Bill reshaping KY’s Public Service Commission passes Senate with a major change
The Kentucky Senate passed a bill Friday significantly reshaping the state’s utility regulator, while axing language that would’ve shut out consumer advocacy groups acting on behalf of Kentuckians in rate cases.
Senate Bill 8, sponsored by Sen. Brandon Smith, R-Hazard, expands Kentucky Public Service Commission membership, shifts appointment powers and creates new standards for intervention limits. The bill passed on a 30-5 vote Friday morning. Sen. Keturah Herron, D-Louisville, crossed party lines and voted yes. Sen. Lindsey Tichenor, R-Smithfield, passed on voting.
The PSC regulates Kentucky’s utility providers and is charged with protecting customers, vetting power generation plants and utility sales and rate hikes. It’s also responsible for handling complaints and cases regarding unfair rates, poor quality service or service outages, among other complaints.
Members of the PSC wield control over the state’s rates for residential and industrial power, water, sewer, gas and telephone services.
S.B. 8 comes at a time when Kentuckians, especially Eastern Kentuckians, are being hammered by rate increases. Recently, the PSC approved Kentucky Power to implement a 6% residential base-rate increase this year despite Attorney General Russell Coleman’s objection. Average residential customers in 20 of Kentucky’s easternmost counties will pay $10.76 more per month in 2026, plus another few extra cents in 2027, according to an order the PSC issued March 2 in the rate case.
An amendment Smith added Friday tempered the bill by eliminating a requirement the attorney general’s office act as the sole advocate on behalf of ratepayers on high-profile rate modifications under consideration.
Prior versions of the bill would have barred individuals and organizations from intervening in a case unless they could demonstrate “clear and convincing evidence” they have “a special and unique interest in the specific rates or service of the utility that are not at issue in the case.”
It also listed general expertise as insufficient for intervention, raising alarm bells among low-income consumer advocates and environmental groups who feared they could be stripped of their rights to challenge utilities. Under current law, people who have a “special interest” can intervene in a case before the commission.
Rural law-aid groups and environmental organizations regularly file intervening motions in PSC cases to argue against investor-owned utilities raising rates to benefit shareholders and fight the proliferation of fossil fuels in the commonwealth.
The attorney general, those groups said, has a legal responsibility to represent all ratepayers, not just residential consumers, meaning low-income Kentuckians could be iced out of the process in favor of big industrial energy consumers.
During a brisk floor debate Friday, Smith said he addressed those concerns after listening to lawmakers and constituents’ concerns.
“It replaces section two of the bill and establishes a clear statutory framework for intervention and cases before the Public Service Commission to assure that individuals and organizations with legitimate interest may apply, and this was always our intent,” Smith said.
Now, people who want to intervene need to disclose their interest in the case and prove it isn’t just to delay a project. The commission also has the authority to limit or remove intervenors who delay or disrupt proceedings.
Changes to the PSC in the legislation
Among other provisions included in the bill is increasing membership from three to five members to serve four-year terms. Two of those members would be appointed by the state auditor, who is currently Republican Allison Ball.
Currently, Democratic Gov. Andy Beshear has the authority to appoint all three members.
The bill still threatens to substantially rebalance the power dynamic on the commission by diluting the governor’s authority to appoint members. Republicans have quarreled with Beshear’s left-leaning picks to head up the three-member panel, and this legislation represents their boldest attempt yet to assert control.
Beshear said at his weekly Team Kentucky update Thursday the bill is an attempt to take power away from the executive branch.
“I’ve never seen them try to move something from a Republican officeholder to a Democratic officeholder, but I’ve seen them try to move a whole lot in the other direction,” Beshear said. “The people of Kentucky elected all of us, expect us to do our jobs, and we should stop with the shenanigans. That’s how I really feel.”
Sen. Karen Berg, D-Louisville, said while she thinks a lot of good work has gone into the bill, she still voted no because of that provision.
“One thing this bill requires is the transfer of all records, files or documents associated with functions previously performed by the Energy and Environment Cabinet, Energy and Environment to...the state auditor,” Berg said. “That’s a move that makes absolutely no sense to me, based on very different sets of missions, and I believe that it was a move made for simply political reasons.”
Sen. Gex Willams, R-Verona, said the move makes “perfect sense,” however.
“The Public Service Commission’s responsibility is to the rate payer,” Williams said. “And guess what? The auditor’s responsibility is a fiscal responsibility as well to the citizens of the Commonwealth.”
This story was originally published March 6, 2026 at 12:56 PM.
