Kentucky Public Service Commission

Final Order Entered: (1) Duke Kentucky is authorized to obtain long-term debt in an aggregate amount not to exceed $175 million as set forth in its application for the period ending December 31, 2016. (2) Duke Kentucky is authorized to borrow from Boone County, Kentucky, or another authorized issuer of tax-exempt bonds in the Commonwealth of Kentucky, for a term not to exceed 40 years, the proceeds of up to a maximum of $76.72 million aggregate principal amount of Authority Bonds that may be issued in one or more series, for the period ending December 31, 2016. (3) Duke Kentucky is authorized to use interest rate management techniques and to enter into interest rate management agreements as will reduce its overall interest costs. Further, in the event Duke Kentucky enters into an interest rate management agreement, a copy of the agreement shall be provided to the Commission within 30 days of its execution. (4)The proceeds from the transactions authorized herein shall be used only for the lawful purposes set out in the application. (5) Duke Kentucky shall agree only to terms and prices that are consistent with this Order. (6) Duke Kentucky shall, within 30 days from the date of issuance, file with this Commission a statement setting forth date or dates of issuance of securities authorized herein, price paid, interest rate, and fees and expenses, including underwriting discounts or commissions or other compensation, involved in issuance and distribution of any such securities.

No Deficiency Letter

Acknowledge Receipt of Filing

Duke Energy Kentucky, Inc. Application for an Order Authorizing the Issuance of Unsecured Debt and Long-Term Notes, Execution and Delivery of Long-Term Loan Agreements, and Use of Interest Rate Management Instruments