(LOUISVILLE, Ky. - Dec. 28, 2004) Louisville Gas and Electric Company and Kentucky Utilities Company formally notified the Midwest Independent Transmission System Operator (MISO) today that they intend to withdraw from the organization. The ability of LG&E and KU to exit the organization, however, requires the approval by the Federal Energy Regulatory Commission and the Kentucky Public Service Commission. The earliest the companies' withdrawal could be effective is Dec. 31, 2005

"This is a necessary procedural action for the companies," said Paul W. Thompson, LG&E Energy, Senior Vice President of Energy Services. "In the event the Kentucky Public Service Commission orders KU and LG&E out of MISO, it would be prudent for us to ensure that our withdrawal is as timely as possible."

The KPSC is currently reviewing the costs and benefits of KU's and LG&E's membership in the Midwest ISO. LG&E and KU submitted to the KPSC an independent cost-benefit analysis which concluded that costs of continued membership outweigh the benefits. The Midwest ISO agreement requires that the companies file notice before the end of 2004 in order to depart at the next earliest possible date, Dec. 31, 2005.

"By providing our notice to MISO today, we are taking the necessary steps to ensure that we have all of our options available," said Thompson. "Our number one priority is to continue to provide the safest, most reliable and lowest cost energy in the nation."



LG&E Energy LLC, headquartered in Louisville, Ky., is a diversified energy services company and a member of the E.ON AG (NYSE: EON; Frankfurt: EOA) family of companies. LG&E Energy owns and operates Louisville Gas and Electric Company, a regulated utility that serves 312,000 natural gas and 384,000 electric customers in Louisville and 16 surrounding counties, and Kentucky Utilities Company, a regulated electric utility in Lexington, Ky., that serves 512,000 customers in 77 Kentucky counties and five counties in Virginia.

The Midwest ISO, based in Carmel, Indiana, is a regional transmission organization founded in 1996. The Midwest ISO is responsible for monitoring the electric transmission system that delivers power from generating plants to wholesale power transmitters. The Midwest ISO's role is to ensure equal access to the transmission system and to maintain or improve electric system reliability in the Midwest. LG&E Energy joined the Midwest ISO in 1998.