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AN ACT relating to energy policy and declaring an emergency. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 164 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) The General Assembly finds and declares that: 5
(a) The long-term economic health and well-being of the citizens of the 6
Commonwealth and the United States depends upon the availability of 7
reliable sources of energy; 8
(b) The Commonwealth has abundant reserves of coal, natural gas, and other 9
natural resources; 10
(c) The energy needs of the Commonwealth are best met by continuing to 11
engage in an all-of-the-above approach to electric generation resources, 12
including but not limited to coal, oil, natural gas, wind, solar, hydropower, 13
nuclear, and any future or emerging technologies like hydrogen power; 14
(d) The current economy and future economic development of the 15
Commonwealth requires reliable, resilient, dependable, and abundant 16
supplies of electrical power; 17
(e) The demand for reliable, resilient, dispatchable electrical power is 18
anticipated to significantly increase in the coming decades as the 19
Commonwealth becomes home to additional manufacturing and other 20
economic development projects which increase demand for electrical power; 21
(f) It is in the interest of the Commonwealth that it be able to generate 22
sufficient electricity within its borders to serve its own industrial, 23
residential, and commercial demand and to power its own economy; 24
(g) The electrification of the United States' economy combined with 25
unprecedented federal regulatory pressures have created an electric 26
generation resource crisis in the Commonwealth; 27 UNOFFICIAL COPY 24 RS BR 2112
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(h) Existing state and federal policies with respect to energy do not adequately 1
address the concerns of the General Assembly or citizens of the 2
Commonwealth such that a comprehensive Kentucky energy policy is 3
required; 4
(i) Current policies at the state and federal level do not adequately assess 5
capacity, availability, reliability, or resilience attributes of existing and new 6
fossil fuel-fired, nuclear, or other emerging dispatchable electric generating 7
resources; 8
(j) It is the policy of the Commonwealth to maintain adequate capacity of 9
available, reliable, dispatchable, and resilient electric generation to provide 10
for the existing and reasonably projected future energy consumption needs 11
of all wholesale, retail, and other consumers of electricity in the 12
Commonwealth; 13
(k) Further retirement, decommissioning, or demolition of fossil fuel-fired 14
electric generating resources is not necessary for the protection of the 15
environment or the health, safety, and welfare of the citizens of the 16
Commonwealth; 17
(l) The health, happiness, safety, economic opportunity, and general welfare of 18
the citizens of the Commonwealth will be promoted and protected by the 19
operation of fossil fuel-fired electric generating resources and, conversely, 20
those interests would be harmed by the premature retirement, 21
decommissioning, or demolition of those generating resources; 22
(m) The Commonwealth can support a multitude of potential electric generating 23
resources and energy fuel supply sources so as to be the national leader in 24
the production of energy in all forms; 25
(n) Local economic development is essential to the health, happiness, safety, 26
and general welfare of the citizens of the Commonwealth; 27 UNOFFICIAL COPY 24 RS BR 2112
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(o) Local economic development requires an adequate supply of electricity to 1
support new and expanding industries and is enhanced by robust 2
employment in coal mining and coal transportation and at electric 3
generating facilities, the local job multiplier effect of employment in the 4
coal, natural gas, and electric generating industries, and state and local 5
taxes and other forms of economic value creation for the Commonwealth; 6
and 7
(p) The numerous energy policy challenges facing the Commonwealth require 8
a comprehensive energy policy informed by the input, judgment, experience, 9
and expertise of diverse stakeholders representing a variety of interests and 10
energy resources, including but not limited to coal, oil, natural gas, wind, 11
solar, hydropower, nuclear, and any future or emerging resources to 12
achieve the best results for the citizens of the Commonwealth. 13
(2) For the purposes of this section: 14
(a) "Commission" means the Energy Planning and Inventory Commission 15
established in this section; 16
(b) "Dispatchable" means a source of electric power generation that is 17
available on demand, that is not intermittent, and that can be adjusted to 18
increase or decrease its power output upon request of a power grid operator 19
or otherwise upon demand or request, or that can have its power output 20
adjusted in response to market or system needs; 21
