Title XXIV, Public Utilities

charge of 10% of amount billed -- How charge assessed and applied -- Commission without power to affect late payment charge -- Waiver of late payment charge. (1) Any water district or water association formed for the purpose of furnishing water or sewer services to the general pu…

It is hereby declared to be in the public interest that, in order to encourage the orderly development of retail electric service, to avoid wasteful duplication of distribution facilities, to avoid unnecessary encumbering of the landscape of the Commonwealth of Kentucky, to preve…

(1) Except as otherwise provided in this section, the boundaries of the certified territory of each retail electric supplier are hereby set as a line or lines substantially equidistant between its existing distribution lines and the nearest existing distribution lines of any othe…

(1) Except as otherwise provided herein, each retail electric supplier shall have the exclusive right to furnish retail electric service to all electric-consuming facilities located within its certified territory, and shall not furnish, make available, render or extend its retail…

deemed approval. (1) Except as otherwise provided in KRS 278.010 to KRS 278.450, if the commission fails to issue a final order on any application submitted to it by a utility pursuant to KRS 278.018, 278.020, 278.216, 278.218, 278.271, and 278.300 within eight (8) months of the …

provision of utility service or of utility -- Exceptions -- Approval required for acquisition or transfer of ownership -- Public hearing on proposed transmission line -- Limitations upon approval of application to transfer control of utility or to abandon or cease provision of se…

abandonment -- Consolidation of actions -- Powers and duties of receiver -- Temporary receivership -- Commission's discretion to approve or decline to approve applications. (1) If the commission, after notice and hearing, enters an order in which it finds that a utility is abando…

termination from supplier. (1) If a gas, water, electric, or sewer utility receives notice of discontinuance or termination of service from one (1) or more of its suppliers for breach or default under the terms of the service contract or tariff, and the discontinuance or terminat…

of agreement and supporting documents -- Surcharge. (1) The provisions of this section shall apply to any construction project undertaken by a water association, commission, district, or combined water, gas or sewer district formed under KRS Chapter 74 or 273, which is financed i…

When application required by KRS 278.020 is made to the commission for a certificate that public convenience and necessity require the construction of a new electric transmission line of four hundred (400) kilovolts or more, during the thirty (30) days immediately preceding the p…

Service to be adequate -- Utilities prohibited from energizing power to electrical service where seal is not present. (1) Every utility may demand, collect and receive fair, just and reasonable rates for the services rendered or to be rendered by it to any person. (2) Every utili…

publicly-funded entities -- Exception. Any entity receiving public funds from the Commonwealth of Kentucky, or any political subdivision thereof, for the purpose of offsetting at least fifty percent (50%) of its operational expenses shall not be entitled to preferential retail ra…

Limitations. (1) The Public Service Commission shall consist of five (5) members appointed by the Governor as follows: (a) Two (2) shall be licensed attorneys who have actively practiced law in the Commonwealth for at least seven (7) years; and (b) Three (3) shall have education …

Contracts -- Jurisdiction -- Regulations. (1) (a) The Public Service Commission shall constitute an independent department of state government within the meaning of KRS Chapter 12 and shall be administratively attached to the Energy and Environment Cabinet only for those limited …

Electrical Safety Code. (1) For the purposes of this section, "NESC" means the National Electrical Safety Code as published by the Institute of Electrical and Electronics Engineers, Inc. (2) Except as otherwise provided by law, the commission shall, in enforcing service adequacy …

(1) Each commissioner shall be a resident and qualified voter of this state, not less than twenty-five (25) years of age at the time of his or her appointment and qualification, and shall have resided in this state for at least three (3) years prior to his or her appointment and …

(1) The Governor may remove any commissioner for cause, after giving him or her a copy of the charges against him or her and an opportunity of being publicly heard in person or by counsel in his or her own defense upon not less than ten (10) days' notice. (2) If a commissioner is…

commissioners or by hearing examiners. A majority of the commissioners shall constitute a quorum for the transaction of any business, for the performance of any duty, or for the exercise of any power of the commission. No vacancy in the commission shall impair the right of the re…

(1) The principal office of the commission shall be located at the state capital, and it shall be kept open during the usual business hours. (2) The commission shall hold meetings at its principal office and at such other convenient places in the state as are expedient or necessa…

(1) The commission shall have the sole authority to appoint an executive director, by a majority vote of the members of the commission and subject to confirmation by the Senate pursuant to KRS 11.160, who shall hold office at the pleasure of the commission and shall devote his or…

persons filed in the record -- Testimony. (1) The commission acting through the executive director may employ such clerks, stenographers, rate experts, agents, special agents, engineers, accountants, auditors, inspectors, lawyers, hearing examiners, experts and other classified s…

The commission shall establish the internal organization of its offices and shall divide the commission into such offices or divisions as the commission may deem necessary to perform the functions, powers and duties of the commission, subject to the provisions of KRS Chapter 12.

employees. (1) Notwithstanding KRS 64.640 or any provision of KRS Chapter 18A to the contrary, the executive director of the commission shall be paid a salary to be fixed solely by the commission. (2) The commissioners, the executive director, and employees of the commission are …

(1) For the purpose of maintaining the commission, including the payment of salaries and all other expenses, and the cost of regulation of the utilities subject to its jurisdiction, the Department of Revenue shall each year assess the utilities in proportion to their earnings or …

To ascertain the amount of the assessment provided for in KRS 278.130, each utility shall, on or before March 31 of each year, file with the commission a report of its gross earnings or receipts derived from intrastate business for the preceding calendar year.

