State approves LG&E, KU rate increase for Kentucky customers

LOUISVILLE, Ky. (WDRB) — More than 1 million Kentuckians will soon pay more for gas and electricity after state regulators approved a rate increase for Louisville Gas & Electric and Kentucky Utilities.

When asking for the rate increases last September, the utility companies said they needed to make system improvements, citing aging infrastructure and equipment damage from severe weather events.

On Monday, the Kentucky Public Service Commission finalized the rate increases, which are smaller than what the utilities asked for. The utilities' original request would have been a roughly 10% hike on electric bills and about 15% on gas bills. But a month later, a settlement agreement lowered the rate increases

With the rate hikes, the average LG&E customer will pay about $5 more per month, and the average gas customer will pay about $8 more per month.

The average KU customer will pay nearly $9 more per month.

In a statement, LG&E said, in part, "The Commission's orders are extensive and differ in several important respects from the settlement agreement filed by the parties. We are reviewing the decisions in detail to understand their full implications for our operations, customers and future investments in Kentucky."

The new rates take effect immediately. Because the utilities began using interim rates Jan. 1 that were higher, some customers may see credits on their bills in the next 60 days.

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