KRS 278.190: Procedure when new schedule of rates filed -- Suspension of new rate

schedule -- Burden of proof -- Refunds.

(1) Whenever any utility files with the commission any schedule stating new rates, the

commission may, upon its own motion, or upon complaint as provided in KRS

278.260, and upon reasonable notice, hold a hearing concerning the reasonableness

of the new rates.

(2) Pending the hearing and the decision thereon, and after notice to the utility, the

commission may, at any time before the schedule be comes effective, suspend the

operation of the schedule and defer the use of the rate, charge, classification, or

service, but not for a longer period than five (5) months beyond the time when it

would otherwise go into effect if an historical test period i s used, or longer than six

(6) months if a forward -looking test period is used, pursuant to KRS 278.192; and

after such hearing, either completed before or after the rate, charge, classification, or

service goes into effect, the commission may make those o rders with reference

thereto as it deems proper in the matter. If the proceeding has not been concluded

and an order made at the expiration of five (5) months, or six (6) months, as

appropriate, the utility may place the proposed change of rate, charge, classification,

or service in effect at the end of that period after notifying the commission, in

writing, of its intention so to do. Where increased rates or charges are thus made

effective, the commission may, by order, require the interested utility or ut ilities to

maintain their records in a manner as will enable them, or the commission, or any of

its customers, to determine the amounts to be refunded and to whom due in the

event a refund is ordered, and upon completion of the hearing and decision may, by

further order, require such utility or utilities to refund to the persons in whose behalf

the amounts were paid that portion of the increased rates or charges as by its

decision shall be found unreasonable. Provided, however, if the commission, at any

time, during the suspension period, finds that the company's credit or operations

will be materially impaired or damaged by the failure to permit the rates to become

effective during the period, the commission may, after any hearing or hearings,

permit all or a portion of the rates to become effective under terms and conditions

as the commission may, by order, prescribe.

(3) At any hearing involving the rate or charge sought to be increased, the burden of

proof to show that the increased rate or charge is just and reasonable shall be upon

the utility, and the commission shall give to the hearing and decision of such

questions preference over other questions pending before it and decide the same as

speedily as possible, and in any event not later than ten (10) m onths after the filing

of such schedules.

(4) If the commission, by order, directs any utility to make a refund, as hereinabove

provided, of all or any portion of the increased rates or charges, the utility shall

make the refund within sixty (60) days afte r a final determination of the proceeding

by an order of the court or commission with or without interest in the discretion of

the commission. If the utility fails to make the refund within sixty (60) days after

the final determination, any party entitled to a refund may, after ten (10) days'

written demand, bring an action in any court of competent jurisdiction of this state,

and may recover, in addition to the amount of the refund due, legal interest, court

costs, and reasonable attorney's fees. No such a ction may be maintained unless

instituted within one (1) year after the final determination. Any number of persons

entitled to refunds may join in as plaintiffs in a single action and the court shall

render a judgment severally for each plaintiff as his interest may appear.