Kentucky Statutes 278.460 – Utilities to pay interest on deposits required of patrons — Commission to calculate interest rate annually — Interest rates for water districts and water associations — Administrative regulations
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(1) Except as provided in subsection (2) of this section, a utility, including an electric cooperative organized under KRS Chapter 279, shall pay interest on amounts required to be deposited by patrons to secure utility service. The commission shall calculate the interest rate on an annual basis by averaging the one (1) year constant maturity treasury rate from September, October, and November, and shall notify utilities in December of each year of the interest rate to be paid by utilities for the following calendar year.
(2) No water district organized under KRS Chapter 74 nor water association organized under KRS Chapter 273 shall pay interest that exceeds the rate it receives in interest, nor shall the interest payable to the customer at any time exceed six percent (6%) annually on amounts required to be deposited by patrons to secure water accounts.
(3) The commission may promulgate administrative regulations in accordance with the provisions of KRS Chapter 13A to implement this section.
Effective: July 12, 2012
History: Amended 2012 Ky. Acts ch. 22, sec. 1, effective July 12, 2012. — Amended
1994 Ky. Acts ch. 221, sec. 1, effective July 15, 1994. — Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 2223-1.
(2) No water district organized under KRS Chapter 74 nor water association organized under KRS Chapter 273 shall pay interest that exceeds the rate it receives in interest, nor shall the interest payable to the customer at any time exceed six percent (6%) annually on amounts required to be deposited by patrons to secure water accounts.
Terms Used In Kentucky Statutes 278.460
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Year: means calendar year. See Kentucky Statutes 446.010
(3) The commission may promulgate administrative regulations in accordance with the provisions of KRS Chapter 13A to implement this section.
Effective: July 12, 2012
History: Amended 2012 Ky. Acts ch. 22, sec. 1, effective July 12, 2012. — Amended
1994 Ky. Acts ch. 221, sec. 1, effective July 15, 1994. — Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 2223-1.