KY HB535

Expands securitization authority for investor-owned electric utilities to include undepreciated extra-state generation utility plant balances (out-of-state fossil fuel plants over 800 megawatts) and environmental control costs, in addition to previously allowed retired generation costs and storm-related regulatory assets

Requires utilities seeking securitization for retired generation costs or extra-state plant balances to file an application to build or acquire in-state dispatchable generation after January 1, 2026, and agree not to seek base rate increases for two years after filing

Caps commission costs for retaining outside counsel, financial advisors, and consultants at $750,000 per transaction (adjustable for inflation after 2026)

Prohibits the commission from requiring securitized bonds be marketed as a specific type of security or mandating the assignee entity structure

Declared an emergency measure taking effect upon passage and gubernatorial approval, citing rising electric energy costs and public health and safety concerns