(1) The Public Service Commission may, by rule or order, authorize and require the transportation of natural gas in intrastate commerce by intrastate pipelines, or by local distribution companies with unused or excess capacity not needed to meet existing obligations of the pipeline or distribution company, for any person for one (1) or more uses, as defined by the commission by rule, in the case of:
(a) Natural gas sold by a producer, pipeline or other seller to such person; or (b) Natural gas produced by such person.
(2) The rates and charges of any intrastate pipeline or local distribution company with respect to any transportation authorized and required under this section shall be fair and reasonable.
(3) Nothing in this section is intended to relieve any intrastate pipeline of further obligations as a common carrier under KRS 278.470, 278.480, and 278.490.