KU and LG&E propose rate increases for Kentucky customers

LEXINGTON, Ky. (ABC36 NEWS NOW) – Rising prices can be seen everywhere — from the gas pump to the grocery store — and now, some Kentuckians could soon see higher utility bills.

Kentucky Utilities (KU) and Louisville Gas and Electric (LG&E) have filed requests with the Kentucky Public Service Commission to raise rates. If approved, KU customers could see an 11.8% increase — or an average of about $18 more per month on their electric bills. LG&E is requesting an 8.3% increase for electric service and a 14% increase for natural gas.

According to KU, this would be the company’s first rate increase since 2020. Officials say the added revenue would go toward system upgrades, including stronger poles and wires, as well as expanded vegetation management — which KU says is the leading cause of power outages.

Some customers expressed mixed feelings about the proposal. While some said upgrades are needed, others worry the higher costs could add to financial struggles amid already rising prices.

KU spokesperson Daniel Lowry said some system components date back to the 1920s, and certain transmission poles are more than 60 years old. He noted that inflation has risen nearly 20% over the past five years, and even with the proposed increase, KU customers would still pay about 24% below the national average.

A public meeting will be held Tuesday at 5 p.m. at Bluegrass Community and Technical College on Newtown Pike for anyone who wants to share feedback about the proposed rate hikes.