The Kentucky Public Service Commission accepted a settlement Thursday that will increase rates for customers of Kentucky Utilities and Louisville Gas and Electric.

The rate increases were less than initially requested by the two companies, according to a news release from the Public Service Commission.

Under the terms of the settlement, the average monthly bill for a typical KU residential customer will increase by $5.16, about 5.6 percent. A typical LG&E residential electric customer bill will increase by $4.25, about 5 percent.

The average monthly bill for an LG&E residential natural gas customer will increase by $5.57, the release said.

The utilities, owned by Pennsylvania-based PPL Corp., asked for the rate increases this year to pay for a series of generation and transmission upgrades made in recent years.

LG&E has about 401,000 electric customers in nine counties in and around the Louisville area and 320,000 natural gas customers in 17 counties. KU has 550,000 customers in 77 Kentucky counties. The last rate increases were in July 2010.

Josh Kegley: (859) 231-3197. Twitter: @HLpublicsafety.