FERC Gives Nod to LG&E-Power Gen Merger
Kentucky-based LG&E Energy and Powergen plc of the United
Kingdom came one step closer yesterday to completing their sizable
merger. The Federal Energy Regulatory Commission approved the
merger sooner than either company expected.
FERC ruled the transaction was in the public interest, and would
not adversely affect competition, rates, or regulation. "We are
fortunate to have obtained the commission's approval at this time,"
said Roger W. Hale, LG&E Energy's chairman. "There is now a
very real possibility that this merger can be completed before the
end of 2000."
The Kentucky Public Service Commission approved the merger in
May, and both Powergen's and LG&E's shareholders approved the
union earlier this month. The only two approvals left are from the
Securities and Exchange Commission and the Virginia State
The combined company will constitute a global power company with
assets of nearly $12 billion and total revenues of $8.7 billion.
Under the Powergen name, the company will serve over four million
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