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1. This Consent Decree is entered into by the Enforcement
Bureau of the Federal Communications Commission ("Bureau") and
Kenergy Corporation (``Kenergy'').
2. Kenergy is an electric distribution cooperative with
headquarters in Henderson, Kentucky. It serves 50,000
customers in all or portions of 14 western Kentucky counties.
It is the third largest cooperative in Kentucky in terms of
3. Kenergy was established in July 1999 through the
consolidation of Henderson Union Electric Cooperative Corp.
and Green River Electric Corporation, both of which held
licenses in the Private Operational-Fixed Microwave and
Industrial/Business Services. The consolidation resulted in
the substantial transfer of control of a total of 56 stations
and, thus, required prior Commission consent, pursuant to
Section 310(d) of the Communications Act of 1934, as amended,
47 U.S.C. § 310(d). Kenergy, however, did not file
applications for Commission consent to the assignment of
licenses for these stations until November 2000. The
applications have since been granted.
4. For the purposes of this Consent Decree, the following
definitions shall apply:
(a) "Commission" means the Federal Communications Commission.
(b) "Bureau" means the Commission's Enforcement Bureau.
(c) "Kenergy'' means Kenergy Corporation.
(d) "Order" means the order of the Enforcement Bureau
adopting this Consent Decree.
(e) "Final Order" means the Order that is no longer subject
to administrative or judicial reconsideration, review,
appeal, or stay.
(f) ``Act'' means the Communications Act of 1934, as
amended, Title 47 of the United States Code.
5. Kenergy agrees that the Bureau has jurisdiction over the
matters contained in this Consent Decree and the authority to
enter into and adopt this Consent Decree.
6. The Bureau and Kenergy agree that this Consent Decree does
not constitute an adjudication on the merits or any finding on
the facts or law regarding any violations of the Act or the
Commission's rules committed by Kenergy.
7. Kenergy agrees that it shall make a voluntary contribution
to the United States Treasury in the amount of $7,500 within
10 calendar days after the Bureau releases the Order adopting
this Consent Decree.
8. Kenergy agrees to implement, within 10 calendar days after
the Bureau releases the Order adopting this Consent Decree, a
comprehensive internal program, a summary of which is attached
hereto, to ensure Kenergy's future compliance with the Act,
the Commission's rules, and the Commission's policies.
9. In express reliance upon the representations contained
herein, the Bureau agrees to terminate its investigation into
the matters discussed in paragraph 3, above.
10. The Bureau agrees not to institute any new proceeding,
formal or informal, of any kind against Kenergy for apparent
violations of Section 310(d) of the Act arising from the
matters discussed in paragraph 3, above.
11. In the event that Kenergy is found by the Commission or its
delegated authority to have engaged in a violation of Section
310(d) of the Act subsequent to the release of the Order
adopting this Consent Decree, Kenergy agrees that the conduct
described in paragraph 3, above, may be considered by the
Commission or its delegated authority in determining an
12. Kenergy waives any and all rights it may have to seek
administrative or judicial reconsideration, review, appeal or
stay, or to otherwise challenge or contest the validity of
this Consent Decree and the Order adopting this Consent
Decree, provided the Order is limited to adopting the Consent
Decree without change, addition, or modification.
13. Kenergy and the Bureau agree that the effectiveness of this
Consent Decree is expressly contingent upon issuance of the
Order, provided the Order adopts the Consent Decree without
change, addition, or modification.
14. Kenergy and the Bureau agree that in the event that this
Consent Decree is rendered invalid by any court of competent
jurisdiction, it shall become null and void and may not be
used in any manner in any legal proceeding.
15. Kenergy and the Bureau agree that if Kenergy, the
Commission, or the United States on behalf of the Commission,
brings a judicial action to enforce the terms of the Order
adopting this Consent Decree, neither Kenergy nor the
Commission shall contest the validity of the Consent Decree or
Order, and Kenergy and the Commission shall waive any
statutory right to a trial de novo with respect to any matter
upon which the Order is based (provided in each case that the
Order is limited to adopting the Consent Decree without
change, addition, or modification), and shall consent to a
judgment incorporating the terms of this Consent Decree.
16. Kenergy agrees to waive any claims it may otherwise have
under the Equal Access to Justice Act, Title 5 U.S.C. § 504
and 47 C.F. R. § 1.1501 et seq., relating to the matters
discussed in paragraphs 3 and 4, above.
17. Kenergy agrees that any violation of the Order adopting this
Consent Decree shall constitute a separate violation and
subject Kenergy to appropriate administrative sanctions.
18. Kenergy and the Bureau agree to be bound by the terms and
conditions stated herein.
19. Kenergy and the Bureau agree that this Consent Decree may be
signed in counterparts.
FEDERAL COMMUNICATIONS COMMISSION
By: ____________________ __________
David H. Solomon Date
By: ____________________ ___________
Dean Stanley Date
President and Chief Executive Officer
Summary of Section 310(d) Compliance Program
To assure compliance with federal and state law, the
Communications Act and Federal Communications Commission
(``FCC'') regulations, the Kenergy Telecommunications
Compliance and Education Program (the ``Program'') will be
established. The Program will be administered within the
Engineering Department with the Manager of Technical
Services supervising the operation of the Program.
Program operations will be described in a compliance manual
addressing four areas: database, education, review and
monitoring, and designation of Contact persons.
Database: Technical Services will assemble and maintain
information about the company's telecommunications licenses
and other telecommunications information in a database
accessible by engineers and managers throughout the company.
The existence, location and maintenance of the database
will be publicized within the company. The database will
include a ``tickler system'' to prompt timely filing of
renewal applications and will be kept current by the Manager
of Technical Services.
Education: The Manager of Technical Services, with
assistance from the Electronic
Technicians, will conduct an education program for company
vice presidents, managers and other parties responsible for
establishment, purchase, sale and use of the company's
telecommunications assets. The education program will
emphasize the need to make timely application for FCC
consent to changes in ownership or control of
telecommunications licenses. The Program will be
supplemented by membership in trade organizations such as
the United Telecom Council (``UTC''), and other means of
keeping informed of FCC policy and regulatory compliance
Review and Monitoring: The company will review the Program
annually to ensure that it is maintained in a proper manner
and continues to address the objectives set forth herein.