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.
By opening the field to far-flung deals, PUHCA’s repeal changes the merger game.
The repeal of the 1935 Public Utility Holding Company Act has attracted a surprising amount of attention in the business and consumer press. But while some analysts predict a wave of utility M&A activity, others are more sanguine about the change.
Should transmission owners get paid extra for distance and voltage?
Can natural gas supply keep up with demand for power?
Things are looking up for the energy industry, but tough issues remain. Regulators-forced to grapple with the mismatch between volatile natural-gas prices and years of building gas-fired power plants-have learned a thing or two. They now insist on new rate schemes and risk-management methods while promoting the use of liquefied natural gas.