Utilities Upgrade Aging Equipment to Defend Against Stronger Storms and Support Increased Energy Needs

Strategic Insights -

Louisville-based utility companies, Louisville Gas and Electric Company (LG&E) and Kentucky Utilities Company (KU), are investing heavily in upgrading their aging equipment to withstand the increasing threat of stronger storms, wildfires, and rising energy demand. The utilities have experienced a significant reduction in power outage frequency and duration, with a 40% decrease in frequency and 30% decrease in duration, respectively. Despite this progress, the companies recognize the need for continued investment to ensure the reliability and safety of their systems.

Key Takeaways:

  • LG&E and KU have achieved a 40% reduction in power outage frequency and 30% reduction in duration since their ongoing system investments began.
  • The utilities' ongoing investments have led to a reduction of 150,000 power outages per year, resulting in 27.7 million fewer outage minutes since 2017.
  • Up to 55% of the wooden transmission poles are over 60 years old, posing a significant risk to system reliability.
  • LG&E and KU are upgrading their transmission and distribution systems, including stronger poles and wires, substations, and information technology systems.
  • The utilities are also investing in natural gas system improvements, including pipeline integrity and safety projects, to ensure safe and reliable gas service.
  • LG&E and KU plan to file requests with the Kentucky Public Service Commission for adjustments to their total revenues to support system enhancements.
  • If approved, the proposed increase would likely go into effect on January 1, 2026, with residential rates remaining below the national average.

Statistics:

  • 55% of wooden transmission poles are over 60 years old and in need of replacement.
  • Since 2017, customers have collectively experienced 150,000 fewer power outages each year, resulting in 27.7 million outage minutes saved.
  • LG&E and KU have achieved a 40% decrease in power outage frequency and 30% decrease in duration.
  • The utilities' system enhancement plans aim to improve the reliability and safety of their systems.
  • Over the last five years, LG&E and KU have held down costs and maintained residential rates that are more than 24% below the national average.
  • If approved, KU residential customers using 1,085 kWh per month would see an increase of $18.14 in their total monthly electric bill.

Sources:

  • LG&E and KU press release, "LG&E and KU Plan System Enhancements to Defend Against Stronger Storms," May 15, 2025.
  • Source: "UGI Utilities Launches Energy Efficiency Program," available at www.ugu.com (no date).
  • Louisville Gas and Electric Company and Kentucky Utilities Company, "About Us," available at www.lge-ku.com.