LG&E holding meeting tonight to discuss proposed rate increase

LOUISVILLE, Ky. (WDRB) -- Louisville Gas and Electric Co. is no longer seeking big increases in fixed monthly charges that would have raised the average residential customer's bill by more than $5 a month.

LG&E will keep its flat monthly charges the same under

a settlement reached

with the Kentucky Attorney General's Office and big customers like Kroger.

That means no increase in average residential customer's monthly power bill, and an increase of $1.25 per month in the average residential gas bill under tweaks that would go into effect July 1.

The settlement was presented to the Kentucky Public  Service Commission on Tuesday. The PSC, which regulates electric and gas utilities, must approve the deal.

LG&E had sought big hikes in fixed charges, coupled with reductions in rates tied to consumption, that would have resulted in net increases of $2.75 for the average residential electricity bill and $2.60 for the average gas bill. 

Advocacy groups such as the Metropolitan Housing Coalition argued that big increases in fixed charges would hit the poor hardest.

LG&E wanted to increase its fixed charge for all electric customers to $18 per month, from the current $10.75. It wanted to bump the flat charge for gas customers from $13.50 to $19.