Administration of funds collected. (1) The commission shall, on or before June 1, certify to the Department of Revenue and the Finance and Administration Cabinet the amount of intrastate business of each utility in the state subject to its jurisdiction during the previous calenda…

service -- Adherence to schedules -- Exclusion from disclosure of confidential or proprietary provisions in special contracts. (1) Under rules prescribed by the commission, each utility shall file with the commission, within such time and in such form as the commission designates…

(1) No utility shall, as to rates or service, give any unreasonable preference or advantage to any person or subject any person to any unreasonable prejudice or disadvantage, or establish or maintain any unreasonable difference between localities or between classes of service for…

Every utility which serves a volunteer fire department or other entity eligible for aid under KRS 95A.262, shall supply such service at the lowest rate available under its tariffs to customers with comparable consumption amounts, including residential or farm rates.

(1) Except as provided in subsection (2) of this section, no change shall be made by any utility in any rate except upon thirty (30) days' notice to the commission, stating plainly the changes proposed to be made and the time when the changed rates will go into effect. However, t…

for coal combustion wastes and by-products -- Environmental compliance plan, review and adjustment. (1) Notwithstanding any other provision of this chapter, effective January 1, 1993, a utility shall be entitled to the current recovery of its costs of complying with the Federal C…

schedule -- Burden of proof -- Refunds. (1) Whenever any utility files with the commission any schedule stating new rates, the commission may, upon its own motion, or upon complaint as provided in KRS 278.260, and upon reasonable notice, hold a hearing concerning the reasonablene…

(1) For the purpose of justifying the reasonableness of a proposed general increase in rates, the commission shall allow a utility to utilize either an historical test period of twelve (12) consecutive calendar months, or a forward-looking test period corresponding to the first t…

city. The commission may, under the provisions of this chapter, originate, establish, change, promulgate and enforce any rate or service standard of any utility that has been or may be fixed by any contract, franchise or agreement between the utility and any city, and all rights,…

(1) The commission may provide instruments for, and carry on, the examination and testing of any meter or appliance used to measure the product or service of any utility, and the examination and testing of any instrument used by a utility to test the accuracy of any meter or appl…

generating facility -- Costs of upgrading existing grid. (1) No utility shall begin the construction or installation of any property, equipment, or facility to establish an electrical interconnection with a merchant electric generating facility in excess of ten megawatts (10MW) u…

cooperative. When a utility or generation and transmission cooperative engaged in the transmission of electricity experiences on its transmission facilities an emergency or other event that necessitates a curtailment or interruption of service, the utility or generation and trans…

on application. (1) Except for a utility as defined under KRS 278.010(9) that has been granted a certificate of public convenience and necessity prior to April 15, 2002, no utility shall begin the construction of a facility for the generation of electricity capable of generating …

owned by utility. (1) No person shall acquire or transfer ownership of or control, or the right to control, any assets that are owned by a utility as defined under KRS 278.010(3)(a) without prior approval of the commission, if the assets have an original book value of one million…

The commission may establish a system of accounts to be kept by utilities subject to its jurisdiction, or may classify utilities and establish a system of accounts for each class, and may prescribe the manner in which such accounts shall be kept. The system established shall conf…

accounting. A utility shall not subsidize a nonregulated activity provided by an affiliate or by the utility itself. The commission shall require all utilities providing nonregulated activities, either directly or through an affiliate, to keep separate accounts and allocate costs…

(1) A utility that engages in a nonregulated activity shall identify all costs of the nonregulated activity and report the costs in accordance with the guidelines in the USoA and the cost allocation methods described in subsection (2) of this section. (2) In allocating costs betw…

Maintenance. (1) Any utility that engages in a nonregulated activity whose revenue exceeds the amount provided for incidental nonregulated activities under KRS 278.2203(4)(a), shall develop and maintain a CAM as described in subsections (2) to (5) of this section. (2) A CAM shall…

Request for deviation. (1) The terms for transactions between a utility and its affiliates shall be in accordance with the following: (a) Services and products provided to an affiliate by the utility pursuant to a tariff shall be at the tariffed rate, with nontariffed items price…

In any formal commission proceeding in which cost allocation is at issue, a utility shall provide sufficient information to document that its cost allocation procedures and affiliate transaction pricing are consistent with the provisions of this chapter.

Disallowance of costs -- Audit. (1) If the commission finds that a utility has not complied with any provision of this chapter for any transaction between a utility and its affiliate, or if a utility has failed to provide sufficient evidence of its compliance, then the commission…