2014 Kentucky Revised Statutes CHAPTER 278 - PUBLIC SERVICE COMMISSION 278.290 Valuation of utility property in connection with rates, service or issuance of securities -- Unit rate base.
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278.290 Valuation of utility property in connection with rates, service or
issuance of securities -- Unit rate base.
(1)
(2)
(3)
Subject to the provisions of subsection (2) of this section, the commission may
ascertain and fix the value of the whole or any part of the property of any utility
in so far as the value is material to the exercise of the jurisdiction of the
commission, and may make revaluations from time to time and ascertain the
value of all new construction, extensions and additions to the property of the
utility. In fixing the value of any property under this subsection, the commission
shall give due consideration to the history and development of the utility and its
property, original cost, cost of reproduction as a going concern, capital
structure, and other elements of value recognized by the law of the land for
rate-making purposes.
The commission shall not value or revalue the property of any utility unless the
valuation or revaluation is necessary or advisable in order to determine the
legality or reasonableness of any rate or service or of the issuance of
securities, and then only after an investigation affecting the rate, service or
securities has been instituted by the commission upon complaint or application
or upon its own motion, and a hearing has been held on reasonable notice.
In any rate investigation where the utility serves two (2) or more municipalities,
the commission may, in computing the rate of return on the property used and
useful, take as the base for the computation the valuation of the system as a
whole, but may make a differential in the case of an individual municipality in
proportion to the increased cost of service, if the utility can show that such a
differential should be allowed.
Effective:July 15, 1982
History: Amended 1982 Ky. Acts ch. 82, sec. 33, effective July 15, 1982. -Amended 1978 Ky. Acts ch. 379, sec. 36, effective April 1, 1979. -- Amended
1952 Ky. Acts ch. 46, sec. 3, effective March 5, 1952. -- Recodified 1942 Ky.
Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 3952-17,
3952-19.
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