SB172 • 2026

AN ACT relating to utility fuel adjustment and declaring an emergency.

Energy Taxes

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: P. Wheeler
Last action: 2026-02-19
Official status: 02/19/26: signed by Governor (Acts Ch. 1)
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

AN ACT relating to utility fuel adjustment and declaring an emergency.

What This Bill Does

AN ACT relating to utility fuel adjustment and declaring an emergency.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

SENATECOMMITTEEAMENDMENT1

Senate Committee Amendment 1 • P. Wheeler

Make title amendment.

Plain English: SENATE KENTUCKY GENERAL ASSEMBLY AMENDMENT FORM 2026 REGULAR SESSION Amend printed copy of SB 172 TITLE AMENDMENT Amendment No.

SENATE KENTUCKY GENERAL ASSEMBLY AMENDMENT FORM 2026 REGULAR SESSION Amend printed copy of SB 172 TITLE AMENDMENT Amendment No.
TITLE Rep.
Sen.
Phillip Wheeler Committee Amendment Signed: Floor Amendment LRC Drafter: Adopted: Date: Rejected: Doc.

SCS1

Senate Committee Substitute 1

Retain original provisions; provide that the Act may be cited as the Fuel Surcharge Stability Act; EMERGENCY.

Plain English: UNOFFICIAL COPY 26 RS SB 172/SCS 1 Page 1 of 1 SB017240.100 - 2096 - XXXX 2/12/2026 8:12 AM Senate Committee Substitute AN ACT relating to utility fuel adjustment.

UNOFFICIAL COPY 26 RS SB 172/SCS 1 Page 1 of 1 SB017240.100 - 2096 - XXXX 2/12/2026 8:12 AM Senate Committee Substitute AN ACT relating to utility fuel adjustment.
1 Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2 Section 1.
KRS 278.277 is amended to read as follows: 3 (1) In the administration of an electric utility's fuel adjustment clause an d any 4 associated tariffs, the commission may, upon the request of an electric utility, 5 extend the period for recovery of fuel adjustment costs that are typically 6 recoverable in order to reduce volatility for consumers and encourage stability in 7 rates.
8 (2) In any review by the commission of any fuel adjustment clause, for any contracts 9 entered into on or after July 1, 2021, the commission shall, in determining the 10 reasonableness of fuel costs in procurement contracts and fuel procurement 11 practices, evaluate the reasonableness of fuel costs in contracts and competing bids 12 based on the cost of the fuel less any coal severance tax imposed by any 13 jurisdiction.

Bill History

2026-02-19 Kentucky Legislative Research Commission
signed by Governor (Acts Ch. 1)
2026-02-18 Kentucky Legislative Research Commission
reported favorably, to Rules taken from Rules placed in the Orders of the Day 3rd reading, passed 95-0 received in Senate enrolled, signed by President of the Senate enrolled, signed by Speaker of the House delivered to Governor
2026-02-13 Kentucky Legislative Research Commission
taken from Natural Resources & Energy (H) 2nd reading returned to Natural Resources & Energy (H)
2026-02-12 Kentucky Legislative Research Commission
3rd reading, passed 38-0 with Committee Substitute (1) and Committee Amendment (1-title) received in House to Committee on Committees (H) taken from Committee on Committees (H) 1st reading returned to Committee on Committees (H) to Natural Resources & Energy (H)
2026-02-11 Kentucky Legislative Research Commission
reported favorably, 2nd reading, to Rules with Committee Substitute (1) and Committee Amendment (1-title) posted for passage in the Regular Orders of the Day for Thursday, February 12 2026
2026-02-10 Kentucky Legislative Research Commission
taken from Natural Resources & Energy (S) 1st reading returned to Natural Resources & Energy (S)
2026-02-09 Kentucky Legislative Research Commission
introduced in Senate to Committee on Committees (S) to Natural Resources & Energy (S)

Official Summary Text

AN ACT relating to utility fuel adjustment and declaring an emergency.

Current Bill Text

Read the full stored bill text

UNOFFICIAL COPY 26 RS SB 172/GA
Page 1 of 1
SB017210.100 - 2096 - XXXX 2/12/2026 2:29 PM GA
AN ACT relating to utility fuel adjustment and declaring an emergency. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 278.277 is amended to read as follows: 3
(1) In the administration of an electric utility's fuel adjustment clause and any 4
associated tariffs, the commission may, upon the request of an electric utility, 5
extend the period for recovery of fuel adjustment costs that are typically 6
recoverable in order to reduce volatility for consumers and encourage stability in 7
rates. 8
(2) In any review by the commission of any fuel adjustment clause, for any contracts 9
entered into on or after July 1, 2021, the commission shall, in determining the 10
reasonableness of fuel costs in procurement contracts and fuel procurement 11
practices, evaluate the reasonableness of fuel costs in contracts and competing bids 12
based on the cost of the fuel less any coal severance tax imposed by any 13
jurisdiction. 14
(3)[(2)] As used in this section, "fuel adjustment clause" means any clause or 15
provision in any tariff or contract by which an electric utility may immediately 16
recover increases in fuel costs subject to later scrutiny or review by the commission. 17
Section 2. Whereas it is critical that any measure to help control the volatility of 18
electric utility rates be enacted as soon as possible to give relief to the ratepayers of the 19
Commonwealth, an emergency is declared to exist, and this Act takes effect upon its 20
passage and approval by the Governor or upon its otherwise becoming a law. 21
Section 3. This Act may be cited as the Fuel Surcharge Stability Act. 22