Kentucky lawmakers align with Beshear on protecting residents from data center energy costs
Kentucky Governor Andy Beshear issued an executive order requiring data centers to submit energy plans and preventing utility companies from raising rates due to data center costs. State lawmakers, including Representative Adam Moore, support these protections but emphasize the need to codify them into state law. There is also a call to include environmental protections in future legislation regarding data centers.
Kentucky Governor Andy Beshear recently issued an executive order aimed at safeguarding residents from potential energy cost increases due to data center operations. The order mandates that data center companies submit an initial energy plan demonstrating that their facilities will not elevate electric bills for nearby homes and businesses. Additionally, it directs the Kentucky Public Service Commission (KPSC) to prevent utility companies from approving rate increases designed to recover costs associated with data centers.
State Representative Adam Moore, who previously introduced legislation on this issue, expressed support for the governor's order, stating it reflects public sentiment. However, Moore emphasized the critical need to "enshrine it into law," arguing that the current executive order's language is insufficient for regulators like the KPSC to effectively implement protections.
Moore highlighted a bipartisan consensus on ratepayer protection, noting that Senate President Robert Stivers agrees on preventing electric bill hikes for Kentuckians. Moore hopes the Kentucky General Assembly will pass a comprehensive framework next year. He also voiced concern that future legislation might overlook environmental protections, which were part of the governor's order, stressing the significant environmental issues associated with data centers.