FRANKFORT, Ky. — Two Eastern Kentucky lawmakers have filed legislation they say would lower electric bills for customers while making the region’s power supply more reliable.
House Bill 535, called the “Eastern Kentucky Energy Savings Act,” was filed by state Reps. Patrick Flannery, of Olive Hill, and Derek Lewis, of London. The proposal focuses on reducing rate increases for consumers and encouraging power generation that can be turned on when it is needed most, such as during extreme weather or peak demand.
“Kentuckians across our region have seen skyrocketing electric costs,” Flannery said. “To many families, the effects of higher utility bills are more than an inconvenience — they are a real strain. Eastern Kentuckians need meaningful relief, and HB 535 will provide some through policies that emphasize both affordability and reliability as essential.”
Under the bill, electric utilities would be allowed to use a financing method known as securitization when retiring power plants, such as coal-fired facilities. In simple terms, securitization lets utilities spread the cost of shutting down and paying off old plants over many years, instead of passing those costs on to customers all at once through sharp rate hikes.
However, the bill adds new conditions for utilities that choose to use that option. Any power company applying for securitization would be required to freeze electric rates for two years. The company would also have to accept a lower profit margin, with those savings passed directly on to customers.
Lawmakers say those provisions could result in noticeable savings on monthly bills.
“This legislation is not a cure-all for every challenge we face,” Lewis said. “But it represents a big step forward. Estimated savings for the average residential customer are approximately $144 per year, and for families watching every dollar, that relief matters. More importantly, the bill signals a commitment to energy policies that put Eastern Kentucky communities first and support a more stable, affordable future.”
The bill also seeks to keep energy investments inside Kentucky. It would require utilities to shift money currently being invested in out-of-state power facilities into new, in-state power generation that can operate on demand. Supporters say that kind of “dispatchable” generation helps stabilize the electric grid and protects customers from price swings in regional energy markets.
In addition to consumer savings, the legislation could bring new construction and energy projects to eastern Kentucky. Lawmakers say the bill could support a major construction project at the Big Sandy Plant and potentially lead to the development of one or more new fossil-fuel power facilities, creating long-term jobs in the region.
HB 535 is cosponsored by Reps. Richard White, of Morehead; Scott Sharp, of Ashland; Bobby McCool, of Van Lear; and Mitch Whitaker, of Fleming-Neon. The bill is expected to be assigned to a House committee in the coming days. If approved by the General Assembly and signed into law, it would take effect immediately.
