AN ACT relating to retail electric suppliers.

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AN ACT relating to retail electric suppliers. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 278 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) The General Assembly hereby declares that it shall be the policy of the 5
Commonwealth that all retail electric suppliers subject to the jurisdiction of the 6
commission, except for distribution cooperatives organized under KRS Chapter 7
279, shall procure electric generation capacity sufficient to meet customer 8
demand in a manner that: 9
(a) Uses a competitive and open process; 10
(b) Prioritizes safe, secure, reliable, and resilient electricity service at the lowest 11
possible reasonable cost of forecasted estimates; and 12
(c) Allows for large customers with new load located in the service territory of 13
retail electric suppliers without sufficient electric generation capacity, or 14
with the retail electric supplier's consent, to determine whether they want to 15
take service from comp etitive retail suppliers or the relevant retail electric 16
supplier. 17
(2) Retail electric suppliers subject to this section shall conduct an integrated 18
resource planning process every three (3) years in order to ensure that each retail 19
electric supplier: 20
(a) Meets regulatory policies mandated by this chapter and the rules, and the 21
administrative regulations promulgated thereunder; 22
(b) Engages interested parties in the planning process, provides detailed 23
information about system planning to interested parties, and accounts for 24
information provided by interested parties; 25
(c) Discloses its planning models and methods to interested parties and to the 26
commission; 27
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(d) Accounts for and explains risks and opportunities in its system planning, 1
including those related to fuel costs, technology development, and wholesale 2
markets; 3
(e) Considers third -party and customer -owned supply resources and demand -4
side management resources and programs on a comparable basis with 5
utility-owned resources; and 6
(f) Develops an integrated r esource plan that reflects a scenario -based, least -7
regrets approach and provides the utility with optionality, aligned with the 8
public interest, if actual conditions do not match forecasted expectations. 9
(3) Retail electric suppliers shall maintain adequa te service through owning or 10
contracting for sufficient electric generation capacity to meet, with reasonable 11
reserves, customer demand. 12
(4) Within one hundred twenty (120) days of the effective date of this Act, the 13
commission shall promulgate administra tive regulations in accordance with KRS 14
Chapter 13A requiring retail electric suppliers to file an integrated resource plan 15
with the commission triennially, unless the retail electric supplier is a distribution 16
company with less than ten million dollars ($ 10,000,000) in annual revenue or a 17
distribution cooperative organized under KRS Chapter 279. In lieu of an 18
integrated resource plan, distribution cooperatives organized under KRS Chapter 19
279 and subject to the jurisdiction of the commission shall be presum ed to have 20
met the requirements herein by entering into and maintaining contracts with a 21
generation and transmission cooperative organized under KRS Chapter 279 for 22
all of their energy, capacity, and transmission needs. 23
(5) Integrated resource plans shall include the utility's resource assessment and 24
acquisition plan for providing an adequate and reliable supply of electricity to 25
meet forecasted electricity requirements at the lowest reasonable cost of 26
forecasted estimates. 27
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(6) The commission shall not allo w the retail electric suppliers required to file 1
integrated resource plans under this section to purchase any meaningful capacity 2
or energy for any prolonged period of time from regional transmission 3
organizations or independent system operators to satisfy the requirements of this 4
section. 5
(7) The commission may require generation and transmission cooperatives organized 6
under KRS Chapter 279 to adhere to administrative regulations promulgated by 7
the commission pursuant to this section regarding integrated r esource plans and 8
the use of the all-requirements contracts. 9
SECTION 2. A NEW SECTION OF KRS CHAPTER 278 IS CREATED TO 10
READ AS FOLLOWS: 11
(1) The exclusive privilege conferred to each retail electric supplier to furnish re tail 12
electric service within its certified territory pursuant to Section 6 of this Act shall 13
be a property right of the Commonwealth. 14
(2) In any proceeding on an application filed pursuant to subsection (6) or (7) of 15
Section 7 of this Act regarding the acq uisition, sale, or transfer of control of a 16
retail electric supplier, the commission shall: 17
(a) Consider the amount paid in excess of the retail electric supplier's net book 18
value to represent the value of the privilege conferred by Section 6 of this 19
Act; and 20
(b) Have the authority, in consideration of subsection (13) of Section 7 of this 21
Act to determine what amount of the proposed purchase price in excess of 22
