Kentucky Public Service Commission

Order Entered: East Pendleton is authorized to enter into an agreement with KRWFC to borrow no more than $1,001,000® for the purpose of refunding the outstanding indebtedness, but only under such terms and conditions as will produce both positive gross savings and net present value savings. 2. If the actual terms and conditions of the agreement with KRWFC differ from those set forth in its application. East Pendleton 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 savings that will result from the refinancing. 3. Within 30 days of executing the proposed agreement, East Pendleton shall file a copy of the executed Assistance Agreement and any documents referenced in the executed Assistance Agreement that East Pendleton has not previously filed with the Commission. 4. The proceeds from the Assistance Agreement shall be used only for the lawful purposes specified in East Pendleton'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. Nothing contained herein shall be construed as a finding of value for any purpose or as a warranty on the part of the Commonwealth of Kentucky or any agency thereof as to the securities authorized herein.

No deficiency letter

Acknowledge Receipt of Filing

APPLICATION OF EAST PENDLETON WATER DISTRICT TO ISSUE SECURITIES IN THE APPROXIMATE PRINCIPAL AMOUNT OF $910,000 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