Kentucky Public Service Commission

Utilities of Kentucky, Inc.

IN THE MATTER OF JOINT APPLICATION OF AWUA CORPORATION, KENTUCKY WATER SERVICE COMPANY, INC., AND CITY OF SOMERSET, KENTUCKY FOR: (1) AUTHORITY FOR AWUA CORP. TO ISSUE COMMON STOCK AND TO ASSUME OBLIGATIONS TO MEET INDUSTRIAL REVENUE BONDS DEBT SERVICE; (2) AUTHORITY FOR AQUA CORP. TO ACQUIRE ALL OF THE OUTSTANDING COMMON STOCK OF KENTUCKY WATER SERVICE CO., INC.; (3) AUTHORITY FOR AQUA CORP. ITSELF IN SEQUENCE TO PURCHASE THE CLINTON AND MIDDLESBORO WATER DISTRIBUTION PLANTS AND ATTENDANT ACCOUNTS FROM ITS THEN CONTROLLED KY. WATER SERVICE COMPANY, INC.; (4) AUTHORITY FOR AQUA CORP. TO SELL ITS 100% OF OUTSTANDING COMMON STOCK OF KY. WATER SERVICE CO., INC. TO CITY OF SOMERSET, KY.