The KPSC is responsible for regulating the intrastate rates and services of electricity, natural gas, water and telecommunication utilities. The regulated utilities are required to file rates with the commission and may not change these rates without the commission's approval.

In setting rates, the KPSC considers many factors, such as the cost of fuel to generate electricity, the cost of purchased power, investments in power plants and infrastructure, operational costs, and a fair return on the utility's investments.

The KPSC also has the authority to hear and investigate complaints brought by customers against their utility companies, and can mandate changes or levy fines if it determines that the utility is in violation of regulations.