Utilities upgrading aging equipment to defend
against stronger storms and support increased energy needs.
LOUISVILLE, Ky.,
May 15,
2025 /PRNewswire/ -- If it feels like Kentucky has experienced Mother Nature's wrath
more frequently over the last few years, that's not your
imagination. Increasingly, scientists – including at the National
Oceanic and Atmospheric Administration – are noting the extreme
weather pattern of "Tornado Alley" is expanding eastward. In 2025
alone, Kentucky has experienced up
to three quarters of an inch of ice, 14 inches of snow, extreme
cold, more than 30 reported tornadoes and the worst flooding on the
Ohio River since 1997.
For utility providers, including Louisville Gas and Electric
Company and Kentucky Utilities Company, stronger, more frequent
storms underscore the importance of system hardening to withstand
the effects. Already, LG&E and KU's ongoing system investments
for customers have achieved a reduction in power outage frequency
by 40% and duration by 30%.
As the risks of these more severe storms, wildfires and demand
for energy continue to rise, LG&E and KU are working to
mitigate the threats with stronger wires and poles; increasing
vegetation management to further control this leading cause for
power outages; and installing advanced technologies to identify and
prevent outages.
Coupled with system enhancements, LG&E and KU are making it
even easier for customers to do business. New advanced meter
technology gives customers access to near real-time data to better
pinpoint savings and manage their energy bills. Behind the scenes,
the utilities also are upgrading information technology systems,
improving customer billing processes and adding even more
protections against cyber-related threats.
"We continually evaluate how to best serve our customers and
ensure that we are providing safe, reliable, affordable energy with
award-winning customer service," said John
R. Crockett, LG&E and KU President. "Our system
enhancement plans will help us defend against Mother Nature and
improve service for our customers."
Stronger poles and wires and updated substations
While
the utilities continuously invest in their transmission and
distribution systems, some equipment dates back to the 1920s and is
reaching the end of its life, posing a significant risk to system
reliability.
Currently, 55% of the wooden transmission poles are more than 60
years old and in need of replacement with steel structures that
offer greater strength and durability against wind and ice;
upgraded components, and, in some cases, additional lightning
protection.
Likewise, system hardening, real-time monitoring and automated
technologies, coupled with advanced metering functionality, is
greatly improving the utilities' distribution system. Since 2017,
customers have collectively experienced 150,000 fewer power outages
each year, preventing 27.7 million outage minutes in total.
However, to maintain or improve this performance, the system not
only needs additional stronger wires and poles, but upgrades to its
aging substations, some of which are nearly 100 years old.
Natural gas system safety and reliability
LG&E
also is investing in its gas system, including pipeline integrity
and safety projects, to ensure it continues to provide safer, more
reliable gas service. The most notable project is the 12-mile
Bullitt County pipeline project
that began this year. Due in large part to legal challenges,
hundreds of requests for new or expanded natural gas service were
delayed over the past six years. Once complete, the line will
provide much needed reliability for current customers in the area
and allow for new and expanded service, including those additional
delayed requests, to be fulfilled.
Meeting customers' needs in the most reasonable, least-cost
manner
To support the necessary system enhancements,
LG&E and KU plan to file, on May
30, requests with the Kentucky Public Service Commission for
adjustments to their total revenues. LG&E and KU have not
requested increases in base rates since November 2020. KU will request an increase of
11.5% in total revenues. LG&E will request an 8.3% increase in
total revenue for the electric business and 14.0% for its natural
gas business. Over the last five years, as inflation increased
nearly 20% and labor and material costs escalated, LG&E and KU
have held down costs and maintained residential rates that are more
than 24% below the national average.
"We understand that increasing customer bills is impactful and
not a decision we take lightly. Our employees, who are also our
customers, work hard to operate and maintain our systems to be
among the best in the nation, and we have held true to our
commitment to not increase rates for the last five years. Even now,
our request is significantly less than the rate of inflation," said
Crockett. "However, we're at a tipping point in which the
foundational portions of our system – poles, wires, substations and
technology – are reaching the end of their useful lives."
LG&E and KU also are proposing several new services to help
lessen the impact for customers and allow for more flexibility. For
customers who pay with cash, the utilities will ask for approval to
waive the current $1.95 transaction
fee required for cash payments at third-party locations. And to
help customers better manage their energy usage and budget, the
utilities are requesting a pre-pay program that allows all
residential AMI customers to deposit funds in advance to pay for
energy as it is used.
If approved, these adjustments would likely go into effect not
before Jan. 1, 2026. Even with the
proposed increase, residential rates for both LG&E and KU
electric service will remain below average U.S. residential
rates.
If approved, KU residential customers
using an average of 1,085 kWh per month would see an increase of
$18.14 in their total monthly
electric bill.
LG&E residential electric
customers using an average of 866 kWh per month would see
an increase in their total monthly bill of $11.04.
LG&E residential natural gas
customers using an average of 52 Ccf per month would see an
increase of $11.12 in their total
monthly bill.
LG&E and KU offer programs to help customers manage their
energy use, including the largest portfolio of energy efficiency
offerings in the company's history; a new advanced meter portal
that allows customers to view their energy usage in near real time;
and tips to save energy and money. However, LG&E and KU
understand customers can sometimes have difficulty paying their
utility bills. Customers who are eligible to set up payment
arrangements can do so via the mobile app or online My Account, in
addition to reaching out to LG&E or KU for assistance and be
connected with a number of agencies that provide assistance.
To learn about these assistance programs, visit
lge-ku.com/assistance.
Louisville Gas and Electric Company and Kentucky Utilities
Company, part of the PPL Corporation (NYSE: PPL) family of
companies, are regulated utilities that serve more than 1.3 million
customers and have consistently ranked among the best companies for
customer service in the United
States. LG&E serves 335,000 natural gas and 436,000
electric customers in Louisville
and 16 surrounding counties. KU serves 545,000 customers in 77
Kentucky counties and 28,000 in
five counties in Virginia. More
information is available
at www.lge-ku.com and www.pplweb.com.
For more information:
Contact the LG&E and KU 24/7 media hotline at (502)
627-4999
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SOURCE LG&E and KU