Kentucky HB535 allows electric utilities to securitize certain costs and recover them through customer surcharges.

Kentucky HB535 amends state law to allow investor-owned electric utilities to securitize certain costs, including retired generation costs and undepreciated extra-state generation utility plant balances. The Kentucky Public Service Commission must approve the securitization, and the utility can recover the costs through a nonbypassable surcharge on customer bills. The surcharge is collected separately from the base rate and is adjusted semiannually. The bill also outlines the process for applying for a financing order, the role of the commission, and the rights of bondholders and assignees.

Kentucky HB535 allows electric utilities to securitize certain costs and recover them through customer surcharges.

Kentucky HB535 amends state law to allow investor-owned electric utilities to securitize certain costs, including retired generation costs and undepreciated extra-state generation utility plant balances. The Kentucky Public Service Commission must approve the securitization, and the utility can recover the costs through a nonbypassable surcharge on customer bills. The surcharge is collected separately from the base rate and is adjusted semiannually. The bill also outlines the process for applying for a financing order, the role of the commission, and the rights of bondholders and assignees.