-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LQBvglfPu2wF17+J8M51f/XnHFWH/NoJLiIhNCLahbKw+Qby/W7mYaZ9DP+W38bh OcGog3msx2ayViNF1Dgf9w== 0000861388-03-000019.txt : 20031125 0000861388-03-000019.hdr.sgml : 20031125 20031125161259 ACCESSION NUMBER: 0000861388-03-000019 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20031125 ITEM INFORMATION: Other events FILED AS OF DATE: 20031125 FILER: COMPANY DATA: COMPANY CONFORMED NAME: KENTUCKY UTILITIES CO CENTRAL INDEX KEY: 0000055387 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 610247570 STATE OF INCORPORATION: KY FISCAL YEAR END: 1229 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-03464 FILM NUMBER: 031023402 BUSINESS ADDRESS: STREET 1: ONE QUALITY ST CITY: LEXINGTON STATE: KY ZIP: 40507 BUSINESS PHONE: 6062552100 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LOUISVILLE GAS & ELECTRIC CO /KY/ CENTRAL INDEX KEY: 0000060549 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 610264150 STATE OF INCORPORATION: KY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-02893 FILM NUMBER: 031023401 BUSINESS ADDRESS: STREET 1: 220 W MAIN ST STREET 2: P O BOX 32030 CITY: LOUISVILLE STATE: KY ZIP: 40232 BUSINESS PHONE: 5026272000 MAIL ADDRESS: STREET 1: 220 WEST MAIN ST CITY: LUUISVILLE STATE: KY ZIP: 40232 8-K 1 k8k1103.txt LG&E AND KU INTENT TO PURSUE INCREASE IN BASE RATES 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 (Date of earliest event reported): November 25, 2003 Commission Registrant, State of Incorporation, IRS Employer File Number Address, and Telephone Number Identification No. 2-26720 Louisville Gas and Electric Company 61-0264150 (A Kentucky Corporation) 220 West Main Street P.O. Box 32010 Louisville, Ky. 40232 (502) 627-2000 1-3464 Kentucky Utilities Company 61-0247570 (A Kentucky and Virginia Corporation) One Quality Street Lexington, Kentucky 40507-1428 (859) 255-2100 This combined Form 8-K is separately filed by Louisville Gas and Electric Company and Kentucky Utilities Company. Information contained herein relating to any individual registrant is filed by such registrant on its own behalf and each registrant makes no representation as to information relating to the other registrant. Item 5. Other Events and Regulation FD Disclosure On November 25, 2003, Louisville Gas and Electric Company ("LG&E") and Kentucky Utilities Company ("KU") announced their intentions to pursue increases in base rates. LG&E is expected to seek increases of approximately 12 percent ($67 million per year) in electric rates and 6 percent ($20 million per year) in gas rates. KU is expected to seek an increase of approximately 9 percent ($62 million per year) in electric rates. These will be the first requested electric rate increases by LG&E and KU in 13 and 20 years, respectively. Final details will be available in the companies' rate filings currently planned for late December. The companies' press releases regarding this matter are attached as Exhibits 99.01 and 99.02, respectively, and are incorporated herein by reference. Statements made in this report that state the companies' or management's intentions, expectations or predictions of the future are forward-looking statements. The companies' 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 companies' SEC filings contain additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements. Item 7. Final Statements and Exhibits (a) None (b) None. (c) Exhibits 99.01 LG&E Press Release dated November 25, 2003 99.02 KU Press Release dated November 25, 2003. 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 hereunto duly authorized. Louisville Gas and Electric Company Dated: November 25, 2003 By: /s/ John R. McCall John R. McCall Executive Vice President, General Counsel and Corporate Secretary 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 hereunto duly authorized. Kentucky Utilities Company Dated: November 25, 2003 By: /s/ John R. McCall John R. McCall Executive Vice President, General Counsel and Corporate Secretary EXHIBIT INDEX Louisville Gas and Electric Company Kentucky Utilities Company Current Report on Form 8-K Dated November 25, 2003 Exhibits Exhibit Applicable to Number LG&E KU Description 99.01 x Press Release dated November 25, 2003 99.02 x Press Release dated November 25, 2003 EX-99 3 ex9901.txt LG&E PRESS RELEASE LG&E Press Release 220 West Main Street Louisville, KY 40232 Media Contact: Chip Keeling 24-Hour Media Hotline: 502.627.4999 Toll-free: 888.627.4999 LG&E Seeks First Base Electric Rate Increase In 13 Years (LOUISVILLE, Ky. - Nov. 25, 2003) Louisville Gas and Electric Company announced today it intends to pursue increases in its base electric rates for the first time in more than a decade. Although the company has only preliminary numbers, LG&E is expected to seek a 12 percent increase in its electric rates, for approximately $67 million per year. The company will also seek a 6 percent increase in its gas rates, for about $20 million per year. LG&E last sought a base electric rate increase in 1990. LG&E lowered its rates in 2000 by more than $26 million. As a result, today's electric rates are lower than they were in 1990. A representative residential LG&E electric customer, using 1,000 kwh, is expected to see an increase of about $7 per month, while a representative residential LG&E gas customer, using 90 ccf, is expected to see an increase of about $6. The amount of the increase LG&E will seek will be based on a test year which ended in September. Final details will be available by year end. The increase in rates is caused, in large part, by the need to meet growing demand, particularly from new business. In the last decade, customers have increased by 62,285, or 20 percent, while their actual bills have decreased about $3 per month, or 4 percent. "When you look at the rate of inflation and the economic situation we are in today, our electric rates are actually lower today than they were when we last requested increases," said Vic