UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 11, 2016
| Commission File Number |
Registrant; State of Incorporation; Address and Telephone Number |
IRS Employer Identification No. |
| 1-11459 | PPL Corporation (Exact name of Registrant as specified in its charter) (Pennsylvania) Two North Ninth Street Allentown, PA 18101-1179 (610) 774-5151 |
23-2758192 |
|
333-173665
|
LG&E and KU Energy LLC (Exact name of Registrant as specified in its charter) (Kentucky) 220 West Main Street Louisville, KY 40202-1377 (502) 627-2000 |
20-0523163 |
|
1-2893
|
Louisville Gas and Electric Company (Exact name of Registrant as specified in its charter) (Kentucky) 220 West Main Street Louisville, KY 40202-1377 (502) 627-2000 |
61-0264150 |
|
1-3464
|
Kentucky Utilities Company (Exact name of Registrant as specified in its charter) (Kentucky and Virginia) One Quality Street Lexington, KY 40507-1462 (502) 627-2000 |
61-0247570
|
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Section 8 - Other Events
Item 8.01 Other Events
On January 11, 2016, Louisville Gas and Electric Company ("LG&E") and Kentucky Utilities Company ("KU" and, together with LG&E, the "Companies") issued press releases announcing that they plan to submit applications to the Kentucky Public Service Commission ("KPSC") for Certificates of Public Convenience and Necessity ("CPCN") and for Environmental Cost Recovery ("ECR") rate treatment regarding the Companies' upcoming environmental construction projects relating to the U.S. Environmental Protection Agency's regulations addressing the handling of coal combustion byproducts and the Mercury and Air Toxics Standards. The CPCN and ECR applications are anticipated to be filed on or about January 29, 2016.
The construction projects are expected to begin in 2016 and continue through 2023 and are estimated to cost approximately $316 million at LG&E and $678 million at KU. The planned applications request an authorized 10% return on equity with respect to the Companies' ECR tracker rate mechanism.
Section 9 - Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits
| (d) | Exhibits | |||
| 99.1 - | Press Release dated January 11, 2016 of Louisville Gas and Electric Company. | |||
| 99.2 - | Press Release dated January 11, 2016 of Kentucky Utilities Company. |
Statements in this report and the accompanying press release, including statements with respect to future events and their timing, including the Companies' future rates, rate mechanisms or returns on equity ultimately authorized or achieved, as well as statements as to future costs or expenses, regulation, corporate strategy and performance, are "forward-looking statements" within the meaning of the federal securities laws. Although the Companies believe that the expectations and assumptions reflected in these forward-looking statements are reasonable, these expectations, assumptions and statements are subject to a number of risks and uncertainties, and actual results may differ materially from the results discussed in the statements. The following are among the important factors that could cause actual results to differ materially from the forward-looking statements: subsequent phases of rate proceedings and regulatory cost recovery; market demand and prices for electricity; political, regulatory or economic conditions in states and regions where the Companies conduct business; and the progress of actual construction, purchase or installation of assets or operations subject to tracker mechanisms. Any such forward-looking statements should be considered in light of such important factors and in conjunction with PPL Corporation's, LG&E and KU Energy LLC's and the Companies' Form 10-K and other reports on file with the Securities and Exchange Commission.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.
| PPL CORPORATION | |||
| By: | /s/ Stephen K. Breininger | ||
|
Stephen K. Breininger Vice President and Controller |
|||
| LG&E AND KU ENERGY LLC | |||
| By: | /s/ Kent W. Blake | ||
|
Kent W. Blake Chief Financial Officer |
|||
| LOUISVILLE GAS AND ELECTRIC COMPANY | |||
| By: | /s/ Kent W. Blake | ||
|
Kent W. Blake Chief Financial Officer |
|||
| KENTUCKY UTILITIES COMPANY | |||
| By: | /s/ Kent W. Blake | ||
|
Kent W. Blake Chief Financial Officer |
|||
Dated: January 12, 2016
Exhibit 99.1
Contact:
Media Line
T 502-627-4999
F 502-627-3629
January 11, 2016
LG&E to invest more than $300 million in additional environmental improvements
Utility to close ash ponds at Mill Creek and Trimble County generating stations
(LOUISVILLE, Ky.) – Louisville Gas and Electric Company announced today that it plans to cap and close its remaining coal ash ponds located at Mill Creek and Trimble County Generating Stations.
The details will be laid out in the utility’s environmental compliance plan, which will be submitted to the Kentucky Public Service Commission on Jan. 29. The $316 million plan is necessary to meet the environmental regulations required by the U.S. Environmental Protection Agency, including the Coal Combustion Residuals Rule (CCR) that became effective late last year.
The EPA’s CCR Rule established new requirements for the disposal of the byproducts left over after coal is safely burned to make electricity.
In order to make these necessary operational changes, LG&E will seek Certificates of Public Convenience and Necessity from the KPSC to begin construction projects, and receive approval of the environmental compliance plan. Under the plan, LG&E will request approval for recovery of the costs to cap and close the ash ponds and build a process-water facility at the Mill Creek and Trimble County stations to meet the CCR Rule and additional mercury control systems to meet the Mercury and Air Toxics Standards (MATS). LG&E expects the projects to cost $311 million to meet the CCR Rule and $5 million for the MATS rule.
The EPA determined that coal combustion residuals are non-hazardous materials and can continue to be beneficially used to make certain authorized products and for specific uses. The CCR Rule additionally established new standards that are expected to require over the next three years commencing, or completing in some cases, the closure of ash ponds and some other on-site wet storage sites that contain coal byproducts.
