{"data":{"id":"us-ky/krs-278.672","jurisdiction":"us-ky","citation":"KRS 278.672","heading":"Application for financing order for deferred costs -- Requirements --","body":"Deadline.\n(1) An electric utility may apply to the commission for a financing order to finance\nextraordinary or other deferred costs from previous events for regulatory ass ets\nexisting and with a value calculated on June 30, 2023, as:\n(a) Greater than two hundred million dollars ($200,000,000) for a single\nregulatory asset; or\n(b) Having a cumulative total value of greater than two hundred and seventy -five\nmillion ($275,000,000) for multiple regulatory assets.\n(2) An application for a financing order shall include:\n(a) A description of the deferred costs the utility is seeking to securitize. If more\nthan fifty percent (50%) of the deferred costs are retired generation costs, the\napplication also shall describe:\n1. The electric generating facility or facilities that have been retired; and\n2. A copy of all previous commission orders related to the deferral of costs\napplicable to the retirement or abandonment of the facility or facilities;\n(b) The dollar amount of the deferred costs;\n(c) A statement of whethe r the electric utility proposes to finance all or a portion\nof deferred costs using securitized bonds. If the electric utility proposes to\nfinance a portion of the costs, the electric utility shall identify the specific\nportion of the deferred costs in the  application. By electing not to finance all\nor any portion of deferred costs using securitized bonds, an electric utility\nshall not be deemed to waive its right to reflect those costs in its retail rates\npursuant to a separate proceeding with the commissi on. However, at no point\nshall the electric utility apply to securitize less than the amounts prescribed in\nsubsection (1) of this section;\n(d) An estimate of the financing costs related to the securitized bonds;\n(e) An estimate of the securitized surcharg es necessary to recover the securitized\ncosts and financing costs and the period for recovery of the costs;\n(f) A comparison between the net present value of the costs to ratepayers that are\nestimated to result from the issuance of securitized bonds and th e cost that\nwould result from an alternative means of providing for the full recovery of\nand return on those securitized costs from customers, using the utility's\ncurrent or expected weighted average cost of capital. The comparison should\ndemonstrate that the issuance of securitized bonds and the imposition of\nsecuritized surcharges are expected to provide quantifiable net present value\nbenefits to customers;\n(g) A proposed future ratemaking process to reconcile any differences between\nsecuritized costs financed by securitized bonds and the final securitized costs\nincurred by the electric utility, successor, or assignee, provided that any\nreconciliation shall not affect the amount of securitized bonds or the\nassociated securitized surcharges paid by customers; and\n(h) Testimony supporting the application.\n(3) The commission shall not accept for filing an application tendered pursuant to this\nsection after December 31, 2024.","path":["KRS Chapter 278"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53801","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:31Z","sha256":"df6c73cd36b528322f743618e6de90b064d2acb245ea11c91be96cf9d173d637","source_id":"us-ky","stale":false,"prev":"us-ky/krs-278.670","next":"us-ky/krs-278.674"},"notice":"GroundRules: Original legal text. Not legal advice."}