 01, 2024

   to Committee on Committees (H)

2. February 01, 2024

   introduced in House

Sponsors

• Tom Smith · Primary
• D. Bentley · Primary
• John Blanton · Primary
• Ryan Dotson · Primary
• Chris Fugate · Primary
• Thomas Huff · Primary
• Timmy Truett · Primary
• Bill Wesley · Primary

Subjects