Kentucky Revised Statutes

Ky. Rev. Stat. § 278.290 (2026)

Valuation of utility property in connection with rates, service or issuance

✓ current as of May 2026

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of securities -- Unit rate base.

(1) 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.

(2) 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.

(3) 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.

Notes of Decisions

Cited in 5 cases, 1952–2010 · leading case: Kentucky Pub. Serv. Comm'n v. Commonwealth Ex Rel. Conway, 324 S.W.3d 373 (Ky. 2010).

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Kentucky Pub. Serv. Comm'n v. Commonwealth Ex Rel. Conway, 324 S.W.3d 373 (Ky. 2010). · cites it 6× “040 to establish "fair, just and reasonable" rates and KRS 278.290, to revaluate new construction, extensions, and additions to utility property.”

Nat'l-Southwire Aluminum Co. v. Big Rivers Elec. Corp., 785 S.W.2d 503 (Ky. Ct. App. 1990). · cites it 4× “" KRS 278.290 also pertains to the fixing of utility rates.”

Pub. Serv. Comm'n v. Dewitt Water Dist., 720 S.W.2d 725 (Ky. 1986). · cites it 4× “Consequently, the stated rate-making treatment of depreciation expense on property financed by federal grants and customer contributions is to view the expense the same as for that of noncontributed property- KRS 278.290 requires the Commission to consider cost of reproduction,…”

Citizens Tel. Co. v. Pub. Serv. Comm'n of Kentucky, 247 S.W.2d 510 (Ky. Ct. App. 1952). “The primary contention of the telephone company, on this appeal, is that the Public Service Commission, in fixing the rate base, did not give “due consideration” to cost of reproduction as a going concern, as required by KRS 278.290, and as a result the commission fixed the rate…”

Fern Lake Co. v. Pub. Serv. Comm'n, 357 S.W.2d 701 (Ky. Ct. App. 1962). “The Commission is required by KRS 278.290 to give due regard to a number of enumerated factors in determining a just and reasonable rate.”

— Ky. Rev. Stat. § 278.290(1) — 2 cases

Nat'l-Southwire Aluminum Co. v. Big Rivers Elec. Corp., 785 S.W.2d 503 (Ky. Ct. App. 1990). “" KRS 278.290 also pertains to the fixing of utility rates.”

Pub. Serv. Comm'n v. Dewitt Water Dist., 720 S.W.2d 725 (Ky. 1986). “Consequently, the stated rate-making treatment of depreciation expense on property financed by federal grants and customer contributions is to view the expense the same as for that of noncontributed property- KRS 278.290 requires the Commission to consider cost of reproduction,…”

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