KRS 96.5375: Rights of city owning or operating natural gas system to sell natural gas

within and without city boundaries -- Municipal interlocal gas utility --

Limitations -- Prohibitions -- Definitions.

(1) Subject to the limitations of subsection (4) of this section and KRS 96.045 and

96.538, any city that owns and operates a municipal system for the acquisition,

distribution, or transmission of natural gas may extend the system or construct a

new system as authorized in KRS 96.170 and 96.542, to furn ish and sell natural gas

to any person or entity within the boundaries of the city or within any territory

outside of the city's boundaries. Municipal interlocal gas utilities shall have the

same authority to extend existing natural gas systems or construc t new systems to

furnish and sell natural gas in territory inside or outside of their constituent cities'

boundaries. In exercising the authority provided by this subsection, the city may

install the necessary apparatus to provide natural gas distribution or transmission

service and may also condemn or otherwise acquire rights -of-way as private

utilities may do. The provisions of this subsection shall apply to all cities of this

Commonwealth transporting or distributing natural gas as well as any board,

commission, or agency thereof.

(2) A city, other than a city of the first class or a consolidated local government, may

acquire the entire plant of an existing natural gas distribution system only under the

same process and subject to the same limitations est ablished by KRS 96.580,

96.590, and 96.600.

(3) No property owned or operated by an existing natural gas distribution system

located within the Commonwealth may be condemned by a city from another state.

(4) A natural gas utility, which, for purposes of th is subsection, means a public, private

or municipally owned gas utility distributing or transporting natural gas to

customers within this Commonwealth, shall not:

(a) Extend its system for the purposes of furnishing or selling natural gas to any

person or entity that is currently being served by another natural gas utility; or

(b) Extend its system to furnish or sell natural gas to any person or entity when

there is another natural gas utility in closer proximity to the person or entity to

be served, unless the natural gas utility in closer proximity has declined to

provide service.

(5) The provisions of subsection (4) of this section shall only apply to extension of

service issues between a municipally owned natural gas utility servicing customers

located outside its municipal boundaries and a private or investor-owned natural gas

utility. The term "municipally owned" shall include systems distributing or

transporting natural gas that are owned by a city from another state.

(6) As used in this section, "muni cipal interlocal gas utility" has the same meaning as

in KRS 65.230.