SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 1-3464
Kentucky Utilities Company
(Exact name of registrant as specified in its charter)
Kentucky and Virginia 61-0247570
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Quality Street, Lexington, Kentucky 40507
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 606-255-2100
Not Applicable
Former name, former address and former fiscal year, if changed since
last report
Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the Registrant was required to file such reports)
and (2) has been subject to such filing requirements for the past 90
days.
Yes X No .
Number of shares of Common Stock outstanding at November 2, 1995:
37,817,878 shares (owned by the parent-KU Energy Corporation).
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<PAGE>
PART I. FINANCIAL INFORMATION
KENTUCKY UTILITIES COMPANY
STATEMENTS OF INCOME
(Unaudited)
(in thousands of dollars)
For the Three
Months Ended
September 30,
1995 1994
Operating Revenues (See Notes 2 and 4) $194,373 $156,512
Operating Expenses:
Fuel, principally coal, used in
generation (See Note 2) 54,102 33,972
Electric power purchased 22,341 15,603
Other operating expenses 30,817 27,939
Maintenance 16,027 15,209
Depreciation 18,785 16,308
Federal and state income taxes 15,331 14,208
Other taxes 3,897 3,536
Total Operating Expenses 161,300 126,775
Net Operating Income 33,073 29,737
Other Income and Deductions:
Interest and dividend income 722 771
Other income and deductions - net 1,296 1,719
Total Other Income and Deductions 2,018 2,490
Income Before Interest Charges 35,091 32,227
Interest Charges 10,176 8,585
Net Income 24,915 23,642
Preferred Stock Dividend Requirements 564 564
Net Income Applicable to Common Stock $ 24,351 $ 23,078
The accompanying Notes to Financial Statements are an integral
part of these statements.
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<PAGE>
KENTUCKY UTILITIES COMPANY
STATEMENTS OF INCOME
(Unaudited)
(in thousands of dollars)
For the Nine
Months Ended
September 30,
1995 1994
Operating Revenues (See Notes 2 and 4) $516,278 $477,066
Operating Expenses:
Fuel, principally coal, used in
generation (See Note 2) 140,487 121,203
Electric power purchased 55,749 47,842
Other operating expenses 91,542 82,271
Maintenance 50,376 48,640
Depreciation 56,271 48,646
Federal and state income taxes 31,599 36,872
Other taxes 12,336 11,241
Total Operating Expenses 438,360 396,715
Net Operating Income 77,918 80,351
Other Income and Deductions:
Interest and dividend income 2,158 3,273
Other income and deductions - net 4,152 4,767
Total Other Income and Deductions 6,310 8,040
Income Before Interest Charges 84,228 88,391
Interest Charges 29,824 24,932
Net Income 54,404 63,459
Preferred Stock Dividend Requirements 1,692 1,820
Net Income Applicable to Common Stock $ 52,712 $ 61,639
The accompanying Notes to Financial Statements are an integral
part of these statements.
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<PAGE>
KENTUCKY UTILITIES COMPANY
STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands of dollars)
For the Nine Months
Ended September 30,
1995 1994
Cash Flows from Operating Activities:
Net Income $ 54,404 $ 63,459
Items not requiring (providing) cash currently:
Depreciation 56,271 48,646
Deferred income taxes and investment tax credit 21 (4,768)
Changes in current assets and liabilities:
Change in fuel inventory 7,359 (2,968)
Change in accounts receivable (10,639) (1,651)
Change in accounts payable (17,518) 623
Change in accrued taxes 5,722 3,648
Change in accrued utility revenues 5,831 4,964
Change in liability to ratepayers (179) (28,704)
Change in escrow funds 181 29,582
Other--net 10,459 3,665
Net Cash Provided by Operating Activities 111,912 116,496
Cash Flows from Investing Activities:
Construction expenditures - utility (81,106) (130,035)
Other (172) 100
Cash Used by Investing Activities (81,278) (129,935)
Cash Flows from Financing Activities:
Short-term borrowings - net (45,300) 59,100
Issuance of long-term debt 50,000 -
Funds deposited with trustee - net 15,100 18,393
Retirement of long-term debt (21) (21)
Retirement of preferred stock, including premium - (20,302)
Payment of dividends (49,059) (48,114)
Net Cash Provided (Used) by Financing Activities (29,280) 9,056
Net Increase (Decrease) in Cash and Cash Equivalents 1,354 (4,383)
Cash and Cash Equivalents Beginning of Period 3,111 8,832
Cash and Cash Equivalents End of Period $ 4,465 $ 4,449
Supplemental Disclosures
Cash paid for:
Interest on short and long-term debt $ 24,556 $ 20,561
Federal and state income taxes $ 24,160 $ 38,414
The accompanying Notes to Financial Statements are an integral
part of these statements.
