278.255 Periodic management and operation audits.
355 words·~2 min read·
/ky/chapter-278/278-255A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)The commission shall provide for periodic management and operation audits of
each utility with annual intra-Kentucky assessable revenue as of December 31,
1983, under KRS 278.150(1) not less than one hundred million dollars
($100,000,000) to investigate management effectiveness and operating efficiency.
The commission shall complete or provide for a full and comprehensive audit of
each such utility prior to January 1, 1990. After the initial audit of any utility, the
commission may order a subsequent audit of that utility focusing on issues
disclosed by the initial audit. A full and comprehensive audit of any utility initiated
prior to July 13, 1984, may be deemed to satisfy the requirements of this subsection
if the audit was required and directed by the commission and completed after July 1,
1983.
(2)The commission may provide for management or operations audits, or both, of any
utility under its jurisdiction on a regular or irregular schedule to investigate all or
any portion of the management and operating procedures or any other internal
workings of the utility.
(3)Audits provided under this section may, at the discretion of the commission, be
performed by the commission staff or by a competent, qualified and independent
firm. When the commission orders an audit to be performed by an independent
firm, the commission shall select the audit firm, which shall work for and under the
direction of the commission, with the cost to be borne by the utility. The
commission shall include the cost of conducting any audits required in this section
in the cost of service of the utility for ratemaking purposes.
(4)The commission shall adopt rules and regulations setting forth the scope and
application of audits, and procedures for the conduct of management and operations
audits. The audit procedures shall provide the utility being audited the opportunity
to comment at various stages of the audit, including an opportunity to comment on
the initial work plan and the opportunity to review and comment on preliminary
audit drafts prior to issuance of a final document. The results of all audits shall be
filed with the commission and shall be open to public inspection.