The majority of this adjustment is to cover the costs to meet the growing demand for energy, especially in the Kentucky Utilities service territory. Since KU's last base load unit was built more than 20 years ago, the demand for energy across KU's service territory has doubled and demand has increased by more than 60%. Thus, a new generating unit and additional transmission facilities are being constructed to ensure continued reliable service.

No. That plant is in the very early planning stages and we would not seek to recover costs that we have not incurred.

No.

Each subsidiary operates solely on its own and is not subsidized by the parent company. E.ON has been supportive of our investments in the company and the communities we serve, but we must ensure we maintain a financially solid business. LG&E and KU are entitled to a reasonable rate of return on the money invested to serve their customers and that reasonable return is what is being sought in this rate case.

TC2 is the bulk of the reason we are requesting an increase in KU rates. In addition, the cost of the new transmission associated with the new load is being factored into this increase as is the ongoing improvements of the aging generation fleet at KU and the significant natural gas infrastructure investments of LG&E.

None. We can only recover costs that have already occurred. This rate increase is based on a "test year" which looks at our 2007 spending.

LG&E and KU have worked hard to address the needs of their customers in need. As a primary supporter of Community Winterhelp and the WinterCare Energy Assistance Fund, we annually provide thousands of dollars through our match (25 cents for every dollar donated April through October increased to a dollar for dollar match November 1 through March 31 each year). In addition, last year we formed a Customer Commitment Advisory Forum made up of representatives from the assistance agencies throughout our service area to bring these groups together to discuss issues that impact this segment of our customer base. The group meets quarterly to brainstorm ideas about how to provide assistance to this ever-growing population of customers who have trouble paying their utility bills.

When thinking about ways to reduce your energy bill, we encourage you to think about how you can use the energy you need more efficiently rather than what you can do without. If you don't know where to start, let us help. We offer a variety of programs and initiatives &mdash from our Demand Conservation switch or programmable thermostat to a soon-to-be-launched compact fluorescent lighting program that will offer additional opportunities for you to find ways to be more energy efficient. There are numerous energy-saving tools and resources available on our Web site; we will launch many new energy efficiency programs in the coming months.

We are launching more than a dozen new or enhanced energy efficiency programs — worth nearly $185 million — that will help customers reduce their demand for energy. We are actively seeking technological alternatives to reduce the impact on the environment. And, despite these increases, we still have some of the lowest energy rates in the country.