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<PAGE>
KENTUCKY UTILITIES COMPANY
BALANCE SHEETS
(Unaudited)
(in thousands of dollars)
As of As of
Sept. 30, Dec. 31,
1995 1994
ASSETS
Utility Plant:
Plant in service, at cost $2,330,580 $2,238,926
Less: Accumulated depreciation 985,758 933,394
1,344,822 1,305,532
Construction work in progress 89,359 104,385
1,434,181 1,409,917
Current Assets:
Cash and cash equivalents 4,465 3,111
Escrow funds - coal contract litigation 6,730 6,911
Construction funds held by trustee 3,697 18,553
Accounts receivable 52,351 41,712
Accrued utility revenues 18,396 24,227
Fuel, principally coal, at average cost 28,293 35,652
Materials and supplies, at average cost 22,621 20,081
Other 11,401 10,616
147,954 160,863
Investments, Deferred Charges and Other Assets:
Unamortized loss on reacquired debt 11,559 12,324
Other 35,100 34,996
46,659 47,320
Total Assets $1,628,794 $1,618,100
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stock equity $ 570,547 $ 565,201
Preferred stock 40,000 40,000
Long-term debt 545,981 496,012
1,156,528 1,101,213
Current Liabilities:
Long-term debt due within one year 21 21
Short-term borrowings 31,000 76,300
Accounts payable 31,999 49,517
Accrued interest 11,223 7,328
Accrued taxes 15,144 9,422
Customers' deposits 6,565 6,423
Accrued payroll and vacations 10,620 8,207
Liab. to ratepayers - coal contract litigation 6,730 6,909
Other 7,108 6,275
120,410 170,402
Deferred Credits and Other Liabilities:
Accumulated deferred income taxes 219,526 214,892
Accumulated deferred investment tax credits 35,204 38,275
Regulatory tax liability 58,860 60,788
Other 38,266 32,530
351,856 346,485
Total Capitalization and Liabilities $1,628,794 $1,618,100
The accompanying Notes to Financial Statements are an integral
part of these statements.
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<PAGE>
KENTUCKY UTILITIES COMPANY
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. PRESENTATION OF CONDENSED INFORMATION
Pursuant to the rules and regulations of the Securities and
Exchange Commission, certain information has been condensed and
certain footnote disclosures have been omitted, which are normal-
ly included in financial statements prepared in accordance with
generally accepted accounting principles.
These financial statements should be read in conjunction
with the financial statements and notes thereto in the Kentucky
Utilities Company (KU) Annual Report on Form 10-K for the year
ended December 31, 1994 (1994 10K).
In the opinion of management, the information furnished
herein reflects all adjustments, all of which are normal and
recurring, which are necessary to present fairly the results of
the periods shown and the disclosures which have been made are
adequate to make the information not misleading. Results of
interim periods are not necessarily indicative of results for any
twelve-month period due to the seasonal nature of KU's business.
2. OPERATING REVENUES AND FUEL COSTS
Pursuant to regulatory orders, KU has been refunding fuel
cost savings related to the resolution of a coal contract
dispute. Refunds to Kentucky retail customers commenced in July
1994. Refunds were made to Virginia retail customers during the
period August 1993 through June 1994. Refunds were made to
wholesale customers under the jurisdiction of the Federal Energy
Regulatory Commission in lump sum payments in September 1993.
