{"data":{"id":"us-ky/krs-278.512","jurisdiction":"us-ky","citation":"KRS 278.512","heading":"Legislative findings -- Exemption of telecommunications product or service","body":"from regulation.\n(1) The legislature finds and determines that:\n(a) Competition and innovation have become commonplace in the provision of\ncertain telecommunications services in Kentucky and the United States;\n(b) Flexibility in the regulation of the rates of providers of telecommunications\nservice is essential to the well-being of this state, its economy, and its citizens;\nand\n(c) The public interest requires that the Public Se rvice Commission be authorized\nand encouraged to formulate and adopt rules and policies that will permit the\ncommission, in the exercise of its expertise, to regulate and control the\nprovision of telecommunications services to the public in a changing\nenvironment, giving due regard to the interests of consumers, the public, the\nproviders of the telecommunications services, and the continued availability\nof good telecommunications service.\n(2) Notwithstanding any other statute to the contrary, the commission  may, on its own\nmotion or upon motion of a telecommunications utility, after notice and opportunity\nfor comment, and hearing if requested, exempt to the extent it deems reasonable,\nservices or products related to telecommunications utilities or persons wh o provide\ntelecommunications services or products from any or all of the provisions of this\nchapter, or may adopt alternative requirements for establishing rates and charges for\nany service by a method other than that which is specified in this chapter, if  the\ncommission finds by clear and satisfactory evidence that it is in the public interest.\nNo exemption shall be granted under this statute which preempts, without notice\nand without hearing, if requested, the existing rights and obligations of a local\nexchange company to serve a territory under a tariff approved by the Public Service\nCommission. Any party which seeks an exemption shall certify to the commission\nat the time of the filing that he has notified the affected local exchange company by\nregistered mail of the filing of a petition for exemption, and of the right of the local\nexchange company to request a hearing within thirty (30) days of the notification.\n(3) In determining public interest, the commission shall consider the following:\n(a) The exte nt to which competing telecommunications services are available\nfrom competitive providers in the relevant market;\n(b) The existing ability and willingness of competitive providers to make\nfunctionally equivalent or substitute services readily available;\n(c) The number and size of competitive providers of service;\n(d) The overall impact of the proposed regulatory change on the continued\navailability of existing services at just and reasonable rates;\n(e) The existence of adequate safeguards to assure that rates for services regulated\npursuant to this chapter do not subsidize exempted services;\n(f) The impact of the proposed regulatory change upon efforts to promote\nuniversal availability of basic telecommunications services at affordable rates\nand upon the ne ed of telecommunications companies subject to the\njurisdiction of the commission to respond to competition;\n(g) Whether the exercise of commission jurisdiction inhibits a regulated utility\nfrom competing with unregulated providers of functionally similar\ntelecommunications services or products;\n(h) The overall impact on customers of a proposed change to streamline\nregulatory treatment of small or nonprofit carriers; and\n(i) Any other factors the commission may determine are in the public interest.\n(4) When the commission exempts a telecommunications product or service from all of\nthe provisions of this chapter, the investment, revenues, and expenses associated\nwith the service or product shall not be considered by the commission in setting\nrates for the telecommunications company's regulated services. This provision shall\nonly apply to telecommunication products or services which the commission\nexempts after July 14, 1992. Nothing herein shall prohibit the commission from\nhaving access to and from examin ing the books and records of the exempted\nproduct or service in order to determine compliance with the commission's rules\nrespecting allocation of cost when setting rates for the telecommunications\ncompany's regulated services.\n(5) The Public Service Commi ssion shall retain jurisdiction over persons and services\nwhich are exempted from regulation under this section, or for which alternative\nregulatory requirements have been established pursuant to this section. The\ncommission, on its own motion, or upon the  motion of any person, after notice and\nhearing, if requested, may vacate or modify any orders granting an exemption or\nestablishing alternative requirements if it determines by clear and satisfactory\nevidence that the findings upon which the order was bas ed are no longer valid, or\nthat the exemption or modifications are no longer in the public interest.\n(6) In granting or vacating exemptions, the Public Service Commission shall not be\ndiscriminatory or preferential but may treat services and utilities diff erently if\nreasonable and not detrimental to the public interest.\n(7) The provisions of KRS 367.150(8) and 367.160, concerning the role of the Attorney\nGeneral, shall apply to all proceedings under this section.","path":["KRS Chapter 278"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=14142","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:30Z","sha256":"cd173b0780397648cb16f2dffafbdf92d1eef86c2b134b6ad78b2b8603e955f2","source_id":"us-ky","stale":false,"prev":"us-ky/krs-278.510","next":"us-ky/krs-278.514"},"notice":"GroundRules: Original legal text. Not legal advice."}