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FRANKFORT, KY. (Feb. 12, 2026) — The Kentucky Senate has passed legislation sponsored by Sen. Phillip Wheeler, R-Pikeville, designed to promote greater stability in electric rates and strengthen oversight of utility fuel costs.
Senate Bill (SB) 172 would update Kentucky law governing electric utility fuel adjustment clauses, which allow utilities to recover fuel costs through customer rates. The bill will provide the Kentucky Public Service Commission with additional flexibility to extend the recovery period for fuel adjustment costs when requested by a utility, helping reduce sharp month-to-month swings in electric bills and encouraging greater rate stability for customers.
The legislation also clarifies how fuel costs should be evaluated during commission reviews of fuel adjustment clauses. For fuel procurement contracts entered into on or after July 1, 2021, the commission is required to assess the reasonableness of fuel costs and competing bids based on the cost of fuel net of any coal severance tax imposed by another jurisdiction. This ensures a clearer, more accurate comparison of fuel options when regulators review utility purchasing decisions.
“Kentucky families and businesses deserve predictability when it comes to their utility bills,” Wheeler said. “This bill gives regulators tools to reduce unnecessary volatility while ensuring fuel costs are reviewed in a fair and transparent way. It’s about stability, accountability and commonsense oversight. This is especially true for families on a fixed income who cannot afford an additional $50 to $80 dollars on their monthly bill.”
Wheeler cautioned that the bill is not a silver bullet that would immediately solve the high energy prices facing Kentucky consumers.
“The challenge that the Kentucky legislature faces is that the current energy prices are the result of a series of bad energy policies passed in Washington during the Obama and Biden administrations,” Wheeler said. “By taking coal off the table as a source of reliable baseload energy, they have left Kentucky ratepayers at the mercy of more volatile natural gas markets. The only way to return to cheap energy prices is for Congress to work with the President to adopt an ‘all of the above’ energy strategy that includes fossil fuels, nuclear and renewables to provide maximum flexibility for power generation.”
SB 172 now heads to the Kentucky House of Representatives for consideration.
Learn more about bills, committees, and other important updates on the 2026 Regular Session at www.legislature.ky.gov.
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Sen. Phillip Wheeler, R-Pikeville, represents Kentucky’s 31st Senate District, including Elliott, Johnson, Lawrence, Martin, and Pike Counties. Wheeler serves as chair of the Senate Economic Development, Tourism, and Labor Committee and vice chair of the Senate Judiciary Committee. He is also co-chair of the Capital Planning Advisory Board. Additionally, Wheeler is a member of the Senate Committees on Transportation, Natural Resources and Energy, and Licensing and Occupations.
Please visit https://legislature.ky.gov/Legislators Full Res Images/senate131.jpg for a high-resolution .jpeg of Wheeler.
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