(c) "Generation and transmission cooperative" has the same meaning as in 22
KRS 278.010; 23
(d) "Intermittent" means: 24
1. A source of electric power generation from a solar photovoltaic, solar 25
thermal heating, concentrating solar thermal collector, or other solar 26
energy collection or generation system; 27 UNOFFICIAL COPY 24 RS BR 2112
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2. A source of electric power that generates energy by harnessing wind 1
power or energy, whether through a turbine or other device; 2
3. Geothermal energy, biomass energy, anaerobic digestion, or combined 3
heat and power from solar, wind, geothermal, or anaerobic digestion 4
sources; or 5
4. Any short duration energy storage, which includes any method of 6
storing generated electricity for later dispatch to the grid, whether 7
alone or in conjunction with any other intermittent sources described 8
in this paragraph, that is equivalent to less than forty-eight (48) hours 9
of the average peak generation of the unit it is used to offset; 10
(e) "Public Service Commission" means the Kentucky Public Service 11
Commission established under KRS Chapter 278, or any successor entity 12
having the power to regulate rates and services of public utilities pursuant 13
to the powers enumerated in KRS Chapter 278; and 14
(f) "Utility" has the same meaning as in KRS 278.010. 15
(3) The Energy Planning and Inventory Commission is hereby established and 16
administratively attached to the University of Kentucky Center for Applied 17
Energy Research, but it shall otherwise be independent from the University of 18
Kentucky and any Kentucky executive branch agency. The affairs of the 19
commission shall be governed exclusively by the provisions of this section. The 20
exercise of the commission's powers conferred by this section and the carrying 21
out of its purposes and duties are essential governmental functions and are 22
conducted for public purposes. 23
(4) (a) The commission shall be composed of an eighteen (18) member board and a 24
five (5) member executive committee, all of whom shall be residents of the 25
Commonwealth. Except for the state government officials and the ex officio 26
nonvoting commission board members appointed by the President of the 27 UNOFFICIAL COPY 24 RS BR 2112
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Senate and the Speaker of the House of Representatives, each member of 1
the commission board shall be appointed by the Governor and confirmed by 2
the Senate as set forth in this subsection. The commission board shall be 3
composed of the following members: 4
1. One (1) representative of a Kentucky investor-owned utility; 5
2. One (1) representative of a Kentucky generation and transmission 6
cooperative, nominated by the chief operating officer of the Kentucky 7
Association of Electric Cooperatives; 8
3. One (1) representative of Kentucky coal producers, nominated by the 9
president of the Kentucky Coal Association; 10
4. One (1) representative of Kentucky oil and gas producers, nominated 11
by the executive director of the Kentucky Oil and Gas Association; 12
5. One (1) representative of an industry or business engaged in the 13
transportation of coal; 14
6. One (1) representative of a business engaged in the transportation or 15
distribution of natural gas, nominated by the president of the 16
Kentucky Gas Association; 17
7. One (1) representative with professional experience in the purchasing 18
or sale of fossil fuels, nominated by the president of the Kentucky Coal 19
Association; 20
8. One (1) member representing the nuclear electric generation industry, 21
nominated by the executive director of the United States Nuclear 22
Industry Council; 23
9. One (1) member representing the interests of businesses or entities 24
engaged in activities related to the mining, milling, conversion, 25
enrichment, or fabrication of nuclear fuel or involved in the 26
remediation of past enrichment of nuclear fuels in the 27 UNOFFICIAL COPY 24 RS BR 2112
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Commonwealth; 1
10. One (1) member representing commercial and industrial consumers of 2
electrical power, nominated by Kentucky Industrial Utility 3
Consumers; 4
11. One (1) member representing Kentucky economic interests, nominated 5
by the chief executive officer of the Kentucky Chamber of Commerce; 6
12. One (1) member representing producers of renewable electricity; 7
13. One (1) member with experience in investment banking or utility 8
finance, nominated by the president of the Kentucky Banker’s 9
Association; 10
14. One (1) member representing residential electricity consumers; 11
15. One (1) member of the House of Representatives, who shall be an ex 12
officio nonvoting member, nominated by the Speaker of the House of 13
Representatives; 14
16. One (1) member of the Senate, who shall be an ex officio nonvoting 15
member, nominated by the President of the Senate; 16
17. The secretary of the Energy and Environment Cabinet, or designee; 17