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<PAGE>
KENTUCKY UTILITIES COMPANY
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Operating revenues for the three-month and nine-month
periods ended September 30, 1994 were reduced by $17.5 million
and $18.4 million, respectively, resulting from the above-
mentioned refund. The refund also resulted in a reduction of
fuel expense for the three-month and nine-month periods ended
September 30, 1994 of $18.6 million and $22 million,
respectively. The difference between the reduction in operating
revenues and the reduction in fuel expense is attributed to
incurred litigation costs, fuel costs savings related to
off-system sales and costs incurred to administer the refund
plan. These amounts were allowed to be retained by KU pursuant
to regulatory orders.
3. FINANCING
In June 1995, KU issued $50 million of Series R First
Mortgage Bonds which will mature June 1, 2025 and bear interest
at 7.55%. The proceeds were used primarily to refinance short-
term indebtedness incurred to finance ongoing construction
expenditures and general corporate requirements.
4. ENVIRONMENTAL COST RECOVERY
In July 1994, the Kentucky Public Service Commission (PSC)
approved KU's January 1994 application to implement an
environmental surcharge. The surcharge, authorized by a Kentucky
statute enacted in 1992, is designed to recover certain operating
and capital costs related to compliance with federal, state or
local environmental requirements associated with the production of
energy from coal, including the Federal Clean Air Act as amended.
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<PAGE>
KENTUCKY UTILITIES COMPANY
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
KU's environmental surcharge was implemented in August 1994 and
is described in Item 1 of the 1994 10K.
The constitutionality of the surcharge was challenged in the
Franklin County (Kentucky) Circuit Court (Circuit Court) in an
action brought against KU and the PSC by the Attorney General of
Kentucky and representatives of customer groups. In July 1995,
the Circuit Court entered a judgment (Circuit Court judgement)
holding the surcharge statute constitutional but vacating that
part of the PSC order allowing KU to recover costs associated
with environmental expenditures incurred before January 1, 1993,
the effective date of the surcharge statute, and ordering the
action remanded to the PSC for determination in accordance with
the Circuit Court judgement. On August 23, 1995, KU's motion
requesting the Circuit Court to amend the Circuit Court judgment
and sustain the PSC order in its entirety was overruled. KU, the
Attorney General of Kentucky, the PSC and representatives of the
customer groups all have appealed the Circuit Court judgment to
the Kentucky Court of Appeals. KU management believes that the
part of the Circuit Court judgment holding the surcharge statute
constitutional will be upheld on appeal.
The PSC issued an order that provides, in part, that all
environmental surcharge revenues collected by KU from the date of
the order (August 22, 1995) shall be subject to refund pending
final determination of the proceedings discussed in the
immediately preceding paragraph. The total collections under the
surcharge from August 22, 1995 through September 30, 1995 were
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<PAGE>
KENTUCKY UTILITIES COMPANY
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
approximately $2.5 million; however, if the Circuit Court
judgment is ultimately upheld as entered, KU estimates that the
amount it would be required to refund (which is based solely on
costs associated with environmental expenditures incurred before
January 1, 1993) for surcharge collections from August 22, 1995
through September 30, 1995 would be approximately $1 million. If
refunds were ordered for surcharge collections prior to
August 22, 1995, KU estimates that the total amount it would be
required to refund through September 30, 1995 would not exceed
$6 million.
At this time, KU has not recorded any reserve for refund.
KU cannot predict the outcome of these proceedings with respect
to that part of the Circuit Court judgment disallowing recovery
of costs associated with environmental expenditures incurred before
January 1, 1993.
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<PAGE>
KENTUCKY UTILITIES COMPANY
MANAGEMENTS' DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY & RESOURCES
KU's construction expenditures decreased approximately
$14 million and $49 million during the three-month and nine-month
periods ending September 30, 1995, respectively, compared to the
same periods of 1994. The decrease is attributable primarily to
planned reductions in expenditures for combustion turbine peaking
units and for compliance with the 1990 Clean Air Act Amendments.
Refer to Note 3 of the Notes to Financial Statements for a
discussion of KU's financing activities.
RESULTS OF OPERATIONS
Quarter ended September 30, 1995, compared
to the Quarter ended September 30, 1994
Net income applicable to common stock for the three-month
period ended September 30, 1995 was $24.4 million compared to
$23.1 million for the corresponding period of 1994. The increase
reflects the positive effects of warmer weather during the third
quarter of 1995 compared to 1994, which were somewhat offset by
increases in electric power purchases, other operating expenses
and depreciation as further discussed below.
