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 21, 1995
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.
Reference is made to Note 14 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 Louisville Gas and Electric Company ("LG&E"),
the regulated utility subsidiary of LG&E Energy Corp., 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 LG&E's Trimble County plant. The PSC
order requires LG&E to submit, within the next 30 days, a proposed refund
methodology for PSC approval. LG&E 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 LG&E 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 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 21, 1995 /s/ John R. McCall
John R. McCall
Executive Vice President, General
Counsel and Corporate Secretary
(On behalf of the registrant)
Public Service Commission Orders LG&E to Issue
Refunds to Electric Customers
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.
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