{"data":{"id":"us-ky/krs-278.5085","jurisdiction":"us-ky","citation":"KRS 278.5085","heading":"Presumption of reasonableness of supply contract for natural gas","body":"produced from coal through gasification process.\nIf a gas distribution utility as defined in KRS 278.010(3)(b) enters into a twenty (20) year\nsupply contract with any person for pipelin e quality synthetic natural gas produced from\ncoal through a gasification process, the commission shall find the transaction reasonable\nand shall allow the utility to recover the cost of the synthetic natural gas if:\n(1) The only coal used in the gasificat ion process is coal subject to the tax imposed\nunder KRS 143.020;\n(2) The price per million British thermal units (BTU) is no greater than the long -term\nmarket price derived from the simple average of the Henry Hub monthly futures\nprices for natural gas as reported by the New York Mercantile Exchange (NYMEX)\nfor the sixty (60) months immediately following the effective date of the contract,\nadjusted annually based upon the change in the Annual Consumer Price Index for\nAll Urban Consumers for the Midwest Reg ion as published in April by the United\nStates Department of Labor, Bureau of Labor Statistics, or a suitable Consumer\nPrice Index calculation if this Consumer Price Index is not available. The total price\nadjustment over the life of the contract shall not  exceed one dollar and fifty cents\n($1.50) per million BTU; and\n(3) The utility's aggregate long -term supply contracts for the purchase of synthetic\nnatural gas produced from coal through the gasification process do not exceed\ntwenty five-percent (25%) of the annual system supply requirements of the utility,\nby volume, as measured in thousand cubic foot units (Mcf) at the time the utility\nenters into the contract.","path":["KRS Chapter 278"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=14139","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:30Z","sha256":"783f6cb7713481e1ef26a19322cba4b3e30cea1ae8924b24ae077469e778ab3b","source_id":"us-ky","stale":false,"prev":"us-ky/krs-278.508","next":"us-ky/krs-278.509"},"notice":"GroundRules: Original legal text. Not legal advice."}