AN ACT relating to municipal interlocal gas utilities.

Create a new section of KRS Chapter 96 to define "municipal interlocal gas utility"; provide that a municipal interlocal gas utility is exempt from the jurisdiction of the Public Service Commission and KRS Chapter 278 exempt as provided in KRS 278.495; authorize a municipal interlocal gas utility to determine its own service territory through official acts of its governing authority; allow a municipal interlocal gas utility to have the primary right to provide service in its service territory and to have the right to be the first provider for new customers in the service territory; authorize the municipal interlocal gas utility to acquire an existing natural gas system through eminent domain and specify the valuation method for the acquired plant or system; exempt a municipal interlocal gas utility from the provisions of KRS 96.5375, 96.045, and 96.538; amend KRS 65.240 to allow a public agency to acquire natural gas facilities inside or outside of its jurisdictional boundaries; amend KRS 96.5375 to allow a municipal interlocal gas utility to extend an existing natural gas system or construct a new system inside or outside its constituent cities' boundaries; specify the valuation of natural gas distribution system or plant acquired by eminent domain; define "municipal interlocal gas utility"; amend KRS 278.010 to exempt to municipal interlocal gas utilities from the definition of "utility" for the purpose of establishing the jurisdiction of the Public Service Commission; define "municipal interlocal gas utility"; amend KRS 96.045 and 96.538 to conform; RETROACTIVE.