**Exhibit 99.01**

CautionaryFactors for Louisville Gas and Electric Company

ThePrivate Securities Litigation Reform Act of 1995 provides a “safe harbor”for forward-looking statements to encourage such disclosures without the threatof litigation providing those statements are identified as forward-looking andare accompanied by meaningful, cautionary statements identifying importantfactors that could cause the actual results to differ materially from thoseprojected in the statement. Forward-looking statements have been and will bemade in written documents and oral presentations of E.ON AG (“E.ON”), E.ON U.S. LLC (“E.ON U.S.”), Louisville Gas and Electric Company (“LG&E” orthe “Company”). Such statements are based on management’s beliefs as well asassumptions made by and information currently available to management.

Whenused in the Company’s documents or oral presentations, the words “anticipate,” “estimate,”“expect,” “objective” and similar expressions are intended to identifyforward-looking statements. In addition to any assumptions and other factorsreferred to specifically in connection with such forward-looking statements,factors that could cause the Company’s actual results to differ materially fromthose contemplated in any forward-looking statements include, among others,(a) those factors described under caption Item 1A. Risk Factors of theCompany’s Annual Report of Form 10-K for the year ended December 31,2006 and (b) the following:

·                  Increasedcompetition in the utility, natural gas and electric power marketingindustries, including effects of: decreasing margins as a result of competitivepressures; industry restructuring initiatives; transmission system operationand/or administration initiatives; recovery of investments made under traditionalregulation; nature of competitors entering the industry; retail wheeling; a newpricing structure; and former customers entering the generation market;

·                  Changing marketconditions and a variety of other factors associated with physical energy andfinancial trading activities including, but not limited to, price, basis,credit, liquidity, volatility, capacity, transmission, currency, interest rateand warranty risks;

·                  Risks associatedwith price risk management strategies intended to mitigate exposure to adversemovement in the prices of electricity and natural gas on both a global andregional basis;

·                  Legal,regulatory, public policy-related and other developments which may resultin re-determination, adjustment or cancellation of revenue payment streams paidto, or increased capital expenditures or operating and maintenance costsincurred by, the Companies, in connection with rate, fuel, transmission,environmental, consumer choice, safety and security and other proceedings orrules applicable to the Company;

·                  Legal,regulatory, economic and other factors which may result inre-determination or cancellation of revenue payment streams under power salesagreements resulting in reduced operating income and potential asset impairmentrelated to the Company’s investments in independent power production ventures,as applicable;

·                  Legal,regulatory, political, public policy, commercial, social and other developmentsrelating to environmental matters, including limits on air and water emissions,disposal of hazardous wastes, remediation of existing environmentalsituations,  restrictions on carbon orother greenhouse gas emissions;

·                  Economicconditions including interest rates, inflation rates and monetary or currencyfluctuations;

·                  Trade, monetary,fiscal, taxation, and environmental policies of governments, agencies andsimilar organizations in geographic areas where the Company has a financialinterest;

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·                  Customerbusiness conditions including demand for their products or services and supplyof labor and materials used in creating their products and services;

·                  Financial orregulatory accounting principles or policies imposed by the Public CompanyAccounting Oversight Board, Financial Accounting Standards Board, theSecurities and Exchange Commission, the Federal Energy Regulatory Commission,state public utility commissions and siting boards, the EnvironmentalProtection Agency and the state equivalent, state entities which regulatenatural gas transmission, gathering and processing and similar entities withregulatory oversight;

·                  Availability orcost of capital such as changes in: interest rates, market perceptions of theutility and energy-related industries, the Company’s or any of its subsidiariesor security ratings;

·                  Factorsaffecting utility operations such as unusual weather conditions; catastrophicweather-related damage; unscheduled generation outages, unusual maintenance orrepairs; unanticipated changes to fossil fuel, or gas supply costs oravailability due to higher demand, shortages, transportation problems or otherdevelopments; environmental incidents; or electric transmission or gas pipelinesystem constraints;

·                  Factors whichmay affect the Company’s utility operations or the demand for the Company’selectric power or gas such as natural disasters, wars, terrorist acts or theeffects thereof (including increased security costs), embargoes and othercatastrophic events;

·                  Employeeworkforce factors including changes in key executives, collective bargainingagreements with union employees, or work stoppages;

·                  Rate-settingpolicies or procedures of regulatory entities, including environmentalexternalities;

·                  Social attitudesregarding the utility, natural gas and power industries;

·                  Identificationof suitable investment opportunities to enhance shareholder returns and achievelong-term financial objectives through business acquisitions;

·                  Some futureproject investments made by the Company, respectively, as applicable, couldtake the form of minority interests, which would limit the Company’sability to control the development or operation of the project;

·                  Legal andregulatory delays and other unforeseeable obstacles associated with mergers,acquisitions and investments in joint ventures;

·                  The resolution,costs and other effects of legal and administrative proceedings, settlements,investigations, claims and matters, including but not limited to thosedescribed in Notes 3, 9 and 15 (for LG&E) of the Notes to FinancialStatements of the Company’s Annual Report on Form 10-K for the year ended December 31,2006, and items under the caption Item 3, Legal Proceedings; and theresolution, costs and other effects of tax and pension matters, including butnot limited to those described in Notes 5 and 6 (for LG&E) of the Notes toFinancial Statements of the Company’s Annual Report on Form 10-K for the yearended December 31, 2006;

·                  Technologicaldevelopments, changing markets and other factors that result in competitivedisadvantages and create the potential for impairment of existing assets;

·                  Other businessor investment considerations that may be disclosed from time to time inthe Company’s Securities and Exchange Commission filings or in other publiclydisseminated written documents;

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·                  Factorsaffecting the realization of anticipated cost savings associated with themerger between E.ON U.S. (formerly LG&E Energy) and KU Energy Corporationincluding national and regional economic conditions, national and regionalcompetitive conditions, inflation rates, weather conditions, financial marketconditions, and synergies resulting from the business combination;

·                  Factorsassociated with, resulting from or affecting the acquisitions and operations ofE.ON U.S. (formerly LG&E Energy) by E.ON (or, previously, by Powergen plc),including the integration of the existing business and operations of LG&Eas part of the E.ON group of companies thereunder, as well as national andinternational economic, financial market, regulatory and industry conditions orenvironments applicable to E.ON and its subsidiaries, including LG&E, inthe future.

TheCompany undertakes no obligation to publicly update or revise anyforward-looking statements, whether as a result of new information, futureevents or otherwise.

 

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