AN ACT relating to decommissioning costs for electric generating units.

Amend KRS 278.264 to provide that the Public Service Commission maintains its authority to approve a utility's right to record and seek, prior to retirement authorization, the recovery of any electric generating unit's decommissioning, removal and salvage costs, and depreciation expenses through rates over the unit's estimated depreciable life.

Boards and Commissions Coal Energy Oil and Natural Gas Public Utilities

Introduced: January 15, 2026

Last action: April 12, 2026

Became Law Without Governor's Signature (Acts Ch. 95)

In effect since July 15, 2026

Acts from the 2026 Regular Session that don't carry an emergency clause or set their own effective date took effect 90 days after the session adjourned (Ky. Constitution § 55).

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This bill updates state law to confirm that the Public Service Commission keeps its authority to approve how electric utilities track and recover the costs of shutting down, removing, and salvaging power plants. It allows utilities to collect these decommissioning costs from customers through their rates over the lifespan of a generating unit, before the plant is officially approved for retirement. Who it may affect: electric utility customers and power companies operating in Kentucky.

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