Summary of Original Version

Create new sections of KRS Chapter 96 relating to municipal utilities and KRS Chapter 278 relating to Public Service Commission-regulated utilities to: define terms; only allow for the provision of electric service to a data center through a contract that conforms to the requirements of the Act; require that within 90 days of the effective date of the Act, the electric service provider issue or file a tariff setting forth the process for a data center customer to apply for service; require the payment of a nonrefundable service application fee; require the preparation of studies to determine the manner in which the electric service provider can safely and efficiently serve the data center in a way that does not have negative service or rate impacts to their non-data center customers; establish the minimum contract requirements between the electric service provider and the data center customer; provide that requirements of the Act that are conflict with the Tennessee Valley Authority's requirements for the distribution of electricity that it supplies shall not apply; prohibit the charging or allocating of any costs associated with serving or constructing new infrastructure to serve a data center to any other customers served by natural gas, water, or wastewater utilities; amend KRS 154.20-229 to require that a qualified data center project that has been preliminarily approved for a certificate of exemption under KRS 139.499 include in its memorandum of agreement with the Kentucky Economic Development Finance Authority a certification that the data center project complies or will comply with all applicable local requirements and the applicable requirements of the Act.

Summary of Amendment: House Committee Substitute 1

Summary Retain original provisions; require that a municipal utility issue a tariff that complies with the requirements of Section 1 of the Act within 180 days of the effective date of the Act instead of 90 days; adjust language relating to curtailment obligations under data center tariffs for both municipal utilities and retail electric suppliers; provide that the requirements of Sections 1, 2, 3, and 4 of the Act shall not apply to data centers that are constructed on sites owned by the United States Department of Energy or to electric service contracts entered into prior to the effective date of the Act; add definitions for "generation and transmission cooperative" and "retail electric supplier"; require data center customers to pay for the full cost of a municipal utility's or retail electric supplier's cost of service study, including third-party transmission studies and other costs; provide that the load of a data center shall not be used for determining a retail electric supplier's peak load for the purposes of calculating the cap on the net metering service that the retail electric supplier must provide; make technical corrections.

Statutes affected:
House Committee Substitute 1: 278.466
Current: 278.466