Kentucky Public Service Commission

Order Entered: (1) South Eastern's motion to deviate from 807 KAR 5:001, Section 11(2)(a), is granted. (2) South Eastern's application is considered filed as of November 5, 2010. (3) South Eastern is authorized to enter into a loan agreement with Butler County to borrow no more than $3,751,000. (4) If the actual terms and conditions of the proposed loan differ from those set forth in its application, South Eastern shall within 30 days of executing the loan agreement file with the Commission amortization schedules. (5) Within 30 days of executing the proposed loan agreement, South Eastern shall file with the Commission a statement setting forth the date the agreement was entered. (6) The proceeds from the transaction authorized herein shall be used only for the lawful purposes specified in the application. (7) Any documents filed pursuant to ordering paragraphs 4 and 5 shall reference the number of this case and shall be retained in the utility's general correspondence file.

Acknowledge Receipt of Filing

Application of the South Eastern Water Association, Inc. to issue securities in the approximate principal amount of $3,410,000 for the purpose of refunding certain outstanding indebtedness of the association pursuant tot he provisions of KRS 278.300 and 807 KAR 5:001.