HB 399 (BR 1598) - R. Benvenuti III

     AN ACT relating to the acquisition of water or sewer utilities.
     Create a new section of KRS 278.010 to 278.450 to set forth procedures for the valuation of assets and rate base calculations relating to the acquisition of existing water or sewer utilities by investor-owned water or sewer utilities; define terms; require the Public Service Commission to include in the acquiring utility's next base rate case the entire value of all assets acquired as a measure by the fair market value on the date of acquisition or purchase price paid, whichever is less; require the acquiring utility to pay for three appraisals, the average of which shall determine the fair market value; require one appraiser to be chosen by the acquiring utility, one to be chosen by the utility to be acquired, and one to be chosen by mutual agreement of the first two appraisers; require that the appraisers be properly qualified, not have any interest in the transaction, and not be a resident or taxpayer of the service area of the utility being acquired; require the appraisers to separately determine the fair market value of the assets in compliance with the latest version of the Uniform Standards of Professional Appraisal Practice; require that the appraisal include the value of all assets to be acquired regardless of source or original price; require that the acquisition agreement provide for the repayment of any debt owed on the acquired assets by the utility being acquired to any person or government entity.