net book value, if any, should be paid to the customers of the retail electric 23
supplier. 24
(3) As th e privilege conferred to retail electric suppliers is a property right of the 25
Commonwealth, the commission may require any excess of net book value 26
proposed to be paid for the sale, acquisition, or transfer of control of the electric 27
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retail supplier to be returned to customers of the retail electric supplier in the 1
form and manner prescribed by the commission. 2
SECTION 3. A NEW SECTION OF KRS CHAPTER 278 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) Beginning on June 30, 2027, and no twithstanding any provision of law to the 5
contrary, prospective customers of retail electric suppliers where the retail electric 6
suppliers that represent additional and incremental electric generating load in 7
excess of fifty (50) megawatts at a single site may choose to obtain retail electric 8
service from an entity other than the retail electric supplier designated by law 9
provided the retail electric supplier: 10
(a) Is not an electric distribution cooperative organized pursuant to KRS 11
Chapter 279; and 12
(b) Does not own sufficient capacity to serve current peak customer demand as 13
of January 1, 2026. 14
(2) With the electric distribution cooperative's written consent, prospective customers 15
located in the service territory of the relevant electric distribution cooper ative that 16
represents additional and incremental load at a single site in excess of fifty (50) 17
megawatts may choose to obtain retail electric service from an entity other than 18
the distribution cooperative retail electric supplier. 19
(3) This designation of t he prospective retail electric service provider by the retail 20
customer shall be made: 21
(a) Only one (1) time; and 22
(b) Prior to obtaining retail electric service for the load in question at the single 23
designated site. 24
(4) The commission shall promulgate admi nistrative regulations in accordance with 25
KRS Chapter 13A effectuating this section. The administrative regulations shall 26
include appropriate cost recovery mechanisms for network direct and shared 27
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expenses incurred because of or on behalf of these new cust omers. The 1
commission shall ensure that customers of relevant retail electric suppliers are 2
indifferent to or benefitted by new customers exercising their choice in retail 3
electric service. 4
Section 4. KRS 278.010 is amended to read as follows: 5
As used in KRS 278.010 to 278.450, 278.541 to 278.544, 278.546 to 278.5462, and 6
278.990, unless the context otherwise requires: 7
(1) "Corporation" includes private, quasipublic, and public corporations, and all boards, 8
agencies, and instrumentalities thereof, associations, joint -stock companies, and 9
business trusts; 10
(2) "Person" includes natural persons, partnerships, corporations, and two (2) or more 11
persons having a joint or common interest; 12
(3) "Utility" mean s any person except a regional wastewater commission established 13
pursuant to KRS 65.8905 and, for purposes of paragraphs (a), (b), (c), (d), and (f) of 14
this subsection, a city, who owns, controls, operates, or manages any facility used 15
or to be used for or in connection with: 16
(a) The generation, production, transmission, or distribution of electricity to or 17
for the public, for compensation, for lights, heat, power, or other uses; 18
(b) The production, manufacture, storage, distribution, sale, or furnishing of 19
natural or manufactured gas, or a mixture of same, to or for the public, for 20
compensation, for light, heat, power, or other uses; 21
(c) The transporting or conveying of gas, crude oil, or other fluid substance by 22
pipeline to or for the public, for compensation; 23
(d) The diverting, developing, pumping, impounding, distributing, or furnishing 24
of water to or for the public, for compensation; 25
(e) The transmission or conveyance over wire, in air, or otherwise, of any 26
message by telephone or telegraph for the public, for compensation; or 27
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(f) The collection, transmission, or treatment of sewage for the public, for 1
compensation, if the facility is a subdivision collection, transmission, or 2
treatment facility plant that is affixed to real property and is located in a 3
county containing a city of the first class or is a sewage collection, 4
transmission, or treatment facility that is affixed to real property, that is 5
located in any other county, and that is not subject to regulation by a 6
metropolitan sewer district or any s anitation district created pursuant to KRS 7
Chapter 220; 8
(4) "Retail electric supplier" means any person, firm, corporation, association, or 9
cooperative corporation, excluding municipal corporations, engaged in the 10
furnishing of retail electric service; 11
(5) "Certified territory" shall mean the areas as certified by and pursuant to KRS 12
278.017; 13
(6) "Existing distribution line" shall mean an electric line which on June 16, 1972, is 14
being or has been substantially used to supply retail electric service and incl udes all 15
lines from the distribution substation to the electric consuming facility but does not 16
