In May 2001 LG&E utility subsidiaries Louisville Gas and Electric Company and Kentucky Utilities Company (KU) received approval from the Kentucky Public Service Commission to launch or continue a number of commercial and residential energy-saving programmes.

Together they are expected to reduce electricity consumption at Louisville Gas and Electric Company and KU by a total of about 132MW by 2007. They are also expected to reduce natural gas usage at Louisville Gas and Electric Company by 1.2 million Cubic feet by 2007.

One of these initiatives, WeCare, will fund a new home insulation programme for low-income customers. The programme will provide an audit, energy education and free insulation services to more than 3,900 low-income customers in Louisville and Lexington by 2005, significantly reducing their bills.

A number of other energy saving programmes are in place, including:

• Pay-As-You-Go - a pilot programme providing pre-paid meter users more control over their energy usage. The Company has recruited 500 customers to the programme, which provides information about each customer's energy usage patterns and helps them to use energy efficiently and cost-effectively
• Demand Conservation programmes for residential and commercial load management which will reduce peak demand by employing a load control switch on air conditioners and pool pumps
• Energy-related improvements that have been popular in Louisville and will now be extended to Lexington. These are residential and commercial conservation programmes in which low-cost financing is provided for energy-related improvements such as installing energy-efficient heating and air-conditioning units.