AN ACT relating to public utilities. Create new section of KRS 278.010 to 278.450 to set a residential fixed customer charge to recover no more than fixed capital costs for metering, billing, service connections, and customer service for electric, natural gas, and water utilities; amend KRS 278.010 to define "customer charge"; amend KRS 278.030 to include affordability as a criterion for utility rates and to establish that the policy of the Commonwealth is to require costs to be reasonable and to provide for their recovery; require the Public Service Commission to balance the interests of the utility, investors, and consumer in establishing fair, just, reasonable and affordable rates; amend KRS 278.183 to require that the costs paid through the environmental surcharge and subjected to two year review are subject to apportionment of fixed, direct capital costs for metering, billing, connection, and service; amend KRS 278.190 to allow the commission to examine the determination of costs and apply standards for rates that include affordability and balancing of interests of various parties affected by the rate; amend KRS 278.255 to require a management and operations audit beginning December 31, 2018, and every five years thereafter and to require the results of the audit be made available on the Public Service Commission and each audited utility's Web site; exempt electric distribution cooperatives from the initial and periodic audit requirements; amend KRS 278.260 to require the Public Service Commission to give the Office of the Attorney General's Office of Rate Intervention notice of any investigation into unreasonable or discriminatory rates, measurements or practices by a utility under its jurisdiction.