Louisville Gas & Electric and Kentucky Utilities are proposing to withdraw the rate case pending before the Kentucky Public Service Commission, after reaching a settlement with intervenors.
Under the terms of the settlement, LG&E electric and gas customers’ bills are expected to increase by about $1.15, while KU ratepayers will pay about $9 more each month. The original proposal would have resulted in much larger increases by making changes to the monthly service charge customers pay for electricity.
Critics of the plan argued that changing that monthly fee across-the-board would discourage energy efficiency and burden the poor. The settlement agreement does not include any changes to the monthly service charge.
In the settlement, LG&E and KU agreed to put more money into its Demand Side Management program, which encourages industrial customers to use less energy, and extends the program for another year. The companies will also put $1.15 million each year into a fund that helps low-income customers pay their bills.
LG&E and KU did not immediately return requests for comment.
Intervenors in the case included Kentucky Attorney General Jack Conway, the Sierra Club, the Kentucky Industrial Utilities Customers, Kroger, Wal-Mart and the Metropolitan Housing Coalition.
The settlement still has to be approved by the Public Service Commissioners.