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<PAGE>
KENTUCKY UTILITIES COMPANY
MANAGEMENTS' DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Increase (Decrease)
From Prior Year
Three Months
Ended Sept. 30, 1995
kWh Revenues
(%) (000's)
Residential 18 $ 10,827
Commercial 8 3,773
Industrial 6 2,552
Mine Power & Public Authorities 3 971
Total Retail Sales 10 18,123
Wholesale 11 1,844
Off-System (19) (929)
Miscellaneous Revenues & Other - 1,283
Total Before Refund 6 20,321
Provision for Refund -
Litigation Settlement - 17,540
Total 6 $ 37,861
Operating revenues, before the impact of the refunds to customers
during 1994, increased $20.3 million (12%). (Refer to Note 2 of
the Notes to Financial Statements, "Operating Revenues and Fuel
Costs", for a discussion of the refunds to customers resulting
from the resolution of a coal contract dispute and the impact on
1994 operating results). The increase reflects a 6% increase in
kilowatt-hour sales and $4.4 million recovered under the
environmental surcharge. (Refer to Note 4 of the Notes to
Financial Statements, "Environmental Cost Recovery," for
information relating to environmental surcharge legal
proceedings.) The increase in kilowatt-hour sales is
attributable to increases in residential, commercial and
industrial sales partially offset by a decline in off-system
sales. The decrease in off-system sales is attributable to a
decrease in demand for power at neighboring utilities. The
increase in industrial sales reflects continued economic growth
in the manufacturing sector of KU's service area. About 29% of
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<PAGE>
KENTUCKY UTILITIES COMPANY
MANAGEMENTS' DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
the industrial sales increase was due to greater sales to Toyota
Motor Manufacturing U.S.A., Inc. (TMM), KU's largest customer.
The increases in residential and commercial sales reflect
unusually warm weather during the third quarter of 1995 compared
to 1994. KU set an all-time peak demand for electricity on
August 16, 1995 of 3,341 megawatts.
Fuel expense, excluding the effect of the refunds to
customers, increased $1.5 million (3%). The increase reflects a
3% increase in tons of coal consumed, offset by a 1% decrease in
the average price per ton of coal consumed. Purchased power
expense increased $6.7 million (43%) due to increases in demand
($.5 million) and energy costs ($6.2 million). The increase in
energy costs reflects a 35% increase in kilowatt-hour purchases
as well as less favorable pricing. The increase in kilowatt-hour
purchases is attributable to the previously mentioned increase in
kilowatt-hour sales due to the unusually warm weather.
Other operating expenses increased $2.9 million (10%) due to
increased generating plant operations expenses primarily
attributable to costs associated with environmental compliance.
Depreciation expense increased $2.5 million (15%) resulting
from the Ghent Unit 1 scrubber and two combustion turbine peaking
units being placed into service late in 1994 and early in 1995.
Interest charges increased $1.6 million (19%) reflecting the
issuance of $54 million of long-term debt in the fourth quarter
of 1994 and the issuance of $50 million of long-term debt in the
second quarter of 1995.
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<PAGE>
KENTUCKY UTILITIES COMPANY
MANAGEMENTS' DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Nine Months ended September 30, 1995, compared
to the Nine Months ended September 30, 1994
Net income applicable to common stock for the nine-month
period ended September 30, 1995 was $52.7 million as compared to
$61.6 million for the corresponding period of 1994. An increase
in revenues during the nine-month period ending September 30,
1995 as compared to the same period of 1994 was more than offset
by increases in electric power purchases, other operating
expenses, depreciation and interest as further discussed below.
Net income for the first quarter of 1994 included a one-time
recovery of about $1.9 million from the resolution of a coal
contract dispute. For additional information concerning the
refunds resulting from resolution of the dispute and the impact
on 1994 operating results, refer to Note 2 of the Notes to
Financial Statements, "Operating Revenues and Fuel Costs."