include any transmission facilities used primarily to transfer energy in bulk; 17
(7) "Retail electric service" means electric service furnished to a consumer for ultimate 18
consumption, but does not include wholesale electric energy furnished by an 19
electric supplier to another electric supplier for resale; 20
(8) "Electric-consuming facilities" means everything that utilizes electric energy from a 21
central station source; 22
(9) "Generation and transmission cooperative" or "G&T" means a utility formed under 23
KRS Chapter 279 that provides electric generation and transmission services; 24
(10) "Distribution cooperative" means a utility formed under KRS Chapter 279 that 25
provides retail electric service; 26
(11) "Facility" includes all property, means, and instrumentalities owned, operated, 27
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leased, licensed, used, furnished, or supplied for, by, or in connection with the 1
business of any utility; 2
(12) "Rate" means any individual or joint fare, toll, charge, rental, or other compensation 3
for service rendered or to be rendered by any utility, and any rule, regulation, 4
practice, act, requirement, or privilege in any way relating to such fare, toll, charge, 5
rental, or other compensation, and any schedule or tariff or part of a schedule or 6
tariff thereof; 7
(13) "Service" includes any practice or requirement in any way relating to the service of 8
any utility, including the voltage of electricity, the heat units and pressure of gas, 9
the purity, pressure, and quantity of water, and in general the quality, quantity, and 10
pressure of any commodity or product used or to be used for or in connection with 11
the business of any utility, but does not include Voice over Internet Protocol (VoIP) 12
service; 13
(14) "Adequate service" means having sufficient capacity , including generating 14
capacity, to meet the maximum estimated requirements of the customer to be 15
served during the year following the commencement of permanent service and to 16
meet the maximum estimated requirements of other actual customers to be supplied 17
from the same lines or facilities across each[during such] year and to assure such 18
customers of reasonable continuity of service; 19
(15) "Commission" means the Public Service Commission of Kentucky; 20
(16) "Commissioner" means one (1) of the members of the commission; 21
(17) "Demand-side management" means any conservation, load management, or other 22
utility activity intended to influence the level or pattern of customer usage or 23
demand, including home energy assistance programs; 24
(18) "Affiliate" means a person that controls or that is controlled by, or is under common 25
control with, a utility; 26
(19) "Control" means the power to direct the management or policies of a person 27
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through ownership, by contract, or otherwise; 1
(20) "CAM" means a cost allocation manual which is an indexed compilation and 2
documentation of a company's cost allocation policies and related procedures; 3
(21) "Nonregulated activity" means the provision of competitive retail gas or electric 4
services or other products or services over which the commission exerts no 5
regulatory authority; 6
(22) "Nonregulated" means that which is not subject to regulation by the commission; 7
(23) "Regulated activity" means a service provided by a utility or other person, the rates 8
and charges of which are regulated by the commission; 9
(24) "USoA" means uniform system of accounts which is a system of accounts for 10
public utilities established by the FERC and adopted by the commission; 11
(25) "Arm's length" means the standard of conduct under which unrelated parties, each 12
party acting in its own best interest, would negotiate and carry out a particular 13
transaction; 14
(26) "Subsidize" means the recovery of costs or the transfer of value from one (1) class 15
of customer, activity, or business unit that is attributable to another; 16
(27) "Solicit" means to engage in or offer for sale a good or service, either directly or 17
indirectly and irrespective of place or audience; 18
(28) "USDA" means the United States Department of Agriculture; 19
(29) "FERC" means the Federal Energy Regulatory Commission; 20
(30) "SEC" means the Securities and Exchange Commission; 21
(31) "Commercial mobile radio services" has the same meaning as in 47 C.F.R. sec. 20.3 22
and includes the term "wireless" and service provided by any wireless real time two 23
(2) way voice communication device, including radio -telephone communications 24
used in cellular telephone service, personal communications servi ce, and the 25
functional or competitive equivalent of a radio -telephone communications line used 26
in cellular telephone service, a personal communications service, or a network radio 27
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access line;[ and] 1
(32) "Voice over Internet Protocol" or "VoIP" has the sam e meaning as in federal law ; 2
and 3
(33) "Integrated resource plan" means a utility assessment of how to cost effectively 4
meet forecasted demand over a specified future period in a manner that plan 5
provides resource planners with a way of evaluating plausible future resource 6
needs, resource uses, risks, and reliability. 7
