There is a newer version of the Kentucky Revised Statutes
2009 Kentucky Revised Statutes
CHAPTER 278 PUBLIC SERVICE COMMISSION
278.2203 Cost allocation of regulated and nonregulated activity.
Download pdfUSoA and the cost allocation methods described in subsection (2) of this section. (2) In allocating costs between regulated and nonregulated activities, a utility shall utilize one (1) of the following cost allocation methods:
(a) The fully distributed cost method; or
(b) A cost allocation method recognized or mandated by the rules of the SEC promulgated pursuant to 15 U.S.C. sec. 79, et seq., or promulgated by the
FERC or by the USDA. (3) A utility's compliance with federal cost allocation methods shall constitute compliance with the provisions of KRS 278.010 to 278.450. (4) Notwithstanding subsections (1) to (3) of this section, a utility may report an incidental nonregulated activity as a regulated activity if:
(a) The revenue from the aggregate total of the utility's nonregulated incidental activities does not exceed the lesser of two percent (2%) of the utility's total
revenue or one million dollars ($1,000,000) annually; and (b) The nonregulated activity is reasonably related to the utility's regulated activity. (5) Nothing contained in this section shall be construed as requiring a utility to violate any cost allocation methods required to be employed under any service agreement
validly existing as of July 14, 2000, for the term of the existing agreement, except
where the commission makes the determination that a service agreement was
executed for the purpose of avoiding provisions of KRS 278.010 to 278.450. Effective: July 14, 2000
History: Created 2000 Ky. Acts ch. 511, sec. 3, effective July 14, 2000.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.