An information resource for the Commonwealth of Kentucky

Policy tracker

What actually protects Kentucky ratepayers.

Announcements, pledges and executive orders all move the conversation. Only a few of them change what a utility may charge. This page separates the two — action by action, with the primary record linked, and with the limits of each stated plainly.

How to read this page

A commitment is not a protection until it is written into an approved tariff or contract

That single test explains most of the distance between what gets said about data centers and what a household can rely on. A pledge signed in Washington and an order signed in Frankfort both matter — but the enforceable protection for a Kentucky bill lives in a Public Service Commission case file.

Binding

Approved tariffs, special contracts and Commission orders. These set what customers are charged and what a developer must pay or post.

Directive

Executive orders and agency proceedings. They shape how regulators review a case; they do not themselves set a rate.

Voluntary

Pledges and public commitments. Useful as a stated standard, unenforceable on their own.

The record

Federal, state and utility actions on data center load

StateAugust 6, 2026

Kentucky Executive Order 2026-494 on data center development

Gov. Andy Beshear

Signed and effective August 6, 2026

The Governor's order sets conditions data center developers are expected to meet to build and operate in Kentucky, built around a stated standard that data centers must not raise Kentuckians' electric bills and must pay for the power they consume — including any new generation their load requires.

What it does

  • Directs state energy and utility regulators, including the Kentucky Public Service Commission, to scrutinize data center load requests for ratepayer and environmental impact.
  • Establishes an expectation that a data center demonstrates no detrimental impact on ratepayers before it is served.
  • Requires that data centers pay their fair share of the local and state costs their development creates.
  • Reinforces local governments as decision-makers on siting, rather than shifting those decisions to Frankfort.
  • The Governor's public framing has been explicit: a project that cannot cover 100% of its own energy costs, including new generation, is not welcome in the Commonwealth.

What it does not do

  • An executive order binds the executive branch. It is not a statute, and Republican legislative leaders have publicly questioned how much enforcement power it carries.
  • Rate design and cost allocation remain the Public Service Commission's statutory authority. The order directs attention; the PSC still decides individual cases on the record.
  • Legislators have signaled they intend to revisit data center legislation in the 2027 General Assembly session, which could supersede or codify parts of the order.
  • Read the operative text before relying on specific language. News coverage and summaries paraphrase; the official order register is the authority.
Utility RegulationOctober 30, 2025

EKPC Rate DCP — Kentucky's data center power tariff (Case No. 2025-00140)

East Kentucky Power Cooperative / Kentucky Public Service Commission

Approved by PSC order October 30, 2025; effective for service on or after that date

This is the most concrete ratepayer protection currently on the books in Kentucky. Rate DCP is a mandatory, separate rate classification for very large data center loads in East Kentucky Power Cooperative's territory. Its entire design premise is that the data center — not the co-op's existing members — carries the cost and the risk of serving it.

What it does

  • Applies to eligible data center load of 15 MW or more, with a load factor test; qualifying customers must take service under this tariff rather than an ordinary large-commercial rate.
  • Application fee of $75,000 minimum, rising $1,000 per MW above 15 MW to a $250,000 cap — non-refundable, with the applicant responsible for load study costs beyond the fee.
  • The applicant must demonstrate site control over the land before EKPC will study the request.
  • A Load Study is submitted to PJM to determine interconnection and transmission upgrade costs; those costs are assigned to the requesting customer.
  • Every special contract using Rate DCP must be filed with the Kentucky Public Service Commission for review and approval — the deal is public, not private.
  • Collateral and security requirements sized to the obligation, with capital credits held until the contract ends and available to EKPC on default.
  • A Dedicated Resource Rider governs generation built to serve the load: the customer funds it, funds additional generation if environmental or PJM rule changes cut its output, and funds a sinking fund for decommissioning.
  • Customer-supplied dedicated resources must interconnect to the PJM transmission system and may not be interconnected behind the meter of the data center.
  • Nameplate capacity of any dedicated resource must be sufficient to serve the data center's contractual load plus PJM reserve obligations without detriment to EKPC's non-data-center members.

What it does not do

  • Rate DCP governs EKPC's territory and its owner-member distribution cooperatives. It does not apply to LG&E/KU, Kentucky Power, TVA-served areas or municipal utilities — each has its own structure.
  • The tariff allows EKPC to deviate from its terms for good cause with Commission approval, so an individual contract can differ from the standard sheet. Read the approved contract, not just the tariff.
  • EKPC retains sole discretion over several determinations, including when an application is complete and whether a dedicated resource is adequate.

