Kentucky Public Service Commission

Acknowledgement of Payment of Penalty

Inter-County Energy Cooperative's Penalty Payment

1.The Joint Stipulation of Facts and Settlement Agreement is adopted and approved. 2.Inter-County is assessed a penalty of $2,500.00. 3. Inter-County shall pay $1,500.00 of the $2,500.00 civil penalty within 30 days of the date of this Order. 4. The remaining $1,000.00 of the civil penalty is suspended on the condition that Inter-County abides by the terms contained in the Settlement Agreement and provides all required documentation within the time allotted. 5. Within 30 days of the date of this Order, Inter-County shall provide documentation on the training given as a result of this incident, Inter-County shall continue to provide training specifically on the NESC and clearance issues at least on a quarterly basis. 6. Within 30 days of the date of this Order, Inter-County shall provide a summary report to the Commission of the system-wide inspection performed as a result of this incident. 7. No later than March 30, 2012, Inter-County shall provide a report of its normal two-year system-wide inspection to the Commission, which is to be completed by December 31, 2011. 8. Beginning with the December 2011 issue, Inter-County shall provide information in each issue of its monthly magazine distributed to all customers regarding safety. 9. The hearing scheduled for November 22, 2011 is cancelled. 10. Upon payment of the $1,500.00 civil penalty, this case shall be closed. 11. Any documents filed in the future shall reference this case number.

Letter Entering Stipulation of Facts and Settlement Agreement into Record

Memorandum dated 9/30/11 for Informal Conference of 9/27/11; Comments, if any, due within seven days of receipt

Commission Staff's Notice of Informal Conference

Inter-County Energy's Response to Order and Motion for IC

Order Entered: (1) Within 20 days of the date of this Order, Inter-County shall file with the Commission a written response to the allegation contained in the Report. (2) Inter-County shall appear on November 22, 2011, at 10:00 a.m., Eastern Standard Time, in Hearing Room 1 of the Commission’s offices at 211 Sower Boulevard, Frankfort, Kentucky, for the purpose of presenting evidence concerning the alleged violation of KRS 278.042, and to show cause why it should not be subject to the penalties prescribed in KRS 278.990(1) for the alleged violation. (3) At the scheduled hearing in this matter, Inter-County shall also present evidence on the adequacy, safety, and reasonableness of its practices related to the construction, installation and repair of electric facilities as they relate to the facts of this case and whether such practices require revision. (4) The November 22, 2011 hearing shall be recorded by videotape only. (5) The Report in the Appendix to this Order is made a part of the record in this case. (6) Any requests for an informal conference with Commission Staff shall be set forth in writing and shall be filed with the Commission within 20 days of the date of this Order.