Kentucky Statutes 279.120 – Persons with whom corporation may do business — Conditions for acquisition of new base load generating facility
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(1) Except as provided in subsections (2), (3), and (4) of this section, corporations formed under this chapter shall supply electric energy, furnish services, and sell personal property, except that transferred in part payment for other personal property, to their members only.
(2) Except as provided in subsections (3), (4), and (5) of this section and in KRS
279.125, any corporation formed under this chapter may supply electric energy, furnish services and sell property, to the extent of not more than forty-nine percent (49%) of its total business, to nonmembers of the corporation, including any federal agency, any state, and any county, city or political subdivision.
(3) A corporation formed under this chapter may sell and lease back any part or all of its property free of the restrictions contained in subsections (1) and (2) of this section, or any other section of the Kentucky Revised Statutes except that such sale shall be subject to KRS § 279.140.
(4) A corporation formed under this chapter on or before December 31, 2005, may supply electric energy to a nonmember of the corporation free of the restrictions contained in subsections (1) and (2) of this section only if:
(a) The hourly amount of electric energy supplied is produced by a generator owned or leased by the corporation; and
(b) The hourly amount of electric energy supplied was previously used by a member of the corporation, which is also a corporation formed under this chapter on or before December 31, 2005, to provide electric service to a retail customer with an annual hourly peak electric energy requirement of more than two hundred (200) megawatts.
(5) A sale of electric energy authorized by subsection (4) of this section shall be considered member business for purposes of subsection (2) of this section.
(6) A corporation formed under this chapter that is supplying electric energy to a nonmember of the corporation under subsections (4) and (5) of this section may acquire a new base load generating facility for its system by purchase, lease, or construction only if, at the time the corporation enters into a binding commitment for the acquisition of the new base load generating facility, the number of megawatts the corporation is supplying to nonmembers of the corporation is forty- nine percent (49%) or less of the total number of megawatts that the corporation is supplying to all persons.
Effective: July 12, 2006
History: Amended 2006 Ky. Acts ch. 4, sec. 1, effective July 12, 2006. — Amended
2004 Ky. Acts ch. 12, sec. 1, effective July 13, 2004. — Amended 1984 Ky. Acts ch.
27, sec. 1, effective February 23, 1984. — Amended 1974 Ky. Acts ch. 38, sec. 9, effective June 21, 1974. — Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 883j-8, 883j-16.
(2) Except as provided in subsections (3), (4), and (5) of this section and in KRS
Terms Used In Kentucky Statutes 279.120
- Acquire: means to construct, purchase, obtain by lease, devise, gift, or by eminent domain, or to obtain by any other lawful means. See Kentucky Statutes 279.010
- City: includes town. See Kentucky Statutes 446.010
- Corporation: means a profit or nonprofit corporation formed under the laws of any state or a foreign country. See Kentucky Statutes 279.010
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Federal agency: means and includes the United States, the President of the United States, and all federal authorities, instrumentalities and agencies in the ordinary sense. See Kentucky Statutes 279.010
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Member: means and includes each person signing the articles of incorporation of a corporation formed under this chapter, each person later admitted to membership according to law or according to the articles of incorporation or bylaws of the corporation, and each common stockholder in a corporation organized under this chapter that has capital stock. See Kentucky Statutes 279.010
- Personal property: All property that is not real property.
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
- System: means and includes any plant, works, facilities, and properties, and all parts thereof and appurtenances thereto, used or useful in the generation, production, transmission, or distribution of electric energy. See Kentucky Statutes 279.010
279.125, any corporation formed under this chapter may supply electric energy, furnish services and sell property, to the extent of not more than forty-nine percent (49%) of its total business, to nonmembers of the corporation, including any federal agency, any state, and any county, city or political subdivision.
(3) A corporation formed under this chapter may sell and lease back any part or all of its property free of the restrictions contained in subsections (1) and (2) of this section, or any other section of the Kentucky Revised Statutes except that such sale shall be subject to KRS § 279.140.
(4) A corporation formed under this chapter on or before December 31, 2005, may supply electric energy to a nonmember of the corporation free of the restrictions contained in subsections (1) and (2) of this section only if:
(a) The hourly amount of electric energy supplied is produced by a generator owned or leased by the corporation; and
(b) The hourly amount of electric energy supplied was previously used by a member of the corporation, which is also a corporation formed under this chapter on or before December 31, 2005, to provide electric service to a retail customer with an annual hourly peak electric energy requirement of more than two hundred (200) megawatts.
(5) A sale of electric energy authorized by subsection (4) of this section shall be considered member business for purposes of subsection (2) of this section.
(6) A corporation formed under this chapter that is supplying electric energy to a nonmember of the corporation under subsections (4) and (5) of this section may acquire a new base load generating facility for its system by purchase, lease, or construction only if, at the time the corporation enters into a binding commitment for the acquisition of the new base load generating facility, the number of megawatts the corporation is supplying to nonmembers of the corporation is forty- nine percent (49%) or less of the total number of megawatts that the corporation is supplying to all persons.
Effective: July 12, 2006
History: Amended 2006 Ky. Acts ch. 4, sec. 1, effective July 12, 2006. — Amended
2004 Ky. Acts ch. 12, sec. 1, effective July 13, 2004. — Amended 1984 Ky. Acts ch.
27, sec. 1, effective February 23, 1984. — Amended 1974 Ky. Acts ch. 38, sec. 9, effective June 21, 1974. — Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. secs. 883j-8, 883j-16.