Kentucky Public Service Commission

Order Entered: The July 29, 2016 Order is amended by deleting the text in ordering paragraph 2 and substituting in its place the following: If Blue Grass Energy is not the successful bidder, Blue Grass Energy shall, within ten days of the award of the franchise at issue, file with the Commission a written notice stating that Blue Grass Energy was not the successful bidder. 2. All other provisions of the July 29, 2016 Order shall remain in full force and effect.

Final Order Entered: 1. Blue Grass Energy is granted a CPCN that authorizes it to bid on a franchise offered by the city of Nicholasville, Kentucky, for electric transmission and distribution service. 2. If Blue Grass Energy is not the successful bidder, Blue Grass Energy shall, within ten days of the award of the franchise at issue, file with the Commission a written notice stating that KU was not the successful bidder. 3. If Blue Grass Energy is the successful bidder, Blue Grass Energy shall, within ten days of the award of the franchise at issue, file with the Commission a copy of the executed franchise agreement and a statement disclosing the amount of the initial franchise fee. 4. If Blue Grass Energy is the successful bidder, Blue Grass Energy shall, within ten days of an increase or decrease in the amount of the initial franchise fee set forth in the franchise agreement, file with the Commission documentation setting forth the revised fee. 5. Any documents filed pursuant to ordering paragraphs 2, 3, or 4 of this Order shall reference the number of this case and shall be electronically submitted via the Commission's electronic Tariff Filing System. 6. This Order shall not be construed as granting a CPCN to construct utility facilities in said city.

Acknowledge Receipt of Filing

Blue Grass Energy Cooperative Corporation Application of a Certificate of Convenience and Necessity to Apply for and Obtain a Franchise in the Territorial Limits of City of Nicholasville, Kentucky for Electric Utility Service