State Competitiveness: Kentucky

Kentucky has at least one approved utility green tariff program. Among the state’s five largest utilities by commercial and industrial (C&I) electricity sales, those offering green tariffs account for about 85% of total C&I sales within this top-five group, indicating strong access for large customers.

Kentucky permits municipal ownership of utilities statewide, subject to certain requirements.

Kentucky has a state consumer advocate office that represents ratepayers.

Kentucky's electric utility sector, including distribution utilities, is not highly concentrated. The has a customer concentration (HHI) score of 984, which is below the 1,000 to 1,800 range that signals a moderately concentrated market. This indicates that a substantial number of utilities serve customers across the state.

Kentucky does not have a requirement for competitive solicitations, but about 71% of the state’s customers are in a wholesale market.

Kentucky partially participates in two wholesale markets, Midcontinent Independent System Operator (MISO) and PJM. MISO covers about 11% of the state’s customers and PJM covers about 60% of the state’s electricity customers. Additional parts of the state participate in bilateral trading through the Southeast Energy Exchange Market (SEEM).

Kentucky has a net metering policy requiring net metering for systems up to 30kW and an aggregated capacity limit of 1% of the utility peak load.

Kentucky has statewide interconnection standards for investor-owned utilities, with a maximum size of 30kW for applicability of the rules.

Kentucky does not allow third-party PPAs.

Kentucky does not permit residential electricity customers retail provider choice.

Kentucky does not permit commercial electricity customers retail provider choice.

Kentucky does not have a state policy allowing for CCA.

Electricity generation in Kentucky is provided by a small number of power producers. The state has a generation concentration (HHI) score of 1,621, which is in the 1,000 to 1,800 range that signals a moderately concentrated market, suggesting some but limited competition.

Kentucky partially participates in two wholesale markets (MISO and PJM), with delegated state authority in MISO (about 11% of the state’s customers) and advisory state authority in PJM (about 60% of the state’s electricity customers), a limited level of state authority.

Kentucky partially participates in two wholesale markets (MISO and PJM), with open membership available in MISO (about 11% of the state’s customers) and non-voting participation available in PJM (about 60% of the state’s electricity customers), a limited level of wholesale market state authority.