# Kentucky Electricity Rate Changes: What Changed in 2026 and What's Next

> Kentucky regulators approved smaller increases than LG&E and Kentucky Utilities asked for in February 2026: $8.73 a month for a typical KU customer and $5.14 for LG&E electric. No October 1 change was found.

- URL: https://solarexaminer.com/posts/kentucky-electricity-rate-changes-2026/
- Site: Solar Examiner (https://solarexaminer.com/)
- Category: Electric Rates
- Published: 2026-10-04
- Last verified: 2026-10-04
- Author: Tehseen Arbab

## Key takeaways

- We found no new rate change dated October 1, 2026 for LG&E or Kentucky Utilities.
- On February 16, 2026 the Public Service Commission approved a 6.54% electric increase for Kentucky Utilities and 4.73% for LG&E.
- A typical KU bill went from $133.57 to $142.30 at 1,085 kWh. A typical LG&E electric bill went from $108.76 to $113.90 at 866 kWh.
- The utilities agreed not to file another rate case until 2028, and the order raised compensation for rooftop solar.



Kentucky's two largest electric utilities did not change rates on October 1, 2026. Their 2026 increase came from a February order by the Kentucky Public Service Commission (PSC), which approved a settlement with changes.

This article covers Louisville Gas and Electric (LG&E) and Kentucky Utilities (KU). It does not cover Kentucky Power, Duke Energy Kentucky, cooperatives or TVA-served areas.

## Quick Summary

| Utility | Requested | Approved | Typical bill before | Typical bill after | Change |
|---|---|---|---|---|---|
| KU electric | 11.5% | 6.54% | $133.57 | $142.30 | +$8.73 |
| LG&E electric | 8.3% | 4.73% | $108.76 | $113.90 | +$5.14 |

Typical usage: 1,085 kWh a month for KU and 866 kWh for LG&E, per the PSC. (Cases 2025-00113 and 2025-00114.)

## What the PSC Decided

- **Amounts:** close to the settlement the parties filed, which proposed 6.74% for KU and 4.63% for LG&E.
- **Return on equity:** 9.775%. The settlement asked for 9.90%, according to the Kentucky Lantern.
- **Denied:** a proposed sharing mechanism for returns on investment.
- **Stay-out:** no new rate case until 2028.
- **Refunds:** the Kentucky Lantern reported that the utilities must refund excess amounts collected while the request was pending.
- **Data centers:** new rules for very large loads.

## Per kWh (Our Math)

- KU: $142.30 ÷ 1,085 kWh = **13.1¢ per kWh** all-in.
- LG&E: $113.90 ÷ 866 kWh = **13.2¢ per kWh** all-in.

These divide the PSC's typical bills by typical usage. They include fixed charges, so they are not the tariff energy rate.

## What This Means for Homeowners With Solar

The Kentucky Lantern reported that the order increased compensation for rooftop solar. We did not find the new rate, so check the current net metering tariff for LG&E or KU. A higher export credit and a higher retail rate both shorten payback.

Our [solar payback guide](/posts/solar-payback-period-without-federal-tax-credit/) shows how the retail rate and the export credit change the math.

## What to Check on Your Bill

1. The basic service charge.
2. The energy charge per kWh since the February order.
3. Fuel adjustment and environmental surcharge lines, which change monthly.
4. Any refund credit.

For help sorting the lines on your bill, see our guide to [reading your electric bill](/posts/how-to-read-your-electric-bill/).

## Limitations

We did not find the exact effective date of the new rates, the basic service charge or the new solar compensation rate. Kentucky Power and Duke Energy Kentucky were not researched.

## Sources

- [Kentucky PSC, "PSC Issues Order for KU and LG&E Rate Cases Settlement," Feb. 16, 2026](https://psc.ky.gov/agencies/psc/press/022026/0216_r01.pdf)
- [Kentucky Lantern, "LG&E/KU customers will pay more though not as much as utility wanted," Feb. 18, 2026](https://kentuckylantern.com/2026/02/18/lge-ku-customers-will-pay-more-though-not-as-much-as-utility-wanted/)

## Frequently asked questions

### Did Kentucky electric rates change on October 1, 2026?

We found no change on that date for LG&E or Kentucky Utilities. Their current base rates come from a February 16, 2026 Public Service Commission order.

### How much did KU and LG&E rates go up in 2026?

Kentucky Utilities electric rates rose 6.54%, about $8.73 a month for a typical customer. LG&E electric rates rose 4.73%, about $5.14 a month.

### When can LG&E and KU raise base rates again?

The utilities agreed not to file another rate case until 2028. Riders and fuel adjustments can still change bills before then.


Image credit: Photo by Alexandru Boicu on [Unsplash](https://unsplash.com/photos/landscape-photography-of-electric-towers-under-a-calm-blue-sky-h0z0ptvGVR8?utm_source=solarexaminer&utm_medium=referral)