Committee advances securitization bill to refinance out‑of‑state utility assets, include two new gas units and a two‑year rate freeze

Representative Patrick Flandry introduced House Bill 535 and a committee substitute that clarifies a rate‑freeze provision and PSC review standards. Sponsors said the bill would allow investor‑owned utilities with out‑of‑state assets (cited example: Kentucky Power’s Mitchell coal plant in West Virginia) to petition the Public Service Commission (PSC) for securitization, which could refinance the out‑of‑state asset to free up financing for new generation.

Sponsor remarks said the bill would trigger a two‑year moratorium (rate freeze) upon application to the PSC whether or not the petition is granted; if securitization is approved the PSC must find an overall savings to ratepayers. Representatives and witnesses discussed the intended project at Big Sandy in Louisa — sponsors described funding for two new natural gas units and estimated the construction could cost "in excess of half a billion dollars." John Hullbrook, the business manager for the Tri‑State Building and Construction Trades Council, told the committee the project would create "3 to 400 jobs" during construction and argued reliable local generation could help attract manufacturing.

Members pressed for specifics: whether additional securitization fees could be placed on customer bills despite a base rate freeze, how PSC discretion would be preserved, and how EPIC and the attorney general would review applications. Sponsors responded that PSC review, input to the attorney general’s rate intervention office, and EPIC review would be required; they said approval would be based on a PSC finding that securitization is to the net benefit of ratepayers. The committee voted to advance HB 535 as amended; the chair announced the vote as 16 yes, 1 no, and 3 passes.