Committee advances SB 8 to restructure Public Service Commission; member raises appointment conflict concerns

The House Appropriations and Revenue Committee on March 26 approved Senate Bill 8 as amended by PHS 3 and a House committee amendment and reported the bill favorably to the House on a 17–1–3 vote.

Senator Robbie Mills, the bill sponsor, said the original proposal would make the Public Service Commission a more independent state department, increase the number of commissioners and add term limits and administrative staff. “This bill is like a chameleon,” Mills said as he described how the measure has changed through negotiation and amendment.

During the discussion, Mills and other sponsors said several floor amendments were largely incorporated into the committee substitute and that two appointments for the proposed independent PSC would be handled by the auditor's office. Mills emphasized that language carried from House Bill 757 concerning the Pennyrile Regional Energy Authority (a municipal/local gas utility) is narrow, intended for industrial and commercial use only and not to create a taxing district. “There is no intention ever to get to residential ratepayers,” he said.

Representative Audrey Ernstberger of the Kentucky Resources Council introduced herself but said she would reserve substantive comments until she could review the substitute and submit feedback by email.

Representative Burke asked whether giving appointment authority to the auditor of public accounts—who audits the PSC—could create a conflict of interest. After discussion, Burke explained his vote: “I am a no. I liked the original bill so much more ... until we can resolve the issue of whether or not a conflict of interest has arisen, I'll be a no.”

Chair Petrie said the committee would keep the House committee amendment separate from the PHS 3 so members could pursue the conflict-of-interest question before the full House. The committee then recorded a roll-call vote: 17 yes, 1 no and 3 pass votes. The committee reported SB 8 with a favorable recommendation and adjourned.

Provenance: Sponsor remarks, stakeholder reservation, member questioning about intervenor language and auditor appointment, and roll-call vote recorded in the committee hearing.