Kentucky Public Service Commission

Order Entered: 1. The Joint Motion to accept the Second Stipulation and to cancel the scheduled hearing is approved. 2. The terms of the Second Stipulation are approved. 3. Fern Lake Company's proposed rates are denied. 4. The rates set forth in the Appendix to this Order are approved for water service that Fern Lake Company renders on and after the date of this Order. 5. The hearing scheduled in this matter for December 16, 2013, is canceled. 6. Within 20 days of the date of this Order and using the Commission's Electronic Filing System, Fern Lake Company shall with the Commission a revised tariff sheet that contains the rates set forth in the Appendix.

Joint motion to approve second stipulation settlement agreement and recommendation and Motion to authorize rates on or before Jan 1, 14

Memorandum dated 11/25/13 for Informal Conference of 11/21/2013; Comments, if any, due within five days of receipt

Order Entered: (1) The Agreement tendered by Fern Lake is rejected. (2) An informal conference shall be held at the Commission's offices in Frankfort, Kentucky, to discuss procedural issues and any other matters that may aid in the handling or disposition of this case, beginning at 1:00 p.m. Eastern Standard Time, on November 21, 2013. (3) A public hearing for the purpose of cross-examination of witnesses of Fern Lake and Intervenors will be held at the Commission's offices in Frankfort beginning at 10:00 a.m. Eastern Standard Time, on December 16, 2013. (4) Pursuant to KRS 278.360 and 807 KAR 5:001, Section 9(9)(a), the record of the formal hearing in this matter shall be by videotape. (5) Commission Staff shall prepare a written list of all exhibits presented at the hearing and shall file this list, with all hearing exhibits, and a copy of the video transcript of the hearing with the Commission. (6) Any request to cancel or postpone this hearing shall be made by motion filed with the Commission at least one week before the hearing is scheduled to commence.

Fern Lake Company's Response to Commission Staff's Post Hearing Data Requests

Notice of Filing Hearing Documents

Order Entered: Hearing scheduled for Sept 10, 13

Fern Lake, Water Service Corp of Kentucky, and AG Executed Stipulation, Settlement Agreement and Recommendation

Memorandum dated 9/06/2013 for Conference Call of 9/05/2013; Comments, if any, due within five days of receipt of letter

AG notice for leave to file out of time and that it does not intend on calling any individuals as witnesses the hearing

Commission Staff's Notice of Conference Call

Water Service Corp of Kentucky notice that it does not intend on calling any witnesses

Fern Lake's Notice of Filing of documents requested in PSC Staff's August 30, 2013 email

Fern Lake Company witness list

Memorandum dated 8/30/2013 for Informal Conference of 8/26/2013; Comments, if any, due within five days of receipt

Fern Lake Company Affidavit and Notice of Hearing

Fern Lake Company ARF Form 3

Letter to David Samford Regarding ARF Form 3

Attorney General's Written Comments on Staff Report and Notice of Substitution of Counsel

Water Service Corporation of Kentucky's Response to Staff Report

Fern Lake Company's Response and Limited Objection to Commission Staff Report

Notice of Filing of Commission Staff Report

Order Entered: 1. No later than July 29, 2013, Commission Staff shall file with the Commission and serve upon all parties of record a written report containing its findings and recommendations regarding Fern Lake Company’s requested rate adjustment. 2. No later than August 12, 2013, 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 heating. 3. If Commission Staff finds that Fern Lake Company’s financial condition supports a higher rate than Fern Lake Company proposes or the assessment of an additional rate or charge not proposed in Fern Lake Company’s application, Fern Lake Company 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.

Fern Lake Company's Responses to Staff's Data Requests

Letter to Osterloh, Samford, and Spenard concerning electronic emails

Order Entered: that the motion is granted, and the Attorney General is hereby made a party to these proceedings.

Goss Samford PLLC Change of Address

AG's Motion For Intervention

Order Entered: 1. The motion of WSCK to intervene is granted. 2. WSCK shall be entitled to the full rights of a party and shall be served with the Commission’s Orders and with filed testimony, exhibits, pleadings, correspondence, and all other documents submitted by parties after the date of this Order. 3. Should WSCK file documents of any kind with the Commission in the course of these proceedings, WSCK shall also serve a copy of said documents on all other parties of record.

Order Entered: 1. No later than July 15, 2013, Commission Staff shall file with the Commission and serve upon all parties of record a written report containing its findings and recommendations regarding Fern Lake's requested rate adjustment. 2. No later than July 29, 2013, 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. It’s 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. 3. If Commission Staff finds that Fern Lake’s financial condition supports a higher rate than Fern Lake proposes, or the assessment of an additional rate or charge not proposed in Fern Lake’s application, Fern Lake 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. 4. If Commission Staff recommends changes in which Fern Lake accounts for the depreciation of Fern Lake’s assets, Fern Lake in its response to the Commission Staff Report shall also state its position in writing on whether the Commission should require Fern Lake to implement the proposed change for accounting purposes.

Water Service Corporation of Kentucky Motion to Intervene

No deficiency letter

Acknowledge Receipt of Filing

Application for Alternative Rate Filing of Fern Lake Company