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1. This Consent Decree is entered into by the Enforcement
Bureau of the Federal Communications Commission ("Bureau") and
LG&E Energy Corp. (``LG&E'').
2. LG&E is a diversified energy services company headquartered
in Louisville, Kentucky. It owns and operates power generation,
project development, asset-based energy marketing, and retail gas
and electric distribution businesses. LG&E serves more than one
million retail electric and gas customers throughout Kentucky and
parts of Virginia through its two utility subsidiaries:
Louisville Gas and Electric Company and Kentucky Utilities
Company. LG&E also provides wholesale electric service to a
dozen municipalities. In connection with its utility-related
businesses, LG&E and its subsidiaries operate internal
communications systems that employ land mobile, fixed microwave
and marine coastal radio facilities. In 1998, LG&E had net
income of $232.2 million on revenues of $2 billion.
3. In a transaction consummated in 1990, Louisville Gas and
Electric Company created a holding company, LG&E, of which
Louisville Gas and Electric Company became a wholly-owned
subsidiary. The corporate reorganization resulted in the pro
forma transfer of control of Louisville Gas and Electric
Company's 20 fixed microwave stations to LG&E, for which
Commission consent was required pursuant to Section 310(d) of the
Communications Act of 1934, as amended (``Act''), 47 U.S.C. §
310(d). The companies, however, did not file applications for
Commission consent to the transfer of control of these stations
until August 2000.
4. In a transaction consummated on May 4, 1998, LG&E acquired
KU Energy Corporation (``KU Energy''), a utility holding company.
KU Energy's major operating subsidiary was Kentucky Utilities
Company (``KU''), licensee of one marine coastal, 49 fixed
microwave, and 15 land mobile stations. The merger of KU Energy
into LG&E resulted in the substantial transfer of control of KU's
stations to LG&E, for which Commission consent was required
pursuant to Section 310(d) of the Act. The companies, however,
did not file applications for Commission consent to the transfer
of control of these stations until May 1, 2000.
5. On July 8, 1999, LG&E acquired CRC-Evans Pipeline
International, Inc. (``CRC-Evans''), a pipeline supply
manufacturer and licensee of one land mobile station. This
acquisition resulted in the substantial transfer of control of
the CRC-Evans station to LG&E, for which Commission consent was
required pursuant to Section 310(d) of the Act. The companies,
however, did not file an application for Commission consent to
the transfer of control of the station until May 1, 2000.
6. For the purposes of this Consent Decree, the following
definitions shall apply:
(a) "Commission" means the Federal Communications
(b) "Bureau" means the Commission's Enforcement Bureau.
(c) "LG&E'' means LG&E Energy Corp.
(d) "Order" means the order of the Enforcement Bureau
adopting this Consent Decree.
(e) "Final Order" means the Order that is no longer
subject to administrative or judicial
reconsideration, review, appeal, or stay.
(f) ``Act'' means the Communications Act of 1934, as
amended, Title 47 of the United States Code.
7. LG&E agrees that the Bureau has jurisdiction over the
matters contained in this Consent Decree and the authority to
enter into and adopt this Consent Decree.
8. The Bureau and LG&E agree that this Consent Decree does not
constitute an adjudication on the merits or any finding on the
facts or law regarding any violations of the Act or the
Commission's rules committed by LG&E.
9. LG&E agrees that it shall make a voluntary contribution to
the United States Treasury in the amount of $15,000.00 within 10
calendar days after the Bureau releases the Order adopting this
10. LG&E agrees to implement, within 10 calendar days after the
Bureau releases the Order adopting this Consent Decree, a
comprehensive internal program, a summary of which is attached
hereto, to ensure LG&E's future compliance with the Act, the
Commission's rules, and the Commission's policies.
11. In express reliance upon the representations contained
herein, the Bureau agrees to terminate its investigation into the
matters discussed in paragraphs 3 - 5, above.
12. The Bureau agrees not to institute any new proceeding,
formal or informal, of any kind against LG&E for apparent
violations of Section 310(d) the Act arising from the matters
discussed in paragraphs 3 - 5, above.
13. In the event that LG&E is found by the Commission or its
delegated authority to have engaged in a violation of Section
310(d) of the Act subsequent to the release of the Order adopting
this Consent Decree, LG&E agrees that the conduct described in
paragraphs 3 - 5, above, may be considered by the Commission or
its delegated authority in determining an appropriate sanction.
14. LG&E waives any and all rights it may have to seek
administrative or judicial reconsideration, review, appeal or
stay, or to otherwise challenge or contest the validity of this
Consent Decree and the Order adopting this Consent Decree,
provided the Order adopts the Consent Decree without change,
addition, or modification.
15. LG&E and the Bureau agree that the effectiveness of this
Consent Decree is expressly contingent upon issuance of the Order
adopting this Consent Decree.
16. LG&E and the Bureau agree that in the event that this
Consent Decree is rendered invalid by any court of competent
jurisdiction, it shall become null and void and may not be used
in any manner in any legal proceeding.
17. LG&E and the Bureau agree that if LG&E, the Commission, or
the United States on behalf of the Commission, brings a judicial
action to enforce the terms of the Order adopting this Consent
Decree, neither LG&E nor the Commission shall contest the
validity of the Consent Decree or Order, and LG&E and the
Commission shall waive any statutory right to a trial de novo
with respect to any matter upon which the Order is based, and
shall consent to a judgment incorporating the terms of this
18. LG&E agrees to waive any claims it may otherwise have under
the Equal Access to Justice Act, Title 5 U.S.C. § 504 and 47 C.F.
R. § 1.1501 et seq.
19. LG&E agrees that any violation of the Order adopting this
Consent Decree shall constitute a separate violation and subject
LG&E to appropriate administrative sanctions.
20. LG&E and the Bureau agree to be bound by the terms and
conditions stated herein.
21. LG&E and the Bureau agree that this Consent Decree may be
signed in counterparts.
FEDERAL COMMUNICATIONS COMMISSION
David H. Solomon Date
LG&E ENERGY CORP.
Wendy Welsh Date
Vice President, Information Technology
SUMMARY OF COMPLIANCE PROGRAM
LG&E ENERGY CORP.
LG&E Energy Corp. will establish the LG&E Energy Corp.
Telecommunications Compliance Program (the ``Program'') to assure
compliance with federal and state law and Federal Communications
Commission (``FCC'') regulations. The Program will be conducted
by the Legal Department, and the General Counsel will designate a
Telecommunications Compliance Attorney within the Legal
Department to supervise operation of the Program.
Program operations will be described in a compliance manual
addressing three areas: database, education and review and
Database. The Legal Department will assemble and maintain
information about the company's telecommunications licenses and
other telecommunications information in a database accessible by
engineers and managers throughout the company. The existence and
maintenance of the database will be publicized within the
company. The database will include a ``tickler system'' to
prompt timely filing of renewal applications and will be kept
current by the Telecommunications Compliance Attorney.
Education. The Telecommunications Compliance Attorney, with
assistance from outside telecommunications counsel, will conduct
an education program for company lawyers, business development
personnel, managers and other parties responsible for
establishment, purchase, sale and use of the company's
telecommunications assets. The education program will emphasize
the need to make timely application for FCC consent to changes
in ownership or control of telecommunications licenses. The
education program will be supplemented by alerts and memos to
managers and engineers about the company's telecommunications
policy and practice. The alerts also will keep managers and
engineers informed of FCC policy and regulatory compliance
Review and Monitoring. The company will engage outside
telecommunications counsel to review the Program. Outside
counsel also will provide educational materials and will conduct