{"data":{"id":"us-ky/krs-278.274","jurisdiction":"us-ky","citation":"KRS 278.274","heading":"Review of natural gas utility's purchasing practices in determining","body":"reasonableness of proposed rates -- Reduction of rates by commission.\n(1) In determining whether proposed natural gas utility rates are just and reasonable, the\ncommission shall review the utility's gas purchasing practices. The commission may\ndisallow any costs or rates which are deemed to result from imprudent purchasing\npractices on the part of the utility.\n(2) When proposing new rates, the utility shall be required to prove that th e proposal is\njust and reasonable in accordance with the requirements of this section.\n(3) It shall be presumed that natural gas purchases from affiliated companies are not\nconducted at arm's length.\n(a) For purposes of this subsection, affiliated companie s shall be defined as those\nin which one (1) or more of the owners control or have the right to control the\nbusiness affairs of all affected companies.\n(b) In instances in which a utility purchases natural gas from an intrastate affiliate,\nthe commission s hall assume jurisdiction of the affiliated company as though\nit were a utility as defined in KRS 278.010. The commission's jurisdiction\nshall extend to that extent necessary to ensure that the rates charged the utility\nand ultimately to the consumer are just and reasonable.\n(c) If the commission determines that the rates charged by the utility are not just\nand reasonable in that the cost of natural gas purchased from the affiliated\ncompany is unjust or unreasonable, the commission may reduce the purchased\ngas component of the utility's rates by the amount deemed to be unjust or\nunreasonable.\n(d) The commission may also reduce the rate charged by the affiliated company\nby the same amount.","path":["KRS Chapter 278"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=14098","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:30Z","sha256":"876232d9946eb3798666d5329b91fde79237e736bc7d61eee0cdb889d7fb500a","source_id":"us-ky","stale":false,"prev":"us-ky/krs-278.272","next":"us-ky/krs-278.277"},"notice":"GroundRules: Original legal text. Not legal advice."}