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Press Release

12.12.2005

LG&E's Budget Payment Plan Promotion Reaches Out to Customers



To ease customers' seasonal spikes in utility bills, Louisville Gas and Electric Company (LG&E) is stepping up the promotion of its Budget Payment Plan.

Starting this week and continuing through the end of the year, an automated telephone system will contact customers about the Budget Payment Plan. During the call, customers will be informed of what their initial Budget Payment Plan amount would be, and they will be given the opportunity to sign up for the plan while on the phone.

The Budget Payment Plan, which is designed to allow customers to spread their actual energy costs over a 12-month period, makes it easier for them to budget monthly expenses. To promote the program and its benefits, LG&E is reaching out to customers.

"While we would much prefer to have actual human contact with each and every one of our customers, we feel this automated system is a good alternative," said Dave Vogel, E.ON U.S. Vice-President of Retail and Gas Storage Operations. "By using this technology, we can be more efficient in providing customers with information about this flexible option and even give them the opportunity to sign up at the time of the call."

Calls will only be made to LG&E natural gas customers not currently enrolled in the plan and who meet the program's eligibility requirements. Once a customer chooses to sign up for the plan, that person will receive a follow-up letter confirming enrollment and outlining the details of the plan and how it works.

Customers can visit the company's website at www.eon-us.com or call Customer Service at (502) 589-1444 (toll-free 800-331-7370) for more information about the Budget Payment Plan.

Budget Payment: How it Works

  • The Budget Payment Plan is designed to allow customers to spread their actual energy costs over a 12-month period making it easier for them to budget their monthly expenses.


  • A customer's previous 12-months' usage is reviewed, and an initial Budget Payment Amount is calculated.


  • The payment amount is reviewed periodically (typically in the fourth and eighth months after signing up for the Plan) and adjusted (in the fifth and ninth months), if necessary, throughout the budget period.


  • A final review and adjustment takes place at the end of the budget period (approximately 12 to 15 months after the customer signs up). The customer's actual energy usage is reviewed compared to what they paid throughout their budget period. The customer's bill includes a "final" adjustment at that time for the difference between what they paid and the amount of energy they actually used. The "final" adjustment may be in the form of a credit meaning the customer used less energy than what we estimated they would (customer will see the credit spread over their next 12 months' Budget Payment Amount) or a debit meaning the customer used more energy than what we estimated they would (customer will be billed for the difference on their next month's bill).


  • This winter, in response to higher natural gas prices and to allow more customers to take advantage of the program, the company is waiving the requirement that customers have a zero balance before enrolling in the Plan. Also, customers who sign up for the Plan in January, February or March will settle in 15 months — not the typical 12 months so they won't be settling during a high usage month.

E.ON U.S., headquartered in Louisville, Ky., is a subsidiary of E.ON A.G., the world's largest investor-owned energy services provider. E.ON U.S. is a diversified energy services company that owns and operates Louisville Gas and Electric Company, a regulated utility that serves 318,000 natural gas and 390,000 electric customers in Louisville and 16 surrounding counties, and Kentucky Utilities Company, a regulated electric utility in Lexington, Ky., that serves 518,000 customers in 77 Kentucky counties and five counties in Virginia.