Kentucky Public Service Commission

Order Entered: 1) Breathitt is granted CPC&N to proceed with KY 1098 South Fork Waterline & Houston Road Waterline Extensions. 2) Breathitt shall notify PSC prior to performing additional construction. 3) Any deviation from construction approved shall be approved by PSC. 4) Breathitt shall furnish documentation of total costs within 60 days substantial completion. 5) Breathitt shall file copy of “as-built" drawings & certified statement within 60 days of substantial completion. 6) Breathitt shall require each project be inspected under general supervision of licensed professional engineer with Kentucky registration in civil, electrical, or mechanical engineering. 7) Breathitt shall notify PSC 7 days prior to start of each project and at 50 percent completion point. 8) Breathitt is authorized to enter into loan agreement with KIA for an amount not to exceed $2,500,000.00 with term of 20 years at one percent per annum. 9) Within 30 days of executing proposed loan agreement, Breathitt shall advise PSC of execution of agreement and terms in loan agreement that differ from those described in Breathitt’s application. (10) Breathitt shall use proceeds from proposed loan agreement with KIA for purposes set forth in application; but shall not use any proceeds to pay any cost of Canoe Road Water Line Extension until PSC has issued a CPC&N for that project. (11) Executive Director shall cause a copy of Order to be served upon KIA.

Order Entered: the portion of Breathitt District's application for authorization to incur additional indebtedness is continued beyond the 60-day period specified in KRS 278.300(2)

Order Entered: 1. Breathitt District’s request to deviate from 807 KAR 5:OOl , Section 6, is granted. 2. Breathitt District’s application is accepted for filing and shall be considered filed as of September 30, 2011.

Acknowledge Receipt of Filing

Breathitt County Water District's Application for Authority to Enter Into a Loan Agreement with the Kentucky Infrastructure Authority