# KRS § 278.018: 278.018 Right to serve certified territory > Kentucky · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_KY_TXXIV_C278_S278.018 ## Section - **Citation:** KRS § 278.018 - **Heading:** 278.018 Right to serve certified territory - **Jurisdiction:** Kentucky - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** KY Code / Title XXIV / Chapter 278 / Section 278.018 ## Text 278.018 Right to serve certified territory. (1) Except as otherwise provided herein, each retail electric supplier shall have the exclusive right to furnish retail electric service to all electric-consuming facilities located within its certified territory, and shall not furnish, make available, render or extend its retail electric service to a consumer for use in electric-consuming facilities located within the certified territory of another retail electric supplier; provided that any retail electric supplier may extend its facilities through the certified territory of another retail electric supplier, if such extension is necessary for such supplier to connect any of its facilities or to serve its consumers within its own certified territory. In the event that a new electric-consuming facility should locate in two (2) or more adjacent certified territories, the commission shall determine which retail electric supplier shall serve said facility based on criteria in KRS 278.017(3). (2) Except as provided in subsections (3) and (5) of this section, any new electric- consuming facility located in an area which has not as yet been included in a map issued by the commission, pursuant to KRS 278.017(2), or certified, pursuant to KRS 278.017(4), shall be furnished retail electric service by the retail electric supplier which has an existing distribution line in closer proximity to such electric- consuming facility than is the nearest existing distribution line of any other retail electric supplier. Any disputes under this subsection shall be resolved by the commission. (3) The commission may, after a hearing had upon due notice, make such findings as may be supported by proof as to whether any retail electric supplier operating in a certified territory is rendering or proposes to render adequate service to an electric- consuming facility and in the event the commission finds that such retail electric supplier is not rendering or does not propose to render adequate service, the commission may enter an order specifying in what particulars such retail electric supplier has failed to render or propose to render adequate service and order that such failure be corrected within a reasonable time, such time to be fixed in such order. If the retail electric supplier so ordered to correct such failure fails to comply with such order, the commission may authorize another retail electric supplier to furnish retail electric service to such facility. (4) Except as provided in subsection (3) of this section, no retail electric supplier shall furnish, make available, render or extend retail electric service to any electric- consuming facility to which such service is being lawfully furnished by another retail electric supplier on June 16, 1972, or to which retail electric service is lawfully commenced thereafter in accordance with this section by another retail electric supplier. (5) The provisions of KRS 278.016 to 278.020 shall not preclude any retail electric supplier from extending its service after June 16, 1972, to property and facilities owned and operated by said retail electric supplier. electric supplier on June 16, 1972, or to which retail electric service is lawfully commenced thereafter in accordance with this section by another retail electric supplier. (5) The provisions of KRS 278.016 to 278.020 shall not preclude any retail electric supplier from extending its service after June 16, 1972, to property and facilities owned and operated by said retail electric supplier. (6) Notwithstanding the effectuation of certified territories established by or pursuant to KRS 278.016 to 278.020, and the exclusive right to service within such territory, a retail electric supplier may contract with another retail electric supplier for the purpose of allocating territories and consumers between such retail electric suppliers and designating which territories and consumers are to be served by which of said retail electric suppliers. Notwithstanding any other provisions of law, a contract between retail electric suppliers as herein provided when approved by the commission shall be valid and enforceable. The commission shall approve such a contract if it finds that the contract will promote the purposes of KRS 278.016 and will provide adequate and reasonable service to all areas and consumers affected thereby. ## Nearby sections - [KRS § 278.010 278.010 Definitions for KRS 278.010 to 278.450, 278.541 to 278.544, 278.546 to 278.5462, and 278.990](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXXIV_C278_S278.010.md) - [KRS § 278.012 278.012 Water association subject to Public Service Commission -- Exceptions](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXXIV_C278_S278.012.md) - [KRS § 278.015 278.015 Water district; combined water, gas, or sewer district; or water commission a public utility subject to Public Service Commission -- Exceptions](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXXIV_C278_S278.015.md) - [KRS § 278.016 278.016 Commonwealth to be divided into geographical service areas](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXXIV_C278_S278.016.md) - [KRS § 278.017 278.017 Establishing boundaries of certified areas](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXXIV_C278_S278.017.md) - [KRS § 278.018 278.018 Right to serve certified territory](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXXIV_C278_S278.018.md) - [KRS § 278.019 278.019 Deadlines for commission to issue final orders -- Failure to meet deadline deemed approval](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXXIV_C278_S278.019.md) - [KRS § 278.020 278.020 Certificate of convenience and necessity required for construction provision of utility service or of utility -- Exceptions -- Approval required for acquisition or transfer of ownership -- Public hearing on proposed transmission line -- Limitations upon approval of application to transfer control of utility or to abandon or cease provision of services -- Hearing -- Severability of provisions](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXXIV_C278_S278.020.md) - [KRS § 278.021 278.021 Receivership for abandoned utility -- Criteria for finding of abandonment -- Consolidation of actions -- Powers and duties of receiver -- Temporary receivership -- Commission's discretion to approve or decline to approve applications](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXXIV_C278_S278.021.md) - [KRS § 278.022 278.022 Utility to notify commission upon receipt of notice of discontinuance or termination from supplier](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXXIV_C278_S278.022.md) - [KRS § 278.023 278.023 Approval of federally-funded construction projects -- Commission review of agreement and supporting documents -- Surcharge](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXXIV_C278_S278.023.md) - [KRS § 278.027 278.027 Application for certificate -- Publishing notice of hearing](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXXIV_C278_S278.027.md) - [KRS § 278.030 278.030 Rates, classifications and service of utilities to be just and reasonable -- Service to be adequate -- Utilities prohibited from energizing power to electrical service where seal is not present](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXXIV_C278_S278.030.md) - [KRS § 278.035 278.035 Prohibition against preferential retail rates for utility services for certain publicly-funded entities -- Exception](https://www.frixlaw.com/law-library/statutes/STATE_KY_TXXIV_C278_S278.035.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_KY_TXXIV_C278_S278.018. Check the current official text before relying on it. Not legal advice.