The average $5 increase will support electricity distribution upgrades, though environmental advocates say the company should diversify its energy sources.
LOUISVILLE, Ky. — LG&E customers are now paying slightly more on their monthly bills — about $5.14 more on average for electric service. The company says the increase will fund improvements designed to protect the power grid from severe weather.
Thunderstorms and tornadoes have previously caused power outages lasting several days. However, when nearly 10 inches of snow fell over several days in late January, LG&E customers did not go a full day without electricity. The company says outages have dropped by about 40% after it upgraded parts of its distribution infrastructure.
“But we need to do more. We are seeing stronger, more severe storms across the region,” said Drew Gardner with LG&E.
Steel poles, stronger wires, automatic switches
LG&E and its contractors are gradually replacing older wooden utility poles with stronger steel poles. The Kentucky Public Service Commission approved the monthly rate increase to help fund these upgrades, which also include installing tougher power lines that are less likely to break during icy weather.
The company is also installing automatic switches connected to distribution lines. LG&E aims to have one switch for about every 300 customers, allowing power to be restored more quickly even if nearby customers remain without electricity. The company hopes to install 400 additional switches by Memorial Day.
“Tornado alley is showing signs of shifting further east into states like Kentucky, so we have to be prepared for that,” Gardner said.
Sierra Club criticizes fossil fuel reliance
Elisa Owen, an organizer with the Sierra Club, opposed the rate increase.
“And their investment choices in fossil fuel is helping to cause the worsening weather,” Owen said.
LG&E currently generates 84% of its electricity from coal but plans to lower that figure to 73% by 2028. According to filings with the state commission, solar and hydro power are expected to increase from 2.8% to 3.7%.
“The way they could make our grid resilient — they could diversify their energy portfolio,” Owen said.
Data center demand could increase energy use
Operating existing power plants costs less for the company than constructing new facilities. LG&E also expects growing electricity demand as developers compete to build data centers in Kentucky, which the company plans to support with natural gas generation.
When deciding where to update infrastructure, LG&E considers factors such as historical outages, tree coverage and areas where improvements could have the greatest impact, Gardner said.
Senate bill targets rate case interventions
Meanwhile, the Kentucky Senate passed Senate Bill 8 on Wednesday, which would limit interventions in rate increase cases. Under the proposal, groups like the Sierra Club would need to prove they are not attempting to delay energy projects.
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