Settlement reached in Kentucky utilities bid

subscribe

Power provider PPL Corp. said it has reached a settlement in its $7.6 billion bid to acquire E.On U.S., the parent company of Louisville Gas & Electric Co. and Kentucky Utilities Co.

Among the settlement terms, PPL agreed that the two utilities would commit not to implement any base rate increases before January 1, 2013. But rate increases that took effect last month will remain in place, the company said.

The deal allows the utilities to seek approval for the deferral of "extraordinary and uncontrollable costs," however.

The agreement also requires PPL to split earnings above a 10.75 percent return on equity with customers.

The Kentucky Public Service Commission is expected to make a decision on the proposed acquisition by the end of the month.

"We are hopeful that the Kentucky PSC will agree with the parties to this settlement and conclude this acquisition is consistent with the public interest," said James Miller, PPL's chairman, president and chief executive.

The Federal Trade Commission and the U.S. Department of Justice reviewed the proposed offer for possible antitrust issues and cleared the deal last month.

The deal also must be cleared by the Tennessee Regulatory Authority, Virginia State Corporation Commission and Federal Energy Regulatory Commission.

Louisville Gas & Electric and Kentucky Utilities provide electricity to 941,000 customers in Kentucky, Virginia and Tennessee.

Related News

work from home

Residential electricity use -- and bills -- on the rise thanks to more working from home

NEW YORK - Don't be surprised if your electric bills are looking higher than usual, with a sizable increase in the amount of power that you have used.

Summer traditionally is a peak period for electricity usage because of folks' need to run fans and air-conditioners to cool their homes or run that pool pump. But the arrival of the coronavirus and people working from home is adding to amount of power people are using.

Under normal conditions, those who work in their employer's offices might not be cooling their homes as much during the middle of the day or using as…

READ MORE
EV growth in Europe

Parked Electric Cars Earn $1,530 From Europe's Power Grids

READ MORE

nuclear power

A new nuclear reactor in the U.S. starts up. It's the first in nearly seven years

READ MORE

vancouver-reversal-on-gas-appliances

Vancouver's Reversal on Gas Appliances

READ MORE

PG&E

US judge orders PG&E to use dividends to pay for efforts to reduce wildfire risks

READ MORE