Kentucky Public Service Commission

Acknowledgement of Payment of Penalty

Order Entered: 1. The Stipulation is adopted and approved in its entirety as a complete resolution of all issues in this case. 2. Owen Electric is assessed a civil penalty of $10,000.00. 3. Owen Electric shall pay the amount of $10,000.00 within 30 days of the date of this Order by cashier's check or money order made payable to the Kentucky State Treasurer, and mailed to be delivered to the Office of General Counsel, Public Service Commission, 211 Sower Boulevard, P. 0. Box 615, Frankfort, KY 40602. 4. Owen Electric shall file status reports, within 45 days of the end of each calendar quarter throughout 2014, describing the efforts and changes instituted through the continuous improvement teams. 5. Upon the payment of $10,000.00 by Owen Electric, this case shall be closed and removed from the Commission's docket without further Order of the Commission. 6. Any documents filed pursuant to ordering paragraph 4 shall reference this case number and shall be retained in the utility's general correspondence file.

Letter Dated 12/23/2013 Entering Stipulation of Facts and Settlement Agreement Between Commission Staff and Owen Electric Cooperative, Inc.

Memorandum dated 11/22/2013 for Informal Conference of 11/20/2013; Comments, if any, due within five days of receipt

COMMISSION STAFF'S NOTICE OF INFORMAL CONFERENCE

Owen Electric's response to Commission’s Order dated 8/20/13.

Order Entered: 1. Owen Electric’s request to reschedule the formal evidentiary hearing is granted. 2. The formal evidentiary hearing currently scheduled for September 12, 2013 is continued to a date to be determined. 3. Owen Electric shall provide the information described in the findings above no later than November 1,2013. 4. Subsequent to Owen Electric’s filing of the information described in the findings above, Commission Staff shall issue a Staff Notice of Informal Conference to continue discussions of the issues in this case.

Memorandum dated 8/06/2013 for Informal Conference of 8/02/2013; Comments, if any, due within five days of receipt

Commission Staff's Notice of Informal Conference

Owen Electric Cooperative Inc's Response to Commission's Order Dated June 28, 2013

Order Entered: (1) Owen Electric shall submit to the Commission, within 20 days of the date of this Order, a written response to the allegations contained in the Report. (2) Commission Staff shall schedule and hold an informal conference with Owen Electric by August 8, 2013 to discuss any and all procedural and substantive mailers that may lead to the simplification or resolution of outstanding issues. (3) Owen Electric shall appear on September 12, 2013, at 10:00 a.m., Eastern Daylight Time, in Hearing Room I of the Commission’s offices at 211 Sower Boulevard in Frankfort, Kentucky, for the purpose of presenting evidence concerning the alleged violations of KRS 278.042, the most recent edition the National Electrical Safety Code, and Owen Electric’s safety manual, and of showing cause why it should not be subject to the penalties prescribed in KRS 278.990(1) for these alleged violations. (4) At the scheduled hearing in this matter, Owen Electric shall also present evidence on the adequacy, safety, and reasonableness of its practices related to the construction, installation, and repair of electric facilities as they relate to the facts of this case and whether such practices require revision as related to this incident. (5) The September 12, 2013 hearing shall be recorded by videotape only. (6) The Report in Exhibit A is made a part of the record in this case.