Kentucky Public Service Commission

Acknowledgement of Payment of Penalty

Order Entered: 1. The Stipulation is adopted and approved in its entirety as a complete resolution of all issues in this case. 2. Shelby Energy shall pay the amount of $2,000.00 within 30 days of the date of this Order by cashier’s check or money order made payable to the Kentucky State Treasurer and mailed or delivered to the Office of General Counsel, Public Service Commission, 21 1 Sower Boulevard, P. 0. Box 615, Frankfort, Kentucky 40602. 3. Upon receipt of the payment of $2,000.00 by Shelby Energy, this case shall be closed and removed from the Commission’s docket without further Order of the Commission.

Exhibit A to the stipulation of facts and Settlement Agreement that was filed on Feb 17, 2012

Letter Entering Stipulation of Facts and Settlement Agreement

Order Entered: the hearing scheduled on December 7, 2011 is cancelled and shall be rescheduled at a later date if needed.

Memorandum dated 11/28/11 for Informal Conference of 11/15/11; Comments, if any, due within five days of receipt

Order Entered: that an informal conference shall be held on November 15, 2011 at 1O:OO a.m., Eastern Standard Time, in Conference Room 1 of the Commission’s offices, 211 Sower Boulevard, Frankfort, Kentucky to discuss issues in this show cause proceeding .

Order Entered: that the motion is granted and Shelby Energy shall file its response by November 2,2011.

Shelby Energy's Response to Order

Shelby Energy Coop Inc motion for extension of time

Shelby Energy's Request for Informal Conference

Order Entered: (1) Shelby shall file, within 20 days of the date of this Order, a written response to the allegations contained in this Order. (2) Shelby shall appear on December 7, 2011, at 10:00 a.m. EST, in Hearing Room 1 of the Commission's offices for the purpose of presenting evidence concerning the alleged violation of KRS 278.020(1) and to show cause why it should not be subject to the penalties prescribed in KRS 278.990(1) for this alleged violation. (3) The official record of this proceeding shall be by video, unless otherwise requested by Shelby. (4) Any request by Shelby for an informal conference with the Commission Staff shall be set forth in writing and filed with the Commission within 20 days of the date of this Order. (5) The record of evidence in Case No. 2011-00244 is incorporated by reference only.