Last Updated July 23, 2012
Enactments through the 2012 Extraordinary Session
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Terms & Conditions
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KRS Chapter 096.00
Terms & Conditions
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Sale of Franchises
.010 Sale of public utility franchises by cities.
.020 Deposit to accompany bid -- Bidder to give bond.
.030 Exclusive franchise not to be granted by consolidated local government or city of the first class.
.040 City of the first class or consolidated local government may purchase public utility plant.
.045 Rights of existing facilities.
Control of Privately Owned Utilities
.050 Second-class city may regulate construction and operation of utilities.
.060 Third-class city may grant rights of way to utilities -- Conditions.
.070 Fourth-class city may grant rights-of-way to utilities -- Conditions.
.080 Water company may condemn land and material.
City Owned Stock in Utility Company
.090 Sale of gas company stock owned by first-class city.
.100 Amendment to charter of gas company in which first-class city owns stock.
.110 Fourth, fifth and sixth-class cities may subscribe for stock in water companies.
Furnishing Water or Light to
.120 City may acquire franchise to furnish water and light to another city.
.130 City owning own plant may contract to furnish service to another city.
.140 City may install apparatus and obtain rights of way necessary to furnish or receive service.
.150 Extending water supply or sanitary sewer system outside city limits -- Limitation -- Consideration of installation of fire hydrants on extended lines.
Powers of Cities of Second and Third Classes
.160 Power of second-class city to furnish water and light.
.165 City classified from third class to second class to continue operation of combined electric and water system under provisions of KRS 96.171 to 96.188 -- When.
.170 Power of city of the third class to furnish utility services -- Regulation of municipal telephone service by Public Service Commission.
Combined Electric and Water Plant
.171 Adoption of provisions of KRS 96.172 to 96.188 by city of third class.
.172 Ordinance of city of third class adopting provisions of KRS 96.171 to 96.188 for operation of combined electric and water plant -- Electric and water plant board -- Appointment -- Qualifications -- Corporate powers -- Prohibition of nepotism -- Bond of board members -- Oath -- Term -- Removal.
.173 Salaries of board members and secretary-treasurer -- All salaries and expenses payable from revenues of plant.
.174 Quorum of board -- Officers -- Meetings -- Bylaws and rules of procedure.
.175 Powers of board.
.176 Board to control plant -- Employees -- Rates and practices -- Engineer -- Contract.
.177 Charge for service furnished to city.
.178 Eminent domain.
.179 Payment of tax equivalent.
.180 Pension plan for employees -- Coverage provided in County Employees Retirement System after August 1, 1988.
.181 Deposit and disbursement of funds.
.182 Application of funds derived from operations -- Use of surplus.
.183 Termination of operation under KRS 96.171 to 96.188.
.184 Revenue bonds.
.185 Books and records -- Audit -- Inspection.
.186 Not to compete with REA corporation.
.187 Limitation on action attacking proceedings.
.188 Effective date of ordinance or resolution under KRS 96.171 to 96.188.
Powers of Cities of Third to Sixth Class
.189 Acquisition of transportation system by city of the second or third class.
.190 Power of city of the fourth class to furnish utility services -- Regulation by Public Service Commission -- Power to regulate rates and service of utilities operating under old franchises.
.195 City of the fourth class may issue interest-bearing warrants for improvements and extensions to electric power plants or waterworks.
.200 Use of profits from city owned public utility.
.210 Power of fifth-class city to furnish water and light.
.220 Power of sixth-class city to furnish water and light.
Waterworks in Cities of First Class
.230 City of the first class or consolidated local government to control waterworks.
.240 Board of waterworks -- Appointment -- Qualifications -- Term -- Oath.
.250 Officers of board of waterworks -- Employees.
.260 Powers of board.
.265 Extension of service to persons not currently served -- Costs -- Assessments -- Apportionment warrants -- Liens.
.270 Consolidated local government to receive water without charge -- Property to be exempted from taxation.
.280 Consolidated local government to prescribe conditions for use of streets by board.
.290 Debts to be paid by waterworks.
.300 Ability of board of waterworks to borrow money -- Issuance of bonds -- Limitation of indebtedness.
.310 Rules for government of board -- Reports.
.315 Renumbered as KRS 96.265.
Waterworks in Cities
.320 Operation of waterworks in second-class cities -- Commissioners of waterworks -- Employees -- Reports.
.330 Disposition of revenue from waterworks in second-class city.
.340 Punishment for damaging waterworks in fourth-class city -- Connections with pipes or mains.
.350 City of second, third, fourth, fifth or sixth class may acquire and operate waterworks -- Sewerage system may be joined.
.351 Waterworks or waterworks and sewerage commissions in cities of third class in counties of more than 50,000 other than counties with a city of first class or urban-county government.
.355 Legislative body of city of second, third, fourth, fifth or sixth class may provide city with waterworks system -- Police protection for waterworks system located outside city limits.
.360 Acquisition of existing waterworks -- Notice of agreement -- Petition -- Election.
.370 Issuance of bonds -- Ordinance to authorize.
.380 Interest rate and maturity of bonds.
.390 Bonds negotiable and tax-free -- Method of sale -- Payable solely from revenues.
.400 Application of proceeds of bonds -- Lien.
.410 Rights of bondholders to enforce lien.
.430 Maintenance, operation and depreciation funds -- Rates.
.440 Transfer of surplus to depreciation fund.
.450 Expenditure and investment of depreciation fund.
.460 City to pay for water used by it.
.470 Refunding bonds.
