Sister utilities LG&E and KU have agreed to raise their rates by less than previously requested, according to an announcement Monday by Attorney General Daniel Cameron.
The announcement was made in conjunction with the cities of Lexington and Louisville. The two were part of a group of interveners fighting LG&E's request last November for an 11.8 percent increase on customers for power as well as 9.13 percent for LG&E gas customers, and a 10.4 percent increase for power for KU customers.
According to Cameron's Office of Rate Intervention, the settlement will phase in a price hike 34 percent lower than originally proposed: LG&E gas rates by 6.4 percent over two years, and 7.2 percent for LG&E and KU power customers over two years.
"As the watchdog for Kentucky ratepayers, we pursued a settlement with LG&E and KU that saves Kentuckians more than $113 million in proposed utility rate increases and ensures the companies will not impose an additional rate increase before July 1, 2025," AG Cameron stated.
Cameron added that the agreement "also seeks to maximize the lifespan of three Kentucky coal-fired generating plants and their benefit to consumers." He expressed appreciation to all the parties for working together to reach the agreement.
The agreement must still get final approval from the Public Service Commission.
In ongoing public comment sessions, most comments centered on the timing -- questioning why the raise amid a pandemic.
LG&E and KU are the largest investor-owned utility companies in the commonwealth, and the proposed increases would have significantly raised rates for the more than one million Kentucky customers served by the companies -- including many in Pulaski County.
Besides Louisville and Lexington, other intervenors included Kentucky Industrial Utility Customers; Kentucky Solar Energy Society; Kentucky Solar Industry Association, Inc.; Metropolitan Housing Coalition; Sierra Club; Kentuckians for the Commonwealth; Mountain Association; the Kroger Company; Walmart, Inc.; and the U.S. Department of Defense.