If approved, rates would go up by around 11% on average.
Byron Gary, program attorney for the Kentucky Resources Council, noted some households could see their bills jump by $20 per month. He said that even slightly higher bills disproportionately burden low-income residents working minimum- or near-minimum-wage jobs.
"In those winter months when your energy bill is the highest, because it's what's keeping the heat running, and you get disconnected because you're unable to keep up with those higher bills," Gary explained.
The higher rates come at a time when many Kentuckians are struggling to keep pace with inflation. A new Pew Research Center poll found that more Americans said they are shelling out more money for food, housing, and consumer goods. At least four in 10 Americans said they are very concerned about the price of gasoline and energy. Residents are urged to submit a comment about the proposed rate hikes.
Gary pointed out that utilities continue to make large investments in fossil fuel infrastructure, which will continue to affect ratepayers.
"I would not be surprised to potentially see more frequent and large rate cases coming in the future as LG&E and KU seek to incorporate the costs of the new power plants that they have received approval for or are currently seeking approval for," Gary cautioned.
Kentucky’s coal supply remains a primary source of energy. The Commonwealth is the fifth-largest coal-producing state in the United States, with nearly half of its coal production used in-state, according to a Kentucky Energy and Environment Cabinet report.