Hearing Begins In Utility Rate Case

by Gabe Bullard on June 8, 2010

by Tony McVeigh, Kentucky Public Radio

A hearing is underway in Frankfort on the latest rate hikes sought by the two largest utilities in Kentucky.

LG&E and KU lowered their requests and now are seeking $189 million in rate hikes, at the same time the utilities are being sold to Pennsylvania Power and Light. But before the hearing, the Public Service Commission denied a motion from the attorney general’s office seeking dismissal of the rate cases while the sale is pending.

“Yes, we have been dismissed, but they have said it was without prejudice, so we can renew that,” said Assistant Attorney General Dennis Howard. “Plus, we can explore those issues in these pending rate cases.”

Howard is representing consumers at the hearing, which is expected to last almost two days. The utilities say they need the rate increases to recoup investments in the Trimble County power plant and recover costs incurred by ice and windstorms in Kentucky.

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