Section 5. KRS 278.016 is amended to read as follows: 8
It is hereby declared to be in the public interest that, in order to encourage the orderly 9
development of retail electric service, to avoid wasteful duplication of distribution 10
facilities, to avoid unnecessary encumbering of the landscape of the Commonwealth of 11
Kentucky, to prevent the waste of materials and natural resources, for the public 12
convenience and necessity and to minimize disputes between retail electric suppliers 13
which may result in inconvenience, diminished efficiency and higher costs in serving the 14
consumer, the state be divided into geographical areas, establishing the areas within 15
which each retail electric supplier has the privilege [is] to provide the retail electric 16
service as provided in KRS 278.016 to 278.020 and, except as otherwise provided, no 17
retail electric supplier shall furnish retail electric service in the certified territory of 18
another retail electric supplier. 19
Section 6. KRS 278.018 is amended to read as follows: 20
(1) Except as otherwise provided herein, each retail electric supplier shall have the 21
exclusive privilege[right] to furnish retail e lectric service to all electric -consuming 22
facilities located within its certified territory, and shall not furnish, make available, 23
render or extend its retail electric service to a consumer for use in electric -24
consuming facilities located within the certi fied territory of another retail electric 25
supplier; provided that any retail electric supplier may extend its facilities through 26
the certified territory of another retail electric supplier, if such extension is 27
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necessary for such supplier to connect any of its facilities or to serve its consumers 1
within its own certified territory. In the event that a new electric -consuming facility 2
should locate in two (2) or more adjacent certified territories, the commission shall 3
determine which retail electric supplier shall serve said facility based on criteria in 4
KRS 278.017(3). 5
(2) Except as provided in subsections (3) and (5) of this section, any new electric -6
consuming facility located in an area which has not as yet been included in a map 7
issued by the commission, pursuant to KRS 278.017(2), or certified, pursuant to 8
KRS 278.017(4), shall be furnished retail electric service by the retail electric 9
supplier which has an existing distribution line in closer proximity to such electric -10
consuming facility than is the nea rest existing distribution line of any other retail 11
electric supplier. Any disputes under this subsection shall be resolved by the 12
commission. 13
(3) The commission may, after a hearing had upon due notice, make such findings as 14
may be supported by proof as t o whether any retail electric supplier operating in a 15
certified territory is rendering or proposes to render adequate service to an electric -16
consuming facility and in the event the commission finds that such retail electric 17
supplier is not rendering or doe s not propose to render adequate service, the 18
commission may enter an order specifying in what particulars such retail electric 19
supplier has failed to render or propose to render adequate service and order that 20
such failure be corrected within a reasonable time, such time to be fixed in such 21
order. 22
(4) The commission may, after a hearing had upon due notice, make such findings 23
as may be supported by evidence as to whether any retail electric supplier is not 24
rendering adequate service as a result of having insufficient electric generation 25
capacity to meeting the customer demand in accordance with Section 1 of this 26
Act. If the commission finds that the retail electric supplier is not rendering or 27
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does not propose to render adequate service, the commission may enter an order: 1
(a) Specifying how the retail electric supplier has failed to render or has not 2
proposed to render adequate service; and 3
(b) Requiring the failure be corrected within a reasonable time as determined 4
by the commission and fixed in the order. 5
(5) If, pursuant to subsection (3) or (4) of this section, the retail electric supplier so 6
ordered to correct such failure fails to comply with such order, the commission may 7
authorize another retail electric supplier or competitive retail supplier to f urnish 8
retail electric service to the facilities within the initial retail electric supplier's 9
certified territory necessary to ensure each facility is provided adequate 10
service[such facility]. 11
(6)[(4)] Except as provided in subsection (3) of this section, no retail electric supplier 12
shall furnish, make available, render or extend retail electric service to any electric -13
consuming facility to which such service is being lawfully furnished by another 14
retail electric supplier on June 16, 1972, or to which retail electric service is 15
lawfully commenced thereafter in accordance with this section by another retail 16
electric supplier. 17
(7)[(5)] The provisions of KRS 278.016 to 278.020 shall not preclude any retail 18
electric supplier from extending its service after June 16, 1972, to property and 19
facilities owned and operated by said retail electric supplier. 20
