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

Strategic Insights

— 2 min read

The Kentucky Public Service Commission has approved a new gas supply cost rate for Louisville Gas and Electric Company (LG&E), effective February 1, 2025. The approved rate of $0.34395 per 100 cubic feet, or $3.4395 per thousand cubic feet (Mcf), represents a decrease of $0.2736 per Mcf from the prior rate. This decision follows a review of LG&E's gas purchasing practices and rates, with the Commission finding that the proposed rate is fair, just, and reasonable.

Key Takeaways:

  • The Kentucky Public Service Commission approved a new gas supply cost rate for LG&E, effective February 1, 2025.
  • The approved rate of $0.34395 per 100 cubic feet, or $3.4395 per Mcf, represents a decrease of $0.2736 per Mcf from the prior rate.
  • LG&E's report sets out a current Quarter Gas Cost Actual Adjustment (GCAA) of ($0.0714) per Mcf, which is a decrease of $0.0341 per Mcf from the previous total GCAA of $0.0725 per Mcf.
  • LG&E's report sets out a Gas Cost Balancing Adjustment (GCBA) of ($0.0418) per Mcf, which is a decrease of $0.0381 per Mcf from its previous GCBA of ($0.0037) per Mcf.
  • LG&E's report sets out a Performance-Based Rate Recovery (PBRR) Component of $0.0127 per Mcf, which is a decrease of $0.0410 per Mcf from its previous PBRR Component of $0.0537 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.
  • LG&E shall document in its cover letter to the Commission any sustainable natural gas purchased from a renewable source during the reporting period of any future GCR reports, including the supplier, cost, and amount.

Statistics:

  • The approved gas supply cost rate of $0.34395 per 100 cubic feet, or $3.4395 per Mcf, is a decrease of $0.2736 per Mcf from the prior rate.
  • LG&E's current Quarter Gas Cost Actual Adjustment (GCAA) is ($0.0714) per Mcf, representing a decrease of $0.0341 per Mcf from the previous total GCAA of $0.0725 per Mcf.
  • LG&E's Gas Cost Balancing Adjustment (GCBA) is ($0.0418) per Mcf, representing a decrease of $0.0381 per Mcf from its previous GCBA of ($0.0037) per Mcf.

Sources:

  • Commonwealth of Kentucky Public Service Commission, In the Matter of: Electronic Purchased Gas Adjustment Filing of Louisville Gas and Electric Company, Case No. 2024-00405, Order (Jan. 28, 2025)
  • KRS 278.274(1)
  • KRS 278.274(2); KRS 278.274(3)(c); and KRS 278.274(3)(d)
  • Louisville Gas and Electric Company, Revenue Requirement, Case 2024-00405

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