Kentucky Public Service Commission

Order Entered: . Grayson District is granted a Certificate of Public Convenience and Necessity for the proposed waterworks improvement project as set forth in its application. 2. Grayson District’s proposed plan of financing with RD is accepted. -2- Case No. 201 2-001 98 3. Grayson District is authorized to issue $525,000 of Grayson County Water District System Revenue Bonds, Series 2013A, with an interest rate not to exceed 2.50 percent per annum and maturing over 40 years. 4. Grayson District is authorized to issue $900,000 of Grayson County Water District System Revenue Bonds, Series 2013B, with an interest rate not to exceed 2.00 percent per annum and maturing over 40 years. 5. Grayson District shall use the proceeds from the proposed issuance of revenue bonds only for the purposes set forth in its application. 6. Grayson District shall obtain approval from the Commission prior to performing any additional construction not expressly authorized by this Order. 7. Notwithstanding paragraph 6 of this Order, if surplus funds remain after the approved construction has been completed, Grayson District may use such surplus to construct additional plant facilities if RD approves of the use and the additional construction will not result in a change in Grayson District's rates for service. Grayson District shall provide written notice of this additional construction in accordance with 807 KAR 5069, Section 3. 8. Grayson District shall require construction to be inspected under

No deficiency letter

Acknowledge Receipt of Filing

APPLICATION OF THE GRAYSON COUNTY WATER DISTRICT FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY TO CONSTRUCT, FINANCE AND INCREASE RATES PURSUANT TO KRS 278.023