Increase (Decrease)
From Prior Year
Nine Months
Ended Sept. 30, 1995
kWh Revenues
(%) (000's)
Residential 3 $ 10,211
Commercial 3 6,209
Industrial 5 7,060
Mine Power & Public Authorities - 2,217
Total Retail Sales 3 25,697
Wholesale 4 2,008
Off-System (34) (8,577)
Miscellaneous Revenues & Other - 1,642
Total Before Refund (1) 20,770
Provision for Refund -
Litigation Settlement - 18,442
Total (1) $ 39,212
Operating revenues, before the impact of the refunds to
customers, increased $20.8 million (4%). The increase is
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<PAGE>
KENTUCKY UTILITIES COMPANY
MANAGEMENTS' DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
attributable to amounts recovered under the environmental
surcharge ($12.5 million) as well as favorable changes in the
customer mix of kilowatt-hour sales. (Refer to Note 4 of the
Notes to Financial Statements, "Environmental Cost Recovery," for
information relating to environmental surcharge legal
proceedings.) Although total kilowatt-hour sales remained
relatively flat, the revenue impact of increases in residential,
commercial and industrial sales was only partially offset by a
decrease in off-system sales. The increases in residential and
commercial sales reflect the unusually warm weather experienced
during the third quarter of 1995 which more than offset the
effects of milder weather during the first six months of 1995.
The increase in industrial sales reflects continued economic
growth in the manufacturing sector of KU's service area. About
33% of the industrial sales increase is due to greater sales to
TMM. The decrease in off-system sales is attributable to a
decrease in demand for power at neighboring utilities.
Fuel expense, excluding the effect of the refunds to
customers, decreased $2.7 million (2%). The decrease is
primarily attributable to a decrease in tons of coal consumed.
Purchased power expense increased $7.9 million (17%) due to
increased demand ($2.7 million) and energy costs ($5.2 million).
The increase in energy costs reflects a 7% increase in kilowatt-
hour purchases as well as less favorable pricing. The increase
in kilowatt-hour purchases is attributable to the significant
demand for electricity during the third quarter primarily due to
the unusually warm weather.
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<PAGE>
KENTUCKY UTILITIES COMPANY
MANAGEMENTS' DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Other operating expenses increased $9.3 million (11%) due to
increased generating plant operations expenses (primarily
attributable to costs associated with environmental compliance),
advertising and marketing program expenses and administrative and
general expenses.
Maintenance expense increased $1.7 million (4%) due to an
increase in production maintenance resulting from the timing of
scheduled maintenance at KU's generating stations. This increase
was substantially offset by a decrease in distribution
maintenance in 1995. Extensive ice storm damage in the first
quarter of 1994 increased distribution maintenance in that
period.
Depreciation expense increased $7.6 million (16%) resulting
from the Ghent Unit 1 scrubber and two combustion turbine peaking
units being placed into service late in 1994 and early in 1995.
Interest charges increased $4.9 million (20%) reflecting the
issuance of $54 million of long-term debt in the fourth quarter
of 1994, $50 million of long-term debt in the second quarter of
1995 and an increase in the average amount of short-term debt
outstanding during the first six months of 1995.
Federal and state operating income taxes decreased
$5.3 million (14%), primarily due to lower pre-tax income.
CAPACITY REQUIREMENTS
In May 1995, a 110-megawatt (MW) combustion turbine
generating unit, which was placed in commercial operation during
the first quarter of 1995, was taken out of service due to a
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<PAGE>
KENTUCKY UTILITIES COMPANY
MANAGEMENTS' DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
turbine blade problem. In addition to this unit, KU has decided
not to operate another similar combustion turbine unit placed in
commercial operation in 1994 and has temporarily discontinued
testing of a third similar unit scheduled for commercial
operation later in 1995 until the turbine blade problem can be
corrected. KU has analyzed this situation in cooperation with
the vendor of the three 110 MW generating units. KU expects
these units to be fully operational before year end.
UTILITY ISSUES - COMPETITION
In March 1995, the Federal Energy Regulatory Commission
(FERC) issued a Notice of Proposed Rulemaking (NOPR) by which the
FERC will require public utilities that own or control facilities
used for the transmission of electric energy in interstate
commerce to offer "open access" transmission service on a
nondiscriminatory basis. The FERC also proposes to allow, in
certain circumstances, the collection of charges for the recovery
of stranded costs when customers change power suppliers. The
FERC expects to issue final rules by February 1996.
