Kentucky Public Service Commission

Blue Grass Energy Cooperative Corp.

IN THE MATTER OF THE APPLICATION OF BLUE GRASS ENERGY COOPERATIVE CORPORATION FOR AN ORDER AN CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY (1) TO EXECUTE TWENTY "SUBSTITUTE SECURED PROMISSORY NOTES" AND "CONSOLIDATED LOAN AGREEMENT" AND "RESTATED MORTGAGE AND SECURITY AGREEMENT" WITH NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION PURSUANT TO KRS 278.300 AND (2) TO EXCLUDE FROM PSC JURISDICTION A LOAN CONTRACT AND MORTGAGE NOTE TO THE UNITED STATES OF AMERICA (RURAL UTILITIES SERVICE PURSUANT TO KRS 278.300 (10) AND (3) TO AUTHORIZE BLUE GRASS ENERGY COOPERATIVE CORPORATION TO ASSUME AND ALL LIABILITIES OF ITS PREDECESSORS, BLUE GRASS R.E.C.C. AND FOX CREEK R.E.C.C.