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AN ACT relating to the Public Service Commission. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 278 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) The Public Service Commission shall consist of five (5) members as follows: 5
(a) Three (3) members appointed the Governor: 6
1. One (1) of whom shall be a licensed attorney who has actively 7
practiced law in the Commonwealth for at least seven (7) years; 8
2. Two (2) of whom shall have education or training, and five (5) years 9
of actual experience, in one (1) or more of the following fields: 10
a. Economics; 11
b. Engineering; 12
c. Accounting; 13
d. Finance; 14
e. Utility regulation; 15
f. Pipeline or utility infrastructure safety; 16
g. Business management; or 17
h. Environmental management; and 18
(b) Two (2) members appointed by the Auditor of Public Accounts: 19
1. One (1) of whom shall have at least five (5) years of actual experience 20
as a consumer advocate; and 21
2. One (1) of whom shall have the same qualifications as required under 22
paragraph (a)2. of this subsection. 23
(2) No two (2) members of the commission shall have the same occupation or 24
profession, and no more than three (3) commissioners shall be of the same 25
political party. 26
(3) Appointments and reappointments to the commission shall be subject to 27 UNOFFICIAL COPY 25 RS BR 929
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confirmation by the Senate as provided in KRS 11.160. 1
(4) The commissioners shall elect one (1) of the commissioners to act as the 2
commission's chair. The chair shall be the chief executive officer of the 3
commission. The chair shall designate one (1) of the commissioners to serve as 4
vice chair to act for the chair in his or her absence. 5
(5) Vacancies for unexpired terms shall be filled in the same manner as the original 6
appointments, but the appointee shall hold office only until the end of the 7
unexpired term and shall be subject to confirmation by the Senate as provided in 8
KRS 11.160. 9
(6) Members of the commission shall serve no more than three (3) terms, but any 10
terms or partial terms served prior to the effective date of this Act shall not be 11
counted toward the term limits established by this subsection. 12
(7) After the initial appointments, a member of the commission shall serve for a term 13
of four (4) years and until a successor is appointed and qualified. 14
(8) Each member of the commission shall be a full-time employee as defined in KRS 15
18A.005. 16
Section 2. KRS 278.040 is amended to read as follows: 17
(1) The Public Service Commission shall constitute an independent department of 18
state government within the meaning of KRS Chapter 12, and shall be 19
administratively attached to the Energy and Environment Cabinet only for those 20
limited functions and purposes expressly requested by the commission to be 21
performed by the Energy and Environment Cabinet. The commission shall have 22
sole discretion as to which functions shall be deemed necessary for its efficient 23
operation. The commission shall consist of an executive director, five (5) 24
commissioners, and other agents and employees as necessary to carry out its 25
obligations under this chapter. 26
(2) Notwithstanding Section 7 of this Act, the commission may, in its sole discretion, 27 UNOFFICIAL COPY 25 RS BR 929
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identify and determine the compensation for categories of its professional 1
employees at the amounts it deems necessary to recruit and retain employees who 2
have the experience, expertise, and education required to perform their job 3
responsibilities with the commission. 4
(3) The[ Public Service] commission shall regulate utilities,[ and] enforce the 5
provisions of this chapter and the rules and administrative regulations 6
promulgated hereunder, and exercise all powers necessary incident thereto. The 7
commission shall be a body corporate, with power to sue and be sued in its 8
corporate name. The commission may adopt a seal bearing the name "Public 9
Service Commission of Kentucky," which seal shall be affixed to all writs and 10
official documents, and to such other instruments as the commission directs, and all 11
courts shall take judicial note of the seal. 12
(4)[(2)] The jurisdiction of the commission shall extend to all utilities in this state. The 13
commission shall have exclusive jurisdiction over the regulation of rates and 14
service of utilities, but with that exception nothing in this chapter is intended to 15
limit or restrict the police jurisdiction, contract rights or powers of cities or political 16
subdivisions. 17
(5)[(3)] The commission may adopt, in keeping with KRS Chapter 13A, reasonable 18
administrative regulations to implement the provisions of KRS Chapter 278 and 19
investigate the methods and practices of utilities to require them to conform to the 20
