{"data":{"id":"us-ky/krs-353.406","jurisdiction":"us-ky","citation":"KRS 353.406","heading":"Powers of natural gas acquisition authority -- Scope of project capacity.","body":"(1) In addition to the powers delegated to it under the agreement described in KRS\n353.404(1), a gas acquisition authority shall have all powers necessary or\nconvenient to accomplish the purposes for which it was created, including but not\nlimited to the power to:\n(a) Exercise all of the powers of private corporations organized under the laws of\nthe Commonwealth, as enumerated in KRS 271B.3 -020, to accomplish the\npurpose and intent of this section, in order to acquire, purchase, secure, and\nfinance supplies  of natural gas for sale to municipal utilities; provided,\nhowever, that a gas acquisition authority shall not have the power to provide\ngas supply services to retail consumers served by any public utility,\ncooperative utility, or municipal utility;\n(b) Develop, undertake, acquire, construct, own, manage, and operate, or contract\nfor the management and operation of, one (1) or more projects, in order to\nobtain, secure, and provide supplies of natural gas to municipal utilities;\n(c) Contract for the purchase of natural gas from any natural gas producer or other\nseller, whether within or outside the Commonwealth, containing such terms\nand conditions and being for such period as shall be agreed to by the authority;\n(d) Contract for the sale of natural gas to th e municipal utilities that created the\nauthority and to or for the benefit of other municipal utilities, whether within\nor outside the Commonwealth, containing such terms and provisions and\nbeing for such period as shall be agreed to by the authority;\n(e) Provide to any municipal utility natural gas management, transportation,\nstorage, and related services and technical, financial, informational,\npromotional, engineering, and educational services;\n(f) Enter into all other contracts necessary or convenient i n connection with any\nproject undertaken by the authority or the services it provides to municipal\nutilities, including but not limited to contracts for the transportation, storage,\nexchange, resale, or remarketing of gas and commodity price exchange, swap ,\ncap, floor, or collar agreements, containing such terms and provisions and\nbeing for such period as shall be agreed to by the authority;\n(g) Include in any contract provision for the indemnification of the parties upon\nearly termination or default thereu nder for the rights and remedies of the\nparties to the contract to be governed by the laws of another state and\nconsenting to the jurisdiction of the courts of the United States or another state\nover any action brought in connection with such contract; and\n(h) Issue bonds to finance the cost of any project or any of the authority's\npurposes and as security for the payment thereof and for the performance by\nthe authority of its contractual obligations in connection with any project,\ngrant liens or mortgages upon or otherwise pledge, assign, or encumber any or\nall of its property, assets, contractual rights and interests, and all or any part of\nthe revenues and receipts therefrom, whether then owned or thereafter\nacquired.\n(2) A gas acquisition authority may u ndertake, acquire, or construct a project with\ncapacity or service greater than the requirements of the municipal utilities that\ncreated the authority in order to achieve economies of scale or other benefits\ndetermined by the authority, provided that any s urplus or additional capacity or\nservice shall be sold by the authority to other municipal utilities upon terms\nreasonably determined to provide for the full recovery of its costs.","path":["KRS Chapter 353"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33092","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:39Z","sha256":"e25d666c275c84a19a7351c5a937a9e1189d7d764040d7fc4c4a52a64b687084","source_id":"us-ky","stale":false,"prev":"us-ky/krs-353.404","next":"us-ky/krs-353.408"},"notice":"GroundRules: Original legal text. Not legal advice."}