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KU now seeking lower rate hike, following deal with intervening parties

A speaker addresses the Kentucky Public Service Commission regarding a requested rate by Kentucky Utilities on October 14, 2025.
Josh James/WUKY
A speaker addresses the Kentucky Public Service Commission regarding a requested rate by Kentucky Utilities on October 14, 2025.

Kentucky Utilities and Louisville Gas and Electric have reached a settlement agreement with the majority of parties intervening in their requested rate increases. But the process is still far from over.

KU and LG&E have filed a new settlement proposal with the Kentucky Public Service Commission, which oversees utility rates in the state.

Under the latest proposal, KU would receive a $132 million increase for electric service, down from an original ask of $226 million. The average customer would see an increase of $9 a month, or half of the hike that was originally proposed.

Under the agreement, both KU and LG&E would commit to not increase base rates again until at least August 1, 2028. If ultimately approved, the current proposal would not go into effect before 2026.

The latest request comes less than a week after a hearing was held in Lexington, where customers spoke against the hike. The new proposal still faces opposition from some intervening parties and the input process will continue.