01—Abstract
Summary
Summary of the 8-K filed May 15, 2025. Cited figures are marked; the original filing is the authoritative source.
On May 15, 2025, Louisville Gas and Electric Company (LG&E) and Kentucky Utilities Company (KU), part of PPL Corporation, announced they anticipate filing rate requests with the Kentucky Public Service Commission (KPSC) on or after May 30, 2025.
The anticipated applications seek annual electricity revenue increases of approximately $105 milliona at LG&E and $226 million at KU, and an annual gas revenue increase of approximately $60 million at LG&E. The filings would represent increases of 8.3% and 11.5% in electricity revenues at LG&E and KU, respectively, and 14.0% in gas revenues at LG&E. The requests are based on a forecasted test year of January 1, 2026 through December 31, 2026 and a requested authorized return-on-equity of 10.95%.
If approved, the rates would take effect January 1, 2026. The Companies state they cannot predict the outcome and anticipate a KPSC ruling in the fourth quarter of 2025. The proceedings are designated Case No. 2025-00114 (LG&E) and Case No. 2025-00113 (KU).
The accompanying press release (Exhibit 99.1) attributes the requests to aging infrastructure, including wooden transmission poles more than 60 years old and substations nearly 100 years old, and to more severe storms. It notes that the companies have not requested base rate increases since November 2020, and proposes waiving a $1.95b cash payment fee and creating a pre-pay program for residential AMI customers.
02—Key points
Key Highlights
- LG&E and KU anticipate filing rate requests with the KPSC on or after May 30, 2025.
- Requested electricity revenue increases: approximately $105 million at LG&E (8.3%) and $226 million at KU (11.5%).
- Requested gas revenue increase of approximately $60 million at LG&E (14.0%).
- Requested authorized return-on-equity of 10.95% on a forecasted 2026 test year.
- Companies anticipate a KPSC ruling in the fourth quarter of 2025, with requested rates effective January 1, 2026 if approved.
- Cases designated No. 2025-00114 (LG&E) and No. 2025-00113 (KU); the companies state they cannot predict the outcome.
- The press release states the companies have not requested base rate increases since November 2020.
03—Questions
Frequently Asked Questions
How much revenue increase are LG&E and KU requesting?
The anticipated applications request annual electricity revenue increases of approximately $105 million at LG&E and $226 million at KU, and an annual gas revenue increase of approximately $60 million at LG&E. These correspond to increases of 8.3% and 11.5% in electricity revenues and 14.0% in gas revenues, as stated in the filing.
When would the proposed rates take effect and when is a ruling expected?
Subject to KPSC approval, the requested rates would become effective on January 1, 2026, based on a forecasted test year of January 1, 2026 through December 31, 2026. The Companies anticipate a KPSC ruling during the fourth quarter of 2025.
What return on equity are the companies requesting?
The applications request an authorized return-on-equity of 10.95%.
Why are the utilities seeking these increases?
According to the accompanying press release, equipment including wooden transmission poles (55% of which are more than 60 years old) and substations, some nearly 100 years old, is reaching the end of its useful life. The companies also cite more severe storms and rising energy demand, and state they have not requested base rate increases since November 2020.
Does the filing indicate the companies can predict the outcome of the proceedings?
No. The Companies state that they cannot predict the outcome of the proceedings.
04—Continue