KY SB172

Amends KRS 278.277 to allow the Public Service Commission to extend the recovery period for electric utility fuel adjustment costs upon utility request, reducing rate volatility for consumers

Requires the commission, when reviewing fuel adjustment clauses for contracts entered on or after July 1, 2021, to evaluate fuel cost reasonableness by excluding coal severance taxes from the calculation

Applies the coal severance tax exclusion to both procurement contracts and competing bids when assessing reasonableness of fuel costs

Defines "fuel adjustment clause" as any tariff or contract provision allowing electric utilities to immediately recover fuel cost increases, subject to later commission review