{"data":{"id":"us-ky/krs-96.530","jurisdiction":"us-ky","citation":"KRS 96.530","heading":"Operation of electric light, heat, and power plants -- Utility commission.","body":"(1) Any city acquiring or constructing an electric light, heat, and power plant under the\nprovisions of KRS 96.520 shall, by ordinance, appoint a city utility commissio n\nconsisting of either three (3) commissioners or five (5) commissioners to operate,\nmanage, and control the plant. The utility commission shall have absolute control of\nthe plant in every respect, including its operation and fiscal management and the\nregulation of rates, except that in fixing rates the commission shall be governed by\nthe provisions of KRS 96.430, as it is made applicable to those plants by KRS\n96.520, and by any ordinance enacted under that section, except that in fixing rates\nthe commission in a city with a population equal to or greater than eight thousand\n(8,000) based upon the most recent federal decennial census shall be governed by\nthe provisions of KRS 96.535 and any ordinance enacted according to this section.\nThe utility commission , when so appointed, shall be a public body politic and\ncorporate, with perpetual succession; and the body may contract and be contracted\nwith, sue and be sued, in and by its corporate name, and have and use a corporate\nseal. The utility commission shall p rovide rules for the management of the plant,\nand it shall fix the number, qualifications, pay, and terms of employment of all\nemployees needed to operate the plant. In cities with populations equal to or greater\nthan eight thousand (8,000) based upon the most recent federal decennial census\nproviding civil service coverage for city employees, the utility commission\nappointed under this section may provide civil service coverage for all of its\nemployees, and it shall exercise the powers and functions with r espect to their\nemployees which are vested in the city legislative body with respect to the city\nemployees by KRS 90.380. Employees who have been in the employment of the\nutility commission for one (1) year immediately preceding the adoption of an order\nby the utility commission placing all of its employees under civil service coverage\nshall not be required to stand a civil service examination, and they shall be eligible\nfor all the benefits provided by civil service coverage. Out of the revenue of the\nplant, it shall pay operating expenses, repairs, and necessary additions and provide\nsufficient reserve fund against any emergency that may arise. The commission shall\nfrom time to time pay to the city the surplus revenue derived from the operation of\nthe plant as is provided in KRS 96.430 and 96.440, as they are made applicable to\nthe plants by KRS 96.520, except that the commission in a city with a population\nequal to or greater than eight thousand (8,000) based upon the most recent federal\ndecennial census shall pay to the city the surplus revenue derived from the operation\nof the plant as is provided in KRS 96.535 and any ordinance adopted according to\nthis section. Notwithstanding the foregoing provisions, the utility commission, for\nthe purpose stated in KRS 96.520(1), may enter into an agreement for the operation\nof any of its plants or other facilities.\n(2) (a) Except as provided in KRS 61.070, no person shall be appointed a member of\nthe commission who has, within the last two (2) years before his appoin tment,\nheld any city, county, state, or federal office, or been a member of any\ncommittee of any political party, or who is related within the third degree to\nthe mayor, or a member of a city legislative body.\n(b) The commission shall not appoint to any su bordinate office that it may create\nany person who is related to any commissioner, to the mayor or to any\nmember of the city legislative body. No officer or employee of the city,\nwhether holding a paid or unpaid office, shall be eligible to be appointed as  a\nmember of the commission or to be employed by the commission in any\ncapacity.\n(c) The members of the commission shall be citizens, taxpayers, and legal voters\nof the city and shall not at the time of appointment be indebted to the city or\nbe surety on the official bond of any officer of the city. However, in cities with\nthree (3) commission members, one (1) commission member may be\nappointed who does not live within the city boundaries, and, in cities with five\n(5) commission members, no more than two (2 ) commission members may be\nappointed who do not live within the city boundaries. In both instances, the\nappointment or appointments shall occur only if the appointing authority\ndetermines that each appointee:\n1. Is a resident of a county in which the utility operates;\n2. Possesses qualifications and expertise that would benefit and be in the\nbest interests of the city utility; and\n3. a. Is not employed by;\nb. Is not serving in any fiduciary or agency capacity with; or\nc. Does not possess an ownership interest in;\na direct supplier or direct competitor of the city utility.\n(d) If at any time during his or her term of office any member of the commission\nbecomes a candidate for or is elected or appointed to any public office, he or\nshe shall automatically vacate his or her membership on the commission, and\nanother person shall be appointed in his or her place.\n(3) The city shall pay the cost of securing bonds for the commissioners from a surety\ncompany, and each commissioner shall execute bond to be approved by the city\nlegislative body.\n(4) The city legislative body shall fix the salary to be paid each member of the\ncommission at a sum not to exceed two thousand four hundred dollars ($2,400) per\nannum. The Department for Local Government shall compute by the second Friday\nin February of every year the annual increase or decrease in  the Consumer Price\nIndex of the preceding year by using 1998 as the base year, and the salary of the\ncommissioners may be adjusted at a rate no greater than that stipulated by the\nDepartment for Local Government.\n(5) The first commissioners appointed unde r this section shall be appointed one (1) for\nthe term of one (1) year, one (1) for the term of two (2) years, and one (1) for the\nterm of three (3) years. Upon the expiration of the first terms, successors shall be\nappointed for a term of three (3) years. On a commission with five (5) members, not\nmore than two (2) members shall hold concurrent terms of office.\n(6) All commission members appointed subsequent to the initial members shall be\nappointed by the mayor or chief executive of the municipality, with  the approval of\nthe governing body of the municipality.","path":["KRS Chapter 96"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=51011","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:58Z","sha256":"d1eef5b471c8f87d656eebad93271ae9756355622c09dcaf9bc14562e779bb63","source_id":"us-ky","stale":false,"prev":"us-ky/krs-96.520","next":"us-ky/krs-96.531"},"notice":"GroundRules: Original legal text. Not legal advice."}