LG&E and KU proposes rate increase to charge customers hundreds of dollars more per year

LOUISVILLE, Ky. (WDRB) -- The Louisville area's gas and electric service will seek an 11.5% rate increase to support what it called "necessary system enhancements."

LG&E and KU said Thursday it hasn't asked for an increase in base customer rates since November 2020 and needs to increase total revenue after five years of inflation and escalating material costs.

Specifically, it'd be a 8.3% increase for the electric business and a 14.0% increase for natural gas business.

"We understand that increasing customer bills is impactful and not a decision we take lightly," John Crockett, president of LG&E and KU, said in a news release Thursday. "Our employees, who are also our customers, work hard to operate and maintain our systems to be among the best in the nation, and we have held true to our commitment to not increase rates for the last five years. Even now, our request is significantly less than the rate of inflation. However, we’re at a tipping point in which the foundational portions of our system — poles, wires, substations and technology — are reaching the end of their useful lives."

LG&E spokesperson Chris Whelan said Thursday several severe weather events in the last few years have also made an impact on what was already aging infrastructure.

"It's going to come as no surprise to anyone watching this that Mother Nature has been pretty fierce this year — the record number of flooding on the Ohio, we had 30 reported tornadoes in Kentucky, three-quarters-of-an-inch of ice back in the winter," she said. "And those major storms are really what's causing the issue."

The Kentucky Public Service Commission has to approve any requested rate increase. If it's approved, LG&E said it'd take effect Jan. 1, 2026, and impact residents in the following ways:

KU residential customers using an average of 1,085 kWh per month would see an increase of $18.14 in their total monthly electric bill, or $217.68 per year
LG&E residential electric customers using an average of 866 kWh per month would see an increase in their total monthly bill of $11.04, or $132.48 per year
LG&E residential natural gas customers using an average of 52 Ccf per month would see an increase of $11.12 in their total monthly bill, or $133.44 per year

"We continually evaluate how to best serve our customers and ensure that we are providing safe, reliable, affordable energy with award-winning customer service," Crockett said. "Our system enhancement plans will help us defend against Mother Nature and improve service for our customers."

This story will be updated.

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