Kentucky Public Service Commission

Final Order Entered: 1 . The amounts billed by EKPC through its environmental surcharge for the period January 1, 2016, to June 30, 2016, are approved. 2. EKPC's determination that it experienced a net over-recovery of $343,125 for the review period is approved. Beginning in the first full -billing month following the date of this Order, EKPC shall decrease its jurisdictional environmental revenue requirement by $171 ,562 per month for one month and $171 ,563 for one month. 3. EKPC shall use a rate of return of 6.059 percent in all monthly environmental surcharge filings subsequent to the date of this Order. 4. EKPC's Member Cooperatives shall include the applicable monthly retail pass-through adjustments, shown in the Appendix to this Order, in the determination of each Member Cooperative's respective pass-through mechanism in each of the first six months following the date of this Order, as discussed herein. 5. EKPC's proposed treatment of rounding differences in the Member Cooperatives' amortization of their over- or under-recovery amounts is approved. 6. EKPC's proposed change to a flat-rate billing factor to begin with the expense month of March 2017 is denied. 7. EKPC's proposed changes to its rate ES - Environmental Surcharge tariff are denied.

Order Entered: EKPC's petition for confidential protection for designated materials contained In Its response to Staffs First Request, Item 8.b., Is granted. 2. The designated materials set forth In EKPC's response to Staff's First Request, Item 8.b., shall not be placed In the public record or made available for public Inspection for a period of ten years, or until further Orders of this Commission.

EKPC Motion to Submit the Case

Grayson RECC Response to Second Request for Information

Nolin RECC Response to Second Request for Information

Licking Valley RECC Response to Second Request for Information

Cumberland Valley Electric Inc. Response to Second Request for Information

Jackson Energy Coop. Corp. Response to Second Request for Information

Shelby Energy Coop. Inc. Response to Second Request for Information

South Kentucky RECC Response to Second Request for Information

Owen Electric Coop. Inc. Response to Second Request for Information

EKPC Response to Second Request for Information

Clark Energy Coop. Inc. Response to Second Request for Information

Salt River Electric Coop. Corp. Response to Second Request for Information

Fleming Mason Energy Coop. Inc. Response to Second Request for Information

Farmers RECC Response to Second Request for Information

Taylor County RECC Response to Second Request for Information

Inter County Energy Coop. Corp. Response to Second Request for Information

Blue Grass Energy Coop. Corp. Response to Second Request for Information

Big Sandy RECC Response to Second Request for Information

Commission Staff's Second Request for Information to East Kentucky Power Cooperative, Inc. and Each of Its 16 Member Cooperatives

Memorandum dated 11/14/2016 for Informal Conference of 11/09/2016; Comments, if any, due within five days of receipt

EKPC Response to Appendix B w/CD

Jackson Energy Cooperative Response to Staff Request for Information

Cumberland Valley Electric Testimony and Response to Data Request

Grayson RECC Response to Staff Request for Information

Nolin RECC Response to Staff Request for Information

Licking Valley RECC Response to Staff Request for Information

South Kentucky RECC Response to Staff First Data Request

Clark Energy Cooperative, Inc. Response to Data Request Including Response #9, Sent Under Separate Cover

Blue Grass Energy Cooperative Corporation Response to Data Request

Inter-County response

Owen Electric prepared testimony to PSC staff first request for into to EKPC

Clark Energy Cooperative, Inc. Response to Data Request Including Response #9, Sent Under Separate Cover

Shelby Energy Coop. Inc. Response to Information Request

Big Sandy RECC Response to Request for Information

Salt River Electric Coop. Corp. Response to Request for Information

Salt River Electric Coop. Corp. Response to Request for Testimony

Farmers RECC Response to Request for Information

Taylor County RECC Response to Request for Information

Fleming Mason Energy Coop. Inc. Response to Request for Information

Order Entered: 1. EKPC's motion for a seven-day extension of time is granted. 2. EKPC shall file its direct testimony and discovery responses no later than November 7, 2016.

EKPC Motion for Extension of Time

Order Entered: 1 . EKPC and each of its Member Cooperatives listed in footnote 2 shall be parties to this case. 2. The procedural schedule set forth in Appendix A to this Order shall be followed in this proceeding. 3. Any motion to intervene filed after November 10, 2016, shall show a basis for intervention and good cause for being untimely. If the untimely motion is granted, the movant shall accept and abide by the existing procedural schedule. 4. EKPC shall, by the date set forth in Appendix A, file its prepared direct testimony in support of the reasonableness of the application of its environmental surcharge mechanism and the application of the pass-through mechanism during the period under review. 5. EKPC and the Member Cooperatives shall, by the date set forth in Appendix A, file their prepared direct testimony on their consideration to alternatively direct bill EKPC's environmental costs in lieu of the current billing methodology. 6. Any party filing testimony shall file an original and eight copies. 7. a. EKPC and each of its 16 Member Cooperatives shall file responses to the questions asked of the particular cooperative in Appendix B. The information requested herein is due no later than October 31, 2016. Responses to requests for shall be appropriately bound, tabbed, and indexed and shall include name of witness responsible for responding to the questions related to information provided, with copies to all parties of record and eight copies to the Commission.