Louisville Gas & Electric
| Company type | Subsidiary |
|---|---|
| Industry | Electric and natural gas utility |
| Founded | 1838 |
| Headquarters | Louisville , United States |
Area served | Louisville, Kentucky and surrounding areas (700 square miles) |
Key people | John R. Crockett III (President) |
| Products | Electric and natural gas services |
| Parent | PPL Corporation (through LG&E and KU Energy) |
| Website | lge-ku |
Louisville Gas & Electric (LG&E) is a utility provider headquartered in Louisville, Kentucky. As a subsidiary of PPL Corporation through the LG&E and KU Energy holding, LG&E delivers electric and natural gas services to more than 429,000 electric and 333,000 gas customers within a service territory spanning 700 square miles (1800 km2). The company manages a regulated electric generation capacity totaling 2,760 megawatts.
The current President is John R. Crockett III.
History
Originally established in 1838 under the name Louisville Gas and Water, the company redirected its efforts exclusively to gas utilities by 1842 and adopted the name Louisville Gas. Its initial purpose was to supply gas for street lighting, which was mandated to enhance public safety:
- By 1890, Louisville Gas expanded its interests by purchasing shares in electric companies such as Louisville Electric Light.
- In 1913, a merger between Louisville Gas, Louisville Lighting, and Kentucky Heating resulted in the formation of Louisville Gas & Electric (LG&E).
- The construction of the Trimble County electricity generation facility commenced in 1979.
- In 1990, LG&E restructured as a holding entity named LG&E Energy Corporation.
- A merger with Kentucky Utilities, another significant electric utility in Kentucky, occurred in 1998.
- British energy company Powergen acquired LG&E Energy in 2000; Powergen itself was later acquired by German firm E.ON in 2002.
- The company was renamed E.ON US in 2003.
- PPL Corporation purchased E.ON US in 2010 and subsequently rebranded it as LG&E and KU Energy LLC.
Since 2011, customers have had the option to settle their bills at Walmart retail locations.
Generation
LG&E operates various power generation facilities including two coal-fired plants—the Trimble County Generating Station and Mill Creek Station—one combustion turbine powered by natural gas or fuel oil, a hydroelectric plant (Ohio Falls Station), two natural gas compressor stations located at Muldraugh and Magnolia, as well as a natural gas combined cycle plant known as Cane Run Station.
Acquisition by PPL Corporation
On April 28, 2010, PPL and E.ON finalized an agreement for PPL to acquire E.ON US for $7.625 billion. This transaction was completed on November 1, 2010.
Process for Calculating Customer Gas Billing
Per its agreement with the Kentucky Public Service Commission (PSC), LG&E estimates customer gas usage for approximately two out of every three months. This method allows the publicly traded entity to synchronize reported revenue figures with quarterly forecasts regardless of actual consumption. The PSC mandates that LG&E attempts one manual meter reading each quarter and completes at least one every six months. Customers receive bills based on estimated usage for five months, followed by an adjustment month after a manual reading. This system enables LG&E to meet revenue targets for shareholders and determine employee bonuses but can lead to inflated bills that are only reconciled biannually. When manual readings reveal revenues below projections, LG&E may distribute the deficit across customer accounts.
External links
- Articles with short description
- Energy companies established in 1838
- Infrastructure in Louisville, Kentucky
- Electric power companies of the United States
- Companies based in Louisville, Kentucky
- Hydroelectric power companies of the United States
- 1838 establishments in Kentucky
- American companies established in 1838
- E.ON