807 KAR 5:007. Filing and notice

requirements for a generation and transmission cooperative or a distribution

cooperative to decrease rates or for a distribution cooperative to change rates

to reflect a change in the rates of its wholesale supplier.

 

      RELATES TO: KRS 278.180, 278.455

      STATUTORY AUTHORITY: KRS 278.040(3),

278.180(1), 278.455(4)

      NECESSITY, FUNCTION, AND CONFORMITY:

KRS 278.040(3) provides that the commission may promulgate administrative

regulations to implement the provisions of KRS Chapter 278. KRS 278.180(1)

provides that, except upon application of a utility for a lesser time, a change

shall not be made in a rate except upon thirty (30) days' notice to the

commission, stating plainly the changes proposed to be made and the time when

the changed rates shall go into effect. KRS 278.455(1) provides that a

generation and transmission cooperative or a distribution cooperative may

decrease regulated operating revenues if the decrease is allocated proportionately

among customer classes so that a change will not result to the rate design

currently in effect. KRS 278.455(2) provides that a distribution cooperative

may change its rates to reflect a change in the rate of its wholesale supplier

if the effects of an increase or decrease are allocated to each class and

within each tariff on a proportional basis that will result in no change in the

rate design currently in effect. KRS 278.455(4) requires the commission to

promulgate administrative regulations establishing filing requirements and

notice requirements to the commission, the Attorney General, and the public for

rate changes made pursuant to KRS 278.455. This administrative regulation

prescribes filing and notice requirements for a generation and transmission

cooperative or a distribution cooperative to decrease rates and for a

distribution cooperative to change rates to reflect a change in the rates of

its wholesale supplier.

 

      Section 1. Filing Requirements. To

decrease rates, a generation and transmission cooperative or a distribution

cooperative shall file with the commission an original and five (5) copies, and

with the Attorney General's Office of Rate Intervention one (1) copy, of the following

information:

      (1) The tariff incorporating the

reduced rates, specifying an effective date no sooner than thirty (30) days

from the date filed;

      (2) The name and address of the

filing cooperative;

      (3) A brief statement of the facts

demonstrating that the filing is made pursuant to the authority of KRS 278.455;

      (4) A comparison of the current and

proposed rates;

      (5) An analysis demonstrating that:

      (a) The rate change does not change

the rate design currently in effect; and

      (b) The revenue change has been

allocated to each class and within each tariff on a proportional basis;

      (6) A certification that a complete

copy of the materials filed with the commission has been sent to the Attorney

General's Office of Rate Intervention;

      (7) A statement that notice of the

rate change pursuant to Section 3 of this administrative regulation has been

given, not more than thirty (30) days prior to the date the application is

filed, by one (1) of the following methods:

      (a) By typewritten notice mailed to

all customers;

      (b) By publication in a newspaper of

general circulation in the affected area; or

      (c) By publication in a periodical

distributed to all members of the cooperative; and

      (8) A copy of the notice given

pursuant to subsection (7) of this section.

 

      Section 2. To change rates to reflect

an increase or decrease in its wholesale supplier's rates, a distribution

cooperative shall file with the commission an original and five (5) copies, and

with the Attorney General's Office of Rate Intervention one (1) copy, of the

following information:

      (1) The tariff incorporating the new

rates and specifying an effective date no sooner than the effective date of the

wholesale supplier's rate change; and

      (2) The information required by

Section 1(2) through (8) of this administrative regulation.

 

      Section 3. Contents of Notice. Notice

given pursuant to Section 1(7) of this administrative regulation shall include

the following information:

      (1) The name, address, and phone

number of the cooperative;

      (2) The existing rates and the

revised rates for each customer class;

      (3) The effect of the rate change,

stated both in dollars and as a percentage, upon the average bill for each

customer class;

      (4) A statement, as appropriate,

that:

      (a) The rate reduction is being made

at the sole discretion of the utility, pursuant to KRS 278.455(1); or

      (b) The rates are being revised to

reflect a change in wholesale rates pursuant to KRS 278.455(2); and

      (5) A statement that a person may

examine the rate application at the main office of the utility or at the office

of the Public Service Commission, 211 Sower

Boulevard, Frankfort, Kentucky. (25 Ky.R. 2989; Am. 26 Ky.R. 385; eff.

8-20-99.)