Ky. Rev. Stat. » Chapter 96
Kentucky Revised Statutes

Ky. Rev. Stat. § 96.538 (2026)

Right of existing utility in annexed area

✓ current as of May 2026
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(1) Any utility providing electric service in any area annexed, subsequent to June 16, 1960, by any municipality shall have the dominant right to continue to provide electric service in said area to consumers then being served and to new consumers located nearer to its facilities than to the facilities of any other utility as all those facilities were located immediately prior to annexation. (2) Any utility providing water, sewer or gas service in any area annexed, subsequent to July 15, 1980, by any municipality shall have the dominant right to continue to provide water, sewer or gas service in said area to consumers then being served and to new consumers located nearer to its facilities than to the facilities of any other utility as all those facilities were located immediately prior to annexation. Effective: July 15, 1980 History: Amended 1980 Ky. Acts ch. 201, sec. 1, effective July 15, 1980. -- Created 1960 Ky. Acts ch. 32, sec. 1, effective June 16, 1960.

Notes of Decisions
Cited in 5 cases (1 in the last 5 years), 1974–2025 · leading case: City of Nicholasville v. Blue Grass Rural Elec. Coop. Corp., 514 S.W.2d 414 (Ky. Ct. App. 1974).
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City of Nicholasville v. Blue Grass Rural Elec. Coop. Corp., 514 S.W.2d 414 (Ky. Ct. App. 1974). · cites it 11× “ment declaring that Blue Grass has “the dominant right to continue to provide electric service in the disputed territory to consumers being served at the time of the annexation and to new consumers located nearer to its facilities than to the facilities of the City of…”
City of Florence v. Owen Elec. Coop., Inc., 832 S.W.2d 876 (Ky. 1992). · cites it 5× “KRS 96.538. Right of existing utility in annexed area.”
Grayson Rural Elec. Corp. v. City of Vanceburg, 4 S.W.3d 526 (Ky. 1999). “This Court affirmed the ruling that under the relevant statute, KRS 96.538, the city could not compete with the cooperative.”
Madison Cnty. Utils. Dist. v. City of Richmond (Ky. Ct. App. 2025). · cites it 21× “Finding KRS 96.538 to be more specific and determining that KRS 96.”
West Kentucky Rural Elec. Coop. Corp. v. City of Bardwell, 362 S.W.3d 351 (Ky. Ct. App. 2011). · cites it 6× “Further, the court found that since the Carlisle Fiscal Court was an existing customer of BCU, that BCU had the dominant right to continue to serve the Carlisle County Courthouse in its new location.”
— Ky. Rev. Stat. § 96.538(1) — 2 cases
City of Florence v. Owen Elec. Coop., Inc., 832 S.W.2d 876 (Ky. 1992). “KRS 96.538. Right of existing utility in annexed area.”
West Kentucky Rural Elec. Coop. Corp. v. City of Bardwell, 362 S.W.3d 351 (Ky. Ct. App. 2011). “Further, the court found that since the Carlisle Fiscal Court was an existing customer of BCU, that BCU had the dominant right to continue to serve the Carlisle County Courthouse in its new location.”
— Ky. Rev. Stat. § 96.538(2) — 1 case
Madison Cnty. Utils. Dist. v. City of Richmond (Ky. Ct. App. 2025). “Finding KRS 96.538 to be more specific and determining that KRS 96.”
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