Industrial Customer DSM Opt-Out

In October 2018, The Kentucky Public Service Commission approved a filing that would extend some energy efficiency programs to industrial customers for the first time.

The Industrial DSM program in accordance with KRS 278.285(3), states:

“The commission shall assign the cost of demand-side management programs only to the class or classes of customers which benefit from the programs. The commission shall allow individual industrial customers with energy-intensive processes to implement cost-effective energy efficiency measures in lieu of measures approved as part of the utility's demand-side management programs if the alternative measures by these customers are not subsidized by other customer classes. Such individual industrial customers shall not be assigned the cost of demand-side management programs.”

Industrial customers have the option to opt out certain meters from the energy efficiency programs. Customer meters that opt out will not be charged under LG&E and KU’s Demand-Side Management Cost Recovery Mechanism (“DSM Mechanism”). Customer meters that are not eligible to opt out, or that remain opted in, will be charged under the DSM Mechanism and the facilities served by those meters will remain eligible to participate in the LG&E and KU’s business rebate programs.

Who is eligible to opt out?

Industrial customers who are energy intensive and have installed their own energy-efficiency measures can submit an opt-out form stating they want to opt out of the DSM recovery mechanism for their eligible meters., i.e., those being served under energy-intensive rates. Those customers are defined as:

  • Industrial customers: A non-residential customer is industrial if it is engaged in activities primarily using electricity in a process or processes that involves either the extraction of raw materials from the earth or a change of raw or unfinished materials into another form or product. All meters serving such a customer are “Industrial.”
  • Energy-intensive customers: Any electric customer meter served under Fluctuating Load Service (Rate FLS), Retail Transmission Service (Rate RTS), or Time-of-Day Primary Service (Rate TODP) or any gas customer meter served under Industrial Gas Service (IGS), As-Available Gas Service (AAGS), Substitute Gas Sales Service (SGSS), or Firm Transportation (FT) gas rate classes, are defined as “energy intensive” customers.

Opt-out process

Business customers who do not want to participate in the programs, must submit the Industrial Opt-Out Notification form. This only applies to industrial customers with meters eligible to opt out of industrial energy efficiency programs that will go into effect Jan. 1, 2019.

Please note: By opting out, each Eligible Meter will not be charged the DSM Mechanism beginning no later than the second full billing cycle following customer’s submission of the fully and accurately completed form regarding that eligible meter. Opted-out eligible meters will not be able to participate in DSM-EE programs while opted out. An opted-out Eligible Meter will not be able to opt back into DSM Mechanism for at least 12 full billing cycles of being opted out.

Download Form

Download the correct form below and return page 3 before the deadline. Please ensure that you complete this form in its entirety, including your account number(s), eligible meter ID(s), service address(es), applicable rate(s) and your signature. This information can be found on your bill. Electronic signatures, such as those completed with Adobe, are acceptable. Incomplete or late forms will not be accepted. Within 5 business days of receiving your completed form, LG&E and KU will send you an email confirming that your opt-out was accepted.

Submit form by Dec. 31, 2018

Industrial customers with eligible meters may submit their opt-out form to LG&E and KU by Dec.31, 2018 in either of the following ways:

  • Email to:
  • Mail to:
    LG&E and KU Energy, LLC
    Energy Efficiency Operations
    20th Floor
    220 W. Main St.
    Louisville, KY 40202

Industrial customers with eligible meters may opt out those meters after December 31, 2018, by submitting a fully and correctly completed opt-out form.  Submitting an opt-out form after December 31, 2018, may result in the submitting customer being billed for DSM charges for eligible meters until we can complete processing the opt-out request.  We will complete processing each submitting customer’s request no later than the second full billing period following the customer’s submission of a fully and accurately completed opt-out form.

If you have any questions about the industrial energy efficiency programs or the opt-out process, email us at