{"data":{"id":"us-ky/krs-278.674","jurisdiction":"us-ky","citation":"KRS 278.674","heading":"Application proceedings -- Commission findings -- Retention of","body":"consultants -- Issuance advice letter.\n(1) Proceedings on an application submitted pursuant to KRS 278.672 shall begin with\nthe filing of an application by an electric utility and  shall be disposed of in\naccordance with the requirements of this section and the rules and administrative\nregulations promulgated by the commission, except as follows:\n(a) The commission shall establish a procedural schedule that requires that not\nlater than one hundred eighty (180) days after the application is filed:\n1. A decision approving the application, approving the application subject\nto conditions, or denying the application is issued; and\n2. A financing order is issued if the application is appro ved and the\nconditions are met, if conditions are imposed; and\n(b) The commission shall approve the application for a financing order with or\nwithout conditions if the commission finds:\n1. The application is in the public interest; and\n2. The resulting est imated securitized surcharge and other rates are fair,\njust, and reasonable.\n(2) Judicial review of a financing order shall only be done in accordance with KRS\n278.410.\n(3) In performing the responsibilities under KRS 278.670 to 278.696 and 65.114, the\ncommission may retain counsel, one (1) or more financial advisors, or other\nconsultants as the commission deems appropriate. Outside counsel, advisors, or\nother consultants engaged by the commission shall have no interest in the proposed\nsecuritized bonds and shall not direct the placement of securitized bonds. The costs\nassociated with retaining counsel or advisors shall:\n(a) Be paid by the applicant and be included as financin g costs in the securitized\nsurcharge;\n(b) Be assigned solely to the subject transaction; and\n(c) Not be an obligation of the Commonwealth.\n(4) The commission may designate one (1) or more representatives from commission\nstaff who may be advised by one (1) or more financial advisors contracted with the\ncommission to provide:\n(a) Input to and collaboration with the electric utility during the process\nundertaken to place the securitized bonds to market; and\n(b) An opinion to the commission on the reasonableness of the pricing, terms, and\nconditions of the securitized bonds on an expedited basis.\n(5) The designated commission staff and any financial advisor providing advice to\ncommission staff shall:\n(a) Have no authority to direct how the electric utility place s the bonds to market;\nand\n(b) Be permitted to attend meetings convened by the electric utility to address\nplacement of the bonds to market.\n(6) If an electric utility's application for a financing order is denied or withdrawn, or for\nany reason securitize d bonds are not issued, any costs of retaining financial\nadvisors, consultants, and counsel on behalf of the commission shall be:\n(a) Paid by the applicant;\n(b) Recorded on the books of the utility using appropriate deferral accounting as a\nregulatory asset; and\n(c) Be eligible for full recovery, including carrying costs, subject to commission\napproval.\n(7) Prior to the issuance of each series of securitized bonds, the electric utility shall\nprovide an issuance advice letter to the commission following the determination of\nthe final terms of the series of securitized bonds no later than three (3) business\ndays after the pricing of the securitized bonds.\n(8) The issuance advice letter shall:\n(a) Report the initial securitized surcharges and other information specific to the\nsecuritized bonds as required by the commission;\n(b) Be included in the financing order which may contain additional provisions\nrelating to the issuance advice letter process as the commission deems\nappropriate and not inconsistent with KRS 278.670 to 278.696 and 65.114;\n(c) Indicate the final structure of the securitized bonds; and\n(d) Provide the best available estimate of total ongoing financing costs.","path":["KRS Chapter 278"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53802","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:31Z","sha256":"27ef69b976e3505d725a73b6a4155281a04a8a7e6c39ccd324eb0d2add61cfb4","source_id":"us-ky","stale":false,"prev":"us-ky/krs-278.672","next":"us-ky/krs-278.676"},"notice":"GroundRules: Original legal text. Not legal advice."}