LG&E and KU Energy

LG&E and KU Energy is an American energy utility holding company headquartered in Louisville, Kentucky. Its operating businesses are Louisville Gas & Electric (LG&E), Kentucky Utilities (KU), and Old Dominion Power (ODP), with ODP operating as a subsidiary of Kentucky Utilities. The group serves utility customers in Kentucky and, through Old Dominion Power, Virginia. The company was formed in 1998 through the combination of two established utility groups. LG&E Energy, the parent of Louisville Gas & Electric, acquired KU Energy, the parent company of Kentucky Utilities and Old Dominion Power. The transaction brought the principal Kentucky electric and gas utility businesses under a common corporate structure while retaining their established operating identities. Ownership changed several times during the following decade. In 2000, Powergen, a British energy company, acquired LG&E Energy. In 2002, Powergen was acquired by E.ON, a German-based energy company. In 2003, E.ON moved the LG&E Energy group into its American subsidiary, E.ON US Holdings. During this period, the underlying utility companies continued to operate under their respective names, while the corporate ownership structure reflected the consolidation of major international energy businesses. A further change occurred in 2010. PPL Corporation and E.ON announced an agreement under which PPL would acquire E.ON US, including the utility operations associated with LG&E and KU. The transaction was completed on November 1, 2010, and the E.ON US business became LG&E and KU Energy under PPL ownership. LG&E and KU Energy is therefore primarily a corporate and operating platform rather than a consumer-facing product brand. Its business scope centers on regulated utility operations, including the provision of electricity and natural gas through its operating companies. LG&E and KU are the principal utility names associated with the group, while Old Dominion Power extends the portfolio into Virginia. The company’s brand identity is closely connected to the local heritage and service territories of these utilities rather than to a single nationwide retail proposition.

LG&E and KU Energy was created in 1998 when LG&E Energy, the parent of Louisville Gas & Electric, acquired KU Energy. KU Energy controlled Kentucky Utilities and Old Dominion Power, giving the resulting organization a combined portfolio of utility businesses serving Kentucky and Virginia. Although the parent structure changed, the operating utilities continued to use their established local names. In 2000, Powergen acquired LG&E Energy. Powergen was a British-based energy company that expanded its presence in the United States through the transaction. In 2002, German energy company E.ON acquired Powergen, thereby gaining control of the LG&E Energy organization. In 2003, E.ON transferred the group to its American subsidiary, E.ON US Holdings. These changes placed the Kentucky and Virginia utility operations within a sequence of increasingly international corporate ownership structures. In 2010, PPL Corporation agreed to acquire E.ON US. PPL and E.ON announced the definitive agreement on April 28, 2010, with a stated transaction value of $7.625 billion. The transaction closed on November 1, 2010. After closing, E.ON US became LG&E and KU Energy, and the business became part of PPL’s utility portfolio. The resulting organization is composed of Louisville Gas & Electric, Kentucky Utilities, and Old Dominion Power. Louisville Gas & Electric and Kentucky Utilities are the principal Kentucky operating companies, while Old Dominion Power is a Kentucky Utilities subsidiary serving customers in Virginia. The group’s role is that of a regional utility holding company, coordinating and owning regulated energy businesses rather than marketing a single consumer product under the LG&E and KU Energy name.

• 2010

  PPL acquisition completed

  [1]LG&E and KU Energyen.wikipedia.org

  PPL completed its acquisition of E.ON US on November 1, after which E.ON US became LG&E and KU Energy.

• 2003

  Transfer to E.ON US Holdings

  [1]LG&E and KU Energyen.wikipedia.org

  E.ON transferred the LG&E Energy group to its American subsidiary, E.ON US Holdings.

• 2002

  Powergen acquired by E.ON

  [1]LG&E and KU Energyen.wikipedia.org

  E.ON acquired Powergen and consequently obtained control of the LG&E Energy organization.

• 2000

  Acquisition by Powergen

  [1]LG&E and KU Energyen.wikipedia.org

  Powergen acquired LG&E Energy, beginning a period of international corporate ownership for the utility group.

• 1998

  Formation through the acquisition of KU Energy

  [1]LG&E and KU Energyen.wikipedia.org

  LG&E Energy acquired KU Energy, bringing Louisville Gas & Electric, Kentucky Utilities, and Old Dominion Power into the same corporate group.

A regional regulated-utility group whose operating companies provide electricity and natural gas service in Kentucky and electricity service in Virginia, backed by the resources of PPL Corporation.

• Electricity and natural gas utility

  Louisville Gas & Electric

  Louisville Gas & Electric is an operating utility within LG&E and KU Energy. It provides electricity and natural gas utility service under the LG&E name, principally associated with the Louisville, Kentucky market and surrounding service territory.

• Electric utility

  Kentucky Utilities

  Kentucky Utilities is a principal operating company in the group and provides regulated electric utility service in Kentucky. It is also the parent of Old Dominion Power, extending the group’s operating footprint into Virginia.

• Electric utility

  Old Dominion Power

  Old Dominion Power is a subsidiary of Kentucky Utilities and an operating utility associated with LG&E and KU Energy. It provides electric utility service in Virginia under the Old Dominion Power name.

• 2010

  PPL agrees to acquire E.ON USM&A

  Background

  E.ON US Holdings controlled the LG&E Energy group, which included the utility businesses associated with LG&E and KU.

  Action taken

  PPL agreed to acquire E.ON US for $7.625 billion. The transaction was announced on April 28, 2010, and completed on November 1, 2010.

  Aftermath

  E.ON US became LG&E and KU Energy and entered PPL Corporation’s ownership structure.

  Transaction value. $7.625 billion (2010 announced transaction)

  Source

• 1998

  LG&E Energy acquires KU EnergyM&A

  Background

  LG&E Energy and KU Energy were separate utility holding companies before the transaction. KU Energy owned Kentucky Utilities and Old Dominion Power.

  Action taken

  LG&E Energy acquired KU Energy, creating the corporate group that became LG&E and KU Energy.

  Aftermath

  The transaction combined major utility operations in Kentucky and Virginia under common ownership while preserving the operating identities of the constituent utilities.

  Source

• 2010

  PPL and E.ON announce agreement for PPL to acquire E.ON US[1]LG&E and KU Energyen.wikipedia.org

  M&A

  PPL and E.ON announced a definitive agreement under which PPL would acquire E.ON US for $7.625 billion. The transaction included the utility businesses that became LG&E and KU Energy.

• 2010

  E.ON US becomes LG&E and KU Energy after completion of PPL transaction[1]LG&E and KU Energyen.wikipedia.org

  M&A · Leadership change

  The acquisition of E.ON US by PPL closed on November 1, 2010. Following completion, the business operated as LG&E and KU Energy.

1. 1LG&E and KU Energyen.wikipedia.org