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In late fall of 2016, in response to a Request for Proposals, the Energy and Environment Cabinet (EEC) submitted an application to participate in the National Governor’s Association Policy Academy on Power Sector Modernization to explore electricity sector trends and analyze the challenges and opportunities presented by a changing energy landscape.

NGA Policy Academies are designed to provide state officials and stakeholders technical assistance and guidance to help evaluate options and formulate recommendations to help states arrive at optimum policy outcomes.

EEC’s intent then and now was not to drive changes within the electricity sector, but rather to help guide the state (state government officials, policymakers, stakeholders) as inevitable changes occur and to ensure the state can position itself to meet abroad range of corporate energy needs. The EEC Team developed the following guiding principles for Kentucky’s participation in the NGA Policy Academy:

• Maintain regulatory compact while allowing for new energy market opportunities.
• Protect low-cost requirements of existing manufacturers & attract new or retain existing businesses that have sustainability goals.
• Optimize resource deployment where beneficial, including at critical facilities.
• Increase awareness and provide transparency in power sector modernization.

Next Steps

The complex and rapidly changing nature of electricity industry trends will require an increasing level of focus from the Public Service Commission (PSC) and the Office of Energy Policy. The agencies are developing plans to effectively align the Energy Office’s ability to offer policy support to the PSC and in turn allow us to communicate with our varied constituent groups. As an outcome of the NGA initiative, we will be planning informational sessions with the PSC. 

The EEC has published a resource guide, Consumer Energy Management and Access Guide, as part of the policy academy initiative. The guide presents options for those utility customers who are seeking pathways to access alternative energy through onsite or offsite electricity generation in Kentucky. As the guide points out, Kentucky’s diverse utility landscape means energy consumers need to understand how to manage and control their energy consumption and that options for alternative energy might vary from utility to utility. 

Much of the focus of the Office of Energy Policy will be on the electricity sector. Our office's work will take a common sense approach that helps our utilities, their customers, and the Public Service Commission navigate this rapidly changing electricity landscape.