E.ON, a global power and gas company headquartered in Germany, announced on Apr. 28 that it plans to sell Louisville-based E.ON U.S. to Pennsylvania power company PPL Corp. for $7.6 billion.
E.ON U.S., headquartered in Louisville, is the parent company of Louisville Gas and Electric Co. (LG&E) and Kentucky Utilities Co. (KU). In making the announcement, Victor A. Staffieri, chairman, CEO and president of E.ON U.S., emphasized that PPL has committed to keeping the LG&E/KU headquarters in Louisville and Lexington, respectively, for 15 years and would not be eliminating any jobs as a result of the transaction. Staffieri added that the LG&E/KU management team would remain intact as well and that the company’s community investment levels and support of economic development would continue.
“It is a winning combination that benefits employees, customers, investors and the Commonwealths of Kentucky and Virginia,” Staffieri said.
LG&E serves 321,000 natural gas customers and 396,000 electric customers in Louisville and 16 surrounding counties. KU serves 545,000 electric customers in 77 Kentucky counties and five counties in Virginia.
To recognize the community relationship it has built during the eight years in which it has owned LG&E and KU – E.ON acquired the companies from Powergen plc in 2002 – E.ON is donating $2 million to the University of Kentucky for clean coal research; $2 million to the University of Louisville for engineering and energy efficiency programs; and $2 million to the E.ON U.S. Foundation for community and charitable needs.
The companies anticipate completing the transaction by the end of the year, subject to regulatory approvals and customary closing conditions.