{"data":{"id":"us-ky/krs-278.021","jurisdiction":"us-ky","citation":"KRS 278.021","heading":"Receivership for abandoned  utility -- Criteria for finding of","body":"abandonment  -- Consolidation of actions -- Powers and duties of receiver\n-- Temporary  receivership -- Commission's  discretion to approve  or\ndecline to approve applications.\n(1) If the commission, after notice and hearing, enters an order in which it finds\nthat a utility is abandoned, the commission may bring an action in the Franklin\nCircuit Court for an order attaching the assets of the utility and placing those\nassets under the sole control and responsibility of a receiver.\n(2) For purposes of this section, a utility shall be considered abandoned if it:\n(a) Disclaims, renounces, relinquishes, or surrenders all property interests or\nall rights to utility property, real or personal, necessary to provide service;\n(b) Notifies the commission of its intent to abandon the operation of the\nfacilities used to provide service;\n(c) Fails to comply with an order of the commission in which the commission\ndetermined that the utility is not rendering adequate service, specified the\nactions necessary for the utility to render adequate service, and fixed a\nreasonable time for the utility to perform such actions, and the failure of\nthe utility to comply with the order presents a serious and imminent threat\nto the health or safety of a significant portion of its customers; or\n(d) Fails to meet its financial obligations to its suppliers and is unable or\nunwilling to take necessary actions to correct the failure after receiving\nreasonable notice from the commission, and  the failure poses  an\nimminent threat to the continued availability of gas, water, electric, or\nsewer utility service to its customers.\n(3) Within twenty (20) days after commencing  an action in Franklin Circuit Court,\nthe commission shall file a certified copy of the record of the administrative\nproceeding in which the commission entered its finding of abandonment.\n(4) Any  action brought pursuant to KRS  278.410 for review of an order of the\ncommission  containing a  finding that a  utility is abandoned  shall be\nconsolidated with any action brought pursuant to subsection (1) of this section\nand based upon the same order.\n(5) Any receiver appointed by the court shall file a bond in an amount fixed by the\ncourt. The receiver shall operate the utility to preserve its assets, to restore or\nmaintain a reasonable level of service, and to serve the best interests of its\ncustomers.\n(6) During the pendency of any receivership, the receiver may bring or defend any\ncause of action on behalf of the utility and generally perform acts on behalf of\nthe utility as the court may authorize.\n(7) The receiver shall control and manage  the assets and operations of the utility\nuntil the Franklin Circuit Court, after reasonable notice and hearing, orders the\nreceiver to return control of those assets to the utility or to liquidate those\nassets as provided by law.\n(8) (a) Notwithstanding subsection (1) of this section, the commission may\npetition the Franklin Circuit Court to appoint temporarily a receiver to\noperate and manage  the assets of an abandoned utility. After notice to\nthe utility and a hearing, the court may grant a petition, upon terms and\nconditions as it deems appropriate, upon a showing by a preponderance\nof the evidence:\n1. That a utility has been abandoned;\n2. That the abandonment is an immediate threat to the public health,\nsafety, or the continued availability of service to the utility's\ncustomers; and\n3. That the delay required for the commission to conduct a hearing\nwould place the public health, safety, or continued utility service at\nunnecessary risk.\n(b) Sixty (60) days after its entry, the order of temporary receivership shall\nterminate and control and responsibility for the assets and operations of\nthe utility shall revert to the utility without further action of the court unless\nthe commission brings an action under subsection (1) of this section.\n(9) Nothing  contained in this section shall be  construed as  requiring the\ncommission to approve an application made  pursuant to KRS  278.020(6) for\nauthority to abandon a utility or other assets of a utility or to cease the provision\nof utility service.","path":["KRS Chapter 278"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=44841","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:29Z","sha256":"20939faeb095e8b958266beb2589854d54a4f6730d5f2ff29fac3561a8b22404","source_id":"us-ky","stale":false,"prev":"us-ky/krs-278.020","next":"us-ky/krs-278.022"},"notice":"GroundRules: Original legal text. Not legal advice."}