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Before the
FEDERAL COMMUNICATIONS COMMISSION
Washington, D.C. 20554
In the Matter of )
)
LG&E ENERGY CORP. ) Acct. No. X32080032
) File No. EB-00-IH-0148/GS
Licensee of Land Mobile, Fixed )
Microwave, and Marine Coastal )
Authorizations in Kentucky and )
Virginia )
MEMORANDUM OPINION AND ORDER
Adopted: September 12, 2000 Released: September 15,
2000
By the Chief, Enforcement Bureau:
1. By this Memorandum Opinion and Order we adopt the attached
Consent Decree in which LG&E Corp. (``LG&E'') agrees to implement
an internal compliance program and to make a voluntary
contribution to the United States Treasury. We find, for the
reasons discussed below, that the Consent Decree provides for a
just and reasonable resolution of the Bureau's investigation into
LG&E's compliance with Section 310(d) of the Communications Act
of 1934, as amended,1 and conclude that adoption of the Consent
Decree is in the public interest.
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. 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.
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 fixed microwave 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 August
2000. In addition, 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 marine coastal,
fixed microwave, and 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. Also,
on July 8, 1999, LG&E acquired CRC-Evans Pipeline International,
Inc. (``CRC-Evans''), a pipeline supply manufacturer and licensee
of a 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.
4. The Bureau has reached an agreement with LG&E that will
resolve this investigation. The terms and conditions of the
agreement are contained in the attached executed Consent Decree.
Among other things, the Consent Decree contemplates that LG&E
will implement a program to ensure its future compliance with the
Act and the Commission's rules and policies. In addition, the
Consent Decree contemplates that LG&E will make a voluntary
contribution to the United States Treasury in the amount of
$15,000.00.2
5. We have reviewed the Consent Decree and evaluated the
circumstances underlying the investigation. We believe that the
public interest would be served by adopting the Consent Decree
and terminating the investigatory proceeding.
6. ACCORDINGLY, IT IS ORDERED that, pursuant to delegated
authority, the Consent Decree attached hereto IS ADOPTED.
7. IT IS FURTHER ORDERED, that the above-captioned
investigatory proceeding IS TERMINATED.
FEDERAL COMMUNICATIONS COMMISSION
David H. Solomon
Chief, Enforcement Bureau
_________________________
1 47 U.S.C. § 310(d).
2 Payment may be made by mailing a check or similar instrument,
payable to the order of the Federal Communications Commission, to
the Forfeiture Collection Section, Finance Branch, Federal
Communications Commission, P.O. Box 73482, Chicago, Illinois
60673-7482. The payment should note the Acct. No. referenced
above.