(8)[(6)] Notwithstanding the effectuation of certified territories established by or 21
pursuant to KRS 278.016 to 278.020, and the exclusive right to service within such 22
territory, a retail electric supplier may contract with another retail electric supplier 23
for the purpose of allocating territories and consumers between such retail electric 24
suppliers and designating which territories and consumers are to be served by which 25
of said retail electric suppliers. Notwithstanding any other provisions of law, a 26
contract between retail electric suppliers as herein provided when approved by the 27
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commission shall be valid and en forceable. The commission shall approve such a 1
contract if it finds that the contract will promote the purposes of KRS 278.016 and 2
will provide adequate and reasonable service to all areas and consumers affected 3
thereby. 4
Section 7. KRS 278.020 is amended to read as follows: 5
(1) (a) No person, partnership, public or private corporation, or combination thereof 6
shall commence providing utility service to or for the public or begin the 7
construction of any plant, equipment, property, or facility for furnishing to the 8
public any of the services enumerated in KRS 278.010, except: 9
1. Retail electric suppliers for service connections to electric -consuming 10
facilities located within its certified territory; 11
2. Ordinary extensions of existing systems in the usual course of business; 12
or 13
3. A water district created under KRS Chapter 74 or a water association 14
formed under KRS Chapter 273 that undertakes a waterline extension or 15
improvement project if the water di strict or water association is a Class 16
A or B utility as defined in the uniform system of accounts established 17
by the commission according to KRS 278.220 and: 18
a. The water line extension or improvement project will not cost 19
more than five hundred thousand dollars ($500,000); or 20
b. The water district or water association will not, as a result of the 21
water line extension or improvement project, incur obligations 22
requiring commission approval as required by KRS 278.300. 23
In either case, the water district or water association shall not, as a result 24
of the water line extension or improvement project, increase rates to its 25
customers; 26
until that person has obtained from the Public Service Commission a 27
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certificate that public convenience and necessity require the service or 1
construction. 2
(b) Upon the filing of an application for a certificate, and after any public hearing 3
which the commission may in its discretion conduct for all interested parties, 4
the commission may issue or refuse to issue the certificate, or is sue it in part 5
and refuse it in part, except that the commission shall not refuse or modify an 6
application submitted under KRS 278.023 without consent by the parties to 7
the agreement. 8
(c) The commission, when considering an application for a certificate to construct 9
a base load electric generating facility, may consider the policy of the General 10
Assembly to foster and encourage use of Kentucky coal by electric utilities 11
serving the Commonwealth. 12
(d) The commission, when considering an application for a certificate to construct 13
an electric transmission line, may consider the interstate benefits expected to 14
be achieved by the proposed construction or modification of electric 15
transmission facilities in the Commonwealth. 16
(e) Unless exercised within one (1) year from the grant thereof, exclusive of any 17
delay due to the order of any court or failure to obtain any necessary grant or 18
consent, the authority conferred by the issuance of the certificate of 19
convenience and necessity shall be void, but the beginning of an y new 20
construction or facility in good faith within the time prescribed by the 21
commission and the prosecution thereof with reasonable diligence shall 22
constitute an exercise of authority under the certificate. 23
(2) For the purposes of this section, construct ion of any electric transmission line of 24
one hundred thirty -eight (138) kilovolts or more and of more than five thousand 25
two hundred eighty (5,280) feet in length shall not be considered an ordinary 26
extension of an existing system in the usual course of bu siness and shall require a 27
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certificate of public convenience and necessity. However, ordinary extensions of 1
existing systems in the usual course of business not requiring such a certificate shall 2
include: 3
(a) The replacement or upgrading of any existing electric transmission line; or 4
(b) The relocation of any existing electric transmission line to accommodate 5
construction or expansion of a roadway or other transportation infrastructure; 6
or 7
(c) An electric transmission line that is constructed solely to serv e a single 8
customer and that will pass over no property other than that owned by the 9
customer to be served. 10
(3) Prior to granting a certificate of public convenience and necessity to construct 11
facilities to provide the services set forth in KRS 278.010(3)( f), the commission 12
