Legislators question KentuckyWired stakeholders during meeting
Rep. Matt Lockett, R-Nicholasville, speaks during Wednesday’s meeting of the Information Technology Oversight Committee. He also serves as co-chair of the committee. A high-resolution photo can be found here.
FRANKFORT — Legislators on the Information Technology Oversight Committee raised questions Wednesday about long-standing problems and financial concerns related to the KentuckyWired project.
The KentuckyWired network is a physical system of fiber optic cable that allows broadband internet service to be brought to Kentucky communities. Construction started in 2015, according to the Kentucky Communications Network Authority (KCNA), which has partnered to build and oversee the project.
Committee Co-Chair Rep. Matt Lockett, R-Nicholasville, said committee members want to ensure that taxpayers aren’t incurring costs over and above what should be paid, and he looks forward to receiving findings from state auditor’s office about the project.
“I think it is this committee’s desire, in terms of this whole day and discussion, that we do get to the bottom of these issues,” he said. “The bottom line is we are here as representatives of our districts and people to make sure that we are spending Kentucky’s taxpayer dollars wisely, to make sure we protect those dollars, that they are not being wasted.”
Lorran Hart Ferguson, chief of staff for the Kentucky Auditor of Public Accounts, said Senate Bill 25 from the 2025 legislative session earmarked $1.5 million for her office to audit the project.
Ferguson said Kentuckians deserve answers to two “big” questions – why isn’t the project complete and what needs to be done to get there. The audit is at its beginning stage, she said.
Committee Co-Chair Sen. Gex Williams, R-Verona, said one problem with the project is the government is involved in a “very dynamic, fast-moving industry.”
He also expressed concerns about procurement codes and if KCNA officials had a say over what happened to a contract with Accelecom, which is registered with the Kentucky Secretary of State’s Office as OpenFiber Kentucky Co. LLC.
“This has been a big loss for the state, and it’s a difference between the way KDE (Kentucky Department of Education) runs things and the way I see some state agencies. KDE, they contract out, they farm things out. They don’t try to be the experts in every detail. They contract their email, they contract out their networks,” he said.
Representatives from KCNA, Accelecom, and the Kentucky Department of Education, also testified during the meeting.
Kevin H. Marino, legal counsel for Accelecom, said Accelecom is willing to renegotiate and mediate with KCNA. Things were going fine until recent leadership changes, he said. “It’s not something just anybody can do.”
Doug Hendrix, executive director of the KCNA, spoke about the termination of OpenFiber. In 2017, KCNA entered into a contract with OpenFiber, and its employees were essentially a sales team, he explained.
“They were going to go out and market this. And as I said, there was a revenue sharing agreement, but that agreement has terms and conditions like all contracts that they have to comply with. Unfortunately, as you know, since we’re here, that contract’s just not worked out as intended,” he said.
The authority issued three notices of default to the company, Hendrix said.
“They’ve connected their network without permission. We have a temporary restraining order that the Franklin Circuit Court prohibiting them from connecting to the network without our permission,” he said.
Rep. Chad Aull, D-Lexington, asked if both political parties were cooperating with requests from the state auditor’s office, and Ferguson answered, “as of now, yes.”
The next meeting of the committee is scheduled for Aug. 13 at 10 a.m. in the Capitol Annex.
Unless a special session is called by the governor, the general assembly can’t act on legislation until the regular session begins in January.
