LG&E Seeks Surcharge Increase

by Gabe Bullard on July 22, 2009

Louisville Gas and Electric has asked the Public Service Commission to approve an increase to customers’ monthly bills, but the company isn’t raising its rates.

LG&E has received approval to increase its rates to recoup expenses from last year’s windstorm. Approval for a similar increase following the January ice storm is pending.

The company has now requested an increase to its environmental surcharge to recoup about 76 million dollars in pollution control spending. State law allows such expenses to be recouped through the surcharge, which Public Service Commission spokesperson Andrew Melnykovych says is not related to electricity rates.

“Ice storm and wind storm costs are recoverable in general rates in an amount yet to be determined by the commission, and they would have to be part of a general rate increase, he says. “The environmental surcharge mechanism is something that is done on an ongoing basis.”

Surcharge increases are approved on a rotating schedule. The implementation of rate increases following the storms must be approved at LG&E’s next rate case, which will likely be next year.

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