.480 Additional bonds.
.490 Bonds for extensions and improvements.
.500 Administration of income and revenues.
.510 Payment of encumbrance existing at time of acquisition of waterworks.
Electric Plants in Cities
.520 City of second, third, fourth, fifth, or sixth class may acquire and operate electric light, heat, and power plants -- Regulation of provision of telecommunications services or municipal telephone service -- Interconnection agreements with utilities or utility affiliates -- Bonds.
.530 Operation of electric light, heat, and power plants -- Utility commission.
.531 Regulation of telecommunications services provided by municipal utility.
.533 Director of utility board or commission.
.534 Rate increase for municipally owned electric utilities -- Rates to be uniform.
.535 Water plant or electric light, heat and power plant of second or third-class city -- Maintenance, operation and depreciation funds for -- Payment of surplus to general fund of city -- Fair return on property.
.536 City owned light, water, or gas plant may pay tax equivalent to school district.
.537 City operated natural gas distribution system -- Bonds -- Negotiated sale.
.538 Right of existing utility in annexed area.
.539 Development of rules to govern extension of water and sewer service by city.
.540 Restrictions on conveyance or encumbrance of waterworks or lighting system by a city of the second, third, fourth, fifth, or sixth class.
.5405 Sale, lease, or transfer of utility system in emergency by city of sixth class -- Procedure.
.5407 Home heating assistance fund.
Artificial Gas Systems
.541 Definitions for KRS 96.542 to 96.546.
.542 Power of city of any class to acquire and operate artificial gas system -- Acquisition of existing system.
.543 Ordinance for acquisition of system and issuance of bonds -- Election -- Plans and specifications -- Acquisition of lands and easements.
.544 Issuance of bonds -- Use of proceeds of bonds -- Disposition of surplus revenue -- Bond procedure.
.545 Operation and management of system -- Artificial gas commission.
.546 Alternate method.
.547 Condemnation and eminent domain.
T. V. A. Act
.550 Definitions for KRS 96.550 to 96.900.
.560 Scope of KRS 96.550 to 96.900 -- Legislative purpose and intent.
.570 Powers of boards for municipal electric plants.
.580 Proceedings to agree upon sale price of existing plant required before condemnation or construction of competing plant.
.590 Power of condemnation.
.600 Procedure for condemnation -- Report of commissions -- Jury award -- Procedure when condemnor not a utility.
.610 Repealed, 1976.
.620 Repealed, 1976.
.630 Repealed, 1976.
.640 Election by voters on question of constructing, purchasing, or condemning electric plant, or issuing bonds therefor.
.650 Power to issue revenue bonds.
.660 Validity of revenue bonds.
.670 Limitation of actions to challenge validity of ordinance, resolution or election.
.680 Revenue bonds not debts of municipality.
.690 Form and terms of bonds -- Sale -- Bonds for improvement -- Refunding or additional bonds -- Negotiability -- Interest rate.
.700 Power of board to make provisions to secure payment of bonds.
.710 Remedies of holders of bonds.
.730 Payment of preliminary expenses.
.740 Election to operate under KRS 96.550 to 96.900 -- Creation of board of public utilities -- Appointment -- Qualifications -- Incompatibility with other offices -- Bond -- Oath -- Not to hire relatives.
.750 Compensation of board members and others.
.760 Term of board members -- Vacancies -- Removals.
.770 Quorum of board -- Officers -- Meetings.
.780 Board to control plant -- Superintendent -- Public filing of rates and regulations -- Employees -- Contracts -- Records.
.790 Separate account for funds of electric plant.
.800 Use of proceeds from sale of bonds.
.810 Use of revenues -- Reduction of rates -- Equity of municipality.
.820 Payment of sums equivalent to taxes based on book value.
.830 Charge for electric service furnished municipality.
.840 Records and reports of board -- Audits.
.850 Power of municipality to issue general obligation bonds.
.860 Disposal of plant.
.870 Effective date of resolutions and ordinances.
.880 Plant not subject to authority of Public Service Commission except as to extension of service -- Bonds do not require approval.
.890 Competition with rural electric cooperative or other municipal plant forbidden -- Cooperative agreements.
.895 Proration and distribution of payments of sums equivalent to taxes based on book value among the state, counties, cities, and school districts.
.900 Estoppel to question validity of KRS 96.550 to 96.890.
.901 Authorization for municipal utility operating under KRS 96.550 to 96.900 to participate in group purchasing program.
Classification of Sewer Users
.910 Declaration of policy of KRS 96.910 to 96.927.
.911 Definitions for KRS 96.910 to 96.927.
.912 Authority to classify users.
.913 Standards for classifying users.
.915 Authority to apply different charges.
.916 Standards for establishing charges.
.918 Procedure for establishment of classification -- First ordinance.
.919 Publication of first ordinance.
.920 Areas proposed to be annexed.
.922 Public hearing.
.923 Hearing rights and procedures.
.924 Final determination -- Second ordinance.
.926 User's appeal to Circuit Court.
.927 Construction of KRS 96.910 to 96.927.
Enforcement of Sewer Charge Collections
.930 Declaration of policy of KRS 96.930 to 96.943.
.931 Definitions for KRS 96.930 to 96.943.
.932 Enforcement of sewer charge collections by discontinuing water service.
.934 Coordination of sewer body with water supplier.
.936 Rights of water supplier.
.938 Adjustments of sewer charges.
.940 Contract for joint collection of charges.
.942 Nonliability for discontinuing service.
.943 Liability for failure to discontinue service.