Kentucky Revised Statutes

Ky. Rev. Stat. § 96.890 (2026)

Competition with rural electric cooperative or other municipal plant

✓ current as of May 2026

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forbidden -- Cooperative agreements. No municipality or board operating an electric plant under the provisions of KRS 96.550 to 96.900 shall enter into competition with, or construct, maintain, or operate, any facilities or service in competition with any rural electric cooperative corporation or electric plant operated by another municipality or board organized under the laws of this state in any territory being served by any such rural electric cooperative corporation or other municipality or board; but any municipality or board operating an electric plant under the provisions of KRS 96.550 to 96.900 may enter into cooperative agreements with any such rural electric cooperative corporation or other municipality or board for a connection for cooperative service upon such terms and conditions as may be mutually agreed upon between any such municipality or board and any such rural electric cooperative corporation or other municipality or board. Such agreements may provide, but not by way of limitation, for exchange of electric service, the cooperative use of transmission lines and other facilities, and the common use or exchange of other service or facilities. History: Created 1942 Ky. Acts ch. 18, sec. 32.

Notes of Decisions

Cited in 5 cases, 1959–1999 · leading case: Grayson Rural Elec. Corp. v. City of Vanceburg, 4 S.W.3d 526 (Ky. 1999).

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Grayson Rural Elec. Corp. v. City of Vanceburg, 4 S.W.3d 526 (Ky. 1999). · cites it 2× “KRS 96.890 provides: No municipality or board operating an electric plant under the provision of KRS 96.”

City of Nicholasville v. Blue Grass Rural Elec. Coop. Corp., 514 S.W.2d 414 (Ky. Ct. App. 1974). “186, which forbids cities of the third class to compete with rural electric cooperatives; and KRS 96.890, which forbids cities operating under the “TVA Act” to compete with rural electric cooperatives.”

Warren Rural Elec. Coop. Corp. v. Elec. Plant Bd., 331 S.W.2d 117 (Ky. Ct. App. 1959). · cites it 2× “Rodes, commented: “Unless the parties carry out the true purpose and meaning of the statute (KRS 96.890) through some mutual agreement as to their respective fields and territories where they touch or clash, then it may result in some situation like the Gaza Strip where the…”

City of Corbin v. Kentucky Utils. Co., 447 S.W.2d 356 (Ky. Ct. App. 1969). “One of the questions raised was whether this enterprise constituted competition with REA in violation of KRS 96.890. We recognized the right of the city to service its own plant and held it was not in competition with REA.”

Farmers Rural Elec. Coop. Corp. v. City of Glasgow, 415 S.W.2d 85 (Ky. Ct. App. 1967). “” True KRS 96.890 provides that: “No municipality or board operating an electric plant under the provisions of this Act [KRS 96.”

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