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96.810 Use of revenues -- Reduction of rates -- Equity of municipality.
(1)
(2)
The board shall devote all moneys derived from any source other than the
issuance of bonds to or for the payment of all operating expenses; bond
interest and retirement and sinking fund payments; the acquisition and
improvement of the electric plant; contingencies; other obligations incurred in
the operation and maintenance of the electric plant and the furnishing of
electric service; the state, any county, any school district, any municipality, and
any other special taxing district in which the board operates, of the same
respective amounts as provided in KRS 96.820, or any other additional
amounts which the board pursuant to its contract with the Tennessee Valley
Authority or other governmental agencies collects as tax equivalents for any
taxing jurisdiction if the board contracts with the Tennessee Valley Authority or
any governmental agency for the purchase and resale of electrical energy, or if
the board does not contract with the Tennessee Valley Authority or any other
governmental agency for the purchase or resale of any electrical energy and if
it has met all obligations imposed on it by KRS 96.550 to 96.900 it may at the
end of any twelve (12) months ending June 30 transfer any surplus to the
general fund of the municipality which authorized it; the redemption and
purchase of electric plant bonds, in which case the bonds should be canceled;
the creation and maintenance of a cash working fund; and the payment of an
amount to the general funds of the municipality.
After the establishment of proper reserves, if any, and after complying with the
above provisions of this section, any surplus of proceeds shall be devoted
solely to the reduction of rates. The equity of the municipality contracting with
the Tennessee Valley Authority or other governmental agency for the purchase
and resale of electrical power or energy shall be the purchase price of the
electric plant, less the face value of outstanding bonds, or, if there is no
purchase price, the original cost of the plant as defined by the Federal Energy
Regulatory Commission, less accrued depreciation, less the face value of the
outstanding bonds. The payment of bonds or the acquisition or improvement of
property from the receipts derived from electric service or any other operation
of the board shall not be considered to increase the equity or investment of the
municipality.
Effective:July 15, 2002
History: Amended 2002 Ky. Acts ch. 89, sec. 1, effective July 15, 2002. -Amended 1996 Ky. Acts ch. 274, sec. 24, effective July 15, 1996. -- Created
1942 Ky. Acts ch. 18, sec. 24.
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