KRS 278.287: Voluntary energy cost assistance fund -- Customer contributions -- Time of

and eligibility for disbursements -- Biennial reports -- Administration costs.

(1) As used in this section:

(a) "Voluntary energy cost assistance fund" means a fund that shall:

1. Be administered by a utility or provider for the purpose of receiving

voluntary contributions from customers and disbursing subsidies to

customers;

2. Be administered in coordination with one (1) or more community action

agencies that assist t he Cabinet for Health and Family Services in

administering federal Low -Income Home Energy Assistance Program

(LIHEAP) funding; and

3. Be maintained in trust and separate from any customer assistance

program otherwise implemented by the utility or provider;

(b) "Provider" means any person or persons, excluding an electric power system

owned and operated by a municipality, that provide service to retail customers

and that own, control, operate, or manage any facility used or to be used for or

in connection with any activity described in KRS 278.010(3)(a) or (b) but are

not regulated by KRS Chapter 278; and

(c) "Fund" means a voluntary energy cost assistance fund.

(2) Any utility as defined in KRS 278.010(3)(a) or (b) that provides service to retail

customers and that does not already administer an energy assistance program prior

to July 12, 2006, may establish a fund.

(3) Any provider that does not already administer an energy assistance program prior to

July 12, 2006, may establish a fund.

(4) A customer's voluntary monthly contribution amount to the fund shall be:

(a) An amount equal to the difference of the customer's monthly bill and the

amount of the next highest whole dollar; or

(b) A standard amount not to exceed one dollar ($1).

(5) A customer may make a special contribution to the fund at any time in any amount.

(6) Annual disbursements from the fund may be made in November and December of

each year by the utility or provider upon the recommendation of a community action

agency for the purpose of providing a utility or provider bill subsidy for residential

customers who:

(a) Use electricity or natural or manufactured gas as a principal source of home

energy;

(b) Are responsible for their home heating costs either directly or indirectl y as an

undesignated portion of the rent;

(c) Have a total household income that is at or below the percentage of the federal

poverty guidelines required for eligibility in the subsidy component of

LIHEAP, as specified in the latest federally approved version of the Kentucky

LIHEAP State Plan submitted by the Department for Community Based

Services;

(d) Have liquid monetary resources that do not exceed one thousand five hundred

dollars ($1,500) if those liquid monetary resources are not used for the

medical and living expenses of a household member with a catastrophic

illness;

(e) Have liquid monetary resources that do not exceed four thousand dollars

($4,000) if those liquid monetary resources are used for the medical and living

expenses of a household member with a catastrophic illness; and

(f) Are customers of the utility or provider.

(7) If available, additional disbursements from the fund may be made from January 1

through March 15 of each year by the utility or provider upon the recommendation

of a community action agency for the purpose of providing a utility or provider bill

subsidy for residential customers who:

(a) Use electricity or natural or manufactured gas as a principal source of home

energy;

(b) Are responsible for their home heating costs eit her directly or indirectly as an

undesignated portion of the rent;

(c) Have a total household income that is at or below the percentage of the federal

poverty guidelines required for eligibility in the subsidy component of

LIHEAP, as specified in the latest federally approved version of the Kentucky

LIHEAP State Plan submitted by the Department for Community Based

Services;

(d) Have liquid monetary resources that do not exceed one thousand five hundred

dollars ($1,500) if those liquid monetary resources are not used for the

medical and living expenses of a household member with a catastrophic

illness;

(e) Have liquid monetary resources that do not exceed four thousand dollars

($4,000) if those liquid monetary resources are used for the medical and living

expenses of a household member with a catastrophic illness; and

(f) Are utility or provider customers who:

1. Have received a disconnect notice from the utility or provider;

2. Are within four (4) days of running out of fuel oil, propane, kerosene,

wood, or coal; or

3. Have received an eviction notice for nonpayment of rent, when heat is

included as an undesignated portion of the rent.

(8) If available, additional summer cooling disbursements from the fund may be made

on a one (1) time basis from May through A ugust of each year by the utility or

provider upon the recommendation of a community action agency for the purpose of

providing an air-conditioning unit to residential customers who:

(a) Are responsible for their home heating costs either directly or indir ectly as an

undesignated portion of the rent;

(b) Have a total household income that is at or below the percentage of the federal

poverty guidelines required for eligibility in the subsidy component of

LIHEAP, as specified in the latest federally approved version of the Kentucky

LIHEAP State Plan submitted by the Department for Community Based

Services;

(c) Have liquid monetary resources that do not exceed one thousand five hundred

dollars ($1,500) if those liquid monetary resources are not used for the

medical and living expenses of a household member with a catastrophic

illness;

(d) Have liquid monetary resources that do not exceed four thousand dollars

($4,000) if those liquid monetary resources are used for the medical and living

expenses of a household member with a catastrophic illness;

(e) Are customers of the utility or provider;

(f) Do not have access to an air conditioner; and

(g) Have a household member who:

1. Has a health condition or disability that requires cooling to prevent

further deterioration as verified by a physician's statement;

2. Is sixty-five (65) years of age or older; or

3. Is under the age of six (6).

(9) For the six (6) month period from J anuary 1 to June 30 of each year, each utility or

provider that administers a fund shall provide a detailed report of costs in

administering the fund and a detailed report of receipts to and disbursements from

the fund to the commission no later than July 31, and for the six (6) month period

from July 1 to December 31, no later than January 31 of the following year. Any

balances remaining in the fund at the end of a year shall remain in the fund for use

in succeeding years.

(10) The commission shall require all utilities as defined in KRS 278.010(3)(a) and (b)

that administer a fund and provide service to retail customers in Kentucky to

develop and implement a mechanism for soliciting and receiving contributions to

the fund. The mechanism and format shall be approved by the commission and may

include but shall not be limited to a check -the-box format. Contributions shall be

made as described in subsections (4) and (5) of this section.

(11) Any provider that administers a fund shall comply with the requirement s to

implement a mechanism for soliciting and receiving contributions to the fund as

provided in subsection (10) of this section.

(12) Those utilities and providers that are already administering an energy assistance

program prior to July 12, 2006, shall n ot be subject to subsections (9), (10), and

(11) of this section.

(13) All contributions to the fund shall be voluntary and shall be uniformly assessed

monthly, except in the case of a special contribution, which can be made in any

amount at any time, for all customers of the utility or provider. A customer shall not

be subject to making contributions until such time as his or her intent is submitted

to the applicable utility in a manner prescribed by the commission. A customer who

no longer wishes to contr ibute to the fund shall be exempted from making further

contributions to the fund once his or her intent is submitted to the applicable utility

in a manner prescribed by the commission.

(14) Contributions received by utilities or providers, together with a ny interest accruing

thereon, shall be transferred to the fund immediately upon receipt.

(15) A utility or provider that administers a fund may recover up to three percent (3%) of

each contribution received for its costs in administering the fund. The comm ission

shall allow any additional, reasonable cost a utility incurs in administering the

receipt and disbursement of contributions to the fund in the cost of service of the

utility for ratemaking purposes.