Kentucky SB 364: AN ACT relating to retail electric suppliers.

Bill Text

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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) Retail  electric  suppliers  shall  maintain  adequate  service  through  owning  or 5 
contracting  for  sufficient  electric  generation  capacity  to  meet,  with  reasonable 6 
reserves, customer demand. 7 
(2) Within  sixty  (60)  days  of  the  effective  date  of  this  Act,  the  commission  shall 8 
promulgate  administrative  regulations  in  accordance  with  KRS  Chapter  13A 9 
requiring  retail  electric  suppliers  to  file  an  integrated  resource  plan  with  the 10 
commission   triennially,   unless   the   retail   electric   supplier   is   a   distribution 11 
company with less than ten million dollars ($10,000,000) in annual revenue or a 12 
distribution cooperative organized under KRS Chapter 279. 13 
(3) Integrated  resource  plans  shall  include  the  utility's  resource  assessment  and 14 
acquisition  plan  for  providing  an  adequate  and  reliable  supply  of  electricity  to 15 
meet  forecasted  electricity  requirements  at  the  lowest  possible  cost  of  forcasted 16 
estimates. 17 
(4) Retail  electric  suppliers  required  to file  integrated  resource  plans  under  this 18 
section   shall   not   purchase   capacity   or   energy   from   regional   transmission 19 
organizations or independent system operators to satisfy the requirements of this 20 
section. 21 
SECTION 2.      A  NEW  SECTION  OF  KRS  CHAPTER  278  IS  CREATED  TO 22 
READ AS FOLLOWS: 23 
(1) The exclusive privilege  conferred to  each retail  electric supplier to furnish retail 24 
electric service within its certified territory pursuant to Section 5 of this Act shall 25 
be a property right of the Commonwealth. 26 
(2) In  any  proceeding  on  an  application  filed  pursuant  to  subsection  (6)  or  (7)  of 27 

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Section  6  of  this  Act  regarding  the  acquisition,  sale,  or  transfer  of  control  of  a 1 
retail electric supplier, the commission shall: 2 
(a) Consider the amount paid in excess of the retail electric supplier's net book 3 
value  to  represent  the  value  of  the  privilege  conferred  by  Section  5  of  this 4 
Act; and 5 
(b) Have  the  authority,  in  consideration  of  subsection  (13)  of  Section  6  of  this 6 
Act  to  determine  what  amount  of  the  proposed  purchase  price  in  excess  of 7 
net book value, if any, should be paid to the customers of the retail electric 8 
supplier. 9 
(3) As  the  privilege  conferred  to  retail  electric  suppliers  is  a  property  right  of  the 10 
Commonwealth,  the  commission  may  require  any  excess  of  net  book  value 11 
proposed to be paid for the sale, acquisition, or transfer of control of the electric 12 
retail supplier to be passed back to customers of the retail electric supplier in the 13 
form and manner prescribed by the commission. 14 
Section 3.   KRS 278.010 is amended to read as follows: 15 
As  used  in  KRS  278.010  to  278.450,  278.541  to  278.544,  278.546  to  278.5462,  and 16 
278.990, unless the context otherwise requires: 17 
(1) "Corporation" includes private, quasipublic, and public corporations, and all boards, 18 
agencies,  and  instrumentalities  thereof,  associations,  joint-stock  companies,  and 19 
business trusts; 20 
(2) "Person"  includes  natural  persons,  partnerships,  corporations,  and  two  (2)  or more 21 
persons having a joint or common interest; 22 
(3) "Utility"  means  any  person  except  a  regional  wastewater  commission  established 23 
pursuant to KRS 65.8905 and, for purposes of paragraphs (a), (b), (c), (d), and (f) of 24 
this  subsection,  a  city,  who  owns,  controls,  operates,  or  manages  any  facility  used 25 
or to be used for or in connection with: 26 
(a) The  generation,  production,  transmission,  or  distribution  of  electricity  to  or 27 

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for the public, for compensation, for lights, heat, power, or other uses; 1 
(b) The  production,  manufacture,  storage,  distribution,  sale,  or  furnishing  of 2 
natural  or  manufactured  gas,  or  a  mixture  of  same,  to  or  for  the  public,  for 3 
compensation, for light, heat, power, or other uses; 4 
(c) The  transporting  or  conveying  of  gas,  crude  oil,  or  other  fluid  substance  by 5 
pipeline to or for the public, for compensation; 6 
(d) The  diverting,  developing,  pumping,  impounding,  distributing,  or  furnishing 7 
of water to or for the public, for compensation; 8 
(e) The  transmission  or  conveyance  over  wire,  in  air,  or otherwise,  of  any 9 
message by telephone or telegraph for the p