Review of the Kentucky General Assembly's 2001 Session 
03/13/2001

Overview
According to most reviews, results from Kentucky’s first experience with annual legislative sessions were less than admirable. Of the almost 600 bills and 300 resolutions introduced in the House and Senate some significant legislation was enacted, but on balance far more was left undone than done.

Regular legislative session activities ended March 9 and will recess until March 22, where two days will be set aside for the legislature to consider overriding any of Governor Paul Patton's vetoes of legislation passed since January. There still exists a fairly slim chance the legislature might actually pass some bills on either March 22 or 23. 

Energy Related Legislation
House Bill 305, legislation designed to assist low-income customers with energy bill payments, was the predominant bill relative to energy issues. The legislation is written in a way that an energy utility may establish a low-income assistance program consistent with the demand-side management rules of the Kentucky Public Service Commission. This means that the new law will not apply to either municipal utilities nor to electric cooperatives that receive wholesale power from the Tennessee Valley Authority, since neither of these have rates or service rules regulated by the PSC. But for all other energy utilities the option now exists to establish a program where customers can make payments into a fund that, in turn, can be used to assist those with low incomes.

Under this program, utility customers could voluntarily make small monthly contributions when paying their electric bill in the amount of maybe 25 to 50 cents per meter. With good participation, this could generate as much as $15 to $20 million per year. The amount obtained depends entirely on the degree of success utilities experience with customers desiring to participate in such a program. Some utilities envision a program where all customers would originally be included at the start of the program, but would then be given the option, through maybe a phone call or written note, to exclude themselves from further participation. Many are hopeful that these programs will be available for implementation toward the end of 2001. 

Monies collected from these types of programs would simply be used to supplement federal appropriations of the Low-Income Heating Energy Assistance Program (LIHEAP). Some utilities, like Louisville Gas and Electric, are thinking toward a program that would cover the needs of low-income people for both winter heating and summer cooling bills. Other utilities are more likely to have financial assistance programs limited to winter heating months (November through April) where customer energy needs are more predominant.

Soaring natural gas prices and increased consumption during the record-breaking cold months of November and December 2000 helped spawn legislation of this sort. Although the weather moderated in early 2001, the high bills for November and December were just beginning to arrive around the first of the year.  

Other Legislation Left On The Table
Revision of workers' compensation provisions and solid waste collection - some of Governor Patton’s most desired legislation - did not become law. And, a third area - tax reform - is expected to seriously be considered during the 2002 regular session. Lots of other areas fell short of final approval this legislative session, several of which will probably resurface in 2002. 

There is some discussion that Governor Patton may call a special session prior to 2002 focusing primarily on workers' compensation and environmental issues. Time will tell how likely this prospect is.

Kentucky Association of Electric Cooperatives, Inc. 4515 Bishop Lane * Louisville, KY  40218 502-451-2430 * FAX: 502-459-3209 Terms of Use