LG&E Energy Corp. uses Commerce One solutions to improve supply chain efficiencies and decrease costs

PLEASANTON, Calif. and LOUISVILLE, Ky., Oct. 16, 2001 – Commerce One, Inc. today announced that LG&E Energy Corp. has selected Commerce One Auction Solutionà¢â€ž- to expand its supply chain.

LG&E Energy says it is using the Commerce One Auction Solution to save money in buying goods, create efficiencies in their sourcing and liquidation processes and expand their e-procurement initiatives already powered by Enterprise Buyerà¢â€ž- Desktop Edition, a joint solution from Commerce One and SAPMarkets, Inc., the exchange company of the SAP group.

LG&E Energy also reports that it has cost effectively implemented real-time auctions with suppliers to keep pricing in line with real-market levels and sell excess inventories more efficiently. According to LG&E Energy, the company has achieved a significant reduction in the cost of goods purchased and shorter negotiation cycles by using the Commerce One Auction Solution. Online auctions provide additional sourcing capabilities for hard-to-find items and have reportedly saved LG&E Energy as much as 20 percent on purchasing goods and services, from office supplies to transformers and snow removal services.

“By utilizing Commerce One’s solutions in LG&E’s supply chain, we are delivering tangible savings to our operating units,” said Bennett Gaines, director supply chain and operating services, LG&E Energy Corp. “We have done this by establishing a collaborative relationship with our suppliers and contractors and by integrating the purchasing process across our entire enterprise, including Powergen employees in the UK.”

LG&E Energy confirms that it has connected 30 suppliers to participate in the online purchasing process, including Brownstown Electric, which provides LG&E with material distribution services.

“LG&E has made it easy for us to enhance our long-term relationship via the Internet,” said Gregg Deck, vice president, Brownstown Electric. “We leverage Commerce One solutions to respond to request for quotes and easily connect to LG&E’s systems. Commerce One Auctions gives us a new way to sell our services, it works well, speeds up the selling process and allows Brownstown to increase efficiency and revenue.”

LG&E Energy implemented Enterprise Buyer in June 2001 to automate procurement of office supplies, construction equipment and other goods and services. LG&E Energy reports that it has transacted over $5 million to date via Commerce One Auction and Enterprise Buyer solutions.

“LG&E Energy is realizing tangible results from Commerce One Auction Solutions and we believe LG&E Energy’s emergence as an e-business leader further demonstrates the continued need for business to business e-commerce solutions that support key industries,” said Dennis Jones, vice chairman and president, Commerce One. “LG&E Energy now has the technology platform necessary to extend its e-business capabilities and we look forward to helping them progress in their e-business initiatives.”

About LG&E Energy Corp

LG&E Energy Corp., headquartered in Louisville, Ky., is a diversified energy services company that is a member of the Powergen plc. group of companies. With assets of nearly $14 billion, revenues of $9 billion, and four million customers worldwide, Powergen is one of the United Kingdom’s integrated gas and electric companies. As Powergen’s North American headquarters, LG&E Energy owns and operates Louisville Gas and Electric Company, a regulated electric and gas utility serving Louisville, Ky. and 16 surrounding counties; and Kentucky Utilities Company, a regulated electric utility, based in Lexington, Ky., which serves customers in 77 Kentucky counties and five counties in Virginia. LG&E Energy also owns interests in certain independent energy and energy-related businesses.

About Commerce One

Commerce One is an e-marketplace company. Through its software, services and Global Trading Webà¢â€ž- of interconnected business communities, Commerce One enables worldwide commerce on the Internet. Commerce One can be reached by phone at 800-308-3838 or +1-925-520-6000 or via the Internet at www.commerceone.com.

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