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: December 21, 1999
(date of earliest event reported)
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)
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Item 5. Other Events.
On December 21, 1999, LG&E Energy Corp. ("LG&E Energy") announced it had
received an adverse order from the arbitration panel considering its
contract dispute with Oglethorpe Power Corporation. Because of the ruling,
and based upon current price and load estimates, LG&E Energy anticipates
adding $175 million (after tax) to the existing write-off recorded by LG&E
Energy during the second quarter of 1998 in connection with its
discontinuation of its merchant energy trading business. The additional
reserve will be recorded in discontinued operations during the fourth
quarter of 1999. Although the company has used what it believes to be
appropriate estimates for future energy prices, loads and other factors, it
recognizes that there are inherent limitations in models to accurately
predict future events and, as such, the write-off remains subject to
further estimation and analysis.
A news release of LG&E Energy describing the above matter is filed with
this report as Exhibit 99.01 and is incorporated herein by reference.
Item 7(c). Exhibits Filed.
Exhibit
Number Description
99.01 News Release dated as of December 21, 1999.
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
/s/ John R. McCall
John R. McCall
Executive Vice President, General
Counsel and Corporate Secretary
Date: January 5, 2000
<PAGE>
EXHIBIT INDEX
LG&E ENERGY CORP.
Current Report on Form 8-K
Dated December 21, 1999
Exhibits
Exhibit No. Description
99.01 News Release dated as of December 21, 1999.
- 2 -
Exhibit 99.01
LG&E Energy Concludes Arbitration With Oglethorpe Power Corporation
LOUISVILLE, Ky., Dec. 21 /PRNewswire/ -- LG&E Energy Corp. (NYSE: LGE)
today announced it had received an adverse order from the arbitration panel
considering its contract dispute with Oglethorpe Power Corporation (OPC),
which was commenced by LG&E Energy in April 1998.
Consistent with disclosures made in prior public filings, this decision
will cause LG&E Energy to increase in the fourth quarter its after-tax
accrued loss on disposal of discontinued operations by $175 million. This
loss is the result of increased load demands, higher than anticipated
future commodity prices, and other factors. The increase in the loss
reserve will be recorded in discontinued operations. This amount is
subject to continuing analysis and estimation. Management does not expect
this decision to have a material effect on income from continuing
operations.
LG&E Energy Corp., headquartered in Louisville, Ky., is a Fortune 500
diversified energy services company with businesses in power generation and
project development; retail gas and electric utility services; and asset-
based energy marketing. It has been ranked by J.D. Power and Associates as
highest in customer satisfaction with residential electric service in the
Midwest. In addition, LG&E Energy ranked highest among all electric
service companies ranked in the nation.
The company owns and operates Louisville Gas and Electric Company, a
regulated electric and gas utility serving 16 Kentucky counties, and
Kentucky Utilities Company, a regulated electric utility, based in
Lexington, Ky., which serves 77 Kentucky counties and five counties in
Virginia. LG&E Energy also owns interests in and operates non-utility
power plants in six states as well as in Spain; owns interests in three
natural gas distribution companies in Argentina; and owns CRC-Evans
Pipeline International Inc., the world's leading provider of specialty
equipment and services to the natural gas and oil pipeline construction
industry.
Statements in this news release that state the Company's or management's
intentions, expectations or predictions of the future are forward-looking
statements. The Company's actual results could differ materially from
those projected in the forward-looking statements, and there can be no
assurance that estimates of future results will be achieved. The Company's
SEC filings contain additional information concerning factors that could
cause actual results to differ materially from those in the forward-looking
statements.
