Earlier this year, when LG&E requested significant gas and electric rate increases – including an enormous increase in monthly basic service charges – Metro Council urged Louisville Metro to intervene in the case.   I introduced a resolution urging intervention, which noted that “increased fixed charges sought by LG&E have the potential to undermine energy efficiency and disproportionately impact low-income Louisville Metro residents”.  The resolution attracted multiple co-sponsors and was ultimately passed 20-0.  Louisville Metro intervened in the case.

Yesterday’s announcement of a proposed settlement in the case is a significant improvement from LG&E’s request. The overall increase is substantially reduced and the monthly basic service charge increases are slashed.  Under the proposed settlement agreement, LG&E agreed to a basic service charge increase of less than $4.00 per month next year, as opposed to the requested increase of almost $22.00 per month.

Louisville Metro should be at the table whenever a utility seeks an increase in its charges to our residents.  That’s particularly important when a utility is proposing an increase in monthly basic service charges that disproportionately affects low income individuals and reduces incentives for energy conservation.

The agreement is subject to approval by the Public Service Commission. The PSC is scheduled to consider the case on May 9.