Lexington, KY – Kentucky Utilities (KU) and its sister company Louisville Gas and Electric Company (LG&E) will seek permission from the Public Service Commission to raise $153 million to help pay for a new natural gas generator at its Cane Run facility, which would result in an average monthly increase of $11 for its residential customers.
The increase would take KU’s rates from 8.99 cents per kilowatt hour (kWh) to 10.5 cents. The utility points out the national average per kWh is 12.43 cents. Currently all but one of the seven states surrounding the Commonwealth of Kentucky have a lower average price per hour than KU customers, Tennessee residents pay 8.56 cents on average. If the rate increase is approved by PSC, KU’s price would rise above Illinois’ and West Virginia’s, and it would equal the average cost per kilowatt hour in Missouri.
“We continue to work diligently to maintain high-quality and efficient service at some of the lowest rates in the nation. We use prudent financial measures to achieve savings that benefit our customers, and don’t go before the Kentucky Public Service Commission with requests to recover our costs unless it’s absolutely necessary,” said Victor A. Staffieri, chairman, CEO and president of LG&E and KU.
“We understand the financial impact these increases have on our customers,” Staffieri said. “We’ve worked hard to minimize the consequences of federal environmental mandates. We continue to demonstrate fiscal restraint to ensure our customers continue to receive some of the lowest cost, most reliable energy in the country.”
In August KU and LG&E announced they were scrapping plans to build a 700-megawatt natural gas facility in western Kentucky’s Muhlenberg County. At the time the companies stated the failure to secure contracts with nine municipalities to be the individual area’s energy provider necessitated the cancelation of the plans in Muhlenberg County.
KU stated it will ask the PSC for the increase on Nov. 26 in hopes of having it approved for July.