Primary sources

FederalMarch 4, 2026

Ratepayer Protection Pledge (Presidential Proclamation 11014)

The White House

Voluntary pledge established by proclamation; not a binding rule

The proclamation created a public commitment framework under which hyperscalers, AI companies, utilities and data center developers pledge to build, bring or buy every kilowatt their facilities consume and to cover the full cost of the infrastructure serving them — the stated principle being that households and small businesses should not foot the bill for large-load growth.

What it does

  • Signatories commit to the 'build, bring, or buy' standard: new load arrives with new supply attached.
  • Signatories commit to covering the full infrastructure cost of serving their facilities.
  • The White House reports more than 300 organizations have signed the pledge.
  • Published in the Federal Register, Vol. 91, No. 45, pp. 11439–11440 (March 9, 2026).

What it does not do

  • A pledge is a commitment, not a tariff. It carries no independent enforcement mechanism, and the proclamation does not specify penalties for signatories that fall short.
  • Retail rates in Kentucky are set by the Kentucky Public Service Commission, not by federal proclamation. A signature on the pledge changes nothing in a Kentucky rate case unless it appears in an approved tariff or contract.
  • For Kentucky residents, the operative question remains local: what did the utility file, and what did the Commission approve?
FederalJune 18, 2026

FERC show cause orders on large-load interconnection (EL26-67-000, et al.)

Federal Energy Regulatory Commission

Open proceedings; compliance filings and final outcomes pending

This is the binding federal piece. FERC issued tailored show cause orders under Section 206 of the Federal Power Act to all six regional grid operators, directing each to demonstrate whether its tariff adequately handles fast interconnection of very large loads and co-located generation — and to reform the tariff if it does not.

What it does

  • Issued to all six FERC-jurisdictional RTOs and ISOs, including PJM, which covers most of eastern and central Kentucky's transmission.
  • Two stated objectives held together: speed-to-power for large loads, and protection of existing ratepayers from absorbing the cost of serving them.
  • Addresses co-located generation — the arrangement at the center of the 'bring your own power' trend.
  • Follows an October 2025 Advance Notice of Proposed Rulemaking from the Secretary of Energy on related large-load reforms.

What it does not do

  • These are open proceedings. Nothing is final until compliance filings are made and FERC acts on them.
  • FERC governs wholesale and transmission matters. Retail rate design for Kentucky customers stays with the Kentucky Public Service Commission.

Primary sources

Utility RegulationOctober 28, 2025

LG&E/KU generation approval and the rejected Mill Creek tariff (Case No. 2025-00045)

Kentucky Public Service Commission

Approved with conditions

The Commission approved roughly $3 billion for Louisville Gas & Electric and Kentucky Utilities to build two 645 MW natural gas units tied to anticipated data center demand — while refusing the special tariff the utilities proposed alongside them and conditioning construction on the load actually materializing.

What it does

  • Certificates granted for two 645 MW natural gas-fired generating units.
  • The proposed special 'Mill Creek' tariff was barred.
  • Construction conditioned on the underlying large-load need materializing rather than being assumed.
  • The Attorney General's Office of Rate Intervention participated and filed a post-hearing brief on behalf of residential customers.

What it does not do

  • Approval of generation is not the same as a decision about who ultimately pays for it; cost recovery is settled in subsequent rate proceedings.
  • Terms differ from EKPC's Rate DCP. Which protections apply to a given project depends entirely on which utility serves the site.

Primary sources

StateApril 12, 2024

House Bill 8 (2024) — sales and use tax exemption for qualified data center projects

Kentucky General Assembly

Enacted as Acts Chapter 166; codified at KRS 139.499

Kentucky's principal data center incentive exempts qualifying data center equipment from state sales and use tax for approved projects. The statute carries reporting and clawback provisions that make the cost of the exemption a matter of public record.

What it does

  • Exempts data center equipment purchased for a qualified data center project from sales and use tax, per KRS 139.499.
  • Requires preliminary and final approval plus a memorandum of agreement with the Cabinet for Economic Development under KRS 154.20-220 to 154.20-229.
  • Requires a certificate of exemption issued by the Department of Revenue.
  • The exemption can be revoked and recovered if the company fails to meet its minimum capital investment commitment within five years of the memorandum of agreement.
  • Since September 1, 2025, approved companies must report annually — project name, county, itemized equipment purchases and tax exempted — with third-party verification.
  • The Department of Revenue must report that data to the Interim Joint Committee on Appropriations and Revenue by November 1 each year, and the reported data is expressly not confidential.

What it does not do

  • A sales tax exemption reduces state revenue on equipment; it does not affect local property tax, which is where most direct local benefit from a data center originates.
  • The exemption applies to approved projects, so the existence of an announced project does not by itself mean the exemption is in place.

Primary sources

The question that decides everything

Which utility serves the site? EKPC's Rate DCP, the LG&E/KU orders, TVA-served territory and municipal systems each operate under different rules. A protection that applies in one county may not exist in the next.