LOUISVILLE, Ky. (October 1, 2003) — As LG&E customers prepare for winter weather, LG&E has requested a decrease in its current gas rates, but those rates will remain higher than a year ago, according to an adjustment filed today.

If the adjustment is approved, a typical residential customer with average usage of 90 Ccf per month will pay $84.22 effective Nov. 1, 2003. That compares to $91.27 per month based on the rates currently in effect — a decrease of about 8 percent. Natural gas rates, however, remain about 24 percent higher than at the same time a year ago.

The new rates will remain in effect through Jan. 31, 2004.

"Certainly, we're not telling customers that the natural gas pinch has passed," said Chip Keeling, LG&E Energy's vice president of communications. "But prices are moderating somewhat and the situation does not appear quite as dire as we had feared it would be just a few months ago. Supply seems to be catching up with demand."

LG&E's gas supply costs are passed directly to customers on a dollar-for-dollar basis following review by the Kentucky Public Service Commission. If gas supply costs increase, so do gas bills. Likewise, if costs decrease, bills are reduced. LG&E's natural gas rates are about 10 percent lower than the national average.

LG&E continues to stress conservation as the best way for customers to combat higher prices and falling temperatures, including the following:

• Join LG&E's Budget Billing program to normalize your costs over a 12-month period.
• Consider getting an energy audit by a trained energy specialist. The audit is $15, through LG&E. Call (800) 251-7808 for details.
• Check the amount of insulation in your home.
• Have your ductwork inspected and cleaned by a professional, if necessary.
• Check your thermostat setting. For every degree you turn your thermostat down, you can save 3 to 5 percent on your monthly heating costs. Turn your thermostat down to 65 degrees at night or if you're going to be away from your home for more than four hours.
• Change disposable furnace filters every 30 days or so. A good reminder is to change or clean your furnace filter on the day you receive your LG&E bill.
• Use draft stoppers at doors and windows.
• Wear layered or warmer clothing while indoors and put extra blankets on your bed.
• Close the dampers and doors in fireplaces when not in use, unless you have a gas fireplace.
• On sunny days, open drapes and blinds to allow the sunlight to brighten and warm rooms, close drapes and blinds at night to retain the heat.
• Turn down your water heater to a low or medium setting. Water heaters installed prior to 1990 may benefit from a water heater blanket or jacket (sold at hardware or home improvement stores for $10 to $15).

LG&E is a wholly owned subsidiary of LG&E Energy Corp. that serves customers in Louisville, Ky., and 16 surrounding counties.