Kentucky Public Service Commission

Order Entered: 1. East Pendleton District shall, for accounting and ratemaking purposes, use the "PSC Approved Service Life" set forth in Appendix B to this Order for the listed classes of assets when calculating and reporting depreciation for all reporting periods after the date of this Order, but shall make no retroactive adjustment to its books to account for the cumulative effect of this change in accounting estimate. 2. East Pendleton District's proposed rates are denied. 3. East Pendleton District shall charge the rates set forth in Appendix C to this Order for water service rendered on and after November 16, 2013. 4. Within 20 days of the date of this Order and using the Commission's Electronic Tariff Filing System, East Pendleton District shall file with the Commission revised tariff sheets that contain the rates set forth in Appendix C. 5. Within 90 days of the date of this Order, East Pendleton District shall revise its accounting procedures and internal controls to include methods and practices that reasonably and fairly allocate revenues and expenses between its water and sewer divisions and shall file with the Commission a copy of these revised procedures and controls and evidence of its Board of Commissioners' formal adoption of such procedures. 6. Any documents filed pursuant to ordering paragraph 5 shall reference this case number and shall be retained in the utility's general correspondence file.

Letter to Wayne Lonaker Regarding ARF Form 3

East Pendleton Co. Water District affidavit of publication

Order Entered: 1. The informal conference scheduled in this matter for July 25, 2013 is cancelled. 2. The heating in this matter scheduled for August 8, 2013 is cancelled. 3. Within 14 days of the date of this Order, East Pendleton County Water District shall publish notice of its revised request in a newspaper of general circulation in its territory and shall provide the Commission with proof of publication of such notice no later than August 30, 2013. Notice shall be in the format set forth in the Appendix to this Order. 4. If the Commission does not receive any written requests for intervention or a hearing in this matter by September 15, 2013, this case shall stand submitted to the Commission for decision based upon the existing record.

East Pendleton Company Water District Written Comments and Resolutions In Response to Notice of Filing of Commission Staff Report

NOTICE OF FILING OF COMMISSION STAFF REPORT

Order Entered: 1. East Pendleton is permitted to deviate from 807 WR 5076, Section 4. 2. East Pendleton’s application is accepted for filing as of the date of this Order. 3. The reasonableness of East Pendleton’s proposed rates shall be determined using the calendar year ending 12/31/12. 4. No later than 6/28/13, Commission Staff shall file with the Commission and serve upon all parties of record a written report containing its findings and recommendations regarding East Pendleton’s requested rate adjustment. 5. No later than 7/12/13, or 14 days after the date of the filing of the Commission Staff Report, whichever occurs earlier, each party of record shall file with the Commission: a. its written comments on and any objections to the findings and recommendations contained in the Commission Staff Report; b. Any additional evidence for the Commission’s consideration; and, c. Written notice as to whether this matter may be submitted for decision based upon the existing record without hearing. 6. If Commission Staff finds that East Pendleton’s financial condition supports a higher rate than East Pendleton proposed or the assessment of an additional rate or charge not proposed in East Pendleton’s application, East Pendleton in its response to the Commission Staff Report shall also state its position in writing on whether the Commission should authorize the assessment of the higher rate or the recommended additional rate or charge.

Letter Filing Documents into the Record

Deficiency Letter

Acknowledge Receipt of Filing

Application of East Pendleton County Water District for an Alternative Rate Adjustment