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Natural gas

Kentucky Public Service Commission Approves Gas Supply Cost Increase for Louisville Gas and Electric Company

Strategic Insights

— 2 min read

The Kentucky Public Service Commission (PSC) has approved an increase in the Gas Supply Cost Component (GSCC) rate for Louisville Gas and Electric Company (LG&E), effective August 1, 2025. The new rate will be $0.59849 per 100 cubic feet, or $5.9849 per Mcf, which is an increase of $0.7494 per Mcf from the prior GSCC of $5.2355 per Mcf. The Commission also ordered LG&E to submit all invoices it receives along with its monthly usage reports for each month of the reporting period when it files its future GSC rate reports.

Key Takeaways:

  • The Gas Supply Cost Component (GSCC) rate for LG&E will increase to $0.59849 per 100 cubic feet, or $5.9849 per Mcf, effective August 1, 2025.
  • The new rate represents an increase of $0.7494 per Mcf from the prior GSCC of $5.2355 per Mcf.
  • LG&E's Gas Supply Cost of $0.51597 per 100 cubic feet, or $5.1597 per Mcf, is an increase of $0.1362 per Mcf from the previous Gas Supply Cost of $5.0235 per Mcf.
  • The Commission ordered LG&E to submit all invoices it receives along with its monthly usage reports for each month of the reporting period when it files its future GSC rate reports.
  • Should LG&E purchase sustainable natural gas from a renewable source, the supplier, cost, and amount must be documented in its cover letter to the Commission.
  • The Performance-Based Rate Recovery (PBRR) Component remains unchanged at $0.0127 per Mcf.
  • LG&E must file revised tariff sheets reflecting the approved rate within 20 days of the date of service of this Order.

Statistics:

  • The new Gas Supply Cost Component (GSCC) rate is $0.59849 per 100 cubic feet, or $5.9849 per Mcf.
  • The increase in the GSCC rate is $0.7494 per Mcf.
  • The prior GSCC rate was $5.2355 per Mcf.
  • The Gas Supply Cost of $0.51597 per 100 cubic feet, or $5.1597 per Mcf, is an increase of $0.1362 per Mcf from the previous Gas Supply Cost of $5.0235 per Mcf.
  • The Performance-Based Rate Recovery (PBRR) Component is $0.0127 per Mcf.
  • LG&E must file revised tariff sheets within 20 days of the date of service of this Order.

Sources:

  • Case No. 2025-00188, Electronic Purchased Gas Adjustment Filing of Louisville Gas and Electric Company (Ky. PSC, July 31, 2025)
  • Case No. 2025-00061, Electronic Purchased Gas Adjustment Filing of Louisville Gas and Electric Company (Ky. PSC, April 23, 2025)
  • KRS 278.274(1)
  • KRS 278.274(2)
  • KRS 278.274(3)(c)
  • KRS 278.274(3)(d)

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