Office of the Attorney General
Attorney General Stumbo Challenges Wasteful Energy Programs Proposed By LG&E and KU

Press Release Date:  Monday, October 29, 2007  
Contact Information:  Corey Bellamy, 502-696-5643 Office  

Attorney General Greg Stumbo today strongly criticized proposals by  LG&E and KU to spend $182 million in ratepayers’ money on inefficient energy programs.  In a filing with the PSC, the Attorney General disagreed with plans by the E.On subsidiaries to pay for a package of energy programs that save only $52 million over a seven year span.

“My office whole heartedly supports energy efficiency and environmental responsibility,” said Stumbo, “but these programs cost more than three dollars for every dollar saved. That’s not what I call efficiency.”

Among the expenditures challenged by Stumbo is a proposal to spend over $40 million to advertise the programs. “Advertising energy efficiency programs is fine, but Kentucky families struggle to pay heating bills every winter. Spending over $40 million of ratepayer money on ads is outrageous,” emphasized Stumbo.

The Attorney General also questioned a plan by LG&E and KU to spend over $24 million in ratepayer money to send coupons to customers for compact fluorescent (CFL) bulbs. “The ridiculous part about this program is that it would be cheaper to actually mail the light bulbs to the 830,000 customers,” said Stumbo.

Stumbo notes that the companies propose to pay themselves a bonus to run the programs, and also want to reward themselves for fictitious lost sales. “I can not fathom why the companies would ask me to agree to spend $182 million in ratepayer money and then pay them incentives to run the programs.” said Stumbo. “I’m going to stand up for working families who expect their money to be spent wisely.”