House Bill 465

Actions | Amendments
Last Action 04/06/21: signed by Governor (Acts Ch. 191)
Title AN ACT relating to the acquisition by utilities of assets used to provide water or sewer utility service.
Bill Documents Current/Final
Introduced
Bill Request Number 1522
Sponsor A. Koenig
Summary of Original Version Create a new section of KRS Chapter 278 to define "asset acquisition price," "accumulated depreciation," "net original cost," and "water or sewer system"; establish the criteria by which the Public Service Commission determines for ratemaking purposes the value of an asset acquired by a utility that is used to provide water or sewer service; allow a utility that has entered into an agreement to acquire water or sewer utility assets to apply to the Public Service Commission for an order declaring the value of the acquired assets for ratemaking purposes; allow the acquiring utility to seek an order declaring the value of the acquired water or sewer utility assets as part of its first application for a change in base rates following the acquisition of the assets; require the acquiring utility to provide notice of its application for a declaratory order to the local governing bodies where the water or sewer system to be acquired is located or where it provides service and to the customers of the acquired systems if required by the governing documents of the acquired systems; require the acquiring utility to post on its Web site additional information to educate and inform the public and all affected customers of the acquisition; provide that the Public Service Commission consider intervention requests made under the section in accordance with the commission's administrative regulations addressing intervention generally; allow the acquiring utility as part of any application for a change in base rates following the acquisition of water or sewer utility assets to propose to unify the rate structure of the acquired system with its remaining customer base.
Index Headings of Original Version Public Utilities - Acquired water and sewer utility assets, valuation for ratemaking purposes
Sewer Systems - Acquired water and sewer utility assets, valuation for ratemaking purposes
State Agencies - Public Service Commission, acquired water and sewer utility assets, valuation for ratemaking
Water Supply - Acquired water and sewer utility assets, valuation for ratemaking purposes
Jump to Proposed Amendments House Committee Substitute 1
Senate Floor Amendment 1
Senate Floor Amendment 2
Votes Vote History

Actions

Top | Amendments
02/10/21
  • introduced in House
  • to Committee on Committees (H)
02/24/21
  • to Natural Resources & Energy (H)
03/02/21
  • posted in committee
03/04/21
  • reported favorably, 1st reading, to Calendar with Committee Substitute
03/05/21
  • 2nd reading, to Rules
03/11/21
  • taken from Rules (H)
  • placed in the Orders of the Day
  • 3rd reading, passed 86-3 with Committee Substitute
03/12/21
  • received in Senate
  • to Committee on Committees (S)
03/15/21
  • to Natural Resources & Energy (S)
  • taken from Natural Resources & Energy (S)
  • 1st reading
  • returned to Natural Resources & Energy (S)
03/16/21
  • reported favorably, 2nd reading, to Rules
  • floor amendments (1) and (2) filed
03/29/21
  • posted for passage in the Regular Orders of the Day
  • 3rd reading
  • floor amendment (2) defeated
  • floor amendment (1) withdrawn
  • Bill passed 30-3
  • received in House
  • enrolled, signed by Speaker of the House
  • enrolled, signed by President of the Senate
  • delivered to Governor
04/06/21
  • signed by Governor (Acts Ch. 191)

Proposed Amendments

Top | Actions
Amendment House Committee Substitute 1
Summary Retain original provisions; change the reference to the findings and goals of the General Assembly in KRS 224A.300(1); require the Public Service Commission to fix the value for ratemaking purposes of an asset acquired by a utility that is used to provide water or sewer service at an amount between its net original cost and its asset acquisition price if certain criteria are met; require as part of the criteria to fix the value of the acquired asset that the acquisition will result in operational economies; establish as part of the criteria that the purchase price of the utility and non-utility assets be separated if practical; establish the means of notification of the acquiring utility's application for a declaratory order to affected parties; require the acquiring utility to provide notice of its application for a declaratory order to wholesale customers or suppliers of the acquired water or sewer system by priority mail; require the acquiring utility, and the water or sewer system to be acquired to post on its Web sites or social media additional information to educate and inform the public and all affected customers of the acquisition, if such Web sites or social media exist; require the Public Service Commission when reviewing an acquiring utility's proposed change in base rates to consider whether it is reasonable to require the acquiring utility to maintain separate rate schedules for the customers of the acquired system and for the other customers.
Index Headings Public Utilities - Acquired water and sewer utility assets, valuation criteria and acquisition notice
Sewer Systems - Acquired water and sewer utility assets, valuation criteria and acquisition notice
State Agencies - Public Service Commission, acquired water and sewer utility assets, valuation criteria
Water Supply - Acquired water and sewer utility assets, valuation criteria and acquisition notice

Amendment Senate Floor Amendment 1
Sponsor A. Southworth
Summary Delete the materiality requirement as part of the criteria for water or sewer utility asset valuation that there be no adverse impact on the acquiring utility's existing and new customers; require as part of the valuation criteria that the acquisition of the water or sewer service assets be approved by at least two-thirds of the governing body of the water or sewer system whose assets are being acquired.
Index Headings Public Utilities - Water or sewer system asset acquisition, valuation criteria, 2/3 approval of governing body
Sewer Systems - Water or sewer system asset acquisition, valuation criteria, 2/3 approval of governing body
Water Supply - Water or sewer system asset acquisition, valuation criteria, 2/3 approval of governing body

Amendment Senate Floor Amendment 2
Sponsor A. Southworth
Summary Delete the materiality requirement as part of the criteria for water or sewer utility asset valuation that there be no adverse impact on the acquiring utility's existing and new customers; require as part of the valuation criteria that the acquisition of the water or sewer service assets be approved, after public notice to customers and an opportunity for public hearing, by at least two-thirds of the governing body of the water or sewer system whose assets are being acquired.
Index Headings Public Utilities - Water or sewer system asset acquisition, valuation criteria, 2/3 approval of governing body
Sewer Systems - Water or sewer system asset acquisition, valuation criteria, 2/3 approval of governing body
Water Supply - Water or sewer system asset acquisition, valuation criteria, 2/3 approval of governing body

Last updated: 4/11/2021 12:15 AM (EDT)
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