Kentucky Public Service Commission Approves Kentucky Utilities Company's Bid on Cumberland City Franchise

Strategic Insights -

The Kentucky Public Service Commission (PSC) has issued a regulatory document approving Kentucky Utilities Company's (KU) bid on a new franchise established by the City of Cumberland, Kentucky. The franchise, authorized by Ordinance No. 484, will allow KU to provide electric service to the city's citizens. According to the document, the franchise will be awarded to the highest and best bidder as determined by the City in its sole discretion.

Key Takeaways:

  • The City of Cumberland, Kentucky, has established a non-exclusive franchise for the use of its public rights-of-way, as described in the Franchise Agreement.
  • Kentucky Utilities Company (KU) has been approved to bid on the new franchise, which will allow it to provide electric service to the city's citizens.
  • The franchise will be awarded to the highest and best bidder, as determined by the City, and will be negotiated and executed by the winning bidder and the City.
  • The Franchise Agreement will contain terms that are fair and reasonable to the City, the purchaser of the Franchise, and the patrons of the utility, as per Section 96.010 of the Kentucky Revised Statutes.
  • The existing franchise agreement, which expires on November 7, 2025, will not be renewed, and the new franchise will become effective with the first billing cycle on or after the expiration date.
  • Time is of the essence in carrying out the terms and provisions of the Ordinance and the Franchise created herein.

Statistics:

  • The new franchise, established by Ordinance No. 484, will allow KU to provide electric service to the City of Cumberland's citizens.
  • The franchise will be awarded to the highest and best bidder, as determined by the City, within a period of June 27, 2025.
  • The existing franchise agreement currently in effect expires on November 7, 2025.
  • According to the Franchise Agreement, the City and the winning bidder will negotiate, execute, and be bound by a Franchise Agreement with terms that are fair and reasonable to all parties involved.

Sources:

  • Commonwealth of Kentucky, City of Cumberland: Ordinance No. 484 (An Ordinance Creating a Franchise for the Erection, Laying, and Maintenance of Electric Facilities and Appurtenant Facilities and Equipment in, Along, and Across the Public Ways, Roads, Streets, Alleys, and Other Public Places in the City of Cumberland, Kentucky.)
  • Kentucky Public Service Commission: Regulatory Document for Case No. 2025-00185