Kentucky Public Service Commission

Order Entered: North Mercer is granted a Certificate of Public Convenience and Necessity for the proposed construction project. North Mercer’s proposed plan of financing is accepted. North Mercer is authorized to issue $1,874,000 of North Mercer Water District Waterworks Revenue Bonds, Series 201 1, at an interest rate not exceeding 4.5 percent per annum, maturing over 40 years. 4. The proceeds from the proposed bond issuance shall be used only for the purposes specified in North Mercer‘s application. 5. Notwithstanding ordering paragraph 4, if surplus funds remain after the approved construction has been completed, North Mercer may use such surplus to construct additional plant facilities if RD approves of the use and the additional construction will not result in a change in North Mercer’s rates for service. North Mercer shall provide written notice of this additional construction in accordance with 807 KAR 5:069, Section 3. 6. North Mercer shall file a copy of the “as-built” drawings and a certified statement from the engineer that the construction has been satisfactorily completed in accordance with the contract plans and specifications within 60 days of substantial completion of the construction certified herein. 7. North Mercer shall require the construction to be inspected under the general supervision of a professional engineer with a Kentucky registration in civil or mechanical engineering to ensure that the construction work is done in accordance with the con

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APPLICATION OF NORTH MERCER WATER DISTRICT FOR A CERTIFICATE AND NECESSITY TO CONSTRUCT, FINANCE AND INCREASE RATES PURSUANT TO KRS 278.023