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COURT OF APPEALS RETURNS LG&E TRIMBLE COUNTY PLANT ISSUE TO PUBLIC SERVICE COMMISSION

 LOUISVILLE, Ky., April 23 /PRNewswire/ -- The Kentucky Court of Appeals today overturned a Franklin Circuit Court ruling which ordered Louisville Gas and Electric Company (LG&E) to refund approximately $150 million to its customers in a case involving LG&E's Trimble County electric generating station. Although the ruling vacated a 1989 settlement agreement between LG&E and the Kentucky Public Service Commission (PSC), the appeals court ruled that the Franklin Circuit Court improperly set utility rates in ordering the refunds. Today's decision returns the matter to the PSC for future proceedings.
 "We are gratified that the Court of Appeals agrees with our position that judicial ratemaking is prohibited in this state," said Victor A. Staffieri, the company's senior vice president and general counsel. "We are satisfied that today's decision will allow us to make progress in resolving this issue for our customers and shareholders."
 The LG&E-PSC agreement implemented a previous PSC determination that only 75 percent of the construction costs for LG&E's Trimble County plant could be included in the company's rate base. In accordance with that agreement, LG&E issued $11 million in refunds to its customers in 1989. In addition, the PSC agreed that proceeds from any sale of the disallowed 25 percent of the Trimble plant's capacity belonged to LG&E and its shareholders. A group of intervenors, including the Kentucky Attorney General and the Jefferson County Attorney, appealed the agreement to the Franklin (KY) Circuit Court.
 LG&E contends that no more than 75 percent of the Trimble plant's construction costs have ever been paid by its customers. As a result, the company argued that the Franklin Circuit Court decision constitutes improper judicial ratemaking and is unlawful confiscation of shareholder and company property.
 -0- 4/23/93
 /CONTACT: Paul Heagan of LG&E, 502-627-2877 or (Home) 502-228-9763/
 (LGE)


CO: Louisville Gas & Electric Company; Kentucky Public Service
 Commission; Kentucky Court of Appeals ST: Kentucky IN: UTI SU:


CM-MM -- CH007 -- 0139 04/23/93 14:08 EDT
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Publication:PR Newswire
Date:Apr 23, 1993
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