KRS 278.018: Right to serve certified territory.

(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 electric service to a consumer for use in electric -consuming

facilities located within the certified territory of another retail electric supplier;

provided that any retail electric supplier may extend its facilities through the

certified territory of another retail electric supplier, if such extension is necessary

for such supplier to connect any of its facilities or to serve its consumers within its

own certified territory. In the event that a new electric -consuming facility should

locate in two (2) or more adjacent certified territories, the commission shall

determine which retail electric supplier shall serve said facility based on criteria in

KRS 278.017(3).

(2) Except as provided in subsections (3) and (5) of this section, any new electric-

consuming facility located in an area which has not as yet been included in a map

issued by the commission, pursuant to KRS 278.017(2), or certified, pursuant to

KRS 278.017(4), shall be furnished retail electric service by the retail electric

supplier which has an existing distribution line in closer proximity to such electric -

consuming facility than is the nearest existing distribution line of any other retail

electric supplier. Any disputes under this subsection shall be resolved by the

commission.

(3) The commission may, after a hearing had upon due notice, make such findings as

may be supported by proof as to whether any retail electric supplier operating in a

certified territory is rendering or proposes to render adequate service to an electri c-

consuming facility and in the event the commission finds that such retail electric

supplier is not rendering or does not propose to render adequate service, the

commission may enter an order specifying in what particulars such retail electric

supplier has failed to render or propose to render adequate service and order that

such failure be corrected within a reasonable time, such time to be fixed in such

order. If the retail electric supplier so ordered to correct such failure fails to comply

with such or der, the commission may authorize another retail electric supplier to

furnish retail electric service to such facility.

(4) Except as provided in subsection (3) of this section, no retail electric supplier shall

furnish, make available, render or extend re tail electric service to any electric -

consuming facility to which such service is being lawfully furnished by another

retail electric supplier on June 16, 1972, or to which retail electric service is

lawfully commenced thereafter in accordance with this se ction by another retail

electric supplier.

(5) The provisions of KRS 278.016 to 278.020 shall not preclude any retail electric

supplier from extending its service after June 16, 1972, to property and facilities

owned and operated by said retail electric supplier.

(6) Notwithstanding the effectuation of certified territories established by or pursuant to

KRS 278.016 to 278.020, and the exclusive right to service within such territory, a

retail electric supplier may contract with another retail electric suppl ier for the

purpose of allocating territories and consumers between such retail electric

suppliers and designating which territories and consumers are to be served by which

of said retail electric suppliers. Notwithstanding any other provisions of law, a

contract between retail electric suppliers as herein provided when approved by the

commission shall be valid and enforceable. The commission shall approve such a

contract if it finds that the contract will promote the purposes of KRS 278.016 and

will provid e adequate and reasonable service to all areas and consumers affected

thereby.