Latest Gas Supply Clause filing approved for February – April 2024
(LOUISVILLE, Ky.) — Louisville Gas and Electric Company customers will continue to benefit for the next three months from lower natural gas prices, as the utility passes the wholesale natural gas savings directly to customers.
“Lower natural gas prices go a long way in helping us provide energy at the lowest reasonable costs,” said LG&E’s Eileen Saunders, vice president of Customer Services. “This is especially important now because cold temperatures result in increased energy use, which, unfortunately, often gets reflected in higher bills for many of our customers.”
The Kentucky Public Service Commission (KPSC) approved LG&E’s quarterly filing for their Gas Supply Clause to be effective from Feb. 1 to April 30, 2024. A typical residential customer with an average natural gas usage of 6,000 cubic feet per month will pay about $68.70 monthly. That compares to about $93.52 per month during the same period one year ago, which is a decrease of 26.54%. Compared to the previous quarter, the approved filing represents a decrease of approximately 6.59%, or $4.85 per month on average. This continues the cost relief customers saw with last quarter’s filing, which resulted in a 34% decrease on average in the gas portion of bills compared to the same period one year ago.
Factors influencing lower prices
LG&E works year-round to secure competitively priced natural gas supply for customers. There are many factors influencing the lower market price of natural gas, including an increase in natural gas production levels and an increase in national natural gas storage levels compared to the same time one year ago.
A line item on the natural gas portion of LG&E customer bills is adjusted quarterly following review and approval by the KPSC. LG&E passes on the cost the utility pays for the natural gas it delivers to customers on a dollar-for-dollar basis, with no markup, so the utility does not profit from the cost of the natural gas it distributes to its customers.
Recent cold weather
Despite lower natural gas prices, January’s cold weather might cause higher-than-normal bills. During the first 28 days of January 2024, the weather was 49% colder than the first 28 days of January 2023, and about 4% colder than normal. Customer bills are based on energy usage, and during extremely cold weather for extended periods, heating systems work harder to maintain steady temperatures.
Help is available
In addition to operational efforts that help to hold costs down, LG&E provides support to community agencies that assist customers in need.
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Louisville Gas and Electric Company and Kentucky Utilities Company, part of the PPL Corporation (NYSE: PPL) family of companies, are regulated utilities that serve more than 1.3 million customers and have consistently ranked among the best companies for customer service in the United States. LG&E serves 334,000 natural gas and 433,000 electric customers in Louisville and 16 surrounding counties. KU serves 569,000 customers in 77 Kentucky counties and five counties in Virginia. More information is available at www.lge-ku.com and www.pplweb.com.