shall require the applicant to provide a surety bond, or a reasonable guaranty that 13
the applicant shall operate the facilities in a reasonable and reliable manner for a 14
period of at least five (5) years. The surety bond or guaranty shall be in an amount 15
sufficient to ensure the full and faithful performance by the applicant or its 16
successors of the obligations and requirements of this chapter and of all applicable 17
federal and state environmental requirements. However, no surety bond or gu aranty 18
shall be required for an applicant that is a water district or water association or for 19
an applicant that the commission finds has sufficient assets to ensure the continuity 20
of sewage service. 21
(4) No utility shall exercise any right or privilege und er any franchise or permit, after 22
the exercise of that right or privilege has been voluntarily suspended or 23
discontinued for more than one (1) year, without first obtaining from the 24
commission, in the manner provided in subsection (1) of this section, a certificate of 25
convenience and necessity authorizing the exercise of that right or privilege. 26
(5) No utility shall apply for or obtain any franchise, license, or permit from any city or 27
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other governmental agency until it has obtained from the commission, in the 1
manner provided in subsection (1) of this section, a certificate of convenience and 2
necessity showing that there is a demand and need for the service sought to be 3
rendered. 4
(6) No person shall acquire or transfer ownership of, or control, or the right to control, 5
any utility under the jurisdiction of the commission by sale of assets, transfer of 6
stock, or otherwise, or abandon the same, without prior approval by the 7
commission. The commission shall grant its approval if the person acquiring the 8
utility has the financial, technical, and managerial abilities to provide reasonable 9
service. 10
(7) No individual, group, syndicate, general or limited partnership, association, 11
corporation, joint stock company, trust, or other entity (an "acquirer"), whether or 12
not organized under the laws of this state, shall acquire control, either directly or 13
indirectly, of any utility furnishing utility service in this state, without having first 14
obtained the approval of the commission. Any acquisition of control without prior 15
authorization shall be void and of no effect. As used in this subsection, the term 16
"control" means the possession, directly or indirectly, of the power to direct or 17
cause the direction of the management and policies of a utility, whether through the 18
ownership of voting securities, by effecting a change in the composition of the 19
board of directors, by contract or otherwise. Control shall be presumed to exist if 20
any individual or entity, directly or indirectly, owns ten percent (10%) or more of 21
the voting securities of the utility. This presumption may be rebutted by a showing 22
that ownership does not in fact confer control. Application for any approval or 23
authorization shall be made to the commission in writing, verified by oath or 24
affirmation, and be in a form and contain the information as the commission 25
requires. The commission shall approve any proposed acquisition when it finds that 26
the same is to be made in accordance with law, for a proper purpose and is 27
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consistent with the public interest. The commission may make investigation and 1
hold hearings in the matter as it deems necessary, and thereafter may grant any 2
application under this subsection in whole or in part and with modification and 3
upon terms and conditions as it deems necessary or appropriate. The commission 4
shall grant, modify, refuse, or prescribe appropriate terms and conditions with 5
respect to every such application within sixty (60) days after the filing of the 6
application therefor, unless it is necessary, for good cause shown, to continue the 7
application for up to sixty (60) additional days. The order continuing the application 8
shall state fully the facts that make continuance necessary. In the absence of that 9
action within that period of time, any proposed acquisition shall be deemed to be 10
approved. 11
(8) Subsection (7) of this section shall not apply to any acquisition of control of any: 12
(a) Utility which derives a greater percentage of its gross revenue from business 13
in another jurisdiction than from business in this state if the commission 14
determines that the other jurisdiction has statutes or rules which are applicable 15
and are being applied and which afford protection to ratepayers in this state 16
substantially equal to that afforded such ratepayers by subsection (7) of this 17
section; 18
(b) Utility by an acquirer who directly, or indirectly through one (1) or more 19
intermediaries, controls, or is controlled by, or is under common control with, 20
the utility, including any entity created at the direction of such utility for 21
purposes of corporate reorganization; or 22
(c) Utility pursuant to the terms of any indebtedness of the utility, provided the 23
issuance of indebtedness was approved by the commission. 24
(9) In a proceeding on an application filed pursuant to this section, any interested 25
