Energy

Create new sections of KRS Chapter 367 to establish definitions; allow a customer of utility that provides electric, gas, water, or sewer services to opt out of having a smart meter installed if the customer owns the premises where the meter will be installed; establish procedures to opt out of the smart meter or request an analog meter; require utilities that furnish water, electric, gas, or sewer services to maintain sufficient quantities of meters for customer demand; require the retail electric supplier to give the customer 30 days' notice and give the customer 30 days to respond; require installation of the selected meter no later than 30 days after the selection; prohibit retail provider of electric, water, sewer, or gas service from charging the customer for the installation of the meter or imposing a surcharge or fee for opting out of having the smart meter installed; establish a process of obtaining a refund for a utility for improper charges through the Office of the Attorney General, Office of Rate Intervention; allow a customer to request a refund for any fees or damages incurred after January 1, 2015; require the utility and the fire district to send reports on fires involving meters; require a warning label on the meter and certification of the meter; provide for civil action; establish liability for harm caused by electromagnetic frequency radiation; prohibit the use of the meter to collect data accessed by third parties or any use of data that is not for the provision of utility service; require compensation for use of the meter to create a wireless network; require the utility to provide radiation protection at the customer's request; affirm a customer's private right of action and that the damages from a smart meter installation does not reduce the customer's outstanding balance to a utility service provider; RETROACTIVE.

This bill amends Kentucky's wind energy regulations to update setback requirements and establish new construction procedures for merchant electric generating facilities. It requires developers to obtain a construction certificate valid for three years and mandates specific distances between facilities and neighboring properties, schools, hospitals, and residential areas. Local planning and zoning commissions can set their own setback rules that override state standards, while the state board may grant exceptions under certain conditions. The bill also requires public meetings with landowners and interested parties before construction begins, with specific notice requirements and timelines for holding these meetings.

This bill is a concurrent resolution that urges Kentucky to help create an interstate agreement for a competitive electric transmission market. It directly affects electric utilities, ratepayers, and state regulators by calling for a regional approach to power grid development. The resolution proposes using competitive bidding for transmission projects, establishing uniform rules for permitting across states, and ensuring costs are fairly shared among all beneficiaries. It aims to modernize the power grid, reduce transmission costs, and prevent bottlenecks while opening the bidding process to interstate projects. The bill directs the Clerk to send the resolution to the Governor and the Public Service Commission for further consideration.

Order the Public Service Commission to open a new or include in an existing administrative case by May 15, 2026, to review the fuel adjustment charge to reduce volatility in the surcharge; receive comments from the public and affected parties on the fuel adjustment charge; and issue an order and amend the administrative regulation on the fuel adjustment charge by August 15, 2026; provide a report to the Legislative Research Commission by December 15, 2026; EMERGENCY.

Create new sections of KRS Chapter 367, relating to consumer protection, to define terms; establish standards for solar energy contractors, and solar energy system solicitation, installation, and contracts; establish cause of action to enjoin a violation of the standards and set damages; provide for Attorney General enforcement; amend KRS 227.480 to require that local standards and fees for solar energy system inspections must be applied in a nondiscriminatory manner.

Direct the Energy Planning and Inventory Commission to conduct a comprehensive assessment of coal resource viability and energy affordability in eastern Kentucky; direct that EPIC report to the Legislative Research Commission by December 1, 2026; EMERGENCY.

Create a new section of KRS Chapter 138 to define "owner," "solar farm," and "taxes"; levy an excise tax on the owner of a solar farm in Kentucky at an annual rate of $200 per acre for land used to generate electricity; provide for a yearly increase of the tax rate based on the change of the consumer price index; specify reporting and payment requirements; establish penalties.

Amend KRS 278.277 to permit the Public Service Commission to allow, upon the request of an electric utility, an extension of the period for recovery of an electric utility's fuel adjustment costs to reduce volatility for consumers and encourage stability in rates.

Create a new section of KRS Chapter 278 to define terms; require the Public Service Commission to adopt rules and policies to prioritize securing affordable, reliable, and clean energy by prioritizing domestic fuel sources, prohibiting the use of critical materials sources or manufactured by a foreign adversary nation, giving preference to infrastructure and components built in the Commonwealth and the United States, and ensuring sufficient clean energy sources that are dispatchable and minimize disruptions; EFFECTIVE November 1, 2026.

SB 306 requires Kentucky's natural resources cabinet to negotiate agreements with neighboring states about underground carbon dioxide storage. It aims to prevent accidental CO2 leaks across state lines from being treated as trespass, establish compensation for such incidents, and allow shared storage reservoirs where geologically suitable. The bill mandates annual reports to the Governor and legislative committees on these discussions. This directly affects Kentucky and bordering states managing carbon storage projects, focusing on cooperative management rather than new restrictions.