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
Date of Report: July 1, 1994
LG&E ENERGY CORP.
(Exact name of registrant as specified in its charter)
Kentucky 1-10568 61-1174555
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
220 West Main Street
P.O. Box 32030
Louisville, KY 40232
(Address of principal executive offices)
(502) 627-2000
(Registrant's telephone number)
Item 5. Other Events.
On July 1, 1994, LG&E Energy Corp. (the "Company") issued a press release,
which is filed as Exhibit 99.01 hereto and is incorporated by reference herein.
The press release stated, among other things, that a partnership of LG&E Power
Inc., its indirect wholly owned subsidiary, will file for a rehearing of a
ruling of the Federal Energy Regulatory Commission ("FERC") involving operation
of the partnership's Southampton plant as a qualified facility ("QF") in 1992.
The FERC ruling denied Southampton's request for a waiver of certain technical
QF requirements and directed Southampton to show cause as to why it should not
be required to file new rate schedules reflecting 1992 electric sales to
Virginia Electric and Power Co. as a utility, rather than a QF. The Company,
which through various wholly-owned subsidiaries owns a 50% interest in the
partnership, does not believe the ultimate resolution of the matter will have
an adverse material effect on its consolidated results from operations nor its
financial condition. The Company cannot predict what action FERC ultimately
will take, including whether FERC will order lower rates resulting in
significant refunds to Virginia Power.
Item 7(c). Exhibits Filed.
Exhibit
Number Description
99.01 News release dated July 1, 1994, stating that Southampton
partnership will seek rehearing on FERC QF ruling.
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.
LG&E ENERGY CORP.
Registrant
Date: July 7, 1994 /s/ Charles A. Markel
Charles A. Markel
Corporate Vice President, Finance
and Treasurer
(On behalf of the registrant in his
capacity as Principal Financial Officer)
Southampton Partnership to Seek Rehearing on QF Ruling
Louisville, KY - A LG&E Power Inc. partnership will file for a rehearing of
a ruling earlier this week by the Federal Energy Regulatory Commission (FERC)
involving operation of the partnership's Southampton plant as a qualified
facility (QF) in 1992.
The Southampton facility, a 63 megawatt coal-fired plant in Franklin,
Virginia, supplies process steam to a nearby chemical manufacturer and bulk
electric power under contract to Virginia Electric and Power Co. as a QF under
the Public Utility Regulatory Policies Act (PURPA). The facility began
commercial operation in 1992.
The partnership determined earlier this year that the plant had not met
certain technical requirements for QFs during its first year of commercial
operation. The partnership sought a waiver of the technical operating
requirements for the 1992 period from the FERC, which had previously granted
such a waiver during the plant's start-up phase in 1991. The plant has met the
FERC's operating standards for QFs from 1993 to date.
Virginia Power filed a motion to intervene in the proceedings in May 1994,
contending that the facility was not entitled to payments of $17.4 million it
received from Virginia Power during 1992.
The FERC's ruling earlier this week denied Southampton's request for the
waiver and directed Southampton to show cause as to why it should not be
required to file new rate schedules reflecting sales to Virginia Power in 1992
as a utility, rather than a QF.
LG&E Energy Corp., which through various wholly owned subsidiaries
indirectly owns a 50 percent interest in the partnership, does not believe the
ultimate resolution of the matter will have a material adverse effect on its
consolidated results from operations nor its financial condition. The company
believes there is no material difference between the payments it received as a
QF and what it would receive under rates the company will file with the FERC as
a utility. Nevertheless, in light of this week's order, the company cannot
predict what action the FERC ultimately will take, including whether the FERC
will order lower rates resulting in significant refunds.
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