LOUISVILLE, Ky. (WDRB) -- LG&E is increasing its rates, but the hike won't be as much as the utility company wanted.
The agreement comes after LG&E and KU asked the Public Service Commission to grant a nearly $210 million increase in annual revenues in December. That's when the city got involved in the hopes of keeping rates down.
"This a giant savings for the citizens of this community," Jefferson County Attorney Mike O'Connell said.
There will still be a slight increase in electric and gas for customers, but the overall rate increase is 38 percent lower than what was asked. That equates to $40 million saved collectively by area customers.
"They're a corporation, they answer to they're shareholders and they're highly regulated but they're also given latitude on their return with investors," O'Connell said.
Certain agreements were made at the bargaining table to realize the savings. For instance, LG&E had requested new meters be installed for houses, but that was shelved to save money.
County Attorney Mike O'Connell said he worked with officials in Frankfort for days before both sides came to an agreement.
"This was a laborious and hard process for a number of days in Frankfort," O'Connell said.
"We've got to remember the everyday costs and expenses that our citizens have, and when we feel like we can make a difference on that we ask the county attorney to intervene." Fischer said.
The Mayor says the settlement also includes almost a million dollars to help low income families with rate relief.
The Public Service Commission still has to approve the rate increase, but County Attorney Mike O'Connell is confident that will happen.
The PSC will review the settlement at its May 9 hearing in Frankfort.
Copyright 2017 WDRB Media. All rights reserved.