KU
For Immediate Release               Contact:  Cliff Feltham
                                       Communications Dept.
                                               859-367-1105



   KU Seeks First Base Electric Rate Increase In 20 Years

(LEXINGTON, Ky. - Nov. 25, 2003) Kentucky Utilities  Company
announced today it intends to pursue increases in  its  base
rates  for  the  first  time in two  decades.  Although  the
company has only preliminary numbers, KU is expected to seek
an  overall  increase  of 9 percent, for  approximately  $62
million  per  year.  KU last sought a base rate increase  in
1983. KU lowered its rates in 2000 by more than $30 million.
As a result, today's electric rates are lower than they were
in 1983.  A representative residential customer, using 1,000
kwh, is expected to see an increase of approximately $5  per
month.

      The  amount of the increase KU will seek will be based
on a test year which ended in September. Final details  will
be available by year end.

      The increase in rates is caused, in large part, by the
need to meet growing demand, particularly from new business.
In  the  last  two  decades,  customers  have  increased  by
205,510, or 60 percent.

      "When  you  look  at  the rate of  inflation  and  the
economic  situation we are in today, our electric rates  are
actually  lower today than they were when we last  requested
an  increase,"  said Vic Staffieri, KU's and  LG&E  Energy's
Chairman, CEO and President.

       Even  with  the  proposed  increases,  the  company's
electric  rates will remain lower than those  of  the  seven
states  bordering  Kentucky, and among  the  lowest  in  the
nation.  The  increase is necessary because  KU's  costs  of
doing  business,  including safely and  reliably  delivering
service,  have  increased dramatically  over  the  past  two
decades.

      KU and its sister company, Louisville Gas and Electric
Company,  have spent $285 million in the last  three  years,
adding  new generating capacity, and are expected to install
additional capacity over the next two years to meet electric
demand  growth.  The  companies have  invested  roughly  $18
million  per year in their transmission system.  Significant
increases  have also occurred in administrative and  general
expenses  -  in particular pension, post retirement,  health
care,  and  insurance expenses.  For example, the  companies
have  encountered an approximately 140 percent  increase  in
property  insurance since the terrorist attacks of September
11, 2001.

      "We're  proud that - despite a lot of turmoil  in  our
industry  --  our employees have been able to hold  electric
rates  steady for more than two decades through  their  hard
work,  efficiencies  and ingenuity,"  said  Staffieri.  "But
there  comes  a  time when you must react  to  the  economic
situation you face, regardless of your best efforts.

     "Obviously, decisions such as this don't come easily to
us,  as  evidenced by the fact that we haven't filed for  an
increase in some time," he added. "However, we're at a point
now where additional resources are necessary in order for us
to  continue  to provide the quality service  our  customers
have come to expect."

      LG&E also is requesting increases in electric and  gas
rates.  The  utilities  will  file  the  increases  in  late
December.   The  Kentucky  Public  Service  Commission   has
traditionally suspended the implementation of the rates  for
five  months  in order to hold public hearings.  A  decision
likely will not be reached until next summer.

      KU, based in Lexington, Ky.,  provides  reliable, low-
priced electric  energy  to  more than  477,000 customers in
77  Kentucky   counties  and   30,000  five  counties     in
southwestern Virginia.  KU  is a  subsidiary  of  LG&EEnergy
Corp., headquartered in Louisville, Ky.

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