Powerful Kentucky Lawmaker Pushes for Exemption on Proposed Gas Pipeline

Rep. Jason Petrie seeks to bypass state utility regulation for $120-150 million project aimed at boosting economic development

Apr. 1, 2026 at 2:11am

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A powerful Republican state lawmaker in Kentucky is seeking to exempt a proposed 53-mile natural gas pipeline project from oversight by the state's Public Service Commission. Rep. Jason Petrie, who chairs the House Appropriations and Revenue Committee, says the Pennyrile Regional Energy Agency (PREA) pipeline would be 'a major artery for economic development' in his home region of Western Kentucky. However, the PSC argues that without its regulation, there would be no clear consumer protections for customers outside the two small towns that created PREA.

Why it matters

This case highlights the tension between economic development goals and consumer protection concerns when it comes to utility infrastructure projects. The pipeline is positioned as a boon for the region, but the lack of PSC oversight raises questions about who would be responsible for issues like service quality and rates for customers not living in the two towns that formed PREA.

The details

PREA, created by the Todd County cities of Guthrie and Trenton, is seeking to build the 53-mile natural gas pipeline across five counties in Western Kentucky. The project has received $30 million in state funding secured by Petrie, but is facing a legal dispute with the PSC over whether the agency needs the commission's approval. Petrie has introduced legislation that would exempt PREA from PSC regulation, which the commission argues would leave customers without key protections.

  • In 2022, PREA received a $30 million state budget appropriation.
  • PREA cited 'unforeseen delays' in a lawsuit last year and had planned to have the pipeline in service by early 2026.
  • Petrie amended Senate Bill 8 in the current legislative session to exempt PREA from PSC regulation.

The players

Rep. Jason Petrie

A Republican state representative from Elkton, Kentucky who chairs the House Appropriations and Revenue Committee and is backing the PREA pipeline project.

Pennyrile Regional Energy Agency (PREA)

A regional energy agency created by the small Kentucky towns of Guthrie and Trenton, which is seeking to build a 53-mile natural gas pipeline across five counties.

Kentucky Public Service Commission (PSC)

The state utility regulatory agency that oversees most Kentucky utilities and is arguing it should have jurisdiction over the PREA pipeline project.

Eston Glover

The chair of PREA's board and the former CEO of the Pennyrile Rural Electric Cooperative.

Gov. Andy Beshear

The Democratic governor of Kentucky who has not publicly commented on whether PREA should be exempt from PSC regulation.

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What they’re saying

“You're talking about a major artery for economic development. There are several businesses that can benefit from it. You've got a commerce park over in Christian County that could benefit from it.”

— Rep. Jason Petrie, State Representative, House Appropriations and Revenue Committee Chair

“Without those protections, PREA could do pretty much whatever it wanted to do.”

— John Park, Attorney, Kentucky Public Service Commission

“I think there are outstanding questions of absent PSC jurisdiction: what is the governance and what is the protection of prospective customers look like?”

— Kent Chandler, Former Chair, Kentucky Public Service Commission

What’s next

The Franklin Circuit Court judge is expected to rule soon on whether PREA needs PSC approval to move forward with the pipeline project. Meanwhile, Petrie's legislation to exempt PREA from PSC regulation is awaiting a vote in the state House.

The takeaway

This case highlights the ongoing debate over balancing economic development goals with consumer protection concerns when it comes to utility infrastructure projects. The outcome could set an important precedent for how regional energy agencies are regulated in Kentucky, with implications for both businesses and residential customers in the affected areas.