KU filed a Transmission Services (TS) Tariff and Power
Services (PS) Tariff on September 30, 1994 (refer to Management's
Discussion and Analysis in the 1994 Annual Report on Form 10-K
under the heading "Utility Issues - Competition" for a discussion
of the TS Tariff and PS Tariff filed by KU). The FERC accepted
the TS Tariff, subject to refund, effective December 1, 1994, but
did not approve the PS Tariff. KU revised the TS Tariff in a
filing made on March 31, 1995 with the FERC in order to meet
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<PAGE>
KENTUCKY UTILITIES COMPANY
MANAGEMENTS' DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
certain provisions of the NOPR and reaffirmed its request for the
market-based PS Tariff. On May 31, 1995, the FERC issued an
order which approved the revised TS Tariff, subject to refund,
and approved the PS Tariff subject to KU making a compliance
filing which addressed certain aspects of the TS and PS Tariffs.
On June 30, 1995, KU made the compliance filing with the FERC and
the PS Tariff became effective on that date.
Although KU does not expect either of these new tariffs to
have a material impact on its 1995 revenues or net income, they
are indicative of the increasingly competitive environment in
which KU and other utilities operate.
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<PAGE>
PART II. OTHER INFORMATION
KENTUCKY UTILITIES COMPANY
ITEM 1. LEGAL PROCEEDINGS
ENVIRONMENTAL COST RECOVERY
See Note 4 of the Notes to Financial Statements,
"Environmental Cost Recovery," for an update of environmental
surcharge legal proceedings.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits.
The following exhibit is filed as part of this report:
Exhibit
Number Description
27 Financial Data Schedule (required for electronic
filing only in accordance with Item 601(c)(1) of
Regulation S-K).
(b) Reports on Form 8-K.
None.
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<PAGE>
KENTUCKY UTILITIES COMPANY
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
KENTUCKY UTILITIES COMPANY
(Registrant)
Date November 2, 1995 /s/ Michael R. Whitley
Michael R. Whitley
Chairman of the Board and
Chief Executive Officer
Date November 2, 1995 /s/ Michael D. Robinson
Michael D. Robinson
Controller
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<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET AS OF SEPTEMBER 30, 1995 AND THE INCOME STATEMENT FOR THE PERIOD ENDED
SEPTEMBER 30, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FORM
10-Q QUARTERLY REPORT.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 1,434,181
<OTHER-PROPERTY-AND-INVEST> 11,714
<TOTAL-CURRENT-ASSETS> 147,954
<TOTAL-DEFERRED-CHARGES> 34,945
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 1,628,794
<COMMON> 308,140
<CAPITAL-SURPLUS-PAID-IN> (594)
<RETAINED-EARNINGS> 263,001
<TOTAL-COMMON-STOCKHOLDERS-EQ> 570,547
0
40,000
<LONG-TERM-DEBT-NET> 545,981
<SHORT-TERM-NOTES> 31,000
<LONG-TERM-NOTES-PAYABLE> 0
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<OTHER-ITEMS-CAPITAL-AND-LIAB> 441,245
<TOT-CAPITALIZATION-AND-LIAB> 1,628,794
<GROSS-OPERATING-REVENUE> 516,278
<INCOME-TAX-EXPENSE> 31,599
<OTHER-OPERATING-EXPENSES> 406,761
<TOTAL-OPERATING-EXPENSES> 438,360
<OPERATING-INCOME-LOSS> 77,918
<OTHER-INCOME-NET> 6,310
<INCOME-BEFORE-INTEREST-EXPEN> 84,228
<TOTAL-INTEREST-EXPENSE> 29,824
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1,692
<EARNINGS-AVAILABLE-FOR-COMM> 52,712
<COMMON-STOCK-DIVIDENDS> 47,367
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<EPS-PRIMARY> 0<F1>
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<FN>
<F1>ALL OUTSTANDING COMMON STOCK OF KENTUCKY UTILITIES COMPANY IS HELD BY ITS
PARENT COMPANY, KU ENERGY CORPORATION. THEREFORE, EARNINGS PER SHARE IS NOT
APPLICABLE.
</FN>
</TABLE>
