KRS 278.5464: Provision of broadband service to unserved and underserved

households and businesses -- Facilitation by distribution cooperative.

(1) The General Assembly recognizes and declares:

(a) The provision of broadband service to residential, commercial, and

industrial customers is critical to securing a sound economy and

promoting the general welfare of the Commonwealth; and

(b) Distribution cooperatives are able to access and leverage federal funding

to extend and enhance the availability of broadband service to Kentucky

residents who are currently unserved or underserved.

(2) As used in this section:

(a) "Underserved area" has the same meaning as in KRS 224A.011; and

(b) "Unserved area" has the same meaning as in KRS 224A.011.

(3) Notwithstanding any other statute to the contrary, a distribution cooperative

may facilitate the operation of an affiliate engaged exclusively in the provision

of broadband service to unserved or underserved households and businesses

by:

(a) Constructing and leasing excess capacity on any fiber optic cable for

broadband service which shall not require a certificate of public

convenience and necessity under KRS 278.020; however, the

construction of fiber optic cable used to support the distribution

cooperative's electric distribution system shall require a certificate of

public convenience and necessity under KRS 278.020;

(b) Issuing securities or evidences of indebtedness in an amount not to

exceed twenty-five percent (25%) of the net book value of its assets, the

proceeds of which shall be used for the exclusive purpose of capitalizing

the affiliate; or

(c) Pledging up to twenty-five percent (25%) of the net book value of its

assets as collateral for a loan entered into by the affiliate for the purpose

of providing broadband services.

(4) A distribution cooperative shall comply with the cost allocation requirements of:

(a) KRS 278.2201, 278.2203, 278.2205, 278.2207, 278.2209, and 278.2211;

and

(b) Only KRS 278.2213(1) and (3) with regard to any costs associated with

its facilitation of an affiliate's provision of broadband services.

(5) The commission shall promulgate administrative regulations regarding pole

attachments under the commission's jurisdiction, including those necessary for

the provision of broadband service.

(6) Before broadband services may be offered under this section, a distribution

cooperative shall, by resolution of the board of directors and spread upon its

minutes, have an economic feasibility study conducted. The feasibility study

shall be provided to the commission and made available to distribution

cooperative members upon request.

(7) A distribution cooperative shall not allow the installation or operation of a

broadband system on its electric delivery system by an affiliate or other

broadband operator to diminish the reliability of the electric delivery system.

(8) A distribution cooperative shall not require any person to purchase broadband

services from an affiliate or other broadband operator as a condition of

receiving or continuing to receive electric energy from the distribution

cooperative.

(9) A distribution cooperative shall not disconnect or threaten to disconnect its

electric service to any customer due to the customer's failure to pay for

broadband services provided to the customer by an affiliate or other broadband

operator.

(10) Every distribution cooperative shall conduct an annual audit of compliance with

this section, which shall be provided to the commission and made available to

distribution cooperative members upon request.

(11) The commission shall have no jurisdiction over the creation or operation of an

distribution cooperative's broadband affiliate, except as referred to in

subsection (4) of this section.