15-05-2025
Kentucky power providers to propose first rate increase since 2020: What we know
KENTUCKY (FOX 56) — Louisville Gas and Electric (LG&E) and Kentucky Utilities (KU) customers could owe over $100 more a year based on a new proposal.
The electricity providers announced on Thursday, May 15, that leaders plan to file the request to increase rates on May 30. This will be the first rate hike since November 2020.
If approved by the Kentucky Public Service Commission, the increases would take effect on Jan. 1, 2026.
Officials wrote that residential rates for LG&E and KU would remain below the national average even with the proposed increase.
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'We understand that increasing customer bills is impactful and not a decision we take lightly. 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,' said Crockett. '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.'
If approved, officials said KU residential customers using an average of 1,085 kilowatt hours per month would see an increase of $18.14 monthly in their electric bill. L
G&E residential electric customers using an average of 866 kilowatt hours per month would see an increase in their total monthly bill of $11.04, and LG&E natural gas customers using an average of 52 centum cubic feet would see an increase of $11.12 in their monthly bill.
Here's a look at the additional cost annually:
KU residential customers using an average of 1,085 kWh per month: $217.68 per year
LG&E residential electric customers using an average of 866 kWh per month: $132.48 per year
LG&E residential natural gas customers using an average of 52 Ccf per month: $133.44 per year
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The providers said it's to ensure that utility infrastructure can withstand severe storms, wildfires, and tornadoes while still providing affordable power to customers.
In a news release, leaders with Louisville Gas and Electric (LG&E) and Kentucky Utilities (KU) said that in 2025 alone, Kentucky was hit by up to three-quarters of an inch of ice, 2 feet of snow, extreme cold, more than 30 reported tornadoes, and historic flooding from both the Ohio and Kentucky rivers.
'Increasingly, scientists—including at the National Oceanic and Atmospheric Administration—are noting the extreme weather pattern of 'Tornado Alley' is expanding eastward,' LG&E and KU officials wrote.
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The increased risk of severe weather has reportedly prompted enhancements from infrastructure upgrades to advanced meter technology to improving the billing experience and protecting customers from cyber threats.
'We continually evaluate how to best serve our customers and ensure that we are providing safe, reliable, affordable energy with award-winning customer service,' said John R. Crockett, LG&E and KU president. 'Our system enhancement plans will help us defend against Mother Nature and improve service for our customers.'
According to a news release, the utility providers have programs to help customers manage their energy use in the event that a proposed increase gets approved.
Officials also said in a news release that adjustments were also proposed to help lessen the impact on customers who need to pay their bill with cash by asking to waive the current $1.95 transaction fee tied to cash payments at third-party locations.
More information about assistance programs can be found at the LG&E and KU website.
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