KENTUCKY (FOX 56) — Some Kentucky residents will notice changes to their electric bills this year after state regulators approved a revised rate increase for Kentucky Utilities, which serves more than 585,000 customers across 77 counties.
Utility leaders said monthly bills will still rise, but the final approved increase is lower than first proposed — and most customers will soon receive refunds on their statements.
An interim 11.5% rate increase took effect Jan. 1, adding about $18 to the average monthly electric bill. However, on Feb. 16, 2026, the Kentucky Public Service Commission approved a settlement that cut that increase to nearly half.
For the average residential KU customer, the adjustment equals about an $8.73 monthly increase. Because customers paid the higher 11.5% rate in January and part of February, the company will automatically issue refunds for the difference on upcoming bills.
Utility officials said the rate change comes as many customers are already facing higher bills, largely due to winter weather.
“We had weeks of really cold temperatures where your furnaces were just running nonstop, and so that really is the biggest impact on your bill,” said Daniel Lowry, a spokesperson for the utilities. “The rate increase is pretty small in comparison. It’s about eight dollars more a month or so, but people are going to see much higher bills just due to the cold weather.”
KU originally sought the increase to help fund infrastructure upgrades across its service area. The company said it plans to use the funds to replace aging utility poles, modernize substations and strengthen the electric grid to better withstand severe weather events that have become more common in Kentucky.
“This type of impact matters. Electricity matters. Energy matters for folks,” Lowry said. “We want to make sure we’re able to have the safest and most reliable grid possible.”
KU offers payment plans and can connect customers with third-party assistance programs. Utility leaders emphasized that proactive communication can help prevent service disconnections and said they are willing to work with customers who need help.
Officials encourage customers to carefully review their upcoming statements. Many will see a credit reflecting the difference between the interim January rate and the lower rate approved in February — a small adjustment that utility leaders hope will offer at least some relief as winter bills arrive.
Leave a Comment