Kentucky Electricity Rates: LG&E and Kentucky Utilities Guide

Kentucky Electricity Rates: LG&E and Kentucky Utilities Guide

Kentucky has historically enjoyed low electricity rates due to abundant coal resources. As the energy landscape evolves, here's what Kentucky residents need to know.

Major Kentucky Utilities

Louisville Gas and Electric (LG&E)

Serves approximately 400,000 electric customers in the Louisville area.

#### LG&E Rate Structure

• Customer Charge: ~$12.25/month
• Energy Charge: Per-kWh rate
• Fuel Adjustment Clause: Variable fuel costs
• Environmental Surcharge: Emissions compliance

Average residential rate: approximately 11.5 cents per kWh

Kentucky Utilities (KU)

Serves approximately 550,000 customers across central, northern, and western Kentucky.

#### KU Rate Structure

• Customer Charge: ~$12.75/month
• Energy Charge: Per-kWh rate
• Fuel Adjustment: Monthly fuel cost recovery
• Environmental Cost Recovery: Compliance costs

Average residential rate: approximately 11.8 cents per kWh

Duke Energy Kentucky

Serves approximately 145,000 customers in northern Kentucky.

• Average rate: ~12.5 cents per kWh

Kentucky's Energy Transition

Kentucky is transitioning from coal to natural gas and renewables:

1. Coal plant retirements - aging plants being replaced
2. Natural gas growth - new combined-cycle plants
3. Solar development - increasing utility-scale projects
4. Rate impacts - transition costs being recovered

Kentucky Energy Assistance

• LIHEAP through Cabinet for Health and Family Services
• Home Energy Assistance Program (HEAP)
• Weatherization Assistance Program
• Utility company payment arrangements

Tips for Kentucky Residents

1. Monitor fuel adjustment charges - they vary monthly
2. Consider time-of-use rates if your utility offers them
3. Take advantage of rebates for efficient appliances
4. Apply for assistance if you qualify