Office of the Attorney General
Attorney General Stumbo Challenges RWE’s Request to Sell Kentucky-American
Attorney General Greg Stumbo filed papers today asking the Kentucky Public Service Commission (PSC) to deny RWE’s request for the sale of American Water Works and Kentucky-American Water by way of an initial public offering (IPO) on the New York Stock Exchange. This IPO would be the fourth largest in the history of the United States.
“RWE came to town just over three years ago and purchased Kentucky-American over my Office’s objection,” said Attorney General Stumbo. “RWE claimed that Kentucky-American would flourish under its control. Not only did that not happen, but RWE wants to walk away with Kentucky-American in worse condition than before the purchase.”
“Before the Commission should ever consider the transaction, RWE must put money on the table to ensure that our water company is stable,” Stumbo added. Stumbo also expressed concern that if a sale takes place, the Commonwealth will inherit a financially distressed Kentucky-American that might immediately ask for a rate increase.
“This is unacceptable and contrary to the public interest,” said Stumbo.
Kentucky-American serves approximately 112,000 customers in 12 counties including Bell, Grant, Scott, Bourbon, Harrison, Woodford, Clark, Jessamine, Fayette, Marion, Gallatin, and Owen.