(LEX 18) — Kentucky customers utilizing LG&E and KU for their utilities are eligible for an upcoming refund due to a recent settlement 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 in regard to the modified increased rates settlement.
The recent settlement states that while customers will still see an increase in utility rates for 2026, the rate is lower than what was expected.
The press release states that LG&E and KU began using interim rates on Jan. 1 as part of a rate request filed in May 2025. However, final rates were approved on Feb. 16.
The refund customers receive will be the difference between the final rate approved for customers and the rates customers were paying during the interim period. Customers can expect to see the refund as a credit on their utility bill, which should appear by April 17. According to LG&E and KU, customers do not need to take any action in receiving their refund.
The new, approved rates for the average resident will be about $8.73 more per month for KU electric customers, about $5.14 more per month for LG&E electric customers, and about $8.27 more per month for LG&E natural gas customers, 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's website states.
The specific amount on a customer's bill and the specific amount of money customers will be refunded is based upon the amount of energy used by the consumer during the billing cycle.
For more information about the 2026 rate update, visit this link: LG&E and KU 2026 Rate Request Update
