69 Retail In January 2009, E.ON U.S. reached a settlement in rate cases involving LG&E and KU. The settlement foresees a roughly $1 monthly rate reduction for a typical residential electricity customer and a roughly $5 monthly rate increase for a typical residential natural gas customer. The Kentucky Public Service Commission ("KPSC"), the state's utility regulator, approved the settlement in February 2009. The gas rate increase enables E.ON U.S. to recover some of the costs of improvements to its natural gas system. Demand-side energy efficiency In 2008, the KPSC approved a regulatory filing that has enabled E.ON U.S. to triple the amount of money it dedicates annually to programs that increase residential and commercial customers' energy efficiency and climate awareness. Key programs include energy audits for residential and commercial customers along with a special audit program for low-income customers; subsi- dized maintenance of air-conditioners and heat pumps to ensure efficient operating performance; incentives for builders to con- struct new homes that meet U.S. government energy-efficiency standards; and technical devices like programmable thermostats and load-control switches that help reduce overall load during peak demand. In 2009, E.ON U.S. took additional action to promote energy awareness among its customers and the general public. It launched Smart Saver, a campaign of public-service advertise- ments to encourage customers to take easy but effective steps to reduce their energy usage. It also began a program to educate future E.ON U.S. customers in elementary and middle schools on the importance of energy efficiency and conservation. Educating children can change how they use energy now and in the future, and children can potentially influence the energy usage of their parents and other family members. You'll find E.ON's consolidated financial statements and related commentary in our Financial Report. Want to know more about U.S. Midwest? eon-us.com End of leasing arrangement helps protect jobs in western Kentucky In mid-July 2009, the maintenance and operation of four electric gener- ating units in western Kentucky returned from an E.ON U.S. subsidiary to Big Rivers Electric Corporation. The leasing arrangement had begun in July 1998 and was intended to last 25 years. Since then, the energy market has changed significantly. The deal to terminate the lease enables E.ON U.S. to end an arrangement that no longer makes financial sense. It also provides new, affordable, longer-term power agreements for two aluminum smelters, thereby helping to preserve nearly 5,000 jobs in western Kentucky. U.S. Midwest Market Unit Our Structure