KRS 96.040: City of the first class or consolidated local government may purchase public

utility plant.

(1) If a city of the first class or a consolidated local government desires to own or

operate a utility being operated under a franchise, and the city or consol idated local

government takes the necessary steps within two (2) years before the expiration of

the franchise, and offers to purchase, at a fair valuation, the plant of the company

which is then rendering the service, the city or consolidated local governm ent shall

be under no obligation to sell, renew, or continue the franchise.

(2) The fair valuation of the plant shall be determined by three (3) persons; one (1) to

be selected by the city or consolidated local government, one (1) to be selected by

the owners of the plant, and the third to be selected by these two (2). The plant shall

be valued as a going concern, but no allowance shall be made for future growth.