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SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Dated: July 21, 1995
LOUISVILLE GAS AND ELECTRIC COMPANY
(Exact name of registrant as specified in its charter)
Kentucky 2-26720 61 - 0264150
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
220 West Main Street (P.O. Box 32010) Louisville, Kentucky 40232
(Address of principal executive offices)
(502) 627-2000
(Registrant's telephone number)
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Item 5. Other Events.
Reference is made to Note 11 of the Notes to Financial Statements under
Item 8 of the Company's 1994 Form 10-K, and part II, Item 1, Legal
Proceedings, of the Company's Form 10-Q for the quarter ended March 31,
1995, regarding proceedings before the Kentucky Public Service
Commission ("PSC") to determine the proper ratemaking treatment to
exclude 25% of the Trimble County electric generating facility from
customer rates for the period May 1988 through December 1990. On
July 19, 1995, the PSC ordered the Company to issue its electric
customers a refund of $24 million, plus interest, for a total of $33.8
million, arising from the disallowance of 25% of its Trimble County
plant. The PSC order requires the Company to submit, within the next
30 days, a proposed refund methodology for PSC approval. The Company
is studying the matter and intends to vigorously contest the decision.
Item 7(c). Exhibits Filed.
Exhibit
Number Description
99.01 News Release dated July 19, 1995, announcing the
PSC's decision ordering the Company to issue its
electric customers a refund of $24 million, plus
interest, for a total of $33.8 million
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
LOUISVILLE GAS AND ELECTRIC COMPANY
Registrant
Date: July 21, 1995
/s/ John R. McCall
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John R. McCall
Executive Vice President, General
Counsel and Corporate Secretary
(On behalf of the registrant)
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PRESS RELEASE
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For more information: Paul Heagen
Director, Corporate Communications
Office: (502) 627-2877
Home: (502) 425-4002
For Immediate Release July 19, 1995
Public Service Commission Orders LG&E To Issue
Refunds to Electric Customers
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Louisville -- Today the Public Service Commission of Kentucky (PSC)
ordered Louisville Gas and Electric Company (LG&E) to issue its electric
customers a refund -- $24 million, plus interest, for a total of $33.8
million -- arising from the construction of LG&E's Trimble County electric
generating station. The PSC previously determined that LG&E ratepayers are
responsible for only 75 percent of the plant's construction and operating
costs.
"We are disappointed in the Commission's decision in this proceeding,"
said John R. McCall, LG&E Energy Corp.'s Executive Vice President, General
Counsel and Corporate Secretary. "The reasoning of the Commission is
contrary to all legal precedent and ignores the merits and equities of this
case. We have always sought, and will continue seeking, a fair resolution
that balances the interests of our customers and shareholders. We intend to
vigorously contest the Commission's decision."
Today's PSC order requires LG&E to submit, within the next 30 days, a
proposed refund methodology for PSC approval.
Under a 1989 agreement with the PSC, LG&E issued $11.1 million in
refunds to its electric customers, in accordance with a previous PSC decision
that only 75 percent of the Trimble plant's capacity belonged to LG&E and its
shareholders.
In November 1989, a group of intervenors, led by the Kentucky Attorney
General and the Jefferson County Attorney, appealed that agreement to the
Franklin (KY) Circuit Court. The Franklin Circuit Court ordered LG&E to
issue $150 million in refunds. The Kentucky Court of Appeals overturned that
decision; their ruling was upheld by the Kentucky Supreme Court in April
1993.
LG&E, the regulated utility subsidiary of LG&E Energy Corp. provides
natural gas service to 266,000 customers in Louisville and seven other
Kentucky counties and electric service to 342,000 customers in Louisville and
eight other Kentucky counties. LG&E provides the lowest combined gas and
electric bills, compared with utilities in 18 major cities in the region, to
its residential customers.
