Kentucky customers who use LG&E and KU for utilities will receive a refund after a recent settlement and final order issued by the Kentucky Public Service Commission, according to a press release.
“Under the PSC’s Final Order, the average residential customer using 1,208 kWh per month will see an average monthly energy bill increase of $10.76 in the first year, resulting in an average bill of $194.13, up from an average bill from base rates of $183.37. This represents an increase of approximately 5.87% percent for the first year, and there will be an additional 0.76% increase after the first year,” the Commonwealth of Kentucky’s Public Service Commission states regarding the modified rate increase settlement.
The settlement says that although customers will still see higher utility rates in 2026, the increase will be lower than originally expected.
According to the press release, LG&E and KU began charging interim rates on Jan. 1 as part of a rate request filed in May 2025. However, final rates received approval on Feb. 16.
Customers will receive refunds covering the difference between the final approved rates and the interim rates they paid during that period. The refund will appear as a credit on customers’ utility bills and is expected to show up by April 17. LG&E and KU said customers do not need to take any action to receive the refund.
Under the newly approved rates, the average resident will see monthly increases of about $8.73 for KU electric service, about $5.14 for LG&E electric service, and about $8.27 for LG&E natural gas service, according to the press release.
“These updated rates allow us to continue strengthening the safety and reliability of the system you depend on every day while responsibly preparing for the future— all while protecting affordability,” LG&E and KU state on their website.
The exact amount listed on a customer’s bill, as well as the refund amount, will depend on how much energy the customer used during the billing cycle.
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