KRS 278.508: Exemption of sale of natural gas used as a motor vehicle fuel from

regulation -- Regulation of transportation, distribution, or delivery of natural

gas used as a motor vehicle fuel.

(1) Notwithstanding any other provisions of this chapter, the rates, terms, and

conditions of service for the sale of natural gas to a compressed natural gas fuel

station, retailer, or to any end -user for use as a motor vehicle fuel, shall not be

subject to regulation by the Kentucky Public Service Commission. Any utility

provider of such a nonregulated service shall keep separate records and books of

account adequate to allow the commission to allocate costs and revenues and to

perform other acts that will assist the commission in enforcing this section.

(2) The transportation, distribution, or delivery of natural gas to any compressed natural

gas fuel station, retailer, or any end -user for use as a motor vehicle fuel, shall

continue to be subject to regulation by the Kentucky Public Service Commission.

Upon request by the u tility, the commission shall set flexible rates which provide a

fair opportunity to compete with other motor fuels. Price adjustment pursuant to

these flexible rates are not rate changes for purposes of this chapter.

(3) The sales or transportation transac tions described in this section shall not adversely

affect the regulated utility's cost or costs, or the availability of natural gas to its

utility sales customers.