Request By:
Michael L. Stephens, County Judge/Executive, Adair County
Opinion
Opinion By: ANDY BESHEAR,ATTORNEY GENERAL;Sarah Ellen Eads Adkins,Assistant Attorney General
Opinion of the Attorney General
Adair County Judge/Executive Michael L. Stephens requested an opinion of this office regarding whether Adair County, by way of the County Judge/Executive, can establish a separate corporation apart from the water district to sell natural gas to its residents? 1
Before rendering this opmwn, the office requested input from Mr. Michael Stephens, County Judge/Executive for Adair County, and Mr. Lenny Stone, the Utility Manager Engineer in Adair County. This office also obtained a July 9, 2018, Public Service Commission ("PSC") opinion solicited by Judge Stephens regarding a related issue.
The underlying facts have not changed since PSC issued their opinion, but Judge Stephens' question has changed. Currently, residents of Adair County do not have access to natural gas. Judge Stephens' constituents have been requesting natural gas and he is attempting to provide this service in Adair County. Judge Stephens originally asked if the Adair County water district could provide natural gas to its residents. PSC answered that the water district could not provide natural gas and this office agrees with that conclusion. Now, Judge Stephens asks if he, as County Judge/Executive, can establish a separate corporation in Adair County to provide natural gas to its residents.
"The county judge/ executive shall be responsible for the proper administration of the affairs of the county placed in his charge." KRS 67.710. KRS 67.710 outlines the powers of the fiscal court and the county judge/ executive, but explicitly states that, though the county judge/ executive's responsibilities are enumerated in KRS 67.710, they are not limited by KRS 67.710. Accordingly, although the water district cannot provide natural gas, this office has found no authority that prevents Adair County from establishing a separate and distinct corporation or non-profit to provide natural gas to its residents. As with all operations by the fiscal court, the county is required to comply with applicable statutes regarding acquiring debt and related to starting a corporation. Further, Adair County is required to comply with the statutes which govern the distribution of natural gas, including KRS 278.020.
Footnotes
Footnotes
1 Judge Stephens' question changed during the course of issuing this opinion. This current question was confirmed by email on September 26, 2018.