LOUISVILLE, Ky. (December 14, 2007) – Lock 7 Hydro Partners, LLC, E.ON U.S. LLC,
and 3Degrees Group, Inc. announced today that Lock 7 Hydro Partners will become the
primary supplier of renewable energy credits (RECs) for Louisville Gas and Electric and
Kentucky Utilities companies’ “Green Energy” program.  The Mother Ann Lee
Hydroelectric Station on the Kentucky River at Lock and Dam 7 will generate the RECs.
3Degrees, a national climate change solutions provider, has agreed to purchase all of the
RECs generated by the project and has committed to supply the RECs to E.ON U.S. for
the Green Energy Program.

The agreement enables LG&E and KU to offer locally produced RECs for its Green
Energy program and gives LG&E and KU customers the opportunity to help develop new
renewable generating capacity in Kentucky.  Customers will be able to see where their
money is going and watch the progress of this new Kentucky renewable resource. Once
the plant is completely renovated – a timeframe which largely depends on contributions
from the Green Energy program -- it will eliminate 16 million pounds of carbon dioxide
emissions annually.

"Renovation of this retired 80-year-old renewable energy plant is very expensive and time
consuming.  The Green Energy dollars will enable us to get more green power on-line
faster than we could otherwise," said David Brown Kinloch, President of Lock 7 Hydro
Partners.

“We’re very pleased to offer our customers an opportunity to have a direct impact on
Kentucky’s environment by contributing to the growth of local renewable energy,” said
Chris Hermann, Senior Vice President, Energy Delivery.

The Mother Ann Lee Hydroelectric Plant, located at Lock and Dam 7 on the Kentucky
River near Harrodsburg, is adjacent to Shaker Village at Pleasant Hill, and sits on land
once owned by the Shakers.  It was renamed the “Mother Ann Lee Hydroelectric Station,”
in honor of the founder of the Shakers.  


The Mother Ann Lee powerhouse is located 40 feet above the spillway on three concrete
piers, an unusual feature in hydroelectric facilities that allows it to remain above the flood
elevation.  There is no road access to the plant, making it only accessible by boat or on
foot.  The plant contains three turbine-generators, each rated at 680 kilowatts.  Three,
7½ foot diameter propeller turbines will pass more than 1 million gallons of water per
minute.  The combined plant rated output is just over two megawatts, and will produce
8,300,000 kWh of electricity in an average year after being fully renovated.  Salt River
Electric is purchasing the electricity produced at the plant.  

Lock 7 Hydro Partners purchased the retired Lock 7 hydro plant in December 2005 and
began renovation in March 2006.  After extensive rehabilitation work, one of the plant’s
three hydroelectric generators began producing power again on March 9, 2007.  A
second generator became operational in October.  The third generating unit is currently
being rehabilitated and will require much more work than the first two units. It’s expected
to be operational in late 2008.

The Mother Ann Lee Hydroelectric Station has received a special, “Super-Green”
certification.  In March 2007, the plant became one of only 28 U.S. hydro projects to
receive Low Impact certification from the Low Impact Hydro Institute (LIHI).  The rigorous
evaluation done by LIHI is considered the “Green” seal of approval by Green Power
certification organizations such as Green-e Energy.  E.ON U.S. has applied to the national
non-profit Center for Resource Solutions for Green-e certification of the program

LG&E and KU customers can join the Green Energy program for as little as $5 per month.
For each $5, the utilities will purchase 300 kWh of Renewable Energy Credit (REC) from
Lock 7 Hydro partners, allowing customers to offset their carbon impact of their electricity
usage. The revenue will primarily be used to grow the capacity of the Mother Ann Lee
plant. To enroll in the Green Energy program, visit www.eon-us.com.

Lock 7 Hydro Partners, which is a 50/50 partnership between Shaker Landing Hydro
Associates of Louisville and Salt River Electric, a member-owned Electric Cooperative
based in Bardstown, Ky.  Salt River Electric is a member of the East Kentucky Power
Cooperative system.  Renovation of the plant is being done by Shaker Landing Hydro
Associates, Inc., under contract with Lock 7 Hydro Partners.  The three partners in Shaker
Landing Hydro Associates have been involved in hydroelectric development for more than
20 years, and developed Kentucky’s first small hydro project at the Weisenberger Mill in
1989.

Tours of the Mother Ann Lee Hydroelectric Station are available to members of the
media.  For additional information or to schedule a tour of the plant, please contact David
Brown Kinloch at 502-589-0975.
Lock 7 Hydro Partners, LLC
414 South Wenzel Street – Louisville, KY  40204

MEDIA RELEASE

Lock 7 Hydro Partners to be Primary Supplier for
LG&E and KU Green Energy Program