278.021 Receivership for abandoned utility -- Criteria for finding of
675 words·~3 min read·
/ky/278-021A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
abandonment -- Consolidation of actions -- Powers and duties of receiver
-- Temporary receivership -- Commission's discretion to approve or
decline to approve applications.
(1)If the commission, after notice and hearing, enters an order in which it finds
that a utility is abandoned, the commission may bring an action in the Franklin
Circuit Court for an order attaching the assets of the utility and placing those
assets under the sole control and responsibility of a receiver.
(2)For purposes of this section, a utility shall be considered abandoned if it:
(a)Disclaims, renounces, relinquishes, or surrenders all property interests or
all rights to utility property, real or personal, necessary to provide service;
(b)Notifies the commission of its intent to abandon the operation of the
facilities used to provide service;
(c)Fails to comply with an order of the commission in which the commission
determined that the utility is not rendering adequate service, specified the
actions necessary for the utility to render adequate service, and fixed a
reasonable time for the utility to perform such actions, and the failure of
the utility to comply with the order presents a serious and imminent threat
to the health or safety of a significant portion of its customers; or
(d)Fails to meet its financial obligations to its suppliers and is unable or
unwilling to take necessary actions to correct the failure after receiving
reasonable notice from the commission, and the failure poses an
imminent threat to the continued availability of gas, water, electric, or
sewer utility service to its customers.
(3)Within twenty
(20)days after commencing an action in Franklin Circuit Court,
the commission shall file a certified copy of the record of the administrative
proceeding in which the commission entered its finding of abandonment.
(4)Any action brought pursuant to KRS 278.410 for review of an order of the
commission containing a finding that a utility is abandoned shall be
consolidated with any action brought pursuant to subsection
(1)of this section
and based upon the same order.
(5)Any receiver appointed by the court shall file a bond in an amount fixed by the
court. The receiver shall operate the utility to preserve its assets, to restore or
maintain a reasonable level of service, and to serve the best interests of its
customers.
(6)During the pendency of any receivership, the receiver may bring or defend any
cause of action on behalf of the utility and generally perform acts on behalf of
the utility as the court may authorize.
(7)The receiver shall control and manage the assets and operations of the utility
until the Franklin Circuit Court, after reasonable notice and hearing, orders the
receiver to return control of those assets to the utility or to liquidate those
assets as provided by law.
(a)Notwithstanding subsection
(1)of this section, the commission may
petition the Franklin Circuit Court to appoint temporarily a receiver to
operate and manage the assets of an abandoned utility. After notice to
the utility and a hearing, the court may grant a petition, upon terms and
conditions as it deems appropriate, upon a showing by a preponderance
of the evidence:
1. That a utility has been abandoned;
2. That the abandonment is an immediate threat to the public health,
safety, or the continued availability of service to the utility's
customers; and
3. That the delay required for the commission to conduct a hearing
would place the public health, safety, or continued utility service at
unnecessary risk.
(b)Sixty
(60)days after its entry, the order of temporary receivership shall
terminate and control and responsibility for the assets and operations of
the utility shall revert to the utility without further action of the court unless
the commission brings an action under subsection
(1)of this section.
(9)Nothing contained in this section shall be construed as requiring the
commission to approve an application made pursuant to KRS 278.020(6) for
authority to abandon a utility or other assets of a utility or to cease the provision
of utility service.