{"data":{"id":"us-ky/krs-278.2213","jurisdiction":"us-ky","citation":"KRS 278.2213","heading":"Separate recordkeeping for utility and affiliate -- Prohibited business","body":"practices -- Confidentiality of information -- Notice of service available from\ncompetitor.\nThe provisions of this section shall govern a public utility company's activities rela ted to\nthe sharing of information, databases, and resources between its employees or an affiliate\ninvolved in the marketing or the provision of nonregulated activities and its employees or\nan affiliate involved in the provision of regulated activities.\n(1) A utility and its affiliate shall be separate corporate entities and maintain separate\nbooks and records. If a utility and nonregulated affiliate have common officers,\ndirectors, or employees, the fees, compensation, and expenses of the individuals\ninvolved shall be subject to the cost allocation requirements set forth in KRS\n278.2203 and 278.2207. Any utility that provides nonregulated activities shall\nseparately account for all investments, revenues, and expenses in accordance with\nits filed cost allocation manual.\n(2) A utility shall not provide advertising space in its billing envelope to its affiliates or\nfor its nonregulated activities unless it offers the same to competing service\nproviders on the same terms it provides to its affiliates. This subsec tion applies to\nnonregulated activities only.\n(3) A utility shall not attempt to persuade customers to do business with its affiliates by\noffering rebates or discounts on tariffed services.\n(4) All utility company employees engaged in the merchant function  shall abide by all\nstandards promulgated by applicable FERC orders and regulations.\n(5) No utility employee shall share any confidential customer information with the\nutility's affiliates unless the customer has consented in writing, or the information is\npublicly available or is simultaneously made publicly available.\n(6) All dealings between a utility and a nonregulated affiliate shall be at arm's length.\n(7) Employees transferring from the utility to an affiliate shall not disclose to the\naffiliate conf idential information or take with them any competitively sensitive\nmaterials.\n(8) Neither a utility nor its employees or agents shall solicit business on behalf of an\naffiliate or for its nonutility services.\n(9) A utility that carries out any research and  development or joint marketing and\npromotion with its affiliate for its nonregulated activities shall be subject to the cost\nallocation requirements set forth in KRS 278.2203.\n(10) Except as provided in subsection (5) of this section, if a utility is enga ged in a\nnonregulated activity, marketing employees for the nonregulated activity shall not\nhave access to the customer information provided to the utility when the customer\nplaces an order for regulated service.\n(11) A utility shall not provide any type of undue preferential treatment to a nonregulated\naffiliate to the detriment of a competitor.\n(12) A utility shall notify the customer that competing suppliers of a nonregulated\nservice exist if:\n(a) The utility receives a request for a recommendation from a customer seeking a\nspecific service which is offered by the utility's affiliate or by the utility itself;\nand\n(b) The utility mentions itself or its affiliate when making the recommendation to\nthe customer.\n(13) The utility's name, trademark, brand, or logo shall not be used by a nonregulated\naffiliate in any type of visual or audio media without a disclaimer. The commission\nshall develop specifications for the disclaimer. The disclaimer shall be approved by\nthe commission prior to use in any advertisement by the utility's affiliate.\n(14) A utility shall not enter into any arrangements for financing nonregulated activities\nthrough an affiliate that would permit a creditor upon default to have recourse to the\nassets of the utility.\n(15) A utility shall inform the commission of all new nonregulated activities begun by\nitself or by the utility's affiliate within a time to be set by the commission.\n(16) Start-up costs associated with the formation of a nonregulated affi liate shall not be\nincluded in the utility's rate base.\n(17) The commission may require the utility to file annual reports of information related\nto affiliate transactions when necessary to monitor compliance with these\nguidelines.","path":["KRS Chapter 278"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=14087","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:30Z","sha256":"241b3a06e4e93b3809e3c006f30b35045162a64afc4418842ed1b0121636b09b","source_id":"us-ky","stale":false,"prev":"us-ky/krs-278.2211","next":"us-ky/krs-278.2215"},"notice":"GroundRules: Original legal text. Not legal advice."}