Economic Development Rider

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 EDR is available for service under KU and LG&E’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 and Economic Development for existing customers’ expansion or new customer locations. Service under EDR is conditional on a special contract, approved by the Kentucky Public Service Commission.

  • The Brownfield Development EDR is available to customers locating at sites that have been approved and added to the Brownfield Inventory maintained by the Kentucky Energy and Environmental Cabinet. The Brownfield EDR is available only to minimum monthly billing loads of 500 kVA (or kW as is appropriate) and greater where the customer takes service from existing KU or LG&E facilities.
  • The Economic Development EDR is available to new customers contracting for twelve consecutive monthly billings of 1,000 kVA (or kW as is appropriate); and existing customers contracting for a minimum monthly billing load of 1,000 kVA (or kW as is appropriate) above their existing base load, to be determined by averaging customer’s previous three years’ monthly billing loads.

    A customer must describe the new load to be served; the number of new employees associated with the new load; the capital investment associated with the new load; and exhibits the certification that the customer has been qualified by the Commonwealth of Kentucky for benefits under the Kentucky Business Investment Program (KBI), or the Kentucky Industrial Revitalization Act (KIRA), or the Kentucky Jobs Retention Act (KJRA), or other comparable programs approved by the Commonwealth of Kentucky.

General Terms: The EDR may be offered only when generating capacity is available and the new load will not accelerate plans for additional generating capacity over the life of the EDR contract; any billing month where Customer’s metered load is less than the load required to be eligible for either Brownfield Development or Economic Development, no credit under EDR will be calculated or applied to Customer’s billing; EDR effective date is no later than twelve months after the service date; Service will be furnished under the applicable standard rate schedule and the EDR, filed as a special contract with the Kentucky Public Service Commission for a fixed term of not less than ten years and thereafter under the terms stated in the standard rate schedule.

Your demand charge will be reduced by the following amounts under EDR:

  • First contract year = total demand charge reduced by 50%
  • Second contract year = total demand charge reduced by 40%
  • Third contract year = total demand charge reduced by 30%
  • Fourth contract year = total demand charge reduced by 20%
  • Fifth contract year = total demand charge reduced by 10%

Total Demand Charge is the sum of all demand charges, including any credits provided under any other demand applicable rider, before the EDR discounts described above are applied.

Learn more

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

Economic Development contact

Have any questions or need assistance? Please contact us online, or call 502-627-3486.