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KU SCRUBBER CONSTRUCTION BIDS LOWER THAN EXPECTED, ANNOUNCED AT KU ENERGY ANNUAL MEETING

 LEXINGTON, Ky., April 27 /PRNewswire/ -- Kentucky Utilities Company (KU), the principal subsidiary of KU Energy (NYSE: KU), today announced that costs for compliance with the 1990 Clean Air Act Amendments will be significantly lower than originally estimated.
 At the annual meeting of KU Energy held today in Lexington, KU Energy Chairman John T. Newton said that the lower construction estimates are good news for both the company and the customers. "The bids we have received from contractors for construction of our Ghent Unit 1 scrubber to comply with Phase I of the Clean Air Amendments in 1995 have been substantially below our original projections," Newton said. "With the lower construction costs, our projected capital expenditures for Phase I have been reduced by about $23 million or 16 percent. This means that, while we will need to raise revenues to cover the cost of Clean Air compliance, the amount needed should be significantly less."
 Newton added that, with available emission allowances and fuel switching, the company may be able to defer the addition of another scrubber until about the year 2006 to comply with Phase II of the Clean Air Amendments. The company had anticipated capital spending of about $359 million through the year 2000, but with the lower construction costs and the delay of an additional scrubber, these projected capital expenditures through 2000 have been reduced to $148 million, a decrease of approximately 59 percent.
 KU recently received approximately 125,000 emission allowances through the first auction and lottery administered by the Environmental Protection Agency. These allowances resulted from programs created by the Clean Air Act Amendments. The allowances, also called emission credits, allow utilities flexibility in planning compliance strategies while meeting the new and more stringent Clean Air Act Amendments.
 "We are pleased that, with these new developments, the cost of complying with the Clean Air Act Amendments should be lower than we had originally projected," said Newton. "These strategies may be modified as new information becomes available in the years ahead. We will continue to evaluate our plans going forward in order to meet our environmental obligations in the most efficient and cost effective manner."
 Also at the Annual Meeting of Shareholders of KU Energy Corporation, the shareholders elected the following as directors of the company for a three-year term expiring at the 1996 Annual Meeting of Shareholders:
 - Mira S. Ball, secretary-treasurer and chief financial officer of Ball Homes, Inc., Lexington, Ky.
 - Frank V. Ramsey, Jr., president and director of Dixon Bank, Dixon, Ky.
 - Warren W. Rosenthal, a private investor and the owner of Patchen Wilkes Farm.
 - Charles L. Shearer, president of Transylvania University.
 The remaining directors whose terms of office did not expire are:
 - W. B. Bechanan, former chairman of the board and chief executive officer of Kentucky Utilities Company.
 - Harry M. Hoe, president and director of J.R. Hoe & Sons, Middlesboro, Ky.
 - Milton W. Hudson, an economic consultant, Washington, D.C.
 - John T. Newton, chairman of the board and president of the company and of Kentucky Utilities Company.
 - William L. Rouse, Jr., former chairman of the board and chief executive officer of First Security Corporation of Kentucky, Lexington, Ky.
 - Michael R. Whitley, senior vice president of the company and of Kentucky Utilities Company.
 Newton closed his remarks by reviewing the changes occurring in the utility industry. "Perhaps our greatest challenges for the future are the changes taking place in our industry and the resulting increase in competition," he said. He added that the company's strategy for success in a more competitive environment is " ... to maintain our position as a low-cost producer, to provide total customer satisfaction and to maintain flexibility."
 Kentucky Utilities, based in Lexington, is committed to serving its customers and shareholders by producing reliable, low-cost electric energy. The company provides electricity to more than 430,000 customers in 77 Kentucky counties and five counties in southwestern Virginia. KU is the principal subsidiary of KU Energy Corporation.
 -0- 4/27/93
 /CONTACT: Karen Klein or Faith Miller Cole of KU Energy Corporation, 606-288-1155 or 606-288-1192/
 (KU)


CO: Kentucky Utilities Company; KU Energy Corporation ST: Kentucky IN: UTI SU:

CM -- CH009 -- 1498 04/27/93 14:59 EDT
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Date:Apr 27, 1993
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