Safeguarding state energy supplies from federal whims Image By Robby Mills My once proud energy producing state of Kentucky is experiencing an energy shortage, despite being home to oil and gas fields and, of course, coal. We have been the heart and soul of energy production in the Midwest and Appalachia for decades. How has this happened? Federal energy policy based on ideology, and a federal government willing to believe that the energy infrastructure that took decades to assemble could be dismantled and reinvented overnight. We have all watched this destruction, which started off slow but has accelerated in recent years as the federal government incentivized retirement of baseload coal-fired generation plants. We now find our constituents receiving notices of blackouts during extreme weather events and our economic development efforts hitting roadblocks because we can no longer guarantee power to industries in certain areas of our state. Faced with these circumstances, how do you respond? Necessary steps In 2023, a small group of concerned, energy-minded leaders within the Kentucky state Senate began working on a plan to protect what was left of our baseload, fossil-fueled power generation. We were shocked when we found out that our current regulated utilities had basically no checks and balances to their decision to retire a fossil-fueled power generation unit. All they had to do was notify the Public Service Commission of the activity and proceed with their closure plans. Given the current need and value of electric power, there needed to be more public thought into these proposed retirements, especially given the federal government’s energy policy and the near 0% chance that these utilities would be able to replace the power generation with a similarly reliable and dispatchable form of power generation. In 2023, the Kentucky General Assembly passed a hard-fought bill (SB4) that gave the Kentucky Public Service Commission the authority to approve or deny the retirement of any electric generating unit owned by a utility. It required the retirement not be the result of any financial incentives or benefits offered by any federal government agency, and it mandated the utility would have to replace the retiring generating unit with new capacity that is Dispatchable. Maintains or improves reliability of the electric transmission grid. Maintains a minimum reserve capacity. Does not harm ratepayers. This legislation has probably saved several fossil-fueled units that otherwise would have been closed due to federal incentives and regulations. An ongoing effort In 2024, we followed up with SB349, which created the Energy Planning & Inventory Commission (EPIC). This advisory board, made up of energy experts, was established to evaluate the retirement requests of the utilities prior to the Public Service Commission’s evaluation. The EPIC Commission was also tasked with helping Kentucky develop an energy policy that will serve our citizens for many years to come. It is still in its beginning stages, but we are excited to see Kentucky begin to develop solid energy policy that is not pulled and pushed by the whims of ideology coming out of Washington D.C. While these last two years have not been fun pushing back on our utilities, it was necessary. And our fight is probably not over, as the need for additional energy increases with the proliferation of data centers, electric vehicles and artificial intelligence. State policymakers across the country must examine how best to preserve current baseload power generation because our states’ needs for power will continue to increase so long as we want to ensure economic security and opportunity. Robby Mills is a Republican state senator representing Kentucky’s 4th Senate District. He serves as the Kentucky Senate Majority Caucus Chair. *The opinions expressed in this column are those of the author and do not necessarily reflect the views of EnergyPlatform.News.
