96.810 Use of revenues -- Reduction of rates -- Equity of municipality.
389 words·~2 min read·
/ky/chapter-96/96-810A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)The board shall devote all moneys derived from any source other than the issuance
of bonds to or for the payment of all operating expenses; bond interest and
retirement and sinking fund payments; the acquisition and improvement of the
electric plant; contingencies; other obligations incurred in the operation and
maintenance of the electric plant and the furnishing of electric service; the state, any
county, any school district, any municipality, and any other special taxing district in
which the board operates, of the same respective amounts as provided in KRS
96.820, or any other additional amounts which the board pursuant to its contract
with the Tennessee Valley Authority or other governmental agencies collects as tax
equivalents for any taxing jurisdiction if the board contracts with the Tennessee
Valley Authority or any governmental agency for the purchase and resale of
electrical energy, or if the board does not contract with the Tennessee Valley
Authority or any other governmental agency for the purchase or resale of any
electrical energy and if it has met all obligations imposed on it by KRS 96.550 to
96.900 it may at the end of any twelve
(12)months ending June 30 transfer any
surplus to the general fund of the municipality which authorized it; the redemption
and purchase of electric plant bonds, in which case the bonds should be canceled;
the creation and maintenance of a cash working fund; and the payment of an amount
to the general funds of the municipality.
(2)After the establishment of proper reserves, if any, and after complying with the
above provisions of this section, any surplus of proceeds shall be devoted solely to
the reduction of rates. The equity of the municipality contracting with the Tennessee
Valley Authority or other governmental agency for the purchase and resale of
electrical power or energy shall be the purchase price of the electric plant, less the
face value of outstanding bonds, or, if there is no purchase price, the original cost of
the plant as defined by the Federal Energy Regulatory Commission, less accrued
depreciation, less the face value of the outstanding bonds. The payment of bonds or
the acquisition or improvement of property from the receipts derived from electric
service or any other operation of the board shall not be considered to increase the
equity or investment of the municipality.