LG&E and KU are proud of our Kentucky businesses. In order to enhance our economic development efforts in the communities we serve, an Economic Development Rider has been developed to promote growth in Kentucky.

The Economic Development Rider (EDR) is designed to promote economic development efforts in the Kentucky LG&E and KU service territory. The EDR is available for service under LG&E and KU's Standard Rate Schedules - Time-of-Day Secondary Service, Time-of-Day Primary Service and Retail Transmission Service. The rider is intended to encourage Brownfield Development, Economic Development and Re-Development for new locations and existing customers’ expansions. Service under EDR is conditional upon approval of a special contract, approved by the Kentucky Public Service Commission for LG&E and KU customers, or by the Virginia State Corporation Commission for ODP customers.

Criteria for LG&E and KU (Kentucky)

• The Brownfield Development EDR is available to customers locating at sites that have been authorized and added to the Brownfield Inventory, maintained by the Kentucky Energy and Environment Cabinet. The Brownfield EDR is available to minimum monthly billing loads of 500 kVA or greater, a 50% load factor and where the customer will take service from the existing electrical infrastructure with no material changes.
• The Economic Development EDR is available to customers that have been approved by the Kentucky Cabinet for Economic Development’s Kentucky Business Investment Program, the Kentucky Industrial Revitalization Act, the Kentucky Jobs Retention Act or a comparable program. New customers’ require contracting for minimum monthly billing loads of 1,000 kVA or greater and a 50% load factor. Existing customers are required to contract for a minimum monthly billing load of 1,000 kVA above their existing base load and a 50% load factor.
• The Economic Re-Development EDR is available to customers locating at vacant commercial or industrial properties which have been unoccupied for at least 12 consecutive months. Verification of vacancy requires a minimal to no electrical use during the unoccupied timeframe. Development of green space or undeveloped properties/sites are excluded. This EDR is available to minimum monthly billing loads of 500 kVA or greater, a 50% load factor and where the customer will take service from the existing electrical infrastructure with no material changes. Customers relocating their operations from another location within the LG&E or KU service territory and maintaining the same demand load will not be eligible to participate in this tariff.

General Terms: The EDR may be offered when generating capacity is available and new load will not accelerate plans for additional generating capacity over the life of the EDR contract; Total demand charge shall be reduced for five consecutive years by 50%, 40%, 30%, 20%, 10% in the order of the customer’s choosing at the time of the special contract filing with the KY Public Service Commission (KPSC); the customer must determine the billing credit date within 12 months from the KPSC approval date; no credit will be given to any billing month where the customer’s metered load is less than the load approved; all subsequent billing will revert to the current tariff charges stated in the applicable rate schedule after the fifth year period for a fixed term of 10 years and thereafter.

Criteria for ODP (Virginia)

• The Economic Development EDR is available for service under ODP's Standard Rate Schedules - Time-of-Day Secondary Service, Time-of-Day Primary Service and Retail Transmission Service. It is available to customers that have been approved by the Commonwealth of Virginia for benefits under the Virginia Economic Development Partnership (VEDP), or other comparable programs approved by the Commonwealth of Virginia. New customers’ require contracting for minimum monthly billing loads of 1,000 kVA or greater and a 50% load factor. Existing customers are required to contract for a minimum monthly billing load of 1,000 kVA above their existing base load and a 50% load factor.
• The EDR may be offered when generating capacity is available and new load will not accelerate plans for additional generating capacity over the life of the EDR contract. The total demand charge is a flat 30% for five years. No credit will be given to any billing month where the customer’s metered load is less than the load approved; all subsequent billing will revert to the current tariff charges stated in the applicable rate schedule after the fifth year period for a fixed term of 10 years and thereafter.

Learn more

For details about how the EDR will reduce your rates, or for more information, call Brad Sowden at 859-367-5516.