PLANNING TO START OR EXPAND A BUSINESS?

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1 PLANNING TO START OR EXPAND A BUSINESS? LG&E and KU Energy s competitive energy rates, excellent reliability, and sustainability options provide a competitive advantage!

2 OUR ENERGIES GO TO POWERING BUSINESSES AND EMPOWERING GROWTH Whether you are starting a business or expanding current operations in Kentucky, LG&E and KU Energy s resources, experience, and knowledge base are available to assist you each step of the way. From site evaluation to implementation and ongoing support, let us partner with you to help with: Building/site identification and due diligence Infrastructure development Incentives and cost analysis Project management Coordination with state and local governments WE DELIVER THE SERVICE YOU DESERVE: SAFE, RELIABLE, AND REASONABLE IN COST Kentucky has the lowest cost of electricity in the industrial sector among states east of the Mississippi River and one of the lowest in the U.S., coming in nearly 20 percent lower than the national average (U.S. Energy Information Administration, 2016). We are investing $2.2 billion in our electric and natural gas system to improve safety and reduce the frequency and duration of outages. By installing intelligent control equipment on our distribution system, this technology will allow for rapid isolation of outages and faster restoration times. We offer new or expanding qualifying customers a financial incentive to invest through our Economic Development Rider. The rider encourages brownfield development and economic development for existing customers who expand or new customers who locate in our service territory by providing demand bill credits over the first five years of the new service. MARKET PROFILE ELECTRIC LG&E KU Average Price per kwh NATURAL GAS Average Price per mcf Sold LG&E Commercial Industrial Generation Source Coal % % Commercial $ 9.50 Industrial $ 8.36 Underground Storage Capability 12 months ended December 31, billion cubic feet Hydroelectric 2.02 % 0.30 % Solar 0.05 % 0.05 % Natural Gas Combustion Cycle Simple Cycle Combustion Turbine 12 months ended December 31, % % 2.35 % 3.70 %

3 WE SHARE A COMMON GOAL: THE SUCCESS OF YOUR BUSINESS With competitive electric rates, excellent reliability, and a business-friendly climate, there s no question that Kentucky is the best place for business. LG&E and KU, part of the PPL Corporation (NYSE: PPL) family of companies, are regulated utilities that serve nearly 1.3 million customers in 77 counties across Kentucky, and have consistently ranked among the best companies for customer service in the United States. Since 2010, Site Selection magazine has recognized LG&E and KU s economic development efforts five times, along with two honorable mentions. This company has been recognized multiple times for its award-winning customer service. LG&E and KU s service area covers 5,500 noncontiguous square miles and our total regulated generation capacity is 8,084 megawatts. LG&E AND KU ENERGY SERVICE TERRITORY Gas Electric

4 Kentucky BY THE NUMBERS Foreign Direct Investment in Kentucky includes nearly 500 facilities that employ almost 100,000 people. The state s Kentucky Export Initiative provides education, hands-on assistance, resources, matchmaking opportunities, and grants to companies that wish to sell their products and services abroad. Exports by Kentucky businesses continue to break records. Goods and services sold abroad in 2016 topped $29 billion. There are 4,500 manufacturing-related facilities in Kentucky. Nearly 250,000 Kentuckians work in a manufacturing facility. 95% of the world s bourbon supply is made in Kentucky. Located at the center of a 34-state distribution area, over 2.1 million packages are processed each day at Kentucky s logistics hubs. Kentucky is within 600 miles, a day s drive, of over 65% of the nation s population, personal income, and manufacturing establishments. Kentucky is home to more than 300 food & beverage facilities, employing close to 50,000 people.

5 Kentucky s Manufacturing GDP, 19.3%, has grown at nearly twice the national average since Nearly 30,000 people work in one of Kentucky s healthcarerelated businesses. Kentucky has more than 160 healthcare-related facilities. Kentucky has 3 major air-cargo delivery hubs operated by DHL, UPS, and Amazon. In 2016, 12 new or expanded health-related facilities were announced with investments of $157 million. KENTUCKY has 75 aerospace-related facilities that employ nearly 17,000 people. Kentucky has seen a 63% employee increase in the private aerospace products and parts manufacturing industry since Aerospace exports have increased 183% in the past five years. More than 2,600 miles of railway, allowing access to all points in the U.S. 275 million tons of freight moving across its roadways each week. 14% of Kentucky s manufacturing jobs are in the food and beverage industry. More than 500 automotive-associated companies, employing nearly 95,000 people. This makes Kentucky the number one producer of cars, light trucks, and SUVs per capita. Kentucky s automotive-related exports in 2016 totaled $5.5 billion. More than 2,000 miles of commercially navigable waterways. Content provided by the Kentucky Cabinet for Economic Development.

6 HAVE SUSTAINABILITY GOALS? WE HAVE YOU COVERED. At LG&E and KU, we re expanding our energy portfolio to offer more renewable options and help businesses meet their sustainability goals. Solar We partner with local businesses to install solar on their property through the Business Solar program. There s also our community Solar Share program for businesses that want to support local solar generation, but not install ground or rooftop arrays. Kentucky s largest utility-scale solar photovoltaic facility, which features more than 45,000 solar panels, occupies approximately 50 acres at our E.W. Brown Generating Station in Mercer County. Green Energy Program For as little as $5 a month, customers can support regional renewable energy operators. Currently, participants support wind energy operators in the region. Hydro The Ohio Falls Generating Station near downtown Louisville, and the Dix Dam plant in central Kentucky, have been generating hydro energy since the 1920s. Significant upgrades were recently made to Ohio Falls to increase the plant s production capacity. Electric Vehicle Charging Stations We work with business customers interested in hosting charging stations for employees at their company. We are also installing public charging stations across the state to better serve electric vehicle drivers in our service territories. Leader in Energy Storage Research and Development We re developing, testing, and evaluating the potential benefits of utility-scale battery technologies to meet the energy needs of the future. Our Energy Storage Research and Demonstration Site in Mercer County is unique among other sites in the utility industry because it provides a test bed for evaluating multiple utility-scale energy storage technologies at the same time. COMMITTED TO AN EXCELLENT BUSINESS CLIMATE WHILE PROTECTING OUR NATURAL ENVIRONMENT We are continually investing in our facilities to ensure our company complies with local, state, and federal environmental regulations. While our power plant emissions have been reduced over the years, the company s long-term plans and new emissions controls are even more efficient. We invested in additional environmental controls to further reduce sulfur dioxide and nitrogen oxide emissions, as well as installed state-ofthe-art technology to control mercury and fine particulates. These achievements were accomplished while also upgrading our Ohio Falls hydroelectric plant, and building our 640-megawatt natural gas combined-cycle unit known as Cane Run 7, and other large-scale projects across our plants. These combined actions will also decrease long-term carbon dioxide emissions.

7 With competitive electric rates, excellent reliability, a focus on the customer, and a business-friendly climate THERE S NO QUESTION THAT KENTUCKY IS THE PLACE FOR BUSINESS.

8 CONTACT US For more information, visit lge-ku.com/economic-development or call