KYPublic Service Commission
The Kentucky Public Service Commission is a three member administrative body with quasi-legislative and quasi-judicial duties and powers regulating over 1,500 utilities. It is funded by an assessment paid by all utilities under the Commission's jurisdiction based on a utility's annual gross intrastate revenues. The Commission, created by the Acts of the 1934 General Assembly, the current version of which forms Chapter 278 of the Kentucky Revised Statutes (KRS), performs its regulatory functions through issuance of written orders, following adjudicative and rulemaking procedures outlined in Chapter 278 and administrative regulations promulgated by the Commission in Chapter 807 of the Kentucky Administrative Regulations (KAR).
The mission of the Kentucky Public Service Commission is to foster the provision of safe and reliable service at a reasonable price to the customers of jurisdictional utilities while providing for the financial stability of those utilities by setting fair and just rates, and supporting their operational competence by overseeing regulated activities.
Currently, the Commission regulates the intrastate rates and services of investor-owned electric, natural gas, telephone, water and sewage utilities, customer-owned electric and telephone cooperatives, water districts and associations, and certain aspects of gas pipelines. The following are some of the areas for which the Commission has regulatory responsibility:
The Public Service Commission consists of three members appointed by the Governor to 4-year staggered terms, with one commissioner appointed to act as Chairman and another as Vice Chairman. The Commission appoints an Executive Director who is responsible for the daily operation of the Commission. At present, there are five divisions under the supervision of the Executive Director.
The Commission processes approximately 700 cases a year, of which approximately 40% are rate cases. Once an issue is placed before the Commission, hearings are conducted to obtain input from all parties involved. These hearings are governed by the rules of the Public Service Commission and may be undertaken by any one or more Commissioners, or a hearing examiner designated by the Commission. The Commission may issue subpoenas, take depositions of witnesses, administer oaths and examine witnesses as part of the hearing procedure. Upon conclusion of hearings, all information is evaluated and an order is issued reflecting the Commission's decision. If a decision is challenged, a rehearing may be scheduled, where the party seeking to set aside any ruling by the Commission has the burden of proof to show that the rule is unreasonable or unlawful; otherwise, the Commission order is final and binding unless overturned in a civil court of law.
Upon filing of application for a rate adjustment, the Commission establishes a case and may suspend the rate adjustment for five months while it holds hearings as to the reasonableness of the requested rates. During the process of determining the validity of a proposed rate adjustment, the Commission may hold hearings in its effort to come to a conclusion. At any hearing involving rate adjustments, the burden of proof is on the utility to prove that the proposed rate is just and reasonable.
The Commission has developed an extensive set of regulations concerning services and safety aspects of a utility's operations. The Commission is charged with the responsibility to monitor and oversee adherence to service and safety regulations in the following areas:
Contact the PSC Public Information Office, (502) 564-3940 or e-mail our Public Information Officer
at psc.info@ky.gov