laws of this state, and to all reasonable rules, regulations and orders of the 21
commission not contrary to law. 22
(6) The commission shall not be subject to reorganization under KRS Chapter 12. 23
Section 3. KRS 278.060 is amended to read as follows: 24
(1) Each commissioner shall be a resident and qualified voter of this state, not less than 25
twenty-five (25) years of age at the time of his or her appointment and 26
qualification, and shall have resided in this state for at least three (3) years prior to 27 UNOFFICIAL COPY 25 RS BR 929
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his or her appointment and qualification. Each commissioner shall take and 1
subscribe to the constitutional oath of office, which shall be recorded in the office 2
of the Secretary of State. 3
(2) No person shall be appointed to or hold the office of commissioner who holds, or 4
whose immediate family member holds, any official relationship to any utility, or 5
who owns any stocks or bonds thereof, or who has any pecuniary interest therein, 6
except for a pension or retirement savings account if no contributions have been 7
made to it for at least one (1) year prior to the appointment. 8
(3) No commissioner shall receive any rebate, pass, percentage of contract or other 9
thing of value from any utility. 10
(4) In addition to the restrictions on members of the commission set forth in Section 1 11
of this Act[KRS 278.050(1)], no commissioner shall engage in any occupation or 12
business inconsistent with his duties as such commissioner. 13
(5) If any commissioner becomes a member of any political party committee, his or her 14
office as commissioner shall be thereby vacated. 15
[(6) In making appointments to the commission, the Governor shall consider the various 16
kinds of expertise relevant to utility regulation and the varied interests to be 17
protected by the commission, including those of consumers as well as utility 18
investors, and no more than two (2) members shall be of the same occupation or 19
profession.] 20
Section 4. KRS 278.070 is amended to read as follows: 21
The officer who appointed the commissioner[Governor] may remove the[any] 22
commissioner for cause, after giving him or her a copy of the charges against him or her 23
and an opportunity of being publicly heard in person or by counsel in his or her own 24
defense upon not less than ten (10) days' notice. If a commissioner is removed, the officer 25
who appointed the commissioner[Governor] shall file in the office of the Secretary of 26
State a complete statement of all charges against the commissioner and his or her 27 UNOFFICIAL COPY 25 RS BR 929
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findings thereon, and a complete record of the proceedings. Any commissioner so 1
removed may bring action in the proper court to determine whether or not he or she was 2
legally removed in accordance with this section. 3
Section 5. KRS 278.120 is amended to read as follows: 4
(1) The chair[chairman] and the other [two (2)] members of the commission shall be 5
paid a salary fixed under KRS 64.640 to be paid monthly. 6
(2) Notwithstanding Section 7 of this Act, the executive director of the commission 7
shall be paid a salary to be fixed solely by the commission[, with the approval of the 8
Governor]. 9
(3) The commissioners, the executive director, and employees of the commission are 10
entitled to all expenses, including hotel bills, incurred in traveling on business of 11
the commission. 12
(4) The salaries and expenses provided for by this section, and all other expenses of the 13
commission incurred in the administration of this chapter, shall be paid out of 14
appropriations as provided by law out of the general expenditure fund. 15
Section 6. KRS 278.702 is amended to read as follows: 16
(1) There is hereby established the Kentucky State Board on Electric Generation and 17
Transmission Siting. The board shall be composed of nine (9)[seven (7)] members 18
as follows: 19
(a) The five (5)[three (3)] members of the Kentucky Public Service Commission; 20
(b) The secretary of the Energy and Environment Cabinet or the secretary's 21
designee; 22
(c) The secretary of the Cabinet for Economic Development or the secretary's 23
designee; 24
(d) 1. If the facility subject to board approval is proposed to be located in one 25
(1) county, two (2) ad hoc public members to be appointed by the 26
Governor from a county where a facility subject to board approval is 27 UNOFFICIAL COPY 25 RS BR 929
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proposed to be located: 1
a. One (1) of the ad hoc public members shall be the chairman of the 2
planning commission with jurisdiction over an area in which a 3
facility subject to board approval is proposed to be located. If the 4
proposed location is not within a jurisdiction with a planning 5
commission, then the Governor shall appoint either the county 6
