LOUISVILLE, Ky. (WTVQ) – Louisville Gas and Electric Company (LG&E) and Kentucky Utilities Company (KU) have reached a unanimous settlement that will create almost $180 million in tax savings for customers.
Both LG&E and KU announced Monday that they would be filing a settlement with the Kentucky Public Services Commission (KPSC) to request approval to return tax savings to customers.
The federal tax reform at the beginning of January reduced the corporate income tax rate for utility companies from 35% to 21%, which prompted the companies to initiate the settlement.
If KPSC approves the settlement, then savings would be seen as a reduction on the Environmental Surcharge line on bills by March.
There would also be a new line item credit on the bill, which will be based on energy consumption starting in April.
KU customers using an average of 1,179 Kwh (kilowatts) per month of energy could see a bill reduction of 5.3% if the commission approves the settlement.
LG&E electric customers using an average of 957 Kwh per month could see a bill reduction of 5.6%.
And gas customers using an average of 55 Ccf (centum cubic feet) per month could see a bill reduction of about 3%.
Attorney General Andy Beshear says that his office is doing what they can to make the process go through as quickly as possible.