LG&E and KU intend to raise base cost of utilities to their customers this winter.

E.ON U.S., headquartered in Louisville, Kentucky, U.S.A., announced that Louisville Gas & Electric (LG&E) and its sister company, Kentucky Utilities (KU), want to raise the cost of natural gas and electricity service to their customers by filing applications with the Kentucky Public Service Commission. LG&E and KU are Kentucky’s largest public utilities.  The two companies want to raise electricity costs by about 2 percent.  If the increases are approved by the Kentucky Public Service Commission, new rates could take effect as early as February, 2009.   

LG&E also plans to ask for a 6 percent increase for the cost of natural gas.  KU does not sell natural gas.  The formal rate hike request will go to the Public Service Commission on July 29, 2008.   

LG&E and KU argue that the increases are needed to cover $3 billion incurred in construction of additional generation, environmental upgrades, and infrastructure improvements to ensure safe and reliable utility services for their customers.