Kentucky Public Service Commission Limits LG&E / KU Electric and Gas Rate Hikes

FRANKFORT, KY - Louisville Gas & Electric Company and Kentucky Utilities (LG&E/KU) will be raising electric and gas rates for more than one million Kentucky residents. Under the terms of two decisions issued Monday by the Kentucky Public Service Commission in case numbers 2025-00113and 2025-00114, the actual rate increases will be about half of what LG&E/KU initially asked for.

According to a Public Service Commission press statementaccompanying the decisions, LG&E residential customers can expect their gas bill to increase, on average, $8.27 per month, and LG&E electric customers can expect their electricity bill to increase $5.14 per month, down from the more than $11/month increases the utility sought.

KU customers can expect their monthly electric bills to go up $8.73 each month, down from more than the $18/month increase KU sought.

LG&E and KU, which began imposing their proposed rates in January, will have to refund money to customers for the additional increase (above what was approved in these decisions) over the last month and half.

In response to today's decision, Elisa Owen, a senior organizer with Sierra Club based in Louisville, Kentucky, issued the the following statement:

"Kentucky families want to be able to put food on the table and heat their homes at a reasonable cost. That's not too much to ask. We appreciate that the Commission took steps to minimize the damage here and ensure the public's concerns were heard. But we expect better from LG&E and KU. Propping up last century's coal plants, reversing course on Mill Creek 2 without warning, and asking for a secretive, behind-closed-door cost recovery is flat out bad. They know better, and Kentuckians demand better. President Trump may want to hand out subsidies to his coal buddies, but don't ask Kentuckians to pay for it."

About the Sierra Club

The Sierra Club is America's largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit https://www.sierraclub.org.