Kentucky Public Service Commission

Order Entered: Hyden-Leslie District is authorized to enter into the Assistance Agreement with KRWFC to borrow no more than $660,0007 for the purpose of refunding the outstanding indebtedness, but only under such terms and conditions that will produce both positive gross savings and net present value savings.as “net future value benefit” and “net present value benefit,” respectively. 2. If the actual terms and conditions of the Assistance Agreement with KRWFC differ from those set forth in its Application, Hyden-Leslie District shall, within 30 days of executing the loan agreement, file with the Commission amortization schedules and work papers showing the actual gross savings and net present value refinancing. 3. Within 30 days of executing the proposed agreement, Hyden-Leslie District shall file a copy of the executed Assistance Agreement and any documents referenced in the executed Assistance Agreement that Hyden-Leslie has not previously filed with the Commission. 4. The proceeds from the Assistance Agreement shall be used only for the lawful purposes specified in Hyden-Leslie District’s Application. 5. Any documents filed pursuant to ordering paragraphs 2 and 3 of this Order shall reference the number of this case and shall be retained in the utility’s general correspondence file.

Order Entered: 1. Hyden-Leslie District’s motion to deviate from. 807 KAR 5001 I Section 11 (2)(a), is granted. 2. Hyden-Leslie District’s application is considered filed as of the date of this Order. 3. Nothing contained in this Order shall preclude the Commission from requiring the production of information regarding Hyden-Leslie District’s financial condition or operations since December 31 2011.

Acknowledge Receipt of Filing

Application of Hyden-Leslie County Water District to Issue Securities in the Approximate Principal Amount of $600,000 for the Purpose of Refunding Certain Outstanding Revenue Bonds of the District Pursuant to the Provisions of KRS 278.300 and 807 KAR 5:001