judge/executive of a county that contains the proposed location of 7
the facility or the mayor of a city, if the facility is proposed to be 8
within a city; and 9
b. One (1) of the ad hoc public members shall be appointed by the 10
Governor and shall be a resident of the county in which the facility 11
is proposed to be located. 12
2. If the facility subject to board approval is proposed to be located in more 13
than one (1) county, two (2) ad hoc public members to be chosen as 14
follows: 15
a. One (1) ad hoc public member shall be the county judge/executive 16
of a county in which the facility is proposed to be located, to be 17
chosen by majority vote of the county judge/executives of the 18
counties in which the facility is proposed to be located; and 19
b. One (1) ad hoc public member shall be a resident of a county in 20
which the facility is proposed to be located, and shall be appointed 21
by the Governor. 22
If a member has not been chosen by majority vote, as provided in 23
subdivision a. of this subparagraph, by thirty (30) days after the filing of 24
the application, the Governor shall directly appoint the member. 25
3. Ad hoc public members appointed to the board shall have no direct 26
financial interest in the facility proposed to be constructed. 27 UNOFFICIAL COPY 25 RS BR 929
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(2) The term of service for the ad hoc members of the board shall continue until the 1
merchant electric generating facility for which they were appointed has been 2
constructed and begins generating electricity for sale or the construction certificate 3
expires. The remaining members of the board shall be permanent members. 4
(3) The board shall be attached to the Public Service Commission for administrative 5
purposes. The commission staff shall serve as permanent administrative staff for the 6
board. The members of the board identified in subsection (1)(a) to (d) of this 7
section shall promulgate administrative regulations in accordance with KRS 8
Chapter 13A to implement KRS 278.700 to 278.716. 9
(4) No member of the board shall receive any salary or fee for service on the board or 10
shall have any financial interest in any facility the application for which comes 11
before the board, but each member shall be reimbursed for actual travel and 12
expenses directly related to service on the board. 13
(5) The chair[chairman] of the Public Service Commission shall be the 14
chair[chairman] of the board. The chair[chairman] shall designate one (1) member 15
of the board as vice chair[chairman]. A majority of the members of the board shall 16
constitute a quorum for the transaction of business. No vacancy on the board shall 17
impair the right of the remaining members to exercise all of the powers of the 18
board. The board shall convene upon the call of the chair[chairman]. 19
Section 7. KRS 64.640 is amended to read as follows: 20
(1) Except as otherwise provided in subsection (2) of this section, and excepting 21
officers elected by popular vote, employees of the General Assembly, including 22
employees of the Legislative Research Commission, members of boards and 23
commissions, those officers and employees of Kentucky Educational Television 24
exempt from classified service as provided in KRS 18A.115, presidents and 25
employees of the state universities and the state colleges, officers employed by the 26
Department of Kentucky State Police under KRS Chapter 16, employees whose 27 UNOFFICIAL COPY 25 RS BR 929
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compensation is set by the Public Service Commission under subsection (2) of 1
Section 2 of this Act and subsection (2) of Section 5 of this Act, and persons 2
employed by the commissioner of parks on a temporary basis under KRS 148.026, 3
the Personnel Cabinet shall prepare schedules of compensation, payable out of the 4
State Treasury, with a minimum salary rate, and other salary rates as are deemed 5
necessary or advisable, for the office or position of employment of every state 6
officer and employee, including specifically the offices and positions of 7
employment in every constitutional administrative department, statutory 8
administrative department, independent agency, board, commission, or other unit of 9
state government. The language of any statute empowering a board, commission, 10
authority, or other administrative body for which the Personnel Cabinet provides 11
personnel and payroll services, except for any board governing any of the Kentucky 12
Retirement Systems, the County Employees Retirement System, the Kentucky 13
Public Pensions Authority, the Kentucky Higher Education Assistance Authority, 14
the Kentucky Authority for Educational Television, or the Council on 15
Postsecondary Education, to establish, set, or approve the salaries of its 16
administrative head and other employees to the contrary notwithstanding, the 17