Staffieri, LG&E's and LG&E Energy's Chairman, CEO and President. Even with the proposed increase, the company's electric rates will remain lower than those of the seven states bordering Kentucky, and the company will still have some of the lowest rates in the nation. The gas and electric increases are necessary because LG&E's costs of doing business, including safely and reliably delivering service, have increased dramatically over the past decade. During the last three years alone, LG&E has made $33 million in capital investments to meet the needs of new gas customers coming onto the system and to replace aging gas mains. LG&E and its sister company, Kentucky Utilities Company, have spent $285 million in the last three years, adding new generating capacity, and are expected to install additional capacity over the next two years to meet electric demand growth. The companies have invested roughly $18 million per year in their transmission system. Significant increases have also occurred in administrative and general expenses - in particular pension, post retirement, health care, and insurance expenses. For example, the companies have encountered an approximately 140 percent increase in property insurance since the terrorist attacks of September 11, 2001. "We're proud that - despite a lot of turmoil in our industry - -- our employees have been able to hold electric rates steady for more than a decade through their hard work, efficiencies and ingenuity," said Staffieri. "But there comes a time when you must react to the economic situation you face, regardless of your best efforts. "Obviously, decisions such as this don't come easily to us, as evidenced by the fact that we haven't filed for an increase in some time," he added. "However, we're at a point now where additional resources are necessary in order for us to continue to provide the quality service our customers have come to expect." KU also is requesting an increase. The utilities will file the increases in late December. The Kentucky Public Service Commission has traditionally suspended the implementation of the rates for five months in order to hold public hearings. A decision likely will not be reached until next summer. LG&E is a wholly owned subsidiary of LG&E Energy Corp. that serves 310,000 natural gas and 382,000 electric customers in Louisville, Ky., and 16 surrounding counties. - END - EX-99 4 ex9902.txt KU PRESS RELEASE KU For Immediate Release Contact: Cliff Feltham Communications Dept. 859-367-1105 KU Seeks First Base Electric Rate Increase In 20 Years (LEXINGTON, Ky. - Nov. 25, 2003) Kentucky Utilities Company announced today it intends to pursue increases in its base rates for the first time in two decades. Although the company has only preliminary numbers, KU is expected to seek an overall increase of 9 percent, for approximately $62 million per year. KU last sought a base rate increase in 1983. KU lowered its rates in 2000 by more than $30 million. As a result, today's electric rates are lower than they were in 1983. A representative residential customer, using 1,000 kwh, is expected to see an increase of approximately $5 per month. The amount of the increase KU will seek will be based on a test year which ended in September. Final details will be available by year end. The increase in rates is caused, in large part, by the need to meet growing demand, particularly from new business. In the last two decades, customers have increased by 205,510, or 60 percent. "When you look at the rate of inflation and the economic situation we are in today, our electric rates are actually lower today than they were when we last requested an increase," said Vic Staffieri, KU's and LG&E Energy's Chairman, CEO and President. Even with the proposed increases, the company's electric rates will remain lower than those of the seven states bordering Kentucky, and among the lowest in the nation. The increase is necessary because KU's costs of doing business, including safely and reliably delivering service, have increased dramatically over the past two decades. KU and its sister company, Louisville Gas and Electric Company, have spent $285 million in the last three years, adding new generating capacity, and are expected to install additional capacity over the next two years to meet electric demand growth. The companies have invested roughly $18 million per year in their transmission system. Significant increases have also occurred in administrative and general expenses - in particular pension, post retirement, health care, and insurance expenses. For example, the companies have encountered an approximately 140 percent increase in property insurance since the terrorist attacks of September 11, 2001. "We're proud that - despite a lot of turmoil in our industry -- our employees have been able to hold electric rates steady for more than two decades through their hard work, efficiencies and ingenuity," said Staffieri. "But there comes a time when you must react to the economic situation you face, regardless of your best efforts. "Obviously, decisions such as this don't come easily to us, as evidenced by the fact that we haven't filed for an increase in some time," he added. "However, we're at a point now where additional resources are necessary in order for us to continue to provide the quality service our customers have come to expect." LG&E also is requesting increases in electric and gas rates. The utilities will file the increases in late December. The Kentucky Public Service Commission has traditionally suspended the implementation of the rates for five months in order to hold public hearings. A decision likely will not be reached until next summer. KU, based in Lexington, Ky., provides reliable, low- priced electric energy to more than 477,000 customers in 77 Kentucky counties and 30,000 five counties in southwestern Virginia. KU is a subsidiary of LG&EEnergy Corp., headquartered in Louisville, Ky. -END- -----END PRIVACY-ENHANCED MESSAGE-----