WKU Public Radio News Staff
Tue November 16, 2004
Louisville May Buy LG&E
Louisville, KY – Spurred by rumors that LG&E Energy Corporation's parent company plans to sell the Louisville-based utility, metro mayor Jerry Abramson revealed that he flew to Germany last week to let the owner know that if there is a sale, the city wants to buy.
It's unclear how much such a deal might cost, but the last time LG&E was sold as its own entity, in 2000, it brought $3.2 billion in cash, with the buyer assuming $2.2 billion in debt.
Abramson said Monday that consultants have determined Louisville could purchase the utility using only projected revenues to pay off the bond.
He added those consultants believe Louisville would have an edge over private businesses in bidding for the utility since the city wouldn't have to pay federal income taxes on its net gains and the cost of capital would be cheaper