LG&E, KU For Sale?

by Rick Howlett on March 2, 2010

By Rick Howlett

Louisville Mayor Jerry Abramson says EON officials would not confirm or deny to him Tuesday that they are considering selling Louisville Gas and Electric Company and Kentucky Utilities.

Reports to that effect came out overnight from several media sources.

Abramson says state and city officials want a seat at the table if there is a sale as government ownership of the utilities would be favorable for consumers.

He says officials looked into the possibility of buying the companies in 2004 when there were rumors of a sale.

“Our theory six years ago was that instead of a 12-and-a-half percent return, which is what LG and E is given today by the Public Service Commission, we could make it on one percent, two percent return, which would give us a chance to keep our rates low, give us the chance to ulitimately insure both the residential and business rate payers that they would be in control of their own destiny,”

Analysts say the companies could be worth about six billion dollars.

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