and 18
18. The secretary of the Cabinet for Economic Development, or designee. 19
(b) The executive committee of the board shall include the following five (5) 20
members: 21
1. The director of the University of Kentucky Center of Applied Energy 22
Research; 23
2. One (1) member appointed by the Governor who has the same level of 24
education, training, and professional experience as would be required 25
to serve in the role of chief executive officer or board member of a 26
company engaged in the production of coal; 27 UNOFFICIAL COPY 24 RS BR 2112
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3. One (1) member appointed by the Governor who has the same level of 1
education, training, and professional experience as would be required 2
to serve in the role of chief executive officer or board member of an 3
investor-owned, cooperative, or municipal electric utility; and 4
4. Two (2) members elected by the commission board from the 5
commission board membership. Any vacancy in an executive 6
committee position under this subparagraph shall be filled in the same 7
manner as the original election. 8
(c) Any appointment made by the Governor to the commission board or the 9
executive committee shall be subject to confirmation by the Senate. If a 10
pending appointment to the board or executive committee requiring 11
confirmation is not confirmed by the Senate upon the conclusion of the 12
legislative session during or before which the appointment was made, then 13
the member’s position on the board or executive committee shall become 14
vacant, either upon sine die adjournment of the legislative session or the 15
date that the Senate votes to decline to confirm appointment, and the 16
Governor shall appoint a different replacement. 17
(d) After the expiration of their initial terms, nonlegislative or executive branch 18
members shall serve for terms of four (4) years and until a successor is 19
appointed and confirmed by the Senate. Legislative members shall serve 20
during the terms of their elected positions in the General Assembly, and 21
executive branch members shall serve during the appointed terms of their 22
state government positions. In the event of a vacancy prior to the expiration 23
of a term for member appointed by the Governor, the Governor shall 24
appoint a replacement in the same manner as the original appointment, and 25
the appointment shall be subject to the same Senate confirmation process. 26
Members appointed by the Governor shall not be full-time employees of the 27 UNOFFICIAL COPY 24 RS BR 2112
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Commonwealth as defined in KRS 18A.005, and shall not be compensated 1
for their service on the board, but they shall be subject to the requirements 2
of the executive branch code of ethics established under KRS Chapter 11A. 3
(e) A majority of the commission board may select one (1) member of the 4
commission board to serve as chair of the commission board and one (1) 5
member of the commission board to serve as vice chair of the commission 6
board. 7
(f) The executive committee may adopt rules of procedure or bylaws governing 8
the conduct of the commission’s business. 9
(g) Other than being a customer of retail electric service, no member of the 10
executive committee shall have any current employment, contractual, or 11
other direct financial relationship with any utility at the time of their 12
appointment or during their service on the executive committee. 13
(h) No person shall serve as a member of the commission board or executive 14
committee if the service would cause a conflict with, or result in the 15
disclosure of confidential information relating to, any research projects 16
performed by or in partnership with the University of Kentucky Center for 17
Applied Energy Research. 18
(i) If the review of a notice given under subsection (7) of this section would 19
result in the disclosure of confidential information to an executive 20
committee member that is prohibited under subsection (7)(c)3. of this 21
section, the executive committee member shall recuse himself or herself, 22
and the remaining executive committee members shall name a replacement 23
from the membership of the commission board solely for the purpose of 24
reviewing the notice that caused the recusal. 25
(j) A majority of the executive committee shall constitute a quorum, and the 26
affirmative vote of the majority of the members present during a meeting is 27 UNOFFICIAL COPY 24 RS BR 2112
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necessary for any action taken by vote of the executive committee. 1
(k) The Governor shall not have reorganization power over the commission, the 2
structure of the commission, its board, the executive committee, or the 3
hiring, compensation, or termination of its executive director. Only the 4
General Assembly may reorganize or restructure the commission or the 5
commission board by legislative act. 6
(5) The commission may employ an executive director who shall be selected and 7
