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E.ON U.S. said its two Kentucky utility subsidiaries, Louisville Gas and Electric Co. and Kentucky Utilities Co., will soon seek a total of $230.6 million in base electric rate increases, largely to cover costs associated with growing demand, and a $22.6 million natural gas base rate increase.
According to separate news releases issued Jan. 14, LG&E and KU will file their rate increase requests with the Kentucky Public Service Commission on Jan. 29, to be effective March 1. The company said its utilities must recover the costs of more than $1.2 billion in generation and infrastructure improvements and more than $133.7 million in repairs following two historic storms in 2008 and 2009.
The two companies are requesting that the costs associated with the wind and ice storms be spread out over the next five years.
LG&E alone is requesting a 12.1%, or $94.6 million, base electric rate increase and a 7.7%, or $22.6 million, base natural gas rate increase. If approved by state regulators, LG&E's residential base rate costs would increase to 8.3 cents per kWh -- about 3.66 cents per kWh lower than the average U.S. residential rate, the...