KRS 278.460: Utilities to pay interest on deposits required of patrons -- Commission to

calculate interest rate annually -- Interest rates for water districts and water

associations -- Administrative regulations.

(1) Except as provided in subsection (2) of this section, a utility, including an electric

cooperative organized under KRS Chapter 279, shall pay interest on amounts

required to be deposited by patrons to secure utility service. The commission shall

calculate the interest rate on an annual basis by avera ging the one (1) year constant

maturity treasury rate from September, October, and November, and shall notify

utilities in December of each year of the interest rate to be paid by utilities for the

following calendar year.

(2) No water district organized u nder KRS Chapter 74 nor water association organized

under KRS Chapter 273 shall pay interest that exceeds the rate it receives in

interest, nor shall the interest payable to the customer at any time exceed six percent

(6%) annually on amounts required to b e deposited by patrons to secure water

accounts.

(3) The commission may promulgate administrative regulations in accordance with the

provisions of KRS Chapter 13A to implement this section.