While the monthly basic service charge will remain unchanged, KU's per-kilowatt charge will be modified to provide additional annual cost-recovery revenues of $125 million, incorporating costs from the new Louisville generating plant and other investments. KU owns 78 percent of that facility, with LG&E owning the remaining 22 percent.
“We are pleased to receive the commission’s approval of this case,” said Ed Staton, vice president of State Regulation and Rates. “Each of the parties was willing to compromise to develop a unanimous settlement that was fair, just and reasonable and the commission acknowledged the importance of that agreement.”
The settlement agreement provides no increase in revenues for LG&E’s electric operations and a $7 million increase in LG&E’s gas operations. A KU residential customer using an average of 1,200 kWh per month, will see an increase of $8.98 per month.
A residential LG&E electric customer, using an average of 984 kWh per month, will see a 10 cent decrease in their overall monthly bill. A residential LG&E natural gas customer, using an average of 57 Ccf per month, will see an increase of $1.23 per month.