LOUISVILLE, Ky. — The Kentucky Public Service Commission today has issued a conditional approval of the early termination of the lease agreements between E.ON U.S.'s subsidiary, Western Kentucky Energy, Big Rivers Electric Corporation and related transactions. The ruling returns the maintenance and operation of four electric generating stations in western Kentucky to Big Rivers.

In its ruling, the commission agreed that the "unwind" helps secure affordable electricity for the area's aluminum smelters, Rio Tinto Alcan and Century Aluminum. However, the commission believes the unwind needs to provide rate relief for the other customers and is requiring E.ON U.S. to pay Big Rivers an additional $61 million for the purpose of establishing a reserve account that will be used to partially offset the higher rates for those customers.

E.ON U.S has seven days to review the conditional order. Closing of the transaction is still contingent on consent from Henderson Municipal Power and Light.

"Today's order comes with a significant condition and we plan to take the necessary time to fully evaluate it," said Paul W. Thompson, E.ON U.S. senior vice president of Energy Services.

Under the current lease agreements, maintains and operates the four electric generating stations including HMP&L Station Two. HMP&L is being asked to consent to the early termination of 's Station Two operating agreements so that Big Rivers can resume plant operations now rather than Dec. 31, 2023, as contemplated by the existing contracts. Even with the early termination, HMP&L will retain all of the contractual protections of the existing contracts after the "unwind" closes, just as it would if the contracts were to run through 2023.



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 326,000 natural gas and 401,000 electric customers in Louisville and 16 surrounding counties, and Kentucky Utilities Company, a regulated electric utility in Lexington, Ky., that serves 536,000 customers in 77 Kentucky counties and five counties in Virginia.