Kentucky PSC Approves Rate Hikes for KU and LG&E

In a pair of rate proceedings resolved by settlement, the Kentucky Public Service Commission approved rate increases for Kentucky Utilities (KU) and Louisville Gas & Electric (LG&E). The KU agreement allows the utility to raise its rates by $51 million, compared to its application for an $82.4 million increase. The LG&E settlement provides $33.7 million in additional electric revenues and $15 million in additional natural gas revenues. The company had sought to increase its electric rates by $62.1 million and its natural gas rates by $17.2 million. The commission likewise accepted a stipulated rate of return on common equity (ROE) of 10.25 percent for both utilities, but at the same time observed that only a year earlier, the same settling parties had adopted a 10.10 percent ROE for the companies for the purpose of monthly environmental cost recovery filings. For the full story and more analysis, subscribe to Utility Regulatory News