LEXINGTON, Ky. (WDKY) – Lexington officials say they have reached an agreement in principle to a settlement that would reduce a rate increase proposed by Kentucky Utilities by almost one-third or $54.2 million per year.
“Our overall goal has been to keep the cost of living low in Lexington,” Mayor Linda Gorton said. “That is especially important right now as we work our way out of a pandemic.”
Lexington, Louisville and the state joined forces in opposing the rate increase.
KU’s increase for residential users will average $7.82 a month in the first year; $8.63 a month in subsequent years.
The new rates will be applied later this year, assuming the agreement is approved by the Kentucky Public Service Commission, which regulates utilities in the Commonwealth.
KU also agreed to:
- No increase in the fixed customer charge, the amount customers pay regardless of how much energy they use.
- No additional increases to the base rate customers pay for four years. In the past decade, the company has been asking the Kentucky Public Service Commission for rate increases every two years.
- An increase in the assistance KU provides to low-income consumers.
KU serves 77 counties across Kentucky, including Lexington.