Opponents of the increases say they’d primarily fund normal business costs and increase the financial burden on families in the Commonwealth struggling with inflation and high housing costs.
Elisa Owen – the Kentucky senior organizer with The Sierra Club's Beyond Coal Campaign – said they sought the agreement in the hopes residents wouldn’t have to see a larger chunk of their paycheck go toward keeping the lights on.
"We settled because traditionally, the utilities have gotten everything they've asked for, right?" said Owen. "And so we settled in the hope that we could get half."
New rates wouldn’t go into effect until January 2026, if the agreement is approved by the state’s Public Service Commission. Other advocacy groups, including the Kentucky Resources Council, say they don’t believe the settlement is good for consumers.
Owen credited the utilities' willingness to compromise on the forceful outcry from residents opposed to the rate increases in a series of public hearings last month across the state.
"People got a sick feeling in the pit of their stomachs when they saw the increase," said Owen, "because it was so much more than their cost-of-living increases that they were getting on their fixed incomes."
In a separate case, the Public Service Commission greenlighted an agreement with LG&E and KU, along with other parties – including the Kentucky Coal Association – to construct two new gas units expected to be up and running by 2030 and 2031.
Environmental groups claim the plan would pass off 3 billion dollars in costs to Kentucky families and small businesses.
