Kentucky Public Service Commission

Final Order Entered: 1. EKPC is authorized to establish a regulatory asset as described herein for the undepreciated balance of the Dale Station assets, excluding Projects 5 and 10, which are currently recovered through EKPC's environmental surcharge. 2. EKPC shall amortize the regulatory asset authorized in Ordering paragraph 1 over 42 months after December 31, 2015, as proposed in its application. 3. EKPC shall establish a separate regulatory asset for Projects 5 and 10 as described herein, which shall be deferred and considered for recovery in EKPC's next base rate case. 4. EKPC shall be allowed to record a return, calculated in the same manner as in EKPC's environmental surcharge mechanism, on the unamortized balance of Projects 5 and 10 and the accumulated insurance costs incurred. 5. The regulatory assets approved herein are for accounting purposes only. 6. EKPC shall remove Projects 5 and 10 from its environmental surcharge mechanism effective with the date of this Order. 7. EKPC shall file annually an updated report related to Projects 5 and 10, including the balance of the regulatory asset as of December 31, 2015, and the carrying cost and insurance cost incurred after 2015. Carrying charges are to be calculated on the prior-month ending balance beginning with the December 31, 2015 ending balance of the regulatory asset.

EKPC Response to Second Request for Information

Commission Staff's Second Request for Information to East Kentucky Power Cooperative, Inc.

EKPC Response to Information Request

Commission Staff's Initial Request for Information to East Kentucky Power Cooperative, Inc.

Order Entered: The procedural schedule set forth in the Appendix, which is attached hereto and incorporated herein, shaii be followed in this proceeding.

Acknowledge Receipt of Filing

EKPC Application for an Order Approving the Establishment of a Regulatory Asset for the Undepreciated Balance of the William C. Dale Generating Station