{"data":{"id":"us-ky/krs-278.5464","jurisdiction":"us-ky","citation":"KRS 278.5464","heading":"Provision of broadband  service to unserved  and underserved","body":"households  and businesses -- Facilitation by distribution cooperative.\n(1) The General Assembly recognizes and declares:\n(a) The  provision of broadband service to residential, commercial, and\nindustrial customers is critical to securing a  sound  economy  and\npromoting the general welfare of the Commonwealth; and\n(b) Distribution cooperatives are able to access and leverage federal funding\nto extend and enhance the availability of broadband service to Kentucky\nresidents who are currently unserved or underserved.\n(2) As used in this section:\n(a) \"Underserved area\" has the same meaning as in KRS 224A.011; and\n(b) \"Unserved area\" has the same meaning as in KRS 224A.011.\n(3) Notwithstanding any other statute to the contrary, a distribution cooperative\nmay  facilitate the operation of an affiliate engaged exclusively in the provision\nof broadband service to unserved or underserved households and businesses\nby:\n(a) Constructing and leasing excess capacity on any fiber optic cable for\nbroadband  service which shall not require a  certificate of public\nconvenience  and  necessity under  KRS  278.020; however,  the\nconstruction of fiber optic cable used  to support the distribution\ncooperative's electric distribution system shall require a certificate of\npublic convenience and necessity under KRS 278.020;\n(b) Issuing securities or evidences of indebtedness in an amount not to\nexceed twenty-five percent (25%) of the net book value of its assets, the\nproceeds of which shall be used for the exclusive purpose of capitalizing\nthe affiliate; or\n(c) Pledging up to twenty-five percent (25%) of the net book value of its\nassets as collateral for a loan entered into by the affiliate for the purpose\nof providing broadband services.\n(4) A distribution cooperative shall comply with the cost allocation requirements of:\n(a) KRS  278.2201, 278.2203, 278.2205, 278.2207, 278.2209, and 278.2211;\nand\n(b) Only KRS  278.2213(1) and (3) with regard to any costs associated with\nits facilitation of an affiliate's provision of broadband services.\n(5) The  commission shall promulgate administrative regulations regarding pole\nattachments under the commission's jurisdiction, including those necessary for\nthe provision of broadband service.\n(6) Before broadband services may  be offered under this section, a distribution\ncooperative shall, by resolution of the board of directors and spread upon its\nminutes, have an economic feasibility study conducted. The feasibility study\nshall be provided to the commission and  made  available to distribution\ncooperative members  upon request.\n(7) A  distribution cooperative shall not allow the installation or operation of a\nbroadband  system on its electric delivery system by an affiliate or other\nbroadband operator to diminish the reliability of the electric delivery system.\n(8) A distribution cooperative shall not require any person to purchase broadband\nservices from an affiliate or other broadband operator as a condition of\nreceiving or continuing to receive electric energy from the distribution\ncooperative.\n(9) A  distribution cooperative shall not disconnect or threaten to disconnect its\nelectric service to any customer due to the customer's failure to pay for\nbroadband services provided to the customer by an affiliate or other broadband\noperator.\n(10) Every distribution cooperative shall conduct an annual audit of compliance with\nthis section, which shall be provided to the commission and made available to\ndistribution cooperative members  upon request.\n(11) The commission shall have no jurisdiction over the creation or operation of an\ndistribution cooperative's broadband  affiliate, except as  referred to in\nsubsection (4) of this section.","path":["KRS Chapter 278"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=52199","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:30Z","sha256":"99bf547217b05d6b4a70bc2cd1b0bdd59b20cfacc2edf7a104e6761d47c09c48","source_id":"us-ky","stale":false,"prev":"us-ky/krs-278.5462","next":"us-ky/krs-278.547"},"notice":"GroundRules: Original legal text. Not legal advice."}