establishment or setting of salaries for administrative heads or other employees 18
shall be subject to the approval of the secretary of the Personnel Cabinet. The 19
schedules and rates shall be based upon studies of the duties and responsibilities of 20
the offices and positions and upon a comparison with rates being paid for similar or 21
comparable services elsewhere, and in the preparation of such schedules, the 22
Personnel Cabinet shall ascertain and record the duties, responsibilities, and 23
authority pertaining to the various offices and positions in the state service, and 24
classify such positions in the manner provided in KRS 18A.030, 18A.035, 18A.110, 25
18A.130, 18A.135, and 18A.150 to 18A.160. No such schedule shall become 26
effective until it has been approved by the Governor by executive order. 27 UNOFFICIAL COPY 25 RS BR 929
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(2) The Governor shall set the compensation payable out of the State Treasury to each 1
officer or position in the state service, which officer or position heads a statutory 2
administrative department, independent agency, or other unit of state government, 3
except for those excluded under subsection (1) of this section. Such compensation 4
shall be based upon studies of the duties and responsibilities and classification of 5
the positions by the Governor and upon a comparison with compensation being paid 6
for similar or comparable services elsewhere, provided, however, such 7
compensation shall not exceed the total taxable compensation of the Governor 8
derived from state sources, the provisions of KRS 64.660 to the contrary 9
notwithstanding. For the purposes of this section, the total taxable compensation of 10
the Governor from state sources shall include the amount provided for 11
compensation to the Governor under KRS 64.480 and any benefits or discretionary 12
spending accounts that are imputed as taxable income for federal tax purposes. 13
(3) The compensation payable out of the State Treasury to officers and employees 14
subordinate to any office or position covered by subsection (2) of this section shall 15
not exceed the maximum rate established pursuant to subsection (2) of this section 16
for such office or position, except with respect to physicians as provided in KRS 17
64.655 and employees of the Public Service Commission not otherwise exempt 18
from the requirements of this section under subsection (2) of Section 2 of this Act 19
and subsection (2) of Section 5 of this Act[of Kentucky] whose compensation shall 20
be fixed, within constitutional limits, by the Personnel Cabinet with the approval of 21
the Governor as provided in subsection (1) of this section. 22
(4) Nothing in this section shall preclude the allowance of maintenance to officers and 23
employees of the state. 24
Section 8. KRS 160.617 is amended to read as follows: 25
Notwithstanding KRS 278.040(4)[(2)], or any other provision to the contrary, any utility, 26
cable service provider, or satellite broadcast and wireless cable service provider required 27 UNOFFICIAL COPY 25 RS BR 929
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to pay the tax authorized by KRS 160.613 or 160.614 may increase its rates in any school 1
district in which it is required to pay the school tax by the amount of the school tax 2
imposed, up to three percent (3%). Any utility, cable service provider, or satellite [ 3
]broadcast and wireless cable service provider so increasing its rates shall separately state 4
on the bills sent to its customers the amount of the increase and shall identify the amount 5
as: "Rate increase for school tax." 6
Section 9. The following KRS section is repealed: 7
278.050 Membership of Public Service Commission -- Appointment -- Terms -- 8
Chairman -- Vacancies. 9
Section 10. (1) On or before July 1, 2025, the Auditor of Public Accounts 10
shall appoint one member of the Public Service Commission for a term expiring July 1, 11
2026, and one member of the Public Service Commission for a term expiring July 1, 12
2027. 13
(2) All current members of the Public Service Commission on the effective date 14
of this Act may serve out the remainder of their terms, provided that they meet the 15
qualification requirements in Sections 1 and 3 of this Act. The term of any current 16
member of the Public Service Commission who does not meet the qualification 17
requirements in Sections 1 and 3 of this Act shall be terminated, and the Governor shall 18
appoint a replacement subject to confirmation by the Senate pursuant to Section 1 of this 19
Act. 20
(3) On the effective date of this Act, copies of any records, files, or documents, 21
including legal documents or memoranda, associated with functions of the Public Service 22
Commission that were previously performed by the Energy and Environment Cabinet but 23
for which it is no longer deemed responsible, shall be transmitted to the commission. 24