person, including a person over whose property the proposed transmission line will 26
cross, may request intervention, and the commission shall, if requested, conduct a 27
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public he aring in the county in which the transmission line is proposed to be 1
constructed, or, if the transmission line is proposed to be constructed in more than 2
one county, in one of those counties. The commission shall issue its decision no 3
later than ninety (90 ) days after the application is filed, unless the commission 4
extends this period, for good cause, to one hundred twenty (120) days. The 5
commission may utilize the provisions of KRS 278.255(3) if, in the exercise of its 6
discretion, it deems it necessary to hire a competent, qualified and independent firm 7
to assist it in reaching its decision. The issuance by the commission of a certificate 8
that public convenience and necessity require the construction of an electric 9
transmission line shall be deemed to be a determination by the commission that, as 10
of the date of issuance, the construction of the line is a prudent investment. 11
(10) The commission shall not approve any application under subsection (6) or (7) of 12
this section for the transfer of control of a utili ty described in KRS 278.010(3)(f) 13
unless the commission finds, in addition to findings required by those subsections, 14
that the person acquiring the utility has provided evidence of financial integrity to 15
ensure the continuity of sewage service in the event that the acquirer cannot 16
continue to provide service. 17
(11) The commission shall not accept for filing an application requesting authority to 18
abandon facilities that provide services as set forth in KRS 278.010(3)(f) or to cease 19
providing services unless t he applicant has provided written notice of the filing to 20
the following: 21
(a) Kentucky Division of Water; 22
(b) Office of the Attorney General; and 23
(c) The county judge/executive, mayor, health department, planning and zoning 24
commission, and public sewage service provider of each county and each city 25
in which the utility provides utility service. 26
(12) The commission may grant any application requesting authority to abandon 27
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facilities that provide services as set forth in KRS 278.010(3)(f) or to cease 1
providing services upon terms and conditions as the commission deems necessary 2
or appropriate, but not before holding a hearing on the application and no earlier 3
than ninety (90) days from the date of the commission's acceptance of the 4
application for filing, unless the commission finds it necessary for good cause to act 5
upon the application earlier. 6
(13) In a proceeding on an application filed pursuant to subsection (6) or (7) of this 7
section regarding the acquisition, sale, or transfer of control of a retail elect ric 8
supplier, the commission shall have the authority to determine whether public 9
ownership is more beneficial than private ownership, based on which ownership 10
may achieve lower rates or better service. A determination under this subsection 11
may include but not be limited to a review of the price paid for the acquisition, 12
sale, or transfer of control, and the likelihood public ownership would have been 13
possible based on the sale price. For purposes of this section, a retail electric 14
supplier organized under KRS Chapter 279 shall be deemed to have public 15
ownership. 16
(14) If any provision of this section or the application thereof to any person or 17
circumstance is held invalid, the invalidity shall not affect other provisions or 18
applications of this section which can be given effect without the invalid provision 19
or application, and to that end the provisions are declared to be severable. 20
(15) (a) In a proceeding in which a utility seeks a certificate of public convenience 21
and necessity for generation, the commissi on, in making its determination 22
to grant or deny the certificate, may consider the utility's: 23
1. Adherence to Section 1 of this Act; and 24
2. Planning processes generally. 25
(b) While generation and transmission cooperatives organized under KRS 26
Chapter 279 are not subject to the requirements of Section 1 of this Act, the 27
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commission may consider the cooperative's planning processes when 1
making the determination to grant or deny the certificate. 2
Section 8. KRS 278.300 is amended to read as follows: 3
(1) (a) No utility shall issue any securities or evidences of indebtedness, or assume 4
any obligation or liability in respect to the securities or evidences of 5
indebtedness of any other person until it has been authorized so to do by order 6
of the commission. 7
(b) In a proceeding where a utility seeks commission approval for any 8
agreement related to energy or generating capacity pursuant to this section, 9
the commission, in making its determination to grant or deny the request, 10
may consider the retail electric supplier's: 11
1. Adherence to Section 1 of this Act; and 12
2. Planning processes generally. 13
(c) While generation and transmission cooperatives organized under KRS 14
Chapter 279 are not subject to requirements for integrated resource 15
