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 LOUISVILLE, Ky., Nov. 16 /PRNewswire/ -- LG&E Energy Corp. (NYSE: LGE) today announced a major realignment of its structure and a reshaping of its utility and non-utility businesses to reflect its outlook for rapidly emerging competition and opportunities in all segments of the energy services industry.
 Under the realignments, which are effective Jan. 1, 1994, the company is forming a new national business unit to develop and manage all of its utility and non-utility electric power generation and concentrate on the marketing and brokering of electric power on a regional and national basis. The realignment will allow the company's Louisville-based utility to focus solely on customer service and to develop more customer options as the local utility industry becomes more competitive in the future.
 Roger W. Hale, chairman and chief executive officer, said the restructuring was drawn from the company's long-held view that the traditional vertical utility structure would yield to one that has distinct segments -- wholesale power generation, wholesale energy services marketing and brokering, and retail distribution services.
 "As a company, we embrace change and have believed for some time that the market will begin shaping the energy services industry," said Hale. "We are confident of our view of the future and believe it is in the best interests of our customers, employees and shareholders to restructure our company now to prepare for this future environment."
 LG&E Energy Services
 The company has established a new national business unit, LG&E Energy Services, that will manage all utility and non-utility generation, spearhead a new energy services marketing and brokering business, and direct the company's independent power project development in the U.S. LG&E Power Inc., the company's independent power subsidiary based in Irvine, Calif., will be included in the newly formed Energy Services Group. The Group will be responsible for 19 independent power projects that are owned, operated or under construction in seven states. In addition, the nearly 2,700 megawatts of utility generating capacity owned by Louisville Gas and Electric Company will be managed by Energy Services and will continue to be subject to full regulation by the Kentucky Public Service Commission.
 A critical new focus for Energy Services will be the marketing and brokering of wholesale electric generation, which will include selling power from all utility and non-utility power plants, as well as power purchased from other suppliers on a regional and national basis. Hale said the company's experience as partners of the country's largest independent natural gas marketing company, Natural Gas Clearinghouse, of Houston, Texas, will become more valuable as similar marketing and brokering roles emerge in the electric energy industry.
 Edward J. Casey, Jr., currently executive vice president and chief financial officer of LG&E Energy Corp., has been promoted to Group President to head the new unit, along with overseeing the company's continuing partnership interest in Natural Gas Clearinghouse. Casey, who joined LG&E Energy in 1990 after ten years in investment banking on Wall Street, has been responsible for the company's business development activities and served as president of LG&E Power Inc., after it was acquired from Hadson Corp. in 1991. Jim Traa, president of LG&E Power, has resigned to pursue other professional interests in the energy services field.
 Louisville Gas and Electric Company
 LG&E Energy Corp.'s Louisville-based utility, Louisville Gas and Electric Company (LG&E), will continue to serve its 332,000 electric and 253,000 gas customers, but with an added focus on customer service and more flexible packaging of energy service options for its industrial, commercial and residential customers. Hale said the changes reflect the view that the local utility must be free in the future to provide a variety of supply options for customers and be dedicated to providing customer-based retail and distribution services supplied by both utility and non-utility generation sources.
 Victor A. Staffieri, currently senior vice president-public policy and general counsel, has been promoted to president of Louisville Gas and Electric Company (LG&E) and will have overall responsibility for retail utility services in Kentucky. Staffieri joined LG&E Energy Corp. in 1992 after serving as general counsel for Long Island Lighting Company.
 As an integral part of the restructuring, David R. Carey, currently vice president and general manager of retail electric service, has been promoted to senior vice president-Operations for LG&E, reporting to Staffieri, and will be responsible for all day-to-day operations of the utility's retail gas and electric distribution systems and service programs.
 Stephen R. Wood, senior vice president and chief administrative officer of LG&E, has been promoted to executive vice president & chief administrative officer for LG&E Energy Corp. He will oversee all human resources, labor relations, corporate communications, information services and total quality management for all subsidiaries.
 Hale said the realignments do not affect the company's legal structure, regulation of the utility by the Kentucky Public Service Commission, nor the corporation's desirable status as a utility holding company exempt from most federal utility oversight.
 "We are confident these changes will position us competitively as our industry continues to evolve," said Hale. "We have built upon our experience and success in both utility and non-utility businesses to now take this next important step into the future of our industry."
 -0- 11/16/93
 /CONTACT: Paul Heagen of LG&E, 502-627-2877 or (Home) 502-228-9763/

CO: LG&E Energy Corp.; LG&E Energy Services; LG&E Power Inc.;
 Louisville Gas and Electric Company ST: Kentucky IN: UTI SU: RCN

SB-DF -- CH011 -- 5136 11/16/93 13:32 EST
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Publication:PR Newswire
Date:Nov 16, 1993

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