2026 Rate Request Update
Strengthening Reliability While Protecting Affordability
On February 16, 2026, the Kentucky Public Service Commission approved new base rates for LG&E and KU. These updated rates allow us to continue strengthening the safety and reliability of the system you depend on every day while responsibly preparing for the future— all while protecting affordability.
We understand that any change to your bill matters. That’s why we approach rate adjustments carefully and thoughtfully — and why we hadn’t filed requests to adjust base rate since 2020.
Strengthening our systems and improving your service
These new rates support continued investments and improvements in:
- Replacing aging electric and natural gas infrastructure
- Strengthening the grid to withstand stronger, more frequent storms
- Enhancing vegetation management to reduce outages
- Modernizing substations and transmission lines
- Adding advanced technologies to improve restoration speed
- Supporting growth in the communities we’re proud to serve
- New services to give customers more flexibility
- Waiving the current $1.95 transaction fee required for cash payments at third-party locations
- New technologies to further improve customer billing and add even more protection against cyber-related threats
Even with these adjustments, our residential electric rates remain among the lowest in Kentucky, below the national average and rate of inflation over the last five years.
Learn more about the investments that are strengthening our system and building our energy future.
What this means for your monthly bill
Based on average residential usage:
- KU electric customers: about $8.73 more per month
- LG&E electric customers: about $5.14 more per month
- LG&E natural gas customers: about $8.27 more per month
Your actual bill will depend on how much energy you use.
More on your upcoming bill credit
Because interim rates began January 1 and final rates were approved February 16, customers will automatically receive a credit on their bill reflecting the difference.
- The credit will appear as a line item on your bill.
- It is not a check mailed to you.
- The amount depends on how much energy you used at home during that period.
- Credits will appear on your bill by April 17.
No action is required on your part.
Support to help manage your bill
We offer a variety of programs and tools to help you manage energy use and monthly costs.
Energy efficiency programs and tools
Assistance for vulnerable customers
Budget payment plan
Protecting residential customers as Kentucky grows
Kentucky continues to see growth in advanced manufacturing and large-scale energy users like data centers. To support that growth while protecting existing customers, the KPSC approved a new rate called the Extremely High Load Factor (EHLF) service.
Here’s how it works:
- It applies only to energy-intensive new customers like data centers.
- These customers must sign a 15-year contract, compared to a one-year service commitment for most of our largest customers.
- They must commit to paying for at least 80% of the power they reserve — whether they use it or not – for the term of their contract.
- These large load customers must provide deposits equal to between 12 and 24 months of their service, whereas current customers provide 2 months typically.
- Rates are specifically designed for customers with high, steady energy use.
Large energy users like data centers on the EHLF rate must pay the full cost for infrastructure needed to serve their site.
This structure is designed to prevent cost shifting to residential and small business customers, ensuring fairness while supporting economic development.
Our continued commitment to you
Our focus remains the same: Providing safe, reliable and affordable energy while investing responsibly in the future.
We know trust is earned every day. We remain committed to disciplined planning, operational efficiency and strong customer protections as we continue serving communities across Kentucky.