“We have managed our coal combustion residuals in a safe and compliant manner for decades; however, as regulations change, so must our operations,” said Paul W. Thompson, chief operating officer. “We extensively studied our compliance options under the new rule and determined the lowest reasonable cost option would mean capping and closing our existing ash ponds while continuing to beneficially use byproducts in a safe and practical manner that continues to meet the new requirements.”
LG&E’s Mill Creek Station is already operating a dry special waste landfill that meets the new requirements, providing for seamless onsite operations well into the future. The utility also is in the final permitting stages to construct a similar dry special waste landfill at the Trimble County Station.
For many years, both the Mill Creek and Trimble County stations have beneficially reused as much of their coal byproducts as economically reasonable given demand for such applications. For example, in the last year more than 25 percent of the byproducts produced at Mill Creek and Trimble County have been beneficially reutilized off site. Mill Creek reuses about 50 percent of the gypsum produced at the plant during the coal-burning process. An onsite facility recycles the gypsum into pelletized fertilizer sold to agricultural firms. Trimble County also sells its gypsum, fly ash and other byproducts for beneficial reuse.
The ash pond cap and closure projects will begin later this year. The ponds at Mill Creek are expected to be closed by 2020, and those at Trimble County are expected to be closed by 2023.
LG&E and sister utility, Kentucky Utilities Company, have been moving toward dry storage facilities for a number of years. In addition to Mill Creek, the Ghent Station also already uses dry storage facilities, and the utilities are well underway to capping and closing the former dry special waste landfill and ash pond located at the now-retired Cane Run coal-fired power plant. Dry storage facilities at Brown, expected to be in service in 2016, and Trimble County stations also have been approved by the KPSC.
###
Louisville Gas and Electric Company and Kentucky Utilities Company, part of the PPL Corporation (NYSE: PPL) family of companies, are regulated utilities that serve a total of 1.2 million customers and have consistently ranked among the best companies for customer service in the United States. LG&E serves 321,000 natural gas and 400,000 electric customers in Louisville and 16 surrounding counties. Kentucky Utilities serves 543,000 customers in 77 Kentucky counties and five counties in Virginia. More information is available at www.lge-ku.com and www.pplweb.com.
Exhibit 99.2
Contact:
Media Line
T 502-627-4999
F 502-627-3629
January 11, 2016
KU to invest nearly $700 million to meet EPA’s new Coal Combustion Residuals Rule
(LEXINGTON, Ky.) – Kentucky Utilities Company announced today that it plans to cap and close its remaining coal ash ponds at E.W. Brown and Ghent Generating Stations and at the now-retired Green River, Pineville and Tyrone coal-fired power plants.
The details of the plans will be laid out in the utility’s environmental compliance plan, which will be submitted to the Kentucky Public Service Commission on Jan. 29. The $678 million plan is necessary to meet the environmental regulations required by the U.S. Environmental Protection Agency, including the Coal Combustion Residuals Rule (CCR) that became effective late last year.
The EPA’s CCR Rule established new requirements for the disposal of the byproducts left over after coal is safely burned to make electricity.
In order to make these operational changes, KU will seek Certificates of Public Convenience and Necessity from the KPSC to begin construction projects, and receive approval of the environmental compliance plan. The projects, which ensure that KU meets the CCR and Mercury and Air Toxics Standards (MATS) rules, include additional mercury control systems, ash pond closures, construction of process-water facilities and the second phase of the Brown landfill.
The EPA determined that coal combustion residuals are non-hazardous materials and can continue to be beneficially used to make certain authorized products and for specific uses. The CCR Rule additionally established new standards that are expected to require over the next three years commencing, or completing in some cases, the closure of ash ponds and some other on-site wet storage sites that contain coal byproducts. KU expects to begin these latest investments in the environmental improvements in 2016 and continue through 2023.
“We have managed our coal combustion residuals in a safe and compliant manner for decades; however, as regulations change, so must our operations,” said Paul W. Thompson, chief operating officer. “We extensively studied our compliance options under the new rule and determined the lowest reasonable cost option would mean capping and closing our existing ash ponds while continuing to beneficially use byproducts in a safe and practical manner that continues to meet the new requirements.”
For many years, KU beneficially reused as much of the coal byproducts produced by the facilities as economically reasonable given the demand for such applications. For example, in the last year more than 25 percent of the byproducts produced at Ghent and Trimble stations were beneficially reused offsite to create products such as concrete, wallboard and fertilizers.
KU and sister utility, Louisville Gas and Electric Company, have been moving toward dry storage facilities for a number of years. Ghent and Mill Creek stations already use dry storage facilities, and the utilities are well underway to capping and closing the former dry special waste landfill and ash pond located at the now-retired Cane Run coal-fired power plant. Dry storage site facilities at Brown, expected to be in service in 2016, and Trimble County stations also have been approved by the KPSC.
###
Louisville Gas and Electric Company and Kentucky Utilities Company, part of the PPL Corporation (NYSE: PPL) family of companies, are regulated utilities that serve a total of 1.2 million customers and have consistently ranked among the best companies for customer service in the United States. LG&E serves 321,000 natural gas and 400,000 electric customers in Louisville and 16 surrounding counties. Kentucky Utilities serves 543,000 customers in 77 Kentucky counties and five counties in Virginia. More information is available at www.lge-ku.com and www.pplweb.com.