LOUISVILLE, Ky. (WAVE) - Local utility companies Louisville Gas & Electric and Kentucky Utilities have agreed to a settlement with Louisville Metro Government that will reduce rate increases and keep service charges flat.
The agreement, filed Monday with the Kentucky Public Service Commission, will keep the rate increase identical to the system average. For electric customers, the average increase would be 7%, and for gas customers, the increase would be 6.4%.
LG&E also proposed an Economic Relief Surcredit Adjustment Clause, which would lower the rate impact the first year of increase. The credit would allow a 4.1% increase for electric customers and 5.9% increase for gas customers the first year.
An agreement was also met for a four-year “stay out” provision, meaning another rate increase to the base rate cannot be implemented before July 1, 2025.
“Preventing an increase in the fixed customer charge was a clear message we heard from our citizens and city officials,” Jefferson County Attorney Mike O’Connell said. “This agreement delivers a win for everyone in Jefferson County as no residential customers will see an increase in their minimum monthly charge. The four year “stay out” provision also allows our businesses to budget their energy expenses, still among the lowest in the nation, over multiple fiscal years. I hope that the PSC views this stipulation as fair, just, and reasonable and ultimately approves it.”
“These are difficult and sometimes emotionally charged topics, further complicated by the more challenging conditions presented by COVID-19,” LG&E and KU Chief Financial Officer Kent Blake said. “However, all parties worked together in a professional manner to ease the impact on customers to the extent possible, while still providing the utilities an opportunity to recover their costs of providing safe and reliable service.”
Within five years, the city will have nearly 22,000 streetlights converted from old High Intensity Discharge lights to more environmentally friendly LED lights after a new agreement over conversion fees. Metro Government said the new lights will save the city nearly $1.6 million a year.
If approved by the KPSC, new rates would take effect on July 1, 2021.