LOUISVILLE, Ky. — Despite the fact that energy efficiency is one of the most cost effective ways to meet growing energy demand, lower costs and reduce the amount of carbon produced, it is still an under-utilized resource.

With that in mind, Louisville Gas and Electric and Kentucky Utilities companies filed an application with the Kentucky Public Service Commission today to enhance their Energy Efficiency and Demand Side Management programs.

"We have concerns about how energy use is impacting the environment so we performed an extensive analysis of energy efficiency programs," said John P. Malloy, vice president, Energy Delivery-Retail Business. "The result is an expanded energy efficiency portfolio that will not only give our customers additional tools to reduce energy consumption, but will help educate them about their energy use and its impact on climate change."

Among the benefits of energy efficiency programs is that they can provide utilities the potential to delay construction of additional generation capacity. For example, one of LG&E and KU's most well-known programs is the Load Control program in which customers can either receive bill credits or programmable thermostats for allowing the Company to temporarily cycle down their air conditioners and water heaters during times of peak energy demand. Nearly 100,000 load-control devices have been installed, giving the companies the ability to reduce load by more than 100 MW and reduce peak demand for energy.

Some of the enhancements requested in today's filing include the addition of online energy audits, increases in the amount of low-income weatherization programs, and a rebate program for commercial lighting.

Some of the new programs include a residential high efficiency lighting program which encourages customers to use compact fluorescent bulbs; a residential new construction program that encourages ENERGY STAR® building practices; residential and commercial HVAC diagnostics and tune ups; and expanded educational and outreach programs.

"Energy efficiency programs are simply a means to help reduce or modify energy use, so our goal is to help our customers do that through these various initiatives," added Malloy added.

LG&E first received approval for programs like this in 1994. KU and LG&E hope the filing is approved so that they may begin implementation of the programs by January 2008.

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 324,000 natural gas and 398,000 electric customers in Louisville and 16 surrounding counties, and Kentucky Utilities Company, a regulated electric utility in Lexington, Ky., that serves 531,000 customers in 77 Kentucky counties and five counties in Virginia.