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Press Release

02.09.2007

LG&E, KU File for Green Energy Program


(LOUISVILLE, Ky.) — Customers of Louisville Gas and Electric Company and Kentucky Utilities Company will soon be able to do their part to help improve the environment if the companies' new Green Energy program is approved by the Kentucky Public Service Commission.

The new Green Energy program, which the companies are filing with the KPSC today, would provide an option for the utilities' residential, commercial and industrial customers to support the promotion and development of cleaner energy.

"We've made great strides over the past few years in doing our part to improve the environment through clean coal research partnerships and environmental improvements at our plants," said Vic Staffieri, Chairman, CEO and President, E.ON U.S. "Offering our customers green energy through renewable energy certificates gives them the opportunity to help improve the environment as well."

The voluntary program would allow customers to invest in the overall improvement of the environment by providing funds for LG&E and KU to acquire renewable energy certificates (RECs) also known as "green tags." Green tags represent the environmental benefits associated with energy being created from environmentally friendly sources such as landfill, biomass, hydro, wind, solar or other renewable sources. The program also allows the company the opportunity to develop additional renewable energy from green energy contributions as it becomes economically feasible.

Initially, most of the program's renewable energy would come from landfill and biomass generators, since they are the most economical and readily available sources of renewable energy in this region.

Landfill energy is developed by capturing the methane created from decaying organic waste. Collecting and using landfill gas to generate electricity not only improves the environment, but preserves fossil fuels for future generations.

If approved, residential, commercial and industrial customers will have the opportunity to purchase "blocks" of green energy monthly in increments of $5 or $13 which will be added to their normal monthly bill.





E.ON U.S., headquartered in Louisville, Ky., is a subsidiary of E.ON A.G., the world's largest investor-owned energy services provider. E.ON U.S. is a diversified energy services company that owns and operates Louisville Gas and Electric Company, a regulated utility that serves 321,000 natural gas and 394,000 electric customers in Louisville and 16 surrounding counties, and Kentucky Utilities Company, a regulated electric utility in Lexington, Ky., that serves 525,000 customers in 77 Kentucky counties and five counties in Virginia.