New Interim Rates and What They Mean for You
Until the Kentucky Public Service Commission issues a final order, proposed rates will be in effect beginning Jan. 1.
In May 2025, LG&E and KU filed our first requests to adjust base rates since 2020 with the Kentucky Public Service Commission (KPSC). These requests support the essential work required to continue providing safe, reliable and affordable energy as Kentucky grows and energy needs increase.
Kentucky has a very open and transparent regulatory process that can extend up to 10 months. Since filing, we’ve worked with the Kentucky Attorney General’s Office and other key stakeholders involved in the cases to reach a collaborative settlement agreement that significantly reduced our original request.
When utilities file requests to adjust base rates, the Commission will suspend – or freeze – customers' utility rates for the first seven months as part of the regulatory process.
If the KPSC hasn't yet made its final decision in those seven months, interim rates can take effect until the KPSC issues its final decision. In this case, the Commission has until March 31, 2026 to issue a final order. If the Commission’s final decision is a lower amount than the proposed rates, customers will be refunded the difference through a credit on their bill, plus interest.
While we filed a request with the KPSC on Dec. 8 to implement the lower rates reached in the settlement agreement as the interim rates, KRS 278.190 only allows the initial proposed rates to take effect in the interim.
What the Interim Rates Means for Your Bill Starting Jan. 1
Interim rates take effect on Jan. 1 and the average monthly increase for residential customers, based on typical usage, are as follows:
KU Electric:
LG&E Electric:
LG&E Natural Gas:
Your January bill may show both old and new rates.
Because billing cycles vary, most customer bills in January will be prorated—part at the old rate for energy used before Jan. 1 and part at the interim rate for energy used afterward.
Why a Rate Adjustment Is Needed
We’ve worked hard to hold down costs for customers and have not requested an adjustment to base rates since 2020. During that time, Kentucky has experienced tremendous economic growth, severe weather has become more frequent, and energy infrastructure continues to age.
Our system enhancements support:
- Upgrading aging infrastructure
- Strengthening the grid against extreme events, including more frequent severe weather
- Enhancing natural gas safety
- Expanding outage detection and restoration technology
- Supporting new and expanding industries across Kentucky
- Improving customer service tools and digital capabilities
More details about these investments can be found at lge-ku.com/investments.
Interim Rates Are Temporary and Subject to Refund
Interim rates are not final. When the KPSC issues its final order:
- We will work as quickly as possible to adjust bills to reflect the approved rates.
- If final rates are lower than the interim rates, we will apply appropriate adjustments or credits, plus interest.
- Customers will be notified once the KPSC issues its decision and adjustments are ready.
No action is required from customers.
Thank you for your patience and understanding as we work through this important process. We remain committed to delivering safe, reliable, and affordable energy while planning responsibly for Kentucky’s future.
Support for Customers
We understand that any increase can be difficult. If you or someone you know is struggling, we encourage you to contact us right away. We offer programs and resources that may help.
Bill Assistance Programs
Flexible payment options, income-based assistance programs, and community support resources are available at lge-ku.com/assistance.
Energy Efficiency Programs to Help You Save
We have launched the largest number of energy efficiency programs in our companies’ history to help customers reduce energy use and manage bills.
Explore savings options at lge-ku.com/save.
