Kentucky Public Service Commission

Order Entered: 1. Mountain Water's application for rehearing is granted. 2. Mountain Water shall not be required to comply with ordering paragraph 4 of the Commission's June 12, 2017 Order. 3. Ordering paragraph 7 of the Commission's June 12, 2017 Order is amended to read: Mountain Water shall file with the Commission documentation of the total cost of this project, including the cost of construction and all other capitalized costs, (e.g., engineering, legal, administrative) when 50 percent of the units are installed and again when 90 percent of the units are installed. Construction costs shall be classified into appropriate plant accounts in accordance with the Uniform System of Accounts for sewer utilities prescribed by the Commission. 4. Ordering paragraph 8 of the Commission's June 12, 2017 Order is amended to read: Mountain Water shall file a certified statement that the construction work has been satisfactorily completed in accordance with the Commission's grant of a CPCN for this project when 50 percent of the units are installed and again when 90 percent of the units are installed. Each certified statement shall be filed within 60 days of satisfying the reporting threshold. 5. All other provisions of the Commission's June 12, 2017 Order not in conflict with this Order shall remain in full force and effect.

Mountain Water District Motion for Rehearing

Final Order Entered: 1. Mountain Water is granted a CPCN to proceed with the proposed construction as set forth in its application. 2. Mountain Water shall notify the Commission prior to performing any additional construction not expressly authorized by this Order. 3. Any deviation from the construction approved shall be undertaken only with the prior approval of the Commission. 4. Mountain Water shall require construction to be inspected under the general supervision of a licensed professional engineer with a Kentucky registration in civil or mechanical engineering to ensure that the construction work is done in accordance with the contract drawings and specifications and in conformance with the best practices of the construction trades involved in the project. 5. Mountain Water is authorized to enter the proposed Assistance Agreement with KIA and, under the terms of the Assistance Agreement, to borrow from KIA an amount not to exceed $300,000 to be repaid over a 20-year period at an interest rate of 0.75 percent per annum, with a loan-servicing fee of 0.20 percent of the annual outstanding loan balance payable to KIA with each interest payment. 6. Within 30 days of executing its proposed Assistance Agreement with KIA, Mountain Water shall file with the Commission an executed copy of the Assistance Agreement. Mountain Water shall use the $300,000 proceeds from the proposed Assistance Agreement with KIA only for the lawful purposes set forth in its application.

Letter Filing Documents in the Record

Order Entered: Mountain District's Motion for Extension of Time is granted and the Application is accepted for filing as of April 20, 2017.

Mountain Water District Supplemental Filing

Deficiency Cured Letter

Mountain Water District response to filing deficiencies

Mountain Water District Motion for Extension of Time to File Response

Deficiency letter, information due 4/14/2017

Acknowledge Receipt of Filing

Mountain Water District Application for the Issuance of a Certificate of Public Convenience and Necessity to Construct and Finance a Sewer System Improvements Project Pursuant to the Provisions of KRS 278.020, KRS 278.300, 807 KAR 5:001 and 807 KAR 5:071