hired by the executive committee, subject to confirmation by the Senate. If a 8
pending selection for an executive director is not confirmed by the Senate upon 9
the conclusion of the legislative session during or before which the selection was 10
made, then the executive director's position shall become vacant, either upon sine 11
die adjournment of the legislative session or the date that the Senate votes to 12
decline to confirm appointment, and the executive committee shall select a 13
different replacement. Until an executive director is selected and hired, or in the 14
event of a vacancy in the role of executive director, the director of the University 15
of Kentucky Center for Applied Energy Research shall serve in the role of 16
executive director of the commission. 17
(6) The commission shall be authorized to: 18
(a) Take all necessary measures to effectuate the public purposes described in 19
subsection (1) of this section; 20
(b) Assist in fulfilling the executive committee’s mandatory duties regarding 21
review of planned decommissioning, demolition, or retirement decisions 22
described in subsection (7) of this section; 23
(c) Engage in the examination and study of: 24
1. The adequacy of the Commonwealth's existing and anticipated future 25
electric generation and transmission resources and the existing and 26
anticipated future electric demand; 27 UNOFFICIAL COPY 24 RS BR 2112
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2. The continued operation, retirement, divestiture, or other major action 1
impacting any electric power generating unit, or any pollution control 2
equipment associated with any such unit, located in the 3
Commonwealth; 4
3. Issues concerning the adequacy of the Commonwealth’s energy 5
supply, including but not limited to the economic impact of energy 6
production and consumption in the Commonwealth, the Kentucky 7
energy grid’s response to severe weather events, projected power 8
demand and growth in demand, land use impacts from power 9
generation, local economic impacts resulting from the closure of 10
electric generating resources, and whether alternatives to 11
decommissioning electric generating resources exist; 12
4. The effect of any federal policy which may impact the availability of 13
dispatchable power or the adequacy of energy supplies in the 14
Commonwealth; 15
5. The Commonwealth’s ability to participate in energy markets or in the 16
production, transmission, or distribution of energy; 17
6. The Commonwealth’s ability to finance or provide financing 18
assistance to energy producers to encourage additional energy 19
production in the Commonwealth; 20
7. New and emerging electric generating technologies that could supply 21
future electric demand in the Commonwealth; and 22
8. Whether the Commonwealth’s energy resources are sufficiently 23
dispatchable to ensure against loss of electrical power supply in the 24
event of extreme weather or other unexpected or catastrophic events 25
that may challenge the ability of the Commonwealth’s electrical grid 26
to meet demand; and 27 UNOFFICIAL COPY 24 RS BR 2112
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(d) On or before December 1, 2024, and each December 1 thereafter, submit a 1
report with recommendations, including but not limited to recommendations 2
for statutory changes or budgetary proposals, to the Legislative Research 3
Commission, the Governor, and the Public Service Commission concerning 4
any of the issues examined or studied by the commission pursuant to 5
paragraph (c) of this subsection. 6
(7) (a) Notwithstanding any provision of law to the contrary, no utility shall 7
undertake any decommissioning, demolition, or retirement activity at any 8
existing coal, oil, or natural gas-fired electric generating plant, or any unit 9
within the plant, prior to submitting notice to the commission and receiving 10
the findings from the executive committee, as described in this subsection. 11
(b) A utility proposing to undertake any decommissioning, demolition, or 12
retirement activity at any existing coal, oil, or natural gas-fired power plant, 13
or unit within such plant, shall give notice to the commission's executive 14
committee, in the form and manner as the executive committee may require, 15
at least three hundred sixty-five (365) days prior to submitting the 16
retirement application to the Public Service Commission required by 17
subsection (1) of Section 4 of this Act. The utility may include with its notice 18
any information the utility believes will assist in the executive committee's 19
review of the proposed activity. 20
(c) 1. The executive committee or executive director may require a utility 21
filing notice under this subsection to provide any information, records, 22
or data that the executive committee or executive director deems 23
reasonably necessary to make its findings under this subsection, and 24
the utility shall respond to all such requests within a reasonable 25
