Electric, Gas and Water Costs

State comparisons and other information from the Kentucky Cabinet for Economic Development can be found below.

Think Kentucky Report – Utilities in Kentucky



Kentucky's industrial sector electric power costs ranked 4th lowest nationwide in 2014, while the average retail price for the combined cost was one of the lowest nationwide.

Natural Gas

The large majority of Kentucky’s Natural Gas is obtained from the interstate pipeline system between the Gulf States and the Northeast, which passes directly through Kentucky, thus ensuring a competitive and readily available supply of natural gas. Most of Kentucky's natural gas comes from the Big Sandy field, which is the largest natural gas field in the Appalachian Basin.


An extensive surface water network of rivers, streams, and lakes, complemented by ground water supplies that are very pronounced in certain regions of the state, guarantee an ample supply of water for industrial and commercial use. Treated water is distributed in Kentucky communities by eight investor owned water companies, twenty-two water associations, one hundred twenty-two water districts, and ninety-two municipal water utilities. The types of services and rates charged by water districts, water associations, and investor owned water companies are regulated by the Kentucky Public Service Commission.

Many industries in the state withdraw water directly from Kentucky's extensive network of major rivers, man-made lakes, and ground water supplies. Concentrations of chemical and primary metals industries and electric power plants have developed in Kentucky along the Ohio River to profit from the abundant supplies of surface and ground water and from lower cost barge transportation. Industries withdrawing over 10,000 gallons of water daily from surface or ground water sources must obtain a permit from the Kentucky Department for Environmental Protection.

The cost of commercial and industrial water use in Kentucky varies by provider. Costs charged by specific providers are available from the PSC Tariff Library.

The Kentucky state sales tax (6.0%) applies to water consumption for non-residential use.