LG&E Withdraws from EEI

Fortnightly Magazine - June 15 1996
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LG&E Energy Corp. and subsidiary Louisville Gas and Electric Co. (LGE) have withdrawn from the Edison Electric Institute (EEI) over the issue of electric restructuring.

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In a letter to EEI president Thomas Kuhn, LG&E chairman and CEO Roger Hale said that LG&E advocates competition and retail access at the earliest possible date through federal legislation. Hale believes stranded costs should "neither create a disincentive to the rapid development of a fully competitive marketplace nor penalize low-cost producers." He called EEI's political and regulatory initiatives "fundamentally at odds" with those of LG&E.

EEI spokesperson Mary Kenkel said she thought it unfortunate that Hale did not attend the last EEI board meeting to listen to the discussion on industry restructuring. Kenkel noted that EEI has set up a task force to address the concerns of low-cost energy producers over EEI's stand in favor of stranded-cost recovery. On the issue of federal legislation, Kenkel said that EEI does not favor a mandate that sets forth a "prescriptive approach" to the states. (In April, Central Illinois Light Co. also withdrew from EEI).

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