timeframe as established by the executive committee or executive 26
director. 27 UNOFFICIAL COPY 24 RS BR 2112
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2. A utility responding to an information request may designate 1
information, records, or data provided in the response as confidential 2
business information, and the information, records, or data shall be 3
exempt from disclosure under the requirements of KRS 61.870 to 4
61.884. 5
3. A utility responding to an information request may indicate in its 6
response that the information, records, or data provided should not be 7
shared with specific members of the commission board or executive 8
committee to avoid an unfair competitive or market advantage, in 9
which case the confidential information, records, or data shall not be 10
shared with or made available to that member or members. 11
(d) Other than being a customer of retail electric service, any member of the 12
commission board who has an employment or contractual relationship with 13
the utility filing the notice required by this subsection shall have no contact 14
with the executive director or any member of the executive committee 15
concerning the proposed activities described in the notice. 16
(e) Within one hundred eighty (180) days of its receipt of the notice required by 17
this section, the commission shall hold a public hearing in the county in 18
which the decommissioning, demolition, or retirement activity is proposed to 19
occur in order to receive public comments on the proposed activity. 20
(f) Within two hundred seventy (270) days of receiving a utility’s notice of a 21
proposed decommissioning, demolition, or retirement activity, but following 22
the public hearing described in paragraph (e) of this subsection, the 23
executive committee shall issue a final report containing written findings 24
and recommendations concerning the proposed decommissioning, 25
demolition, or retirement activity. The executive committee’s written 26
findings and recommendations shall include: 27 UNOFFICIAL COPY 24 RS BR 2112
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1. The impact of the proposed activity on the available supply of 1
dispatchable and reliable power within the Commonwealth, including 2
the ability of the Commonwealth to meet future demand growth or 3
respond to extreme weather events; 4
2. Whether alternatives to the proposed activity exist, and whether those 5
alternatives should be further evaluated prior to proceeding with the 6
proposed activity; 7
3. Whether the replacement of the generating unit or units subject to the 8
proposed activity with other generating resources will result in any 9
adverse land use impacts in the Commonwealth; 10
4. Whether the proposed activity will result in loss of revenue to the 11
Commonwealth or any local government unit; 12
5. The positive or negative economic impact of the proposed activity on 13
the local economy of the area in which the proposed activity will take 14
place; 15
6. The economic impact of the proposed activity on the Commonwealth 16
as a whole; and 17
7. The impact of the proposed activity on the Commonwealth’s ability to 18
increase the available supply of electrical power for current or future 19
economic development purposes. 20
(g) The findings of the executive committee that are approved by a majority of 21
the members of the executive committee shall be designated as findings of 22
the commission and shall be submitted to the Public Service Commission. If 23
no majority decision of the executive committee is reached with respect to 24
the findings, the report shall so indicate, and each member of the executive 25
committee may make a written statement of position concerning the 26
proposed activity by the deadline provided for in the report. Each written 27 UNOFFICIAL COPY 24 RS BR 2112
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statement shall be included in the report and transmitted along with the 1
report to the Public Service Commission. Any executive committee member 2
dissenting from the report, any portion of the report, or any specific 3
findings in the report may, within three hundred sixty-five (365) days of the 4
utility filing notice of the proposed activity, transmit separate dissenting 5
findings to the Public Service Commission. 6
(h) The executive committee’s written report, and any dissenting statements 7
provided to the Public Service Commission, shall be included in any 8
retirement application made to the Public Service Commission under 9
Section 4 of this Act, and the Public Service Commission shall not approve 10
any retirement application without considering all information received 11
from the executive committee or any member of the executive committee. 12
Any order of the Public Service Commission in a proceeding under Section 13
4 of this Act shall contain specific written findings of fact or conclusions of 14
law addressing whether the executive committee’s findings and 15
recommendations were considered by the Public Service Commission. 16
