SMITH’S PUBLIC SERVICE COMMISSION REFORM BILL MAKES FINAL PASSAGE

SMITH’S PUBLIC SERVICE COMMISSION 

REFORM BILL MAKES FINAL PASSAGE

Senate priority legislation strengthens Public Service Commission bandwidth and expertise

FRANKFORT, Ky. (April 1, 2026) – Senate Natural Resources and Energy Committee Chair Sen. Brandon Smith, R-Hazard, successfully led Senate Bill (SB) 8—priority legislation to modernize the Kentucky Public Service Commission (PSC)—to final passage Wednesday. The bill now heads to the governor for consideration. The bill strengthens the state’s utility regulator.

SB 8 focuses on long-term affordability and reliability by reinforcing the PSC’s structure, bandwidth and expertise as it oversees more than 1,100 regulated utilities and the infrastructure investments that affect Kentucky families and businesses.

“Senate Bill 8 will allow our Public Service Commission to more effectively oversee the complex energy and infrastructure decisions facing Kentucky,” Smith said. “It sets a higher standard for nominees and commissioners, and additional membership will enable the commission to hear and address more cases that come before it. The entire goal of this bill is to help reduce rates that are bludgeoning families in eastern Kentucky and to take another step toward lowering costs moving forward. I am grateful to my colleagues for getting some of these reform efforts across the finish line.”

Strengthening the Public Service Commission

SB 8 expands the PSC from three members to five to improve capacity and oversight as the commission reviews rate cases, infrastructure investments and utility operations across the state.

Under the final version of the bill, all commissioners remain appointed by the governor and subject to Senate confirmation. The bill also maintains political balance by limiting the number of commissioners from the same political party.

SB affirms the PSC as an independent department of state government. The commission remains administratively attached to the Energy and Environment Cabinet only for limited support functions requested by the PSC, while maintaining full authority over its regulatory decisions, staffing and operations. 

SB 8 also allows commissioners to elect their own chair, strengthening internal accountability and governance.

Expanding expertise and strengthening governance

The legislation establishes professional qualification standards to better align the commission with the technical demands of modern utility regulation.

Two commissioners must be licensed Kentucky attorneys with at least seven years of experience. The remaining members must have education or experience in areas such as engineering, economics, accounting, finance, utility regulation, infrastructure safety, business management or environmental management. 

The bill sets four-year terms for commissioners, establishes term limits and reinforces conflict-of-interest standards to prevent ties to regulated utilities. 

SB 8 also authorizes the commission to appoint its own executive director, subject to Senate confirmation, and grants additional authority to manage staffing, compensation and internal operations.