The CEO of LG&E Energy Corp. blasted a Kentucky PublicService Commission order for an LG&E and KU reduction inpre-tax earnings totaling $63 million per year. Roger W. Hale saidthe reduction represents more than 20% of the utilities’ income.

“The Commonwealth of Kentucky is, today, the only state in theU.S. that can proudly boast is has the nations No. 1 customerservice and rates 38% below the national average,” Hale said in astatement. “This order soundly rejected the recommendations ofKentucky’s Attorney General and the cities of Louisville andLexington. To issue such an order is unnecessary and irresponsible”

AEP Resources Inc., a subsidiary of American Electric Power,announced last week that it has acquired a 50% share of the BajioPower Project from InterGen, an international power generationcompany jointly owned by Shell Generating Limited and BechtelEnterprises Holdings, Inc. Bajio is a 600 MW natural gas-fired,combined cycle power plant under construction in the municipalityof San Luis de la Paz in the state of Guanajuato, Mexico,approximately 160 miles from Mexico City.

InterGen was awarded the contract for the construction,ownership and operation of the facility by Mexico’s ComisionFederal de Electricidad (CFE) on April 29, 1999. The cost of theproject is approximately $430 million. AEP Resources will assumehalf of the costs under terms of the agreement. CFE has signed a25-year power purchase agreement for 85% of the power and willprovide the facility with natural gas as the base fuel and dieselas the alternate fuel. The remaining power will be delivered toindustrial consumers in the region. Commercial operations areprojected for November 2001.

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