Frankfort, Kentucky (March 9, 2026) – The Eastern Kentucky Energy Savings Act, legislation focused on lowering costs for consumers while also strengthening the reliability of the power grid cleared the House Natural Resources and Energy Committee on Thursday, March 5. The bill, HB 535, passed on a strong bipartisan vote and is sponsored by Representative Patrick Flannery of Olive Hill, and State Representative Derek Lewis of London.
Simply put, the measure would authorize electric utilities to securitize certain costs through bond financing, subject to regulatory approval, to reduce customer impacts and support infrastructure investment. HB 535 also includes a provision that requires a two-year freeze on rate increases for any power company that applies for securitization. Before approval, the Public Service Commission would have to find it a cost savings for the ratepayer.
“I’m honored to see the support this measure has garnered from advocates, industry, and labor, as well as our colleagues in the House,” Flannery said. “I think it speaks volumes about how many Kentuckians are struggling under the brunt of high electric bills. This measure takes aim at those costs.
“This legislation is a meaningful step forward. Across the country, securitization has been used to lower costs and make energy more affordable, and we’re bringing that tool to eastern Kentucky. The average household could see savings around $144 per year. That’s real relief for families budgeting every dollar,” Lewis added.
In a letter of endorsement, Appalachia Reach Out Executive Director Dwayne Mills shared, “From our perspective, these efforts reflect a sincere attempt to balance reliability, affordability, and economic development for eastern Kentucky. Increased generation capacity will help shield our region from energy market volatility.”
Specifically, supporters include the Marathon; the Kentucky Association of Manufacturers; Kentucky State Building and Construction Trades Council; Plumbers, Pipefitters, and HVACR Local 248; International Brotherhood of Electrical Workers Local Union 317; Tri-State Building Trades Unions; Southeast Kentucky Chamber of Commerce; Northeast Kentucky Chamber of Commerce; Kentucky Chamber of Commerce; Floyd County Chamber of Commerce; One East; Appalachia Service Project; Kentucky Association of Economic Development; Appalachia Reach Out; VIP Fuels; Hillcrest Bruce Mission; Sandy Valley Habitat for Humanity; Hazard-Perry County Industrial Development Alliance; Pine Mountain Partnership, Hazard Perry County Chamber of Commerce; Facing Hunger Foodbank; and Consumer Energy Alliance.
Both Flannery and Lewis underscored that the Eastern Kentucky Energy Savings Act would also generate a significant economic boost for the region, including a nine-figure construction project at the Big Sandy Plant. That investment would translate into meaningful, long-term work for local residents, many of whom are union members, while strengthening Eastern Kentucky’s skilled workforce. In addition, the measure could pave the way for the construction of at least one new fossil-fuel generation facility, with the potential for a second, further reinforcing energy reliability and job creation in the region.
Shane Wolfe, Business Manager for the IBEW Local Union 317, shared in an endorsement, “Directing capital toward in-state infrastructure not only strengthens energy independence and reliability but also supports high-quality construction and maintenance jobs for skilled workers.”
HB 535 now goes to the full House for consideration. If passed into law, the measure will take effect immediately. For more information, visit the legislature’s website at legislature.ky.gov.
