KRS 278.455: Reduction of operating expenses by G&T or distribution cooperative --

Effect on rates -- Authority for administrative regulations.

(1) Notwithstanding any other statute to the contrary, a G&T or distribution cooperative

may at any time decrease regula ted operating revenues by an amount to be

determined solely by the cooperative utility. If the revenue reduction is allocated

among and within the consumer classes on a proportional basis that will result in no

change in the rate design currently in effect , the revised rates and tariffs shall be

authorized and made permanent on the proposed effective date.

(2) Notwithstanding any other statute, any revenue increase authorized by the Public

Service Commission or any revenue decrease authorized in subsection (1) of this

section that is to flow through the effects of an increase or decrease in wholesale

rates may, at the distribution cooperative's discretion, be allocated to each class and

within each tariff on a proportional basis that will result in no change in the rate

design currently in effect. In the event of an increase in the wholesale rates and

tariffs of the wholesale supplier by the Public Service Commission, the rates and

tariffs of the distribution cooperative that have been revised on a proportion al basis

to result in no change in the rate design shall be authorized and shall become

effective on the same date as those of the wholesale supplier. In those cases where

an interim increase in the power supplier's wholesale rates is authorized, the

distribution cooperative's flow through rates shall be interim. The distribution

cooperative's permanent rates and tariffs shall become effective on the date that the

wholesale supplier's permanent rates become effective as ordered by the

commission.

(3) Any ra te increase or decrease as provided for in subsections (1) and (2) of this

section shall not apply to special contracts under which the rates are subject to

change or adjustment only as stipulated in the contract.

(4) The Public Service Commission shall pr omulgate administrative regulations

pursuant to KRS Chapter 13A to establish filing requirements and notice

requirements to the commission, the Attorney General, and the public under this

section.