Disagreeing with successive rulings on the difficulty by a federal district courtroom, the U.S. Courtroom of Appeals for the Sixth Circuit has imposed a preliminary injunction on a Kentucky regulation that directs the state’s public service fee to subtract out severance taxes on coal when it considers the “reasonableness” of coal-cost bids to be used by state utilities.
The 2021 regulation, Senate Invoice 257, requires the Kentucky Public Service Fee to “consider the reasonableness of gas prices in contracts and competing bids primarily based on the price of the gas much less any coal severance tax imposed by any jurisdiction,” in accordance with the Sixth Circuit resolution, which reverses the U.S. District Courtroom for the Jap District of Kentucky on the injunction situation.
