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LEGAL NEWSLINE

Sunday, April 28, 2024

Kentucky accused of unethical commerce policies to protect dying coal industry

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FRANKFORT, Ky. (Legal Newsline) - Four Kentucky Public Service Commission (PSC) executives are accused of protectionist policy in federal court.

According to a complaint filed on April 5 in the Eastern District of Kentucky, Kentucky allegedly has now tried three times to adopt laws that protect its own dwindling coal producers by creating unfair circumstances for out-of-state producers. This latest measure benefits states like Kentucky that impose coal severance taxes while harming companies from states that don't, the plaintiff says.

Plaintiff Foresight Coal Sales LLC is an Illinois-based coal manufacturer. 

According to the suit, the PSC instituted the legislation to "preserve economic union and suppress interstate rivalry." The plaintiff says that such legislation violates nondiscrimination requirements and creates unfair commercial disadvantages. 

The plaintiff requests injunctive relief, declaratory relief and relief under the U.S. Commerce Clause against defendants PSC Chairman and Commissioner Michael Schmitt, PSC Vice Chairman and Commissioner Kent Chandler, PSC Commissioner Talina Mathews and PSC Executive Director Linda Bridwell. 

Foresight's counsel is Bailes Craig Yon and Sellards PLLC of Huntington W.Va., and Bailey and Glasser LLP of Washington D.C. and Charleston W.Va. 

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