LOUISVILLE, Ky. — As soon as Nov. 1, LG&E-KU reports some customers are likely to see a $22 increase in monthly energy costs, as the winter billing cycle gets underway.
The Louisville-based utility company provides power to 1.3 million customers across Kentucky and West Virginia, with 762,000 of those customers located in Louisville and surrounding counties.
Natasha Collins, director of media relations for LG&E-KU, said the price adjustment will impact those who derive heat from a natural gas-powered source.
“For our customers, it’s still subject to approval by the Kentucky Public Service Commission,” Collins said. “What we want [customers] to know, is that we understand it’s challenging. We’re here to assist them.”
Why the price hike?
Collins said the price hike is in response to the separate price increase facing utility companies in the wholesale market for natural gas.
“This is impacting, not just customers here in Louisville but customers across the country,” Collins said. “We’ve seen wholesale natural gas costs trend higher for the last couple of years.”
According to the most recently available data from the U.S. Energy Information Administration, year-to-date, Kentucky’s industrial price for natural gas is 69% more expensive.
There are a number of factors at play, pushing up prices, Collins said.
During an Oct. 20 legislative meeting, the Kentucky Energy and Environment Cabinet told lawmakers those factors included the lingering effects of pandemic, the war in Ukraine, economic policies and recent global weather events.
Collins said a greater amount of natural energy resources are being exported to places like Europe and Asia. That is in part being done to help U.S. allies who are impacted by Russia’s cutback on shipments to countries supporting Ukraine.
All of this combined has had an impact on Kentucky’s energy market that’s twofold: rising demand for energy resources and an increasing production capacity that cannot keep up.
Per the Kentucky Office of Energy Policy, statewide natural gas consumption is nearly five times greater than the state’s production
How LG&E-KU is helping customers
The looming hike in energy prices are set to occur at a time when consumers are already facing record-high inflation rates.
Collins said LG&E-KU understands the more expensive utility costs may come as a breaking point for some families.
“We all want to stay warm and comfortable in our homes. We want our families to stay comfortable, and we know that’s a challenge,” Collins said. “We want customers to know we are here to assist them.”
This winter, LG&E-KU has committed to doubling its matching fund for Louisville nonprofit Community Winterhelp.
The organization is managed by the Louisville Urban League and the Association of Community Ministries and operates with the goal of providing low-income families with utility bill assistance during the winter months.
LG&E-KU will match every dollar donated with a $2 donation, up to $200,000.
Collins said customers are also encouraged to utilize the company’s “Budget Payment Program.”
“That helps to average out the customer’s bill over the course of a year and to reduce the volatility that you see associated with weather fluctuation,” Collins said.
How to conserve energy in your home:
While price adjustments are unavoidable, Collins said there are instant-fix actions families can take to navigate utility costs.
Here are some of LG&E’s recommendations:
- Adjust the thermostat appropriately
- Seal leaks around doors and windows and in ductwork
- Have a certified professional inspect the HVAC system in your home ahead of winter
- Utilize natural heating sources, like sunlight, when you can
- Layer your clothes while at home to avoid having to cranking up the heat significantly