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LG&E Selects Bechtel as EPC Contractor on Trimble County #2 Project

Louisville, KY - March 13, 2006 Louisville Gas and Electric Company (LG&E) today announced that Bechtel Power Corp., a division of one of the world's premier engineering, construction and project management firms, has been selected to design and build a second generating unit at the company's Trimble County facility.

The new generating unit, TC2, will be a 750 MW super-critical, pulverized coal-fired unit with world-class environmental controls.  Once built, it will be the cleanest and most efficient coal-fired unit in Kentucky.  Construction is scheduled to start in July of this year with the new plant going on-line during the first quarter of 2010.

More than 600 construction jobs will be created as a result of this project.  It is estimated that the project's payroll will produce $20 million in tax revenue in the region during construction.  Bechtel Power has pledged to recruit local workers and use local businesses, including women-owned, minority owned, and small disadvantaged businesses, to complete the TC2 Generating Station.

Bechtel plans to soon begin soliciting qualified project workers from throughout central/northern Kentucky by partnering with state and local government representatives.

In particular, Bechtel plans on partnering with community and technical colleges to recruit skilled local workers. This partnership will also provide a source for ongoing skills training - making it possible for workers to acquire the additional skills necessary to advance on the job and after project completion.

"We're pleased to partner with Bechtel on our investment in electric reliability and cleaner air for Kentuckians," said Paul W. Thompson, Senior Vice President of Energy Services for E.ON U.S., LG&E's parent company.  "It marks another major milestone in our efforts to bring clean, reliable and low-cost energy to our customers, utilizing as many qualified workers from the area as possible."

Current plans call for Bechtel to establish an employment office off of Interstate 71.  All qualified workers are encouraged to apply for available jobs at this employment office.

Robert Clipper, Principal Vice President and Manager of Operations for Bechtel Power, added: "We appreciate the opportunity to work on this important project and look forward to partnering with LG&E and qualified workers in the region to build a high quality facility."

For more information on the announcement or job placement locations and hours, visit www.eon-us.com.

More About the Project

The new TC2 unit will be powered by an advanced super-critical pulverized coal boiler and steam turbine generator that includes the latest technological advances in efficiency and environmental controls. TC2 will be the most environmentally friendly coal-fired unit in Kentucky with lower permit limits for SO2 and nitrogen oxide (NOx) emissions than any other existing or currently planned coal unit in the Commonwealth. With other adjustments to the existing Trimble County generating unit, SO2 and NOx emissions from the entire facility will not exceed currently permitted limits for the Trimble County site, even after the addition of the new unit. The new unit is scheduled for completion in 2010.

E.ON U.S. LLC, headquartered in Louisville, Ky., is a subsidiary of E.ON A.G., the world's largest investor-owned energy services provider. E.ON U.S. is a diversified energy services company that owns and operates Louisville Gas and Electric Company, a regulated utility that serves 318,000 natural gas and 390,000 electric customers in Louisville and 16 surrounding counties, and Kentucky Utilities Company, a regulated electric utility in Lexington, Ky., that serves 518,000 customers in 77 Kentucky counties and five counties in Virginia.

Bechtel is one of the world's premier engineering, construction, and project management companies.  Since its founding in 1898, Bechtel has worked on more than 22,000 projects in 140 countries, including hundreds of power generation facilities.