Kentucky Public Service Commission

Order Entered: 1. KU's petition for confidential protection for the designated material contained in seven construction contracts, which are filed as Exhibits 4-10 to the Application, is granted. 2. The designated confidential material contained in KU's Exhibits 4-10 to the Application, shall not be placed in the public record or made available for public inspection for a period of five years from the date of this Order. 3. Use of the material in question in any Commission proceeding shall be in compliance with 807 KAR 5:001, Section 13(9). 4. KU shall inform the Commission if the material in question becomes publicly available or no longer qualifies for confidential treatment. 5. If a non-party to this proceeding requests to inspect the material granted confidential treatment by this Order and the period during which the material has been granted confidential treatment has not expired, KU shall have 20 days from receipt of written notice of the request to demonstrate that the material still falls within the exclusions from disclosure requirements established in KRS 61.878. If KU is unable to make such demonstration, the requested material shall be made available for inspection. Otherwise, the Commission shall deny the request for inspection. 6. The Commission shall not make requested material available for inspection for 20 days following an Order finding that the material no longer qualifies for confidential treatment in order to allow KU to seek a remedy afforded by law.

Order Entered: 1. KU's motion to clarify is granted. 2. The Commission's order of June 27, 2018, shall be amended in the following manner: Ordering Paragraph 11 shall read: KU is authorized to extend the term of its existing revolving line of credit and the total aggregate amount of the multi-year revolving credit facilities shall not exceed $500 million. Ordering Paragraph 15 shall read: KU is authorized to exercise extension in 2019 and 2020, respectively, to extend the facility maturity dates to five years from the date of the amendment. 3. All provisions of the June 27, 2018 Order that are not in conflict with the terms of this Order shall remain in full force and effect.

Motion to Clarify Order

Monica H. Braun Kentucky Utilities Company

Order Entered: 1. KU's motion to amend the June 27, 2018 Order is granted. 2. The first full paragraph on page 5 of the Commission's Order of June 27, 2018, is amended as follows: KU expects the issuance of the First Mortgage Bonds to be sold at various times through 2018 and into 2019 in one or more underwritten public offerings, negotiated sales, or private placement transactions utilizing the proper documentation. The price, maturity date(s), interest rate(s), redemption provisions and other applicable terms would be determined by negotiations among KU and the underwriters, agents or other purchasers of the First Mortgage Bonds. KU estimates the amount of compensation to be paid to underwriters or agents for their services would not exceed one percent and KU estimates that issuance costs, excluding underwriting fees, would be approximately $400,000. 3. All provisions of the June 27, 2018 Order that are not in conflict with the terms of this Order shall remain in effect. 4. With the amendment to the June 27, 2018 Order, this case is closed and removed from the Commission's docket.

Motion to Amend Order

Monica H. Braun Kentucky Utilities Company

Final Order Entered: 1. KU is authorized to issue certain First Mortgage Bonds as defined in the application to refund and refinance the Carroll County 2007 Series A Bonds. 2. KU is authorized to enter into Hedging Facilities as necessary to issue certain First Mortgage Bonds as defined in the application to refund and refinance the Carroll County 2007 Series A Bonds. 3. KU is authorized to establish regulatory assets or liabilities for accounting purposes for the losses and gains arising from a Hedging Facility and amortize the losses and gains over the remaining life of the First Mortgage Bonds as described in the application. 4. The proceeds from the transactions authorized herein shall be used only for the lawful purposes set out in the application. 5. KU shall, within 30 days from the date of issuance, file with the Commission a statement setting forth the date or dates of issuance of the securities authorized herein, the date of maturity, the price paid, the proceeds of such issuances, the interest rate, costs or gains from the use of hedging agreements, and all fees and expenses, including underwriting discounts or commissions or other compensation, involved in the issuance and distribution. KU shall also file documentation showing the quotes that it relied upon to determine the lowest interest rate. 6. KU is authorized to issue long-term debt in the form of First Mortgage Bonds, for an amount not to exceed $400 million, from 2018 through 2019.

20180518_PSC No Deficiency Letter.pdf

Application of KU for an Order Authorizing the Issuance of Securities and the Assumption of Obligations and an Order Amending and Extending Existing Authority with Respect to Revolving Letter of Credit.

Derek A Rahn Kentucky Utilities Company

20180509_PSC Acknowledgment Letter.pdf

Kentucky Utilities Company Notice of Intent to File Application for an Order Authorizing the Issuance of Securities and the Assumption of Obligations and an Order Amending and Extending Authority with Respect to Revolving Line of Credit Using Electronic Fi