PSC order establishing economic development riders not authorized per statute: COM. V. THE PUBLIC SERVICE COMMISSION OF KY (COA 2/1/2008)

COM. V. THE PUBLIC SERVICE COMMISSION OF KY
ADMINISTRATIVE LAW:  Jurisdiction, utility regulation
2006-CA-001652
PUBLISHED: REVERSING AND REMANDING
PANEL: NICKELL, PJ;  COMBS, WINE CONCUR
COUNTY: FRANKLIN
DATE: 02/01/2008

This appeal started with the state filing an action to vacate or set aside orders by the Public Service Commission (PSC) that authorized establishment of economic development riders to electric utility’s general tariff.  The Franklin Circuit Court affirmed. State appealed, and the COA reversed and remanded the circuit court holding the orders were unlawful under statute setting forth permissible considerations for free or reduced-rate services; and the state authorizing a public utility to employ suitable and reasonable customer classifications in the conduct of its business did not confer alternative basis of jurisdiction to issue orders in question.

Michael Stevens