8-K

1
                       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:  December 12, 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
September 30, 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
December 1, 1995, the Company and intervening parties including various
consumer interest groups and government agencies filed a unanimous
settlement agreement with the PSC that would provide benefits totaling
approximately $28.3 million to current electric customers and consumer
interest groups as a final settlement of the rate treatment for the
Company's Trimble County power plant.

On December 8, 1995, the PSC approved the settlement agreement as
filed.  The Company plans to record the settlement as a reduction of
revenues in the fourth quarter of 1995 to recognize the terms of the
agreement.  This agreement will end the dispute that has been pending
before the PSC and Kentucky's courts for over fifteen years.

Item 7(c).  Exhibits Filed.

Exhibit
Number                 Description

99.01                  News Release dated December 8, 1995, announcing
                       the PSC's approval of the Trimble County power
                       plant settlement agreement.



                              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:  December 12, 1995         M. L. Fowler                        
                                 M. L. Fowler
                                 Vice President and Controller
                                 (On behalf of the registrant in his
                                 capacity as Principal Accounting
                                 Officer)

EX-99

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PRESS RELEASE
- -------------

For more information:       Paul Heagen
                            Office:   (502) 627-2877
                            Home:     (502) 425-4002



For Immediate Release            December 8, 1995




             Kentucky Public Service Commission Approves
                 Trimble County Settlement Agreement
             --------------------------------------------


    Louisville -- The Kentucky Public Service Commission (PSC) today
approved the settlement agreement filed by Louisville Gas and Electric
Company (LG&E) and intervening parties including various consumer interest
and government agencies on costs associated with the Trimble County power
plant.  The agreement calls for refunds totaling $28.3 million to current
electric customers.  Customers will receive a credit on their monthly bill
for the next five years beginning January 1996.  The average residential
credit will be approximately $5.00 a year.  This final agreement will end the
dispute that has been pending before the PSC and Kentucky's courts for over
fifteen years.