Utility Rates | Kentuckians For The Commonwealth

Utility Rates

House Bill Number: 
126

House Bill 126 would require the Public Service Commission to consider rate affordability when determining fair, just and reasonable utility rates.

KFTC HB 126 handout

Bill Sponsor(s): 
A. Hatton + 5 others

When dealing with utilities, the Public Service Commission (PSC) is required to determine that the utility's rates are "fair and reasonable," and the PSC does that by looking at all of the utility's expenses and then setting a rate that offers utilities a 9.5 - 10.5% profit.

There is no provision in the law for the PSC to take into account whether customers in the service territory can afford that rate. This law would add setting "rates that include affordability and balancing of interests of various parties affected by the rate" to their mandate. This bill sets a method for determining what the fixed rate should be.

HB 126 has been assigned to the House Natural Resources & Energy Committee

KFTC's Position: 
KFTC Supports