PSC chair: Senate Bill 8 expands agency independence and brings staffing, oversight choices

Angie Hatton, chair of the Kentucky Public Service Commission (PSC), told legislators that Senate Bill 8 expanded the agency and gave it new administrative options, including the addition of two commissioner seats, authority to conduct its own procurements, and the ability to assign three commissioners to hear individual cases instead of requiring all commissioners to sit on every docket.

Hatton said the commission has begun a review of personnel, budget and duties that it could perform independently of the Energy and Environment Cabinet. She said the PSC must set up procurement capacity immediately and will post personnel needed to carry those duties. Hatton said the commission elected its own chair on June 1 and she appointed Mary Pat Reagan vice chair.

Members discussed the bill’s implications for transmission siting. Commissioners and staff cautioned that raising the mileage threshold for PSC oversight — a change considered in earlier versions that would have exempted projects shorter than 20 miles from review — could remove public process for large, multi‑million‑dollar projects. Linda Bridwell and other PSC staff said a five‑mile threshold had been proposed previously as a compromise; increasing the limit to 20 miles could exclude projects of $80 million or more from PSC oversight.

Committee members also questioned how the PSC will guard ratepayers from costs tied to large new customers such as data centers. Linda Bridwell described Extreme High Load Factor (EHLF) tariffs and special contracts utilities have filed to ensure that the causer of new costs pays for necessary generation and transmission additions; such mechanisms commonly include long minimum contract terms and large deposits. Bridwell said the commission has denied special contracts in the past when it concluded a deal would shift undue costs to other ratepayers.

Hatton said staffing remains a central need: the PSC’s headcount has recovered from a low of about 65 to roughly 86 today, with capacity to reach roughly 98 when new commissioners and assistants are added. The agency is considering raising the Alternative Rate Filing threshold (currently $5 million in revenues) to streamline cases for small utilities.

Legislators and commission staff also discussed data centers and high‑load customers, regional transmission planning and whether additional statutory tools are needed to protect affordability. Hatton and staff asked for continued engagement over the summer to refine staffing and procedural changes.