Kentucky Revised Statutes

Ky. Rev. Stat. § 278.2207 (2026)

Transactions between utility and affiliate -- Pricing requirements --

✓ current as of May 2026

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Request for deviation.

(1) The terms for transactions between a utility and its affiliates shall be in accordance with the following:

(a) Services and products provided to an affiliate by the utility pursuant to a tariff shall be at the tariffed rate, with nontariffed items priced at the utility's fully distributed cost but in no event less than market, or in compliance with the utility's existing USDA, SEC, or FERC approved cost allocation methodology.

(b) Services and products provided to the utility by an affiliate shall be priced at the affiliate's fully distributed cost but in no event greater than market or in compliance with the utility's existing USDA, SEC, or FERC approved cost allocation methodology.

(2) A utility may file an application with the commission requesting a deviation from the requirements of this section for a particular transaction or class of transactions. The utility shall have the burden of demonstrating that the requested pricing is reasonable. The commission may grant the deviation if it determines the deviation is in the public interest.

(3) Nothing in this section shall be construed to interfere with the commission's requirement to ensure fair, just, and reasonable rates for utility services. Effective: July 14, 2000 History: Created 2000 Ky. Acts ch. 511, sec. 5, effective July 14, 2000.

Notes of Decisions

Cited in 2 cases (1 in the last 5 years), 2020–2021 · leading case: Foresight Coal Sales, LLC. v. Chandler (E.D. Ky. 2021).

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Foresight Coal Sales, LLC. v. Chandler (E.D. Ky. 2021). · cites it 2× “040; KRS § 278.2207); see also R. 21 at 4.] 2 Defendants initially filed a motion to dismiss on May 12, 2021.”

Foresight Coal Sales, LLC. v. Schmitt (E.D. Ky. 2020). “§ 278.2207. To enable review, utility companies “provide the PSC extensive documentation about fuel procurement,” and “[e]very six months, the PSC conducts a formal review of the utility’s fuel charges.”

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