Your Cooperative

Kenergy -- an electric distribution cooperative -- was established in July 1999 through the consolidation of Henderson Union Electric Cooperative Corp. (organized in 1936) and Green River Electric Corporation (organized in 1937). It serves in excess of 51,000 households, commercial enterprises and industries along more than 6,700 miles of line in all or portions of 14 western Kentucky counties--Breckinridge, Caldwell, Crittenden, Daviess, Hancock, Henderson, Hopkins, Livingston, Lyon, McLean, Muhlenberg, Ohio, Union and Webster.

As a distribution cooperative, Kenergy is a customer-owned not-for-profit electric company, which purchases electric power at wholesale and distributes it to customers within its service territory. Its profits or margins are put back into the cooperative to help run the business efficiently or are returned to the customer-owners through Capital Credits. A cooperative exists to provide high quality service at the lowest possible price.

The headquarters is located at 6402 Old Corydon Road, Henderson, Ky. Service centers are located at Hanson in Hopkins County, Hartford in Ohio County, Hawesville in Hancock County, Marion in Crittenden County and Owensboro in Daviess County. The third largest cooperative in Kentucky in terms of customer accounts, Kenergy ranks No. 1 in energy sales among all cooperatives in the nation.

Kenergy is directed by a customer-elected board, which meets monthly to formulate policies by which the cooperative will operate and to analyze the operations of the company to ensure that it is operating in a prudent fiscal manner. The 11 board members are:

Dr. H.M. Smith, Morganfield William H. Reid, Owensboro Glenn E. Cox, Fredonia Chris Mitchell, Clay Randy Powell, Corydon William Denton, Henderson Larry Elder, Owensboro John Warren, Jr., Owensboro James Grant, Hawesville Sandra Wood, Island Don Krampe , Henderson (Industrial Director)

Management

Sanford (Sandy) Novick , President and CEO Gerald Ford, Vice President of Operations John Newland, Vice President of Engineering Keith Ellis, Vice President of Human Resources Steve Thompson, Vice President of Finance/Accounting

Kenergy is a Touchstone Energy Cooperative. Touchstone Energy® is a network of local, customer-owned electric cooperatives throughout the country, which are committed to providing superior service at affordable rates to all customers large and small. Those cooperatives involved have a reputation for integrity, accountability, innovation and community service.

Wholesale Power Supplier: Big Rivers Electric Corporation, based in Henderson, Ky., is Kenergy's wholesale power supplier. The power is generated by coal-fired plants, which are leased and operated by Western Kentucky Energy, a subsidiary of Louisville, Ky.-based LG&E Energy.

Authorities and Relationships: Incorporated under the laws of the Commonwealth of Kentucky, Kenergy is under the jurisdiction of the Kentucky Public Service Commission, an agency of the state government, and receives a portion of its financing through the Rural Utilities Services, an agency of the U.S. government within the Department of Agriculture.

The cooperative is affiliated with the Kentucky Association of Electric Cooperatives in Louisville, Ky., and the National Rural Electric Cooperative Association (NRECA) in Washington, D.C., both of which provide individual cooperatives in the state and nation, respectively, the opportunity to act collectively on matters pertaining to the rural electrification program and to keep abreast of issues affecting the industry.

KENERGY FACTS & FIGURES (1/1/05)