Kentucky Public Service Commission

Order Entered: The retail and wholesale water service rates proposed in Black Mountain's Application are denied. 2. The retail and wholesale water service rates and debt service surcharge shown in Appendix A are approved for services rendered on and after the date of this Order. 3. The proceeds from the debt service surcharge shall be used for no purpose other than the repayment of the RD bonds and KIA loans that were outstanding at the time Black Mountain merged with Green Hills. To ensure compliance with KRS 74.363(4), Black Mountain shall establish an escrow account with a financial institution into which it shall deposit the surcharge collections and out of which it shall separately account for repayment of these long-term debts. The amount of the surcharge may be reduced from time to time, with the Commission's approval, as each of the nine debt obligations is fully retired. The surcharge shall remain in effect until all debts are fully repaid. 4. If at any time the cash balance of the surcharge account is not sufficient to pay a principal or interest payment, the additional cash deposit that is necessary into the surcharge account to make payment shall come from the revenues received through the assessment of the Water Division 1 volumetric water service rates.

Letter dated 11/06/2015 Filing Correction to Staff Report

Black Mountain Utility District Proof of Publication

Order Entered: Within 14 days of the date of this Order, Black Mountain shall notify its customers of the implementation of the proposed rates by publishing notice of the increase in a newspaper of general circulation in its territory or placing an insert in bills rendered to its customers. The customer notice shall be in the format set forth in the Appendix to this Order. 2. Black Mountain shall provide proof of publication of the notice to the Commission no later than 30 days from the date of this Order. 3. If the Commission does not receive any written requests for intervention or a hearing in this matter within 30 days of publication of new rates, this case shall stand submitted to the Commission for decision based upon the existing record.

Black Mountain Utility District Notice of Acceptance of PSC Report

NOTICE OF FILING OF COMMISSION STAFF REPORT

Order Entered: 1. No later than August 5, 2015, Commission Staff shall file with the Commission and serve upon all parties of record a written report containing its findings and recommendations regarding Black Mountain's requested rate adjustment. 2. No later than August 19, 2015, or 14 days after the date of the filing of Commission Staff's 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 Commission Staff's report; and b. Any additional evidence for the Commission to consider. c. If a party requests a hearing or informal conference, then the party shall make the request in its written comments and state the reason why a hearing or informal conference is necessary. 3. If Commission Staff finds that Black Mountain's financial condition supports a higher rate than Black Mountain proposes or the assessment of an additional rate or charge not proposed in Black Mountain's application, Black Mountain in its response to Commission Staff's report shall also state in writing its position 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 the manner in which Black Mountain accounts for the depreciation of Black Mountain's assets,

Deficiency cured letter

Black Mountain Utility District Response to Deficiencies

Deficiency letter, information due within 15 days of receipt

Acknowledge Receipt of Filing

ALTERNATIVE RATE ADJUSTMENT FILING OF BLACK MOUNTAIN UTILITY DISTRICT