Protecting Reliability and Delivering Long-Term Savings

The Eastern Kentucky Energy Savings Act would modernize how the Commonwealth manages existing power plant costs by using a proven financing approach called securitization – that works much like refinancing a home.

By refinancing existing power plant costs at a lower interest rate and spreading them out over time, this legislation will help prevent sudden spikes in electric bills while promoting long-term price stability. This approach will help Eastern Kentuckians save money while supporting a reliable grid for communities across the state.

As energy systems evolve, policymakers must ensure that necessary investments do not shift undue costs onto families, schools, and small businesses. Tools like securitization provide a responsible, market-based solution that keeps electricity affordable while ensuring the lights stay on and local economies continue to grow.

Importantly, this legislation is limited. It applies only to financing associated with out-of-state generating facilities and is designed specifically to reduce the cost of the Mitchell Power Plant without changing the plant’s existing retirement timeline.