Powergen is an Anglo-American energy company, active in electricity generation and distribution, energy trading and retail gas, electricity, and telecommunications services to residential and business customers.

Since our creation in 1989, we have transformed our business from an electricity generator into a vertically-integrated energy company, with UK and international operations. In December 2000 we entered into the US energy market, consolidating our business with the acquisition of the Kentucky energy group, LG&E Energy (LG&E). This move refocused our activities, changing Powergen into an Anglo-American energy company. As a consequence, we disposed last year most of our existing international assets held within Powergen International.

In April, 2001, the Powergen Board unanimously recommended the purchase of Powergen by the German utility company E.ON. The purchase was completed on July 1, 2002 and will see us change again - this time to become a part of the world's largest privately-owned electricity and gas company.

Throughout our changes we have delivered value and quality to our customers, shareholders, employees, partners and the communities in which we operate as a low-cost, innovative and environmentally responsible operator.

The Group in the UK

The Group in the US

Key to maps

In the UK

Powergen is one of the UK's leading integrated electricity and gas companies, and one of the country's best known energy brands.

UK Operations are split into the following main activities:

• selling electricity, gas and telecoms, with some 3.5 million residential, business and industrial customer
• ttrading electricity, gas, oil and coal
• producing electricity from our portfolio of coal, gas and oil-fired power stations
• distributing electricity to 2.4 million homes and businesses in the East Midlands
• providing highly efficient combined heat and power plant to meet the electricity and steam needs of energy-intensive businesses
• having interests in wind farms in the UK and Eire through our joint venture, Powergen Renewables

Powergen International

Outside the UK, Powergen has built international power generation businesses, with power projects in Europe, India and Asia Pacific. Our strategic change into an Anglo-American energy company at the end of 2000 saw us dispose of the majority of these assets in 2001. Only two power stations - Paguthan in India and Paiton in Indonesia - made a full year’s contribution to Group performance in 2001. As such, Powergen International was renamed Asian Asset Management (AAM) in July 2001.

In the US

LG&E Energy is a diversified energy services company with businesses in power generation, retail gas and electric utility services, asset-based energy marketing and project development.

Its regulated businesses are:

• Louisville Gas and Electric Company, a gas and electricity utility serving customers in 17 Kentucky counties
• Kentucky Utilities Company, an electricity utility serving 77 Kentucky counties and five counties in Virginia. Together, these serve over one million customer accounts

Its unregulated businesses include:

• Western Kentucky Energy, a wholly owned subsidiary, which leases and operates four coal-fired plants owned by Big Rivers Electric Corporation in Western Kentucky
• LG&E Power Services (LPS), which operates independent wind, coal-fired and steam generation in six states and in Spain
• stakes in three Argentinian gas distribution companies