Attorney General Introduces Legislation that Demands Action from the Public Service Commission
Representative Mike Weaver is sponsor

FRANKFORT, KY (February 1, 2006) – Attorney General Greg Stumbo announced today that Rep. Mike Weaver will sponsor legislation requiring the Kentucky Public Service Commission (PSC) to take action within 60 days when complaints are filed against public utilities. Under present law, the PSC can delay action indefinitely.

“My Office of Rate Intervention serves as a watchdog for consumers in matters related to natural gas and electric rates,” said Stumbo. “The inaction on the part of the PSC to filings by this Office is inexcusable and Kentuckians are suffering for it.”

One year ago today, the Office of the Attorney General filed a complaint with the PSC regarding Western Kentucky Gas, a subsidiary of Atmos Energy Corporation, over earning by as much as $8.7 million a year. Despite the Office’s efforts, the PSC has failed to take action whatsoever to protect ratepayers, despite the unprecedented spike in natural gas prices this winter.

“This inactivity is especially unfortunate for the 180,000 customers in 38 Kentucky counties that are provided natural gas by Atmos,” said Stumbo. “Failing to police over earning just takes money from the pockets of hardworking taxpayers.”

Atmos is the largest distributor of natural gas in the country. In the fall of 2004, the Tennessee Attorney General’s Office advised Attorney General Stumbo that Atmos may be over earning, resulting in unfair charges to customers.

The Attorney General’s attempts to gain voluntary cooperation from Atmos failed. Stumbo then filed a complaint against Atmos with the PSC on February 1, 2005. Despite the Attorney General’s demand for a hearing, the PSC has failed to act.

Atmos in Colorado has settled with a consumer advocate group for excessive earnings of $1.85 million in both 2002 and 2003. The Tennessee Regulatory Authority has opened an investigation of Atmos’ over earnings at the request of the Tennessee Attorney General’s Office. The Tennessee Attorney General is arguing that Atmos is over earning by $10.2 million per year.

“Unless the PSC grants my Office a hearing in which we can fully explore the company’s earnings, Atmos will continue to unjustly enrich itself at the cost of our citizens,” said Stumbo. “Even worse, any unfair charges the the 180,000 Kentucky customers have already paid is lost because of the PSC’s inaction and cannot be refunded under Kentucky law.”

“Ratepayers must have their voices heard by the Commission in a timely manner,” said Rep. Mike Weaver. “These unreasonable delays are uncalled for and will not be tolerated under the provisions of the legislation I am sponsoring.”