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Read. Follow. Verify.Kentucky Bill Exempts Municipal Interlocal Gas Utilities From Public Service Commission Regulation
Last action · March 25, 2026: taken from Appropriations & Revenue (H) 2nd reading returned to Appropriations & Revenue (H)Sponsor: Josh Bray
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What This Bill Proposed
Kentucky House Bill 844 exempts municipal interlocal gas utilities from Public Service Commission regulation and grants them expanded authority over service territories, system extensions, and . The measure applies retroactively to January 1, 2020.
Municipal interlocal gas utilities gain broad operational independence from state utility oversight while acquiring powers to condemn existing natural gas distribution systems using s.
- Municipal utilities in Kentucky traditionally operate under local governance but are subject to various state oversight mechanisms and territorial demarcation rules. context
- KRS Chapter 278 outlines the statutory powers and regulatory authority of the Kentucky Public Service Commission over public utilities. 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.
Municipal interlocal gas utilities
Municipal interlocal gas utilities are exempt from Public Service Commission oversight and gain explicit powers to define service territories, extend systems, and acquire existing plants through eminent domain.
Public Service Commission
The regulatory jurisdiction of the Public Service Commission is removed regarding municipal interlocal gas utilities, except for specific safety provisions under KRS 278.495.
Natural gas utility customers
Customers residing within defined municipal interlocal gas utility service territories fall under the primary service provision and expansion authority of these newly exempted utilities.
Key Facts
- Municipal interlocal gas utilities are exempt from KRS Chapter 278, associated administrative regulations, and the regulatory jurisdiction of the Public Service Commission, except as provided in KRS 278.495.
- Municipal interlocal gas utilities are authorized to define, enlarge, or reduce their service territories through official acts of their governing authority.
- Municipal interlocal gas utilities possess the primary right to provide retail or wholesale services to customers within their defined service territory, including being the first provider for new customers.
- Municipal interlocal gas utilities may acquire by eminent domain all or part of the plant of an existing natural gas distribution system located within their territory pursuant to KRS Chapter 416.
Show all 7 facts
- The valuation of a plant or system acquired by eminent domain by a municipal interlocal gas utility is set at its depreciated replacement cost plus the value of the underlying land if vacant.
- The exemptions and authorities granted in Sections 1, 2, 3, and 4 apply retroactively to January 1, 2020.
- A utility from another state is prohibited from condemning property owned or operated by an existing natural gas distribution system located within the Commonwealth.
Frequently Asked Questions
What is a municipal interlocal gas utility under this bill?
Does the Public Service Commission retain regulatory authority over municipal interlocal gas utilities?
How is a natural gas distribution plant valued if acquired by eminent domain under this measure?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
This bill did not become law - Died at adjournment · on the House floor.
Procedural history
4 actions- Mar 25, 2026HouseFloortaken from Appropriations & Revenue (H) 2nd reading returned to Appropriations & Revenue (H)
- Mar 13, 2026HouseCommitteetaken from Appropriations & Revenue (H) 1st reading returned to Appropriations & Revenue (H)
- Mar 5, 2026HouseCommitteeto Appropriations & Revenue (H)
- Mar 3, 2026HouseIntroducedintroduced 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
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Exemption from State Utility Regulation
The measure carves out municipal interlocal gas utilities from standard Public Service Commission oversight while providing explicit territory expansion and condemnation powers.
Retroactive Application
The exemptions and authorities granted by the bill apply retroactively to activities undertaken as early as January 1, 2020.
Connected Entities
Sources
apps.legislature.ky.gov
Analysis Score
0–100- Significance20Lowered because this bill did not pass (its text scored 75)
- Controversy60Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz30Current news / social attention level
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