(i) No retirement application to the Public Service Commission under Section 17
4 of this Act shall be deemed administratively complete unless it includes 18
either the executive committee’s report submitted pursuant to this section or 19
evidence that more than three hundred sixty-five (365) days have passed 20
since notice was submitted to the commission as required in paragraph (b) 21
of this subsection and no executive committee report or determination has 22
been provided to the utility. 23
(8) Notwithstanding any provision of law to the contrary, the executive committee, or 24
the executive director if authorized by the executive committee, shall have 25
standing to participate as an intervening party in any case or other proceeding 26
before the Public Service Commission. 27 UNOFFICIAL COPY 24 RS BR 2112
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(9) Subject to available funding, the executive committee may employ administrative 1
staff or third-party consultants with expertise in the subject matter of any study, 2
examination, or review undertaken by the commission to assist in carrying out 3
the commission’s functions under this section. 4
(10) The Commission shall cease to exist on December 31, 2035. 5
SECTION 2. A NEW SECTION OF KRS 278.010 TO 278.450 IS CREATED 6
TO READ AS FOLLOWS: 7
(1) Except as otherwise provided in KRS 278.010 to KRS 278.450, if the commission 8
fails to issue a final order on any application submitted to it by a utility pursuant 9
to KRS 278.018, 278.020, 278.216, 278.218, 278.271, and 278.300 within six (6) 10
months of the acceptance of the filing of the application, then the application 11
shall be deemed approved by the commission and the relief requested shall be 12
deemed to be granted. 13
(2) The commission shall complete and issue a final order on all six (6) month and 14
two (2) year reviews of the operation of a utility's environmental surcharge and 15
fuel adjustment clause within six (6) months of commencing the review. 16
Section 3. KRS 278.110 is amended to read as follows: 17
(1) The commission acting through the executive director may employ such clerks, 18
stenographers, rate experts, agents, special agents, engineers, accountants, auditors, 19
inspectors, lawyers, hearing examiners, experts and other classified service 20
employees and the commission may contract for services of persons in a 21
professional or scientific capacity to make or conduct a hearing or a temporary or 22
special inquiry, investigation or examination as it deems necessary to carry out the 23
provisions of this chapter, or to perform the duties and exercise the powers 24
conferred by law upon the commission. 25
(2) (a) When the commission contracts for the services of a person in a 26
professional or scientific capacity to conduct a hearing, temporary special 27 UNOFFICIAL COPY 24 RS BR 2112
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inquiry, investigation, or examination, any nonprivileged final report or 1
recommendation prepared in fulfillment of the contract shall be filed within 2
the record for the case for which the final report or recommendation was 3
prepared at the same time it is provided to the commission. 4
(b) A contracted person who has prepared and submitted a final report or 5
recommendation pursuant to this subsection shall be required to respond to 6
any written information requests regarding the final report or 7
recommendation. Additionally, the contracted person shall be available for 8
cross-examination as a witness in the case for which the final report or 9
recommendation was prepared and filed at any public hearing held by the 10
commission pursuant to the rules it has adopted. 11
Section 4. KRS 278.264 is amended to read as follows: 12
(1) Notwithstanding any provision of law to the contrary, the commission shall have 13
the authority to approve or deny the retirement of an electric generating unit owned 14
by a utility. Prior to retiring an electric generating unit, a utility shall apply to the 15
commission for an order approving the retirement, and shall give the commission 16
thirty (30) days' notice of the application. The application shall include a 17
statement certifying the applicant's compliance with the requirements of Section 18
1 of this Act. The commission shall enter an order approving, approving with 19
conditions, or denying the application within one hundred eighty (180) days of 20
receiving an administratively complete application. 21
(2) There shall be a rebuttable presumption against the retirement of a fossil fuel-fired 22
electric generating unit. The commission shall not approve the retirement of an 23
electric generating unit, authorize a surcharge for the decommissioning of the unit, 24
or take any other action which authorizes or allows for the recovery of costs for the 25
retirement of an electric generating unit, including any stranded asset recovery, 26
unless the presumption created by this section is rebutted by evidence sufficient for 27 UNOFFICIAL COPY 24 RS BR 2112
