News release: Louisville and Lexington seek to intervene in LG&E rate case

FOR IMMEDIATE RELEASE                                                      Media Contacts:

                                                                                              Louisville: Jean Porter, (502) 574-2383

                               Lexington: Susan Straub, (859) 258-3111

 

Louisville and Lexington seek to intervene in LG&E rate increase case

LOUISVILLE (December 14, 2020) – Louisville and Lexington city governments are jointly seeking to intervene in a case pending before the Kentucky Public Service Commission (PSC) regarding a rate increase proposal from Kentucky Utilities and Louisville Gas & Electric.

LG&E, which sells electricity to nine counties in the Louisville area and natural gas to 17 counties, is seeking to increase its electric revenue by 11.6 percent and gas revenue by 8.3 percent. According to the company, this translates into an 11.8 percent increase in monthly electric rates and a 9.4 percent increase in monthly gas rates for the “average” residential customer.

An increase would affect all local households and could potentially reduce the number of local families served by Louisville Metro’s low-income heating assistance program. In addition, Louisville Metro Government’s approximate $13 million annual LG&E expense makes it one of the largest single customers that the utility serves. As the state’s largest urban area, Louisville Metro provides and pays for the most extensive streetlight and traffic light infrastructure of any city in Kentucky, paying approximately $5,500,000 per year. The company says the streetlight rates are increasing in the LG&E service area by 11.9 percent. 

KU, which serves 77 counties across Kentucky, including Lexington and its suburbs, is seeking an increase of 10.7 percent.

The Mayors of both cities expressed concern about the impact of the increase.

"This request comes at a time when so many families in our city – and cities across the state –are dealing with the negative financial impact of COVID-19,” said Mayor Greg Fischer. “It’s important that Louisville and Lexington have a seat at the table in this discussion, so we can better understand the utility’s needs while also advocating for our municipal interests and our residents – especially those with low or fixed incomes."

Lexington Mayor Susan Gorton said, “There’s no good time to ask for a rate hike, but it’s hard to imagine a worse time than in the middle of a pandemic. People are scrambling to pay their bills, and to hold on to their apartments and homes. We need to offer assistance, not increase their burden.”

Louisville Metro Councilwoman Barbara Shanklin District 2, chair of the Community Affairs, Health and Education Committee, agreed, noting: “COVID 19 has caused such a financial hardship on so many people and families; now is not the time to be raising rates. The Metro Council is aware of the many people who are already having a tough time paying their utility bills. Until we can get people back to work, we need to give as much assistance as possible and not create further strain in these uncertain times.”

The two cities will share legal representation, a move that will save significant costs. Former PSC Chairman Jim Gardner and former PSC staff attorney Todd Osterloh of the law firm of Sturgill, Turner, Barker & Moloney will lead the effort, with support from the office of Jefferson County Attorney Mike O’Connell and the city of Lexington’s Law Department.

The two cities filed their motion to intervene with the PSC today. The PSC will next decide whether to grant their request, along with other groups that have already sought or may seek intervenor status.

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