Windows Service Looking for app.config and not app.exe.config

Question

I'm trying to install a Windows Service on a 2008 server. The service was built with VS2010, targeting the 3.5 framework. A simple setup project was used to deploy the service. The install works fine and the service starts up appropriately. The bizarre issue I'm having is when the service executable, MyService.exe, is run it is looking for MyService.config and NOT MyService.exe.config.

Is there any reason why the "exe" extension is dropped from the config file lookup at run time??? Has anyone see this behavior before?