Settlement in LG& Rate Cases Protects Vulnerable Residential Customers

Settlement in LG& Rate Cases Protects Vulnerable Residential Customers

Moderates the Amount and Impact of Rate Increases

• LG&E withdrew the request to roll out advanced meters on a mandatory basis, and will instead work in a collaborative with interested parties to review and make recommendations on how and when to deploy advanced meters.
• The overall revenue increases would drop to $59.4 million for electricity and to $7.5 million for gas services, and the allocation of what classes of customers will pay the increased revenue was made more fair than was under consideration.
• The return on equity was reduced to single digits, at 9.75%.
• The customer charge will rise from $10.25 per month to $11.50 in July 2017 and to $12.25 in July 2018, instead of the $22.00 requested by LG&E. For gas customers, the meter charge will rise to $16.35 for the next two years.
• The residential service charges will not be split into three components, which renewable advocates were concerned was a step towards decoupling and demand charges that would adversely affect distributed solar generators.
• LG&E agreed to fund a study on deployment of electric buses in Louisville.
• LG&E will increase low-income customer support from shareholder contributions by an additional $200,000 per year for utility assistance through the Association of Community Ministries until June 30, 2021, for a total shareholder contribution to 880,000 overall for utility and home energy assistance.