PPL to hold rates steady in Ky. acquisition

September 02, 2010

PPL Corp., Allentown, said today that it reached a settlement in its proposed purchase in Kentucky of E.ON U.S., which owns Louisville Gas & Electric Co. and Kentucky Utilities.

Under the settlement, PPL agreed that the two utilities would not raise their base rates until at least Jan. 1, 2013, but would be allowed to seek increases for "extraordinary and uncontrollable costs," as well as for fuel and environmental costs.

The agreement, reached with community groups that had opposed the purchase, must be approved by the Kentucky Public Service Commission.

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PPL in April announced its plan to buy E.On U.S. for $6.7 billion, plus the assumption of $900 million in debt. The Kentucky company is the U.S. electric and natural gas unit of German utility E.ON.    - Paul Schweizer

 

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