LOUISVILLE, Ky. — In a joint move, the cities of Louisville and Lexington plan to intervene in a pending case before the Kentucky Public Service Commission (PSC) regarding a rate increase proposal from Louisville Gas & Electric (LG&E) and Kentucky Utilities (KU). 

What You Need To Know

  • Louisville and Lexington want to intervene in a pending case before the PSC

  • LG&E and KU want to raise electricity and gas rates for residential customers

  • Mayors Fischer and Gorton say now is not the time

  • The PSC must now determine if they will allow the cities to intervene

LG&E sells electricity to nine counties in the Louisville area and gas to 17 counties.  It wants to increase electricity rates by 11.6% and gas by 8.3%.  According to a joint release from Louisville Metro Government and the City of Lexington, the company says the increases would translate to an 11.8% electricity increase and a 9.4% gas increase for "average" customers.

The Mayors of both cities expressed concern about the impact of the increase.

"This request comes at a time when so many families in our city – and cities across the state –are dealing with the negative financial impact of COVID-19,” said Mayor Greg Fischer. “It’s important that Louisville and Lexington have a seat at the table in this discussion, so we can better understand the utility’s needs while also advocating for our municipal interests and our residents – especially those with low or fixed incomes."

Lexington Mayor Linda Gorton said, “There’s no good time to ask for a rate hike, but it’s hard to imagine a worse time than in the middle of a pandemic. People are scrambling to pay their bills and to hold on to their apartments and homes. We need to offer assistance, not increase their burden.” 

Metro Louisville says if the increase goes through it would affect all local households and could possibly lower the number of families helped by Louisville Metro's low-income assistance program. 

According to a release, Louisville Metro spends $13 million a year on LG&E, making it the largest single customer served by the company.  LG&E wants to raise streetlight rates by 11.9% something the city already pays $5.5 million a year on.  KU serves 77 counties in Kentucky, including Lexington. It is asking for a 10.7% increase.

The two cities filed their motion to intervene with the PSC Monday.  The PSC will now decide to grant the request, along with others that have sought or may seek intervenor status.  

Louisville and Lexington share legal representation and that saves money.  Former PSC Chairman Jim Gardner and former PSC staff attorney Todd Osterloh of the law firm Sturgill, Turner, Barker & Maloney will spearhead the effort and will receive assistance from the Jefferson County Attorney's Office and the city of Lexington's Law Department. 

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