LG&E holding meeting tonight to discuss proposed rate increase

LOUISVILLE, Ky. (WDRB) -- The Kentucky Public Service Commission issued a ruling Wednesday effectively killing Louisville Metro’s plan to collect a 3 percent tax on natural gas usage in Jefferson County.

The 3 percent fee dates to August 2016, when the Louisville Metro Council approved a new, five-year natural gas franchise agreement with Louisville Gas & Electric Co.

The fee hasn’t been collected because of disagreements between Metro government and the utility over whether it would passed on to customers as a line item in their bills, and over which customers would have to pay.

The Public Service Commission ruled in favor of LG&E, saying the fee should be itemized in customer bills and that Jefferson County residents who live in one of 82 suburban cities such as St. Matthews, Jeffersontown, Shively and Prospect should not have to pay the fee.

The franchise agreement included a provision that the fee would not go into effect if LG&E prevailed in the PSC case, according to the PSC.

A spokeswoman for Mayor Greg Fischer referred questions to the Jefferson County Attorney’s Office. County attorney spokesman Josh Abner confirmed that the fee can't be collected as a result of the decision, but declined to comment further.

Louisville Metro can appeal the PSC ruling to the Kentucky courts system.

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