Press Release
Media Contact: Chip Keeling 24-Hour Media Hotline: 502.627.4999 Toll-free: 888.627.4999	220 West Main Street Louisville, KY 40232

Two LG&E Energy Environmental Projects Selected for DOE Funding

(LOUISVILLE, KY - January 23, 2003) Two proposed environmental projects at LG&E Energy Corp.'s Ghent generating facility in Carroll County, Ky., have been selected for funding under the U.S. Department of Energy's Clean Coal Power Initiative.

The funding includes $31 million earmarked for a ground-breaking multi-pollutant control process at Ghent and $4 million for a University of Kentucky project to process Ghent's coal ash into marketable products, including a cement substitute. The Ghent plant is operated by Kentucky Utilities, an LG&E Energy subsidiary.

LG&E Energy and its partners (Airborne Pollution Control, The Babcock & Wilcox Co., and USFilter's HPD Systems) are building a small-scale demonstration plant to test "the Airborne Process" technology at Ghent. The Airborne Process is a multi-pollutant control process that employs dry and wet sodium bicarbonate scrubbing for combined NOx and SOx emissions reduction. The sodium based scrubbing is used in conjunction with the Airborne Process for the regeneration of the sodium bicarbonate reagent and the production of ammonium sulfate. The ammonium sulfate byproduct is used to produce high purity fertilizer.

Ghent could be the first unit in North America to receive the new equipment.

Ghent also could be at the forefront of coal ash research. The DOE's $4 million funding would support the University of Kentucky's development of a facility that would sort coal ash into fine particulate matter to be used in the production of concrete. This process would produce a high-quality product concrete, while reducing landfill space.

The emission project is contingent upon the successful completion of the demonstration plant testing and clearance of the associated technical, financial and commercial hurdles. Similarly, the ash project must be found to be technically and economically feasible and improved internally before it could begin.

LG&E Energy Corp., headquartered in Louisville, Ky., is a diversified energy services company that is a member of E.ON AG (NYSE: EON; Frankfurt: EOA) family of companies. LG&E Energy owns and operates Louisville Gas and Electric Company, a regulated electric and gas utility serving Louisville, Ky., and 16 surrounding counties and Kentucky Utilities Company, a regulated electric utility, based in Lexington, Ky., which serves customers in 77 Kentucky counties and five counties in Virginia.