{"data":{"id":"us-ky/krs-278.183","jurisdiction":"us-ky","citation":"KRS 278.183","heading":"Surcharge to recover costs of compliance with environmental requirements","body":"for coal combustion wastes and by -products -- Environmental compliance\nplan, review and adjustment.\n(1) Notwithstanding any other provision of this chapter, effective Janu ary 1, 1993, a\nutility shall be entitled to the current recovery of its costs of complying with the\nFederal Clean Air Act as amended and those federal, state, or local environmental\nrequirements which apply to coal combustion wastes and by-products from facilities\nutilized for production of energy from coal in accordance with the utility's\ncompliance plan as designated in subsection (2) of this section. These costs shall\ninclude a reasonable return on construction and other capital expenditures and\nreasonable operating expenses for any plant, equipment, property, facility, or other\naction to be used to comply with applicable environmental requirements set forth in\nthis section. Operating expenses include all costs of operating and maintaining\nenvironmental f acilities, income taxes, property taxes, other applicable taxes, and\ndepreciation expenses as these expenses relate to compliance with the\nenvironmental requirements set forth in this section.\n(2) Recovery of costs pursuant to subsection (1) of this sectio n that are not already\nincluded in existing rates shall be by environmental surcharge to existing rates\nimposed as a positive or negative adjustment to customer bills in the second month\nfollowing the month in which costs are incurred. Each utility, before  initially\nimposing an environmental surcharge pursuant to this subsection, shall thirty (30)\ndays in advance file a notice of intent to file said plan and subsequently submit to\nthe commission a plan, including any application required by KRS 278.020(1), for\ncomplying with the applicable environmental requirements set forth in subsection\n(1) of this section. The plan shall include the utility's testimony concerning a\nreasonable return on compliance -related capital expenditures and a tariff addition\ncontaining the terms and conditions of a proposed surcharge as applied to individual\nrate classes. Within six (6) months of submittal, the commission shall conduct a\nhearing upon the request of a party, and shall, regardless of whether or not a hearing\nis requested:\n(a) Consider and approve the plan and rate surcharge if the commission finds the\nplan and rate surcharge reasonable and cost -effective for compliance with the\napplicable environmental requirements set forth in subsection (1) of this\nsection;\n(b) Establish a reasonable return on compliance-related capital expenditures; and\n(c) Approve the application of the surcharge.\n(3) The amount of the monthly environmental surcharge shall be filed with the\ncommission ten (10) days before it is scheduled to go into e ffect, along with\nsupporting data to justify the amount of the surcharge which shall include data and\ninformation as may be required by the commission. At six (6) month intervals, the\ncommission shall review past operations of the environmental surcharge o f each\nutility, and after hearing, as ordered, shall, by temporary adjustment in the\nsurcharge, disallow any surcharge amounts found not just and reasonable and\nreconcile past surcharges with actual costs recoverable pursuant to subsection (1) of\nthis sect ion. Every two (2) years the commission shall review and evaluate past\noperation of the surcharge, and after hearing, as ordered, shall disallow improper\nexpenses, and to the extent appropriate, incorporate surcharge amounts found just\nand reasonable into the existing base rates of each utility.\n(4) The commission may employ competent, qualified independent consultants to assist\nthe commission in its review of the utility's plan of compliance as specified in\nsubsection (2) of this section. The cost of any c onsultant shall be included in the\nsurcharge approved by the commission.\n(5) The commission shall retain all jurisdiction granted by this section and KRS\n278.020 to review the environmental surcharge authorized by this section and any\ncomplaints as to the amount of any environmental surcharge or the incorporation of\nany environmental surcharge into the existing base rate of any utility.","path":["KRS Chapter 278"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=48757","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:29Z","sha256":"53026361c7020ffeca8bd8b1a5a8e9199bab09a5f1c85596921084c1778fe435","source_id":"us-ky","stale":false,"prev":"us-ky/krs-278.180","next":"us-ky/krs-278.185"},"notice":"GroundRules: Original legal text. Not legal advice."}