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Kentucky Utilities Company and Louisville Gas and Electric Company Rate Adjustments

Strategic Insights

— 2 min read

The Kentucky Public Service Commission (PSC) is reviewing rate adjustments filed by Kentucky Utilities Company (KU) and Louisville Gas and Electric Company (LG&E). The companies are seeking approval for changes to their electric and gas rates, as well as regulatory and accounting treatments. The PSC is evaluating the impact of these changes on customers and the companies' financial performance. The review process involves analyzing the companies' forecasts, including electric load forecasts, generation forecasts, and natural gas forecasts.

Key Takeaways:

  • KU and LG&E are seeking to adjust their electric and gas rates, with KU requesting an increase of $4.8 million and LG&E requesting an increase of $13.4 million.
  • The companies have filed testimony from Charles R. Schram, Vice President of Energy Supply and Analysis, who presented the companies' forecasts and justifications for the rate adjustments.
  • The PSC is reviewing the companies' electric load forecasts, which show an increase in demand driven by economic growth and population expansion.
  • The PSC is also evaluating the companies' generation forecasts, which indicate an increase in coal-based generation to meet peak demand.
  • KU and LG&E are seeking approval for certain regulatory and accounting treatments, including the use of a curtailed service rider and support for NMS-2, SQF, and LQF rate components.
  • The companies are requesting relief from the annual RTO membership study filing requirement.

Statistics:

  • KU is seeking a rate increase of $4.8 million, while LG&E is seeking a rate increase of $13.4 million.
  • The companies' electric load forecasts indicate a 2.5% increase in demand over the next three years.
  • The companies' generation forecasts indicate an increase in coal-based generation from 30% to 40% of total capacity.
  • KU reports a total of 698,032 customers, with 552,076 electric customers and 145,956 gas customers.
  • LG&E reports a total of 319,407 customers, with 275,029 electric customers and 44,378 gas customers.

Sources:

  • COMMONWEALTH OF KENTUCKY BEFORE THE PUBLIC SERVICE COMMISSION, In the Matter of: ELECTRONIC APPLICATION OF KENTUCKY UTILITIES COMPANY FOR AN ADJUSTMENT OF ITS ELECTRIC RATES AND APPROVAL OF CERTAIN REGULATORY AND ACCOUNTING TREATMENTS, Case No. 2025-00113.
  • COMMONWEALTH OF KENTUCKY BEFORE THE PUBLIC SERVICE COMMISSION, In the Matter of: ELECTRONIC APPLICATION OF LOUISVILLE GAS AND ELECTRIC COMPANY FOR AN ADJUSTMENT OF ITS ELECTRIC AND GAS RATES, AND APPROVAL OF CERTAIN REGULATORY AND ACCOUNTING TREATMENTS, Case No. 2025-00114.
  • DIRECT TESTIMONY OF CHARLES R. SCHRAM, Vice President, Energy Supply and Analysis, on behalf of Kentucky Utilities Company and Louisville Gas and Electric Company, Filed: May 30, 2025.

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