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the commission to find that: 1
(a) The utility will replace the retired electric generating unit with new electric 2
generating capacity that: 3
1. Is dispatchable by either the utility or the regional transmission 4
organization or independent system operator responsible for balancing 5
load within the utility's service area; 6
2. Maintains or improves the reliability and resilience of the electric 7
transmission grid;[ and] 8
3. Maintains the minimum reserve capacity requirement established by the 9
utility's reliability coordinator; and 10
4. Has the same or higher capacity value and net capability, unless the 11
utility can demonstrate that such capacity value and net capability is 12
not necessary to provide reliable service; 13
(b) The retirement will not harm the utility's ratepayers by causing the utility to 14
incur any net incremental costs to be recovered from ratepayers that could be 15
avoided by continuing to operate the electric generating unit proposed for 16
retirement in compliance with applicable law;[ and] 17
(c) The decision to retire the fossil fuel-fired electric generating unit is not the 18
result of any financial incentives or benefits offered by any federal agency; 19
and 20
(d) The utility shall not commence retirement or decommissioning of the 21
electric generating unit until the replacement generating capacity meeting 22
the requirements of paragraph (a) of this subsection is fully constructed, 23
permitted, and in operation. 24
(3) The utility shall at a minimum provide the commission with evidence of all known 25
direct and indirect costs of retiring the electric generating unit and demonstrate that 26
cost savings will result to customers as a result of the retirement of the electric 27 UNOFFICIAL COPY 24 RS BR 2112
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generating unit. 1
(4) The commission shall prepare and submit an annual report to the Legislative 2
Research Commission by December 1 of each year detailing: 3
(a) The number of requests by utilities to retire electric generating units in the 4
Commonwealth, the nameplate capacity of each of those units, and whether 5
the request was approved or denied by the commission; 6
(b) The impact of any commission-approved retirement of an electric generating 7
unit on the: 8
1. Commonwealth's generation fuel mix; 9
2. Required capacity reserve margins for the utility; 10
3. Need for capacity additions or expansions at new or existing facilities as 11
a result of the retirement; and 12
4. Need for additional purchase power or capacity reserve arrangements; 13
and 14
(c) Whether the retirement resulted in stranded costs for the ratepayer that will be 15
recovered by the utility through a surcharge or some other separate charge on 16
the customer bill. 17
(5) As used in this section: 18
(a) "Dispatchable" means a source of electric power generation that is 19
available on demand, that is not intermittent, and that can be adjusted to 20
increase or decrease its power output upon request of a power grid operator 21
or otherwise upon demand or request, or that can have its power output 22
adjusted in response to market or system needs; and 23
(b) "Intermittent" means: 24
1. A source of electric power generation from a solar photovoltaic, solar 25
thermal heating, concentrating solar thermal collector, or other solar 26
energy collection or generation system; 27 UNOFFICIAL COPY 24 RS BR 2112
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2. A source of electric power that generates energy by harnessing wind 1
power or energy, whether through a turbine or other device; 2
3. Geothermal energy, biomass energy, anaerobic digestion, or combined 3
heat and power from solar, wind, geothermal, or anaerobic digestion 4
sources; or 5
4. Any short duration energy storage, which includes any method of 6
storing generated electricity for later dispatch to the grid, whether 7
alone or in conjunction with any other intermittent sources described 8
in this paragraph, that is equivalent to less than forty-eight (48) hours 9
of the average peak generation of the unit it is used to offset. 10
Section 5. All initial appointments to the Energy Planning and Inventory 11
Commission board and executive committee shall be made on or before July 1, 2024. The 12
initial terms of appointments made by the Governor who are not executive branch 13
officials shall be staggered as follows: seven members shall serve until the July 1, 2025, 14
seven members shall serve until July 1, 2026, and the two gubernatorial appointments to 15
the executive committee shall serve until July 1, 2027. 16
Section 6. Whereas the continued unabated retirement of needed generating 17
resources threatens to harm employment, tax revenue, and utility rates, and is creating a 18
crisis with respect to the Commonwealth’s ability to meet current and projected future 19
energy demands, 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