KRS 278.040: Public Service Commission operations -- Hearings -- Compensation --

Contracts -- Jurisdiction -- Regulations.

(1) (a) The Public Service Commission shall constitute an independent department of

state government within the meaning of KRS Chapter 1 2 and shall be

administratively attached to the Energy and Environment Cabinet only for

those limited functions and purposes expressly requested by the commission

to be performed by the Energy and Environment Cabinet.

(b) The commission shall have sole dis cretion as to which functions shall be

deemed necessary for its efficient operation.

(c) The commission shall consist of the five (5) commissioners appointed under

KRS 378.038, an executive director appointed under KRS 278.100, and other

agents and employe es as necessary to carry out the commission's obligations

under this chapter.

(2) Notwithstanding any provision of law to the contrary:

(a) The commission shall conduct all procurements necessary for the

performance of its duties in accordance with the pro curement procedures

outlined in KRS Chapter 45A, this chapter, and the administrative regulations

promulgated under this chapter, but the commission shall not be subject to

any provision of KRS Chapter 45A that requires the approval of any Finance

and Administration Cabinet official for the commission to proceed with any

aspect of the procurement process;

(b) Upon approval of the commission, the executive director shall be deemed the

chief purchasing officer for the purposes of conducting procurements for the

commission and shall have all of the authority and responsibility with regard

to the commission's procurements as the secretary of the Finance and

Administration Cabinet has for procurements under KRS Chapter 45A; and

(c) In the bidding and negotiation processes, the executive director, upon

approval of the commission, shall perform his or her own bidding and

procurement in accordance with the procedures established by KRS Chapter

45A.

(3) (a) Except as provided in paragraph (b) of this subsection, in a ny matter to be

decided by the commission, the chair of the commission shall assign three (3)

commissioners to hear and decide the matter. No more than two (2) of the

assigned commissioners shall be of the same political party.

(b) In his or her sole discretion, the chair may assign all five (5) commissioners to

hear and decide a matter before the commission.

(4) (a) Notwithstanding KRS 64.640 or any provision of KRS Chapter 18A to the

contrary, the commission may, in its sole discre tion, identify and determine

the compensation for categories of its professional employees at the amounts

it deems necessary to recruit and retain employees who have the experience,

expertise, and education required to perform their job responsibilities wi th the

commission.

(b) Noncontractual employees of the commission shall otherwise be subject to the

requirements and benefits of KRS Chapter 18A.

(5) The commission may engage hearing officers, consultants, and other persons and

entities on a contractual basis as needed to assist with the performance of the

commission's duties under this chapter and the administrative regulations

promulgated thereunder. The scope of responsibilities and duties held by a hearing

officer shall be established by the commission by rule.

(6) All personal service contracts entered into by the commission shall be subject to

review by the Government Contract Review Committee established by KRS

45A.705.

(7) The commission shall regulate utilities, enforce the provisions of this chap ter and

the rules and administrative regulations promulgated hereunder, and exercise all

powers necessary and incidental thereto. The commission shall be a body corporate,

with power to sue and be sued in its corporate name. The commission may adopt a

seal bearing the name "Public Service Commission of Kentucky," which seal shall

be affixed to all writs and official documents, and to such other instruments as the

commission directs, and all courts shall take judicial note of the seal.

(8) The jurisdiction o f the commission shall extend to all utilities in this state. The

commission shall have exclusive jurisdiction over the regulation of rates and

service of utilities, but with that exception nothing in this chapter is intended to

limit or restrict the police jurisdiction, contract rights or powers of cities or political

subdivisions.

(9) The commission may promulgate in accordance with KRS Chapter 13A reasonable

administrative regulations to implement the provisions of KRS Chapter 278 and

investigate the met hods and practices of utilities to require them to conform to the

laws of this state, and to all reasonable rules, regulations and orders of the

commission not contrary to law.

(10) The commission shall not be subject to reorganization under KRS Chapter 12.