planning in Section 1 of this Act, the commission may consider the 16
cooperative's own resource planning processes when making the 17
determination to grant or deny the certificate. 18
(2) Application for authority to issue or assume securities or evidences of indebt edness 19
shall be made in such form as the commission prescribes. Every such application 20
shall be made under oath, and shall be signed and filed on behalf of the utility by its 21
president, or by a vice president, auditor, comptroller, or other executive offic er 22
having knowledge of the matters set forth and duly designated by the utility. Every 23
such application shall be placed at the head of the docket of the commission and 24
disposed of promptly within sixty (60) days after it is filed with the commission, 25
unless it is necessary for good cause to continue the application for longer time than 26
sixty (60) days, in which case the order making the continuance shall state fully the 27
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facts that make it necessary. 1
(3) The commission shall not approve any issue or assumpti on unless, after 2
investigation of the purposes and uses of the proposed issue and the proceeds 3
thereof, or of the proposed assumption of obligation or liability, the commission 4
finds that the issue or assumption is for some lawful object within the corpora te 5
purposes of the utility, is necessary or appropriate for or consistent with the proper 6
performance by the utility of its service to the public and will not impair its ability 7
to perform that service, and is reasonably necessary and appropriate for such 8
purpose. 9
(4) The commission may grant or deny the application in whole or in part, or may grant 10
it with such modifications and upon such terms and conditions as the commission 11
deems necessary or appropriate. The order of the commission shall specify that t he 12
securities or evidences of indebtedness, or the proceeds thereof, shall be used only 13
for the lawful purposes specified in the application, and both the application of the 14
utility and the order of the commission shall state in general terms the purpose o f 15
the issuance or assumption. 16
(5) A copy of any order made and entered by the commission under this section, duly 17
certified by the executive director of the commission, shall be sufficient evidence 18
for all purposes of full and complete compliance by the ut ility with all procedural 19
and other matters required precedent to the entry of the order. 20
(6) Securities and evidences of indebtedness issued and obligations and liabilities 21
assumed by a utility, for which, under the provisions of this section, the 22
authorization of the commission is required, shall comply with the terms and 23
conditions of the order of authorization entered prior to the issue or assumption, and 24
where the order has been fully complied with the validity of the issue or assumption 25
shall not be affected by a failure to comply with any provision of this section or rule 26
of the commission relating to procedure or other matters preceding the entry of the 27
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order of authorization or order supplemental thereto. 1
(7) The commission may require periodical or special reports from the utility issuing 2
any security or evidence of indebtedness. The report shall show, in such detail as 3
the commission requires, the disposition made of such securities or evidences of 4
indebtedness, and the application of the proceeds thereof. 5
(8) This section does not apply to notes issued by a utility, for proper purposes and not 6
in violation of law, that are payable at periods of not more than two (2) years from 7
the date thereof, or to like not es, payable at a period of not more than two (2) years 8
from date thereof, that are issued to pay or refund in whole or in part any such 9
notes, or to renewals of such notes from time to time, not exceeding in the 10
aggregate six (6) years from the date of the issue of the original notes so renewed or 11
refunded. 12
(9) Nothing in this section implies any guarantee of securities or evidences of 13
indebtedness by the state, or any obligation on the part of the state with respect 14
thereto, and nothing in this section lim its the power of any court having jurisdiction 15
to authorize or cause receiver's certificates or debentures to be issued according to 16
the rules and practice obtaining in receivership proceedings in courts of equity. 17
(10) This section does not apply in any i nstance where the issuance of securities or 18
evidences of indebtedness is subject to the supervision or control of the federal 19
government or any agency thereof, but the commission may appear as a party to 20
any proceeding filed or pending before any federal a gency if the issuance of the 21
securities or evidences of indebtedness will materially affect any utility over which 22
the commission has jurisdiction. 23
(11) This section also does not apply to the issuance of securities or evidence of 24
indebtedness by a utility principally engaged in transportation of gas by pipeline in 25
interstate commerce and subject to the supervision, control or jurisdiction of the 26
federal government or any agency, board or commission thereof. 27