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Kentucky legislature establishes strict cost-allocation, tariff, and infrastructure rules for data centers utilizing municipal and retail electric suppliers

Original title: AN ACT relating to data centers.

Last action · March 31, 2026: taken from Economic Development, Tourism, & Labor (S) 2nd reading returned to Economic Development, Tourism, & Labor (S)Sponsors: Josh Bray and 5 others

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Proposed

Kentucky House Bill 593 requires municipal electric utilities and retail electric suppliers to establish specialized data center s, prohibit cost-shifting to non-data center customers, require full capital prepayments, and mandate dedicated power resources for large facilities exceeding specified megawatt thresholds.

Why it matters

Residential and commercial utility customers are legally insulated from paying for infrastructure built to serve large data centers, while data center operators face upfront nonrefundable application fees of at least $75,000 and full cost-of-service allocations.

Background
  • Data centers have rapidly expanded their electricity and infrastructure demands across the United States, prompting state legislatures to address grid capacity and ratepayer protections. context
  • Kentucky's General Assembly considers legislation governing retail and municipal electric suppliers under KRS Chapters 96 and 278. context

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

Non-data center customer classes

Utility rates and service charges are legally insulated from absorbing any capital or operating costs associated with serving or constructing infrastructure for data centers.

Directly affected

Municipal electric utilities

Utilities must issue specialized data tariffs, conduct engineering and pricing studies, collect application fees, and enforce capital prepayments for data center customers.

Directly affected

Data center customers

Operators must pay a minimum $75,000 application fee, pre-fund infrastructure capital costs, secure dedicated power resources if capacity thresholds are exceeded, and meet minimum capital investment timelines.

Directly affected

Retail electric suppliers

Suppliers must file commission-approved data center tariffs, maintain dedicated resource provisions, and isolate non-data center customers from risk.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What are the upfront financial requirements for a data center applying for utility service?
Data center customers must pay an initial nonrefundable application fee of at least $75,000 and tender prepayments for all estimated capital costs incurred by the utility for necessary infrastructure.
Are all data centers in Kentucky subject to these new utility rules?
No. Exemptions are provided for distributors of electricity supplied by the Tennessee Valley Authority, data centers on sites owned by the U.S. Department of Energy, and electric service contracts entered into prior to the effective date of the Act.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

This bill did not become law - Died at adjournment · passed the House · on the Senate floor.

Procedural history

9 actions
  1. Mar 31, 2026SenateFloor
    taken from Economic Development, Tourism, & Labor (S) 2nd reading returned to Economic Development, Tourism, & Labor (S)
  2. Mar 27, 2026SenateCommittee
    to Economic Development, Tourism, & Labor (S) taken from Economic Development, Tourism, & Labor (S) 1st reading returned to Economic Development, Tourism, & Labor (S)
  3. Mar 5, 2026SenateIntroduced
    received in Senate to Committee on Committees (S)
  4. Mar 4, 2026HouseFloor
    3rd reading, passed 90-8 with Committee Substitute (1)
  5. Mar 3, 2026House
    posted for passage in the Regular Orders of the Day for Wednesday, March 04 2026
  6. Feb 27, 2026HouseFloor
    2nd reading, to Rules
Show 3 earlier actions
  1. Feb 26, 2026House
    reported favorably, 1st reading, to Calendar with Committee Substitute (1)
  2. Feb 10, 2026HouseCommittee
    to Economic Development & Workforce Investment (H)
  3. Feb 6, 2026HouseIntroduced
    introduced in House to Committee on Committees (H)

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift98% confidence

Comprehensive Data Center Cost Isolation

The legislation systematically prevents data center energy and infrastructure costs from mixing with or impacting general residential and commercial utility rates across both municipal and retail electric suppliers.

Connected Entities

K. King, General Assembly, Daniel Elliott and 6 more
PersonK. King“Cosponsor of HB 593”Map →
OrganizationGeneral Assembly“Legislative body enacting the bill”Map →
PersonDaniel Elliott“Cosponsor of HB 593”Map →
OrganizationTennessee Valley Authority“Electricity supplier exempt from certain provisions”Map →
PersonJason Petrie“Cosponsor of HB 593”Map →
OrganizationUnited States Department of Energy“Owner of exempt data center sites”Map →
PersonJosh Bray“Primary sponsor of HB 593”Map →
PersonDavid Osborne“Cosponsor of HB 593”Map →
PersonJim Gooch“Cosponsor of HB 593”Map →

Sources

Open source document

apps.legislature.ky.gov

Analysis Score

0–100
  • Significance20
    Lowered because this bill did not pass (its text scored 85)
  • Controversy45
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz40
    Current news / social attention level

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