HB 807

Bill Subjects

Cities Energy Local Government Local Mandate Public Utilities

Abstract

Create a new section of KRS Chapter 96 to require electric utilities that own and operate a municipal electric utility to establish a utility board to administer the functions of the utility; require utility rates, terms of service and customer service to be administered through rules of the board; require rates be fair, just, and reasonable and predicated on the utility cost of service; prohibit commingling of funds between the utility and other local government functions; prohibit the expenditure of utility revenues on any function other than the running of the electric utility; require anyone serving on a utility board to wait one year after serving on the municipal legislative body; require the Public Service Commission to provide technical assistance to municipal electric utilities regarding rate setting and provide training for board members in the same manner as is provided to water district commissioners; amend KRS 42.4588 to link eligibility to funds under the Local Government Economic Development Program to compliance with establishing a board and delinking ratemaking and municipal revenue use from the political arena of the city legislative function; amend KRS 96.170 to require a utility board to set rates for the electric utility; amend KRS 96.200 to prohibit the legislative body of a city from using the revenue from an electric utility for anything other than running the electric utility.