Kentucky Revised Statutes · § 278.2211 — Remedies for noncompliance utility and affiliate -- Access to records -- Disallowance of costs -- Audit

(1) If the commission finds that a utility has not complied with any provision of this chapter for any transaction between a utility and its affiliate, or if a utility has failed to provide sufficient evidence of its compliance, then the commission may:

(a) Access the books and records of a utility's nonregulated affiliate; and

(b) Order that the costs attached to any transactions be disallowed from rates.

(2) If, after inspecting an affiliate's books and records, the commission finds that a utility has not complied with any provision of KRS 278.010 to 278.450, the commission may perform a financial audit of the utility's affiliate to the extent necessary to ensure compliance with KRS 278.010 to 278.450.