Committee advances bill to let PSC smooth fuel surcharges after constituents report extreme winter bills
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Summary
Senate Bill 172 gives the Public Service Commission discretion to spread volatile fuel surcharges over months to reduce spikes in consumers' bills; sponsors said it is a narrow, immediate tool to help households facing extreme energy bills and added an emergency clause. The committee passed the bill unanimously.
The Senate Natural Resources Committee voted to advance Senate Bill 172, the Fuel Surcharge Stability Act, which would give the Kentucky Public Service Commission (PSC) explicit discretion to spread fuel surcharges over multiple months to smooth large, short-term spikes in electricity bills.
Sen. Wheeler, the bill’s sponsor, said the measure is intended as a targeted tool to reduce sudden ‘‘sticker shock’’ on monthly bills during peak demand periods. He cited constituent examples of unusually high bills; one anecdote presented to the committee described a single‑month bill of $712 for a small household that typically cannot absorb such a charge.
"What the fuel surcharge stability act intends to do is give the PSC a tool to stabilize fuel surcharges that are added on to electric bills during peak months," Wheeler said, summarizing the substitute language. The committee substitute adds a title and an emergency clause intended to allow state leaders to coordinate quickly with the House and the executive branch if enacted.
Wheeler told members the PSC would retain discretion to determine when spreading surcharges is appropriate, describing the change as a practical, short-term mitigation rather than a comprehensive energy policy fix. Senators on both sides described urgency to provide relief to low‑income and rural households after recent cold weather drove up usage and spot-market natural gas prices.
During discussion, committee members described instances of large fuel-surcharge fluctuations tied to spot-market price spikes and asked whether the bill would blunt those impacts. Wheeler said the change should reduce the one-month spikes some customers experience and help households budget.
The roll call recorded recorded support from a broad set of members and Chair Smith announced SB 172 as amended by substitute 2 passed the committee with a favorable expression. The bill will move to the Senate floor for further consideration.