LG&E, KU sold to PA company - wave3.com-Louisville News, Weather & Sports

LG&E, KU sold to PA company

Posted: Updated: April 29, 2010 12:40 AM EDT
Mayor Jerry Abramson Mayor Jerry Abramson
Chip Keeling Chip Keeling
Louisville, KY -

By Marisela Burgos - bio | email
Posted by Charles Gazaway - email

LOUISVILLE, KY (WAVE) – It was announced April 28 that Pennsylvania-based PPL Corporation had reached a deal with E.ON AG to become the new owner of E.ON U.S. LLC, the parent company of LG&E and Kentucky Utilities Company.

The deal, worth $7.625 billion, is scheduled to be reviewed by the Kentucky Public Service Commission. That means it could be another 5 to 6 months before the deal is approved.

During a news conference, Mayor Jerry Abramson said Louisville Metro Government had been interested in buying LG&E for the last six years, once they heard E.ON announced it planned to sell LG&E and Kentucky Utilities Company. After so many years, Abramson says city officials are stepping aside.

"I'm very optimistic that PPL will be that same kind of corporate citizen, an owner that is a true partner with the Commonwealth and its community," said Abramson.

According to Abramson, his team worked until the last second to try to reach an agreement with E.ON. The final hurdle, Abramson said, was when E.ON requested Metro Government agree to pay a break-up fee if the deal did not go through. Abramson said his team tried to get around that during negotiations that lasted through the weekend, but an agreement was never reached.

"It was a tremendous hurdle," said Abramson. "Our team worked through the weekend searching for a way to clear that hurdle without putting any assets of the city of Louisville or the water company on the line and in good conscious we could not find a way to jump that hurdle."

Instead, Abramson said his efforts changed to make sure the winning bidder, PPL, kept the Commonwealth's best interests, including making sure no one at LG&E lost their job and making sure its headquarters, right here in Louisville for the next 15 years.

"What you want is the best for the customers and we think we've got this in this transaction," said LG&E spokesperson Chip Keeling.

Keeling believes the sale is a good thing for the city and that people will not notice a difference.

"This